Retail Image refers to how a retailer is perceived by customers and others.

Special Characteristics that Affecting Retailers

Three factors differentiate retailing from other types of business.

Small average sale (The average amount of a sales transaction for retailers is much less than for
manufacturers.)

Impulse purchases (one buys without planning)

Popularity of store

Functions of Retailing in the Distribution Channel

Provide assortment

Buy in bulk

Store inventory

Provide convenience to consumers

Provide services to consumers

Provide Customer Feedback

The Importance of Developing and Applying A Retail Strategy

A retail strategy is the overall plan guiding a retail firm. It influences the firm’s business activities and its
response to market forces, such as competition and the economy. Any retailer, regardless of size should have.

Six Steps In Strategic Planning

1. Define the type of business (in terms of the goods or services category, such as discount retail)

2. Set long-run and short-run objectives

3. Determine the customer market (target market, such as Migros’ target customer have mid or upper level
income level)

4. Create an overall, long-run plan

5. Implement an integrated strategy (combines factors like store location, product assortment, pricing)

6. Evaluate and correct (fine-tune)

Applying The Retailing Concept

Introduction to Retailing 5
 Together, these four principles form the retailing concept.

Let’s look at three issues that relate to a retailer’s performance in terms of the retailing concept:

the total retail experience,

customer service, and

relationship retailing.

The Total Retail Experience

The total retail experience includes all the elements in a retail offering that encourage or inhibit consumers
during their contact or journey with a retailer.

Rapidity of e-commerce and mobile apps makes it possible to purchase anything, anytime and anywhere.

Price always be a key motivator in shopping behavior.

Retailers must provide appropriate customer experience to sustain their customers’ loyalty.

Shopping is about how to “engage” the customer and how the shopping experience makes the customer
feel.

There are now transition from Traditional Retail to Experiential Retail.

For example, Woolrich designed a room where you can test how effectively their winter clothes keep you
warm.

Retailtainment: Combination of retail and entertainment.

Introduction to Retailing 6