Retail Industry
What is "Retail"?
The process of selling products and/or services to customers in order to earn a profit.
What is a "distribution channel"?
It is the chain of businesses that create, distribute and sell products to customers.
What are "products"?
Also called "merchandise", products are physical goods that are bought and sold, such as food, clothes and household items.
When a retailer "selects" a product, what do they consider in their decision?
The store's location, local customer preferences, available space in the store, and manufacture incentives.
Give an example of two products: one with a short and one with a long "shelf life".
Examples:
Short - lettuce, deli sandwhiches, etc.
Long - swimwear, silverwear, etc.
Do most purchases take place in a physical store location or online?
90% of all retail sales occur in a physical store environment.
Name the four typical actors in a distribution channel.
Manufacturer, wholesaler, retailer, and customer.
What is "ecommerce"?
Retail businesses that operate online.
What happens during the "allocation" phase of the retail product?
Merchandise is distributed from the manufacturer to a retailer's locations, which may include stores, distribution centers (DCs), and other locations.
20-25% of state employment is in the retail industry. That's almost 1 out of every 4 jobs!
Why are "services" considered intangible? What is the other option typically sold by retailers?
Services can't be physically owned by the customer. Examples include: lawn mowing, hair care, personal training, and ride share services.
The other option are products or merchandise.
Why is it important that you accurately anticipate product demand?
So that you can purchase the correct amount of merchandise to stock your inventory. If you don't have enough product, customers will be inconvenienced and potentially turn to competitors.
What is the difference between "inbound" and "outbound" roles at a distribution center?
Inbound roles unload incoming pallets from manufactures, sending them either to the outbound team or placing them in the proper warehouse location.
Outbound roles load trailers with full pallets, boxes and other merchandise to be sent to a retail store.
In the "distribution" phase of the product cycle, what is the request from retail stores for more products from a distribution center?
Replenishment
What percent of retailers are independently owned?
95% of retailers are independently owned and have just a single location.
What is a "retail ecosystem"?
The various ways that a business gives its customers to interact with the company and, hopefully, purchase products or services.
What does the distribution model look like for a person who sells clothing they sewed at home on their own website?
The individual is both the manufacture and an independent retailer, selling directly to the customer.
What is the difference between "pickers" and "packers" in a distribution center?
Pickers use replenishment reports to retrieve, or pick, products to send to the outbound team at a DC.
Packers arrange products carefully so they can be safely shipped to retail stores or directly to customers.
The last two phases of the retail product cycle are "selling" and "markdown". Why would a product move from the "selling" phase to "markdown"?
Because the retailer is having difficulty selling their product or service at the original retail price, and believes that a lower price will attract more customers.
Name 2 ways that major retailers give back to communities.
Volunteering, joining civic organizations (such as Chamber of Commerce), providing community education, sponsoring events/clubs/projects, "green initiatives".
Name the 4 types of retail ownership.
Independent, corporation, private company, and franchise.
What's the main difference between "multichannel" and "omnichannel" retail ecosystems?
Omnichannel retail ecosystems "integrate" buying channels (e.g. physical stores, ecommerce, catalogs, social media, and retailer apps) into a seamless experience, while multichannel keeps buying channels separate.
What's the difference between a "wholesaler" and a "distribution center" (or DC?)
A wholesaler purchases large quantities of products directly from manufactures and sells smaller quantities to retailers (primarily).
A distribution center is owned by a company, and used to distribute finished products to its own retail store locations.
What are the 5 phases of the retail product cycle?
Selection, Allocation, Distribution, Selling and Markdowns.
What does a logistics manager do at a distribution center?
They serve a workload planning function: scheduling the arrival of trucks in partnership with buyers, allocation analysts, and parcel drivers.