Blackboard site is live

https://www.blackboard.uidaho.edu/webct/logon/72822098001

or

https://www.blackboard.uidaho.edu/

What is the opportunity?

Social Responsibility

Social Responsibility

Environmental FactorsMacro-

Environment

CompetitorsCustomers

Micro-EnvironmentTechnology Social Issues

Ethical/LegalIssues Political Issues

Environmental Issues

RETAILERETAILERR

“By bringing sustainability into the conversation from the outset, the Accord is intended to spark thinking about new behaviors and new business models.”

A New Model for Green DesignJanuary 18, 2008

“While this more eco-driven approach is significant, it's the second part of the accord that promises to have the biggest impact—on the studios, their clients, and ultimately consumers. Signers of the accord promise to break the traditional secrecy of the industry by sharing what they've learned about sustainable design.”

“...if successful, the Designers Accord will catalyze the sustainable design movement in the U.S., which, while clearly gaining momentum, still lags behind that of Europe, where stricter government regulations have required companies to focus on environmental issues for some time.”

http://www.designersaccord.org/

ConsumerConsumerRetailerRetailerWholesalerWholesaler

The Distribution Channel

ManufacturManufacturerer

Types of Retailers(continued)

Critical DecisionsVariety

Assortment

Services

Pricing

Describing Different Types of Retailers

(Retail Mix)CustomerService

Retail Strategy

Store Design& Display

Location

CommunicationsMix

MerchandiseAssortments

Pricing

• Food Retailers•Primary Shopping Format for Food Sales

Growth Rates by Retail Format

• Fresh perishables

• Health-conscious& ethnic

• In-store experience

• Private brand labels

How supermarketsare competing

• Department Stores• Specialty Stores• Category Specialists• Home Improvement Centers

• Discount Stores• Drugstores• Off-Price retailers• Extreme Value Retailers

Types of General Merchandise Retailers

Royalty-Free/CORBIS

Department stores in an eroding market

•Attempting to increase the amount of exclusive merchandise they sell

•Undertaking marketing campaigns to develop strong images for their stores and brands

•Building better relationships with their key customers

Why Sears Must EngineerIts Own Makeover

Text

“With a potential recession on the horizon, retail experts say it is now clear Chairman Edward S. Lampert must engineer a radical makeover of the 121-year-old retailer to prove it can thrive alongside bigger rivals. To halt the sales and profit declines, the company's Sears and Kmart stores must forge new roles for themselves that will distinguish them in customers' eyes from competitors such as Kohl's Corp., J.C. Penney Co., Target Corp. and Wal-Mart Stores Inc.

January 16, 2008

Issues in Discount Store Retailing• Only Big Three Left Wal-Mart, Kmart, Target

• Wal-Mart’s Dominance

• Differentiate StrategyWal-Mart = Low Price and Good valueTarget = More Fashionable Apparel

• Competition from Category SpecialistsToys-R-Us, Circuit City, Sports Authority

McGraw-Hill Companies, Inc./Gary He, photographer

•Decline in Mall Shopping and Apparel Sales

•-Lack of New Fashions•-Less Interest in Fashion•-Increase Price

Consciousness•Lifestyle Formats –

Abercrombie and Fitch and Hot Topics

McGraw-Hill Companies, Inc./Gary He, photographer

Issues in Specialty Store Retailing

• Consolidation – Walgreens, CVS, Rite-Aid

• Competition from Supermarkets, discount Stores and mail-in orders

• Evolution to a New Format• Stand Alone Sites with Drive

Thru Windows• Offering more frequent

purchase food items• Improved systems provide

personalized service in the pharmacy

Issues in Drug Store Retailing

• Deep and Narrow Assortments Destination Stores

• Low Price and Service

• Wholesaling to Business Customers and Retailing to Consumers

• Incredible Growth

Ryan McVay/Getty Images

Category Specialists

10 Most Profitable Businesses

10 Least Profitable Businesses

10 Most Profitable Businesses

1. Accounting Services2. Legal Services3. Dental Services4. Specialized Design Services5. “Other” Health Practitioners6. Outpatient Care Centers7. Insurance Brokers8. Physicians' Offices9. Medical And Diagnostic Labs10. Depository Credit Intermediation

Services vs. Merchandise RetailersIntangibility -Problems in Evaluating Service Quality -Performance of Service Provider

Simultaneous Production and Delivery -Importance of Service Provider

Perishability -No Inventory, Must Fill Capacity

Inconsistency of the Offering -Importance of HR Management

• Independent• Corporate Retail chains• Franchise

Types of Ownership

Multi-channel Retailing

“Tri-Channel” Retailing

Digital Vision / Getty Images

Catalog

Steve Cole/Getty Images

Internet

The McGraw-Hill Companies, Inc./Andrew Resek, photographer

Physical Store

Store Channel• Browsing• Touching & Feeling Products• Personal Service• Cash Payment• Entertainment and Social Experience• Immediate Gratification• Risk Reduction

Catalog Channel

• Convenience• Safety• Quality of Visual Presentation

Internet Channel• Broader Selection• More Information to Evaluate

Merchandise• Personalization• Selling Merchandise with “Touch and

Feel” Attributes• Perceived Risks in Electronic

Shopping

Rainforest Cafe

Starbucks

Strengths?Issues?