Chapter 1 Introduction to retailing

Learning Objectives

1. Explain what retailing is and why it is undergoing so much change today

2. Describe the five methods used to categorize retailers
3. Understand what is involved in a retail career and be able to list the prerequisites necessary for
success in retailing
4. Explain the different methods for the study and practice of retailing

A. What is Retailing and Why is it Undergoing so Much Change Today

a. The Nature Of Change In Retailing
b. E-Tailing
B. Categorizing Retailers
a. Price competitions
b. Demographic shifts
c. Store size
d. Experience and niche retailing
C. Categorizing Retailers
a. Number of Outlets
b. Margin vs. turnover
c. Location
D. A Retailing Career
E. The Study and Practice of Retailing

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Chapter 2 Retail Strategic Planning and Operations Management

• Explain why strategic planning is important and describe the components of strategic planning

• Describe the retail strategic planning and operations management model

A. Components of Strategic Planning

a. Mission statements
b. Statement of Goals and Objectives
B. The Retail Strategic Planning and Operations Management Model
a. Strategic Planning
b. Operations Management
c. High-Performance Results

Chapter 3 (9) Store Layout and Design

• List the elements of a store’s environment and define its two primary objectives

• Discuss the steps involved in planning the store

 • Describe how various types of fixtures, merchandise presentation methods and techniques, and
the psychology of merchandise presentation are used to increase the productivity of the sales
floor

• Describe why store design is so important to a store’s success

• Explain the role of visual communications in a retail store

A. Introduction to store layout Management

a. Elements of the store environment
b. Objectives of the store environment
B. Store planning
a. Allocating space
b. Circulation
c. Shrinkage prevention
C. Planning fixtures and merchandise presentation
a. Fixture types
b. Merchandise-presentation planning
c. Selecting fixture and merchandise-presentation methods
d. Visual merchandising
D. Store Design
a. Storefront design
b. Interior design
E. Visual Communications
a. Name, Logo and retail identity
b. Institutional signage
c. Directional, departmental, and category signage
d. Point-of-sale signage
e. Lifestyle graphics

Chapter 4 (9) Merchandise Buying and Handling

• Describe the major steps in the merchandise buying and handling process
• Explain the differences between the four methods of dollar merchandise planning used to
determine the proper inventory stock levels needed to begin a merchandise selling period
• Explain how retailers use dollar-merchandise control and describe how open-to-buy is used in
the retail buying process
• Describe how a retailer determines the makeup of its inventory, including what cross-
referencing in the merchandise item file means and how a category-item line review works
• Describe how a retailer selects proper merchandise sources

A. Major steps in merchandise buying and handling

a. Basic stock method
b. Percentage-variation method
c. Weeks’ Supply method
 d. Stock-to-sales method
B. Inventory planning
a. Optimal merchandise mix
b. Constraining factors
c. Managing the inventory
C. Selection of Merchandising Sources
D. Vendor Negotiations
a. Trade discount
b. Quantity discount
c. Promotional discount
d. Seasonal discount
e. Cash discount
f. Delivery terms
g. Packaging
E. In-store merchandise handling

Chapter 5 (10) Retail Pricing

• Discuss the factors a retailer should consider when establishing pricing objectives and policies

• Describe the differences between the various pricing strategies available to the retailer

• Describe how retailers calculate the various markups

• Discuss why markdown management is so important in retailing and describe some of the errors
that cause markdowns

A. Pricing objective and policies

a. Interactive pricing decisions
b. Pricing objectives
c. Pricing policies
B. Specific pricing strategies
a. Customary pricing
b. Variable pricing
c. Flexible pricing
d. One-price policy
e. Price lining
f. Odd pricing
g. Multiple-unit pricing
h. Bundle pricing leader pricing
i. Bait-and-switch pricing
j. Private-label pricing
C. Using mark-ups
a. Calculating markup
b. Markup methods
c. Using markup formulas when purchasing merchandise
d. Initial versus maintained markup
 e. Planning initial markups
D. Markdown management
a. Buying errors
b. Pricing errors
c. Merchandising errors
d. Promotion errors
e. Markdown policy

Chapter 6 (4) Evaluating the Competition in Retailing

• Explain the various models of retail competition

• Distinguish between various types of retail competition

• Describe the four theories used to explain the evolution of retail competition

• Describe the changes that could effect retail competition

A. Models of Retail Competition

a. The competitive marketplace
b. Market structure
c. The demand side of retailing
d. Nonprice decisions
B. Types of competition
a. Intratype and intertype completions
b. Divertive completions
C. Evolution of retail competition
a. The wheel of retailing
b. The retail accordion
c. The retail life cycle
D. Future changes in retail competitions
a. Nonstore retailing
b. New retailing formats
c. Heightened global completion
d. Integration of technology
e. Increasing use of private labels

Chapter 7 Market Selection and Retail Location Analysis

 The criteria used in selecting a target market.

 The different options for effectively reaching a target market and the (dis)advantages of
business districts, shopping centers, & freestanding units.
 What a GIS is & its potential uses in a retail enterprise.
 The various factors to consider when identifying the most attractive geographic market for a
new store.
 The various attributes to consider when evaluating retail sites within a retail market.
 How to select the best geographic site for a store.
 A. Selecting a target market
a. Market segmentation
b. Identifying a target market
B. Reaching your target market
a. Location of store-based retailers
b. Nonstore retailers
C. Market identification
a. Retail location theories
b. Market demand potentials
c. Market supply factors
D. Site selection
a. Nature of site
b. Terms of purchase or lease
c. Expected profitability

Chapter 8 Managing a Retailer’s Finance

 The importance of a merchandise budget and how to prepare a merchandise budget.

 The differences between, and uses of, an income statement, balance sheet, and statement of
cash flow.
 The different approaches to value inventory.

A. The merchandise budget

a. Determining planned sales
b. Determining planned BOM and EOM inventories
c. Determining planned retail reductions
d. Determining planned purchases at retail and costs
e. Determining the buyer’s planned gross margin
B. Retail Accounting Statements
a. Income statement
b. Balance sheet
c. Statement of cash flow
C. Inventory Valuation

Chapter 9 (12) Customer Services and Retail Selling

 Why customer service is so important in retailing

 The various customer services that a retailer can offer
 How a retailer should determine which services to offer.
 The various management problems involved in retail selling, salesperson selection, and training
and evaluation.
 The retail selling process.
 The importance of a customer service audit.

A. Customer Service
a. Merchandise management
 b. Building and fixture management
c. Promotion management
d. Price management
e. Credit management
B. Common customer Services
a. Pre-transaction services
b. Transaction services
c. Post transaction services
C. Determining Customer-service levels
a. Retailer’s characteristics
b. Competition
c. Type of merchandise
d. Price image
e. Target-market income
f. Cost of services
D. Retail Sales management
a. Types of retail selling
b. Salesperson selection
c. Salesperson training
d. Sales force compensation
e. Evaluation of salespeople
E. The retail sales process
a. Prospecting
b. Approach
c. Sales presentation
d. Closing the sale
F. The customer-service and sales-enhancement audit

Retailing An Introduction by Robert F. Lusch, Patrick M. Dunne, James R. Carver 8 th Edition

Chapter 3 Retail Customers

A. Population Trends
a. Population growth
b. Age distribution
B. Economic times
a. Geographic trends
C. Social Trends
a. Education
b. State of marriage
c. Divorce
d. Changing nature of work
D. Economic Trends
a. Income growth
b. Personal savings
c. Women in the labor force
d. Widespread use of credit

Chapter 5 Managing the Supply Chain

A. The supply chain

a. Primary marketing institutions
b. Facilitating marketing institutions
B. Types of supply chains
a. Supply-chain length
b. Supply-chain width
c. Control of the supply chain
C. Managing retailer-supplier relations
a. Dependency
b. Power
c. Conflict
D. Collaboration in the channel
a. Facilitating supply-chain collaboration
b. Category management

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PLAN OUTLINE

 1.0 Executive Summary

 2.0 Company Summary
o Company Ownership
o Start-up Summary
 o Company Locations and Facilities
 3.0 Products
 4.0 Market Analysis Summary
 5.0 Strategy and Implementation Summary
 6.0 Management Summary
 7.0 Financial Plan
 Appendix