Chapter 14 Summary

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Chapter 14 Summary/ Definition Retailing includes all of the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use. Retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retail life cycle retail-store types pass through stages of growth and decline that can be described as the Wheel-of-retailing hypothesis, after conventional retail stores increase their services and raise their prices to cover the cost. These higher costs provide an opportunity for new retail forms to emerge with lower prices and less service 1. Self-service: The cornerstone of all discount stores, self-service allows customers to save money by carrying out…show more content…
The biggest winners are supercenters, dollar stores, warehouse clubs, and the Internet. ■ Competition between store-based and non-store-based retailing. Consumers now receive sales offers through direct-mail letters and catalogs, television, computers, and telephones. These non-store-based retailers are taking business away from storebased retailers. Major stores have developed their own Web sites, and some online retailers are finding it advantageous to own or manage physical outlets. ■ Growth of giant retailers. Huge retail organizations have the information technology, logistical systems, and buying power to provide immense volumes of products at appealing prices to masses of consumers. They are crowding out small manufacturers who cannot deliver enough quantity and they often dictate to manufacturers what to make, how to price and promote, and other important decisions. ■ Decline of middle market retailers. Growth seems to be centered at the top (with luxury offerings) or at the bottom (with discount pricing). Opportunities are scarcer in the middle where retailers such as Sears and JCPenney have struggled. Since 2000, fewer consumers have shopped in supermarkets, department stores, and drugstores every week as newer, more relevant places have come to serve their needs. ■ Growing investment in technology. Computers help retailers generate better forecasts, control
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