Retail Basics
The process of selling products and/or services to customers in order to earn a profit.
What is retail?
an interconnected system of approaches designed to meet the goal of retailing, which is to provide customers with the merchandise and services they want—when, where and how they want to experience and purchase them.
What is a retail ecosystem?
Often the 1st step in the retail channel, who produces finished products, such as clothes, light bulbs and frozen pizza.
What is the manufacturer?
What is selection?
the amount of time an item remains usable, salable or fit for consumption.
What is shelf life?
a business or person that sells products and/or services to customers.
What is a retailer?
A retail model that offers customers the opportunity to interact with multiple channels, such as online and in-store. Under this model, several channels are available for consumers to use, but the channels are not systemically connected to each other.
What is multichannel retailing?
They buys large quantities of products directly from the manufacturer and then sells smaller quantities to retailers.
What is the wholesaler?
The 2nd step of the Retail Product Cycle which involves distributing merchandise from the manufacturer to a retailer’s locations, which may include stores, distribution centers and other locations.
What is allocation?
to fill in a store’s supply as it runs low as the store’s customers purchases the specific item.
What is replenishment?
shoppers, are people who purchase goods or services from a business.
What are customers?
A retail model where customers have the opportunity to interact with multiple channels in the retail ecosystem. However, this model integrates the channels, through the use of technology, to create a seamless consumer experience.
What is omnichannel retailing?
A business owned by shareholders through publicly traded stock. These retailers usually have centralized decision-making for its multiple store locations. An example is Walmart.
What is a corporation?
The 3rd step of the Retail Product Cycle when products are brought and replenished to sights.
What is distribution?
Price reductions to the original selling price of items that are taken in order to encourage rapid sales.
What are markdowns?
merchandise, are physical goods that are bought and sold, such as food, clothes and household items.
What are products?
This omnichannel retail strategy uses customers’ location information, such as their ZIP code or IP address, to provide personalized, customized product and service offers.
What is geotargeting?
Different from a private company which can get pretty large with several locations, this type of retail ownership is typically a single store or a small, regional chain, these retailers are able to tailor their offerings to meet the needs of local customers.
What is an independently owned retailer?
What is selling?
The department in a distribution center that unloads the incoming pallets of product from manufacturers and then either sends them to the Outbound team to go directly on a store’s trailer, or places them in a warehouse location.
Things that can't be owned by the customer. Examples are: lawn mowing, hair care services, personal training, ride-sharing services and video streaming.
What are intangible services?
The majority of retailers are ________.
a. independently owned
b. corporations
c. franchises
d. online only
a. independently owned @ 95%
A license is granted to another entity to retail a company’s products or services in a particular area; consistency in the customer experience is critical. Examples are Subway, McDonald's, Pizza Hut, etc.
What is a franchise?
DAILY DOUBLE: Name steps 1-5 of The Retail Product Cycle.
1. Selection of products to offer customers.
2. Allocation of products to various locations.
3. Distribution of products and replenishing them.
4. Selling products.
5. Moving excess and seasonal inventory out through markdowns.
The department in a distribution center that loads trailers with full pallets, boxes and other merchandise or non-retail items, such as fixtures, to be sent to a store.
What is outbound?