Chapter 11An Introduction to Retailing

RETAIL MANAGEMENT:

A STRATEGICAPPROACH

Agenda Importance of Retailing Wal-Mart Retail Relationships Administrative Items

Retailing

Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer.

Significance of Canadian Retailing

Retail sales have seen a general pattern of increases since the fall 2001 - StatsCan

2004 retail trade valued at $346.7 billion - StatsCan

Preliminary results for consumer spending in 2005 indicated a 3% increase v. LY – TD

Retail represented 6.4% GDP in 2000 – Strategis

In 2004 Retail represented approximately 15% of employment – StatsCan

Recent Trends in Canadian Retail Increased globalization New store formats and locations Increased use of technology Channel blurring Changing consumer behaviour

Special Characteristics Small average sales Impulse purchases Popularity of stores

Wal-Mart Watch the Wal-Mart video and consider:

What does Wal-Mart do well? Is Wal-Mart the perfect retailer?

Some interesting Wal-Mart sources: http://www.walmartfacts.com/newsdesk/wal-mart

-fact-sheets.aspx#a125 http://www.pbs.org/itvs/storewars/story.html

Figure 1.10 Applying the Retail Concept

Customer Orientation

Coordinated Effort

Value driven

Goal Orientation

RetailingConcept

RetailStrategy