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Chapter 02 - Types of Retailers
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CHAPTER 2
TYPES OF RETAILERS
ANNOTATED OUTLINE INSTRUCTOR NOTES
I. Retailer Characteristics
Ask students to compare the four elements of
The 1.1 million U.S. store-based retailers
range from street vendors selling hot dogs the retail mix -- the type of merchandise sold,
to Internet retailers like Amazon.com to the variety and assortment of merchandise
omnichannel retailers like Best Buy that and/or services sold, the level of service
have both a physical store presence and an provided to customers, and price -- of two
active Internet site. women's specialty stores in a local mall. Now
compare the retail mixes of one of the specialty
The retail industry is always evolving. As stores and the local discount store (e.g., Wal-
consumer needs and competition within the Mart). Use this comparison to illustrate how
industry change, new retail formats are the competition between the two specialty
created to respond to those changes.
stores is stronger than the competition between
The most basic characteristic of a retailer
the specialty store and the discount store.
is its retail mix – the elements used to
satisfy its customers’ needs.
Four elements of the retail mix that are

particularly useful for classifying retailers
are: (1) the type of merchandise sold, (2)
the variety and assortment of merchandise PPT 2-5 illustrates classification of retailers by
and/or services sold, (3) the level of merchandise offering and by variety and
customer service, and (4) the price of the assortment.
merchandise.
A. Variety and Assortment. See PPT 2-7
Variety is the number of merchandise

categories a retailer offers. Assortment is Ask students to give examples of local retailers
the number of different items in a with low variety and high assortment, with
merchandise category. Each different item high variety and low assortment.
of merchandise is called a SKU (stock
keeping unit).
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Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
Variety is often referred to as the breadth What benefits does high variety offer to
of merchandise and assortment is referred customers? What is the benefit of high
to as the depth of merchandise. assortment?
Ask student to give an example of an SKU.
B. Services Offered See PPT 2-9
Retailers also differ in the services they

offer customers. Customers expect Discuss the different customer service policies
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retailers to provide some services-- of a specialty store like Apple and a local
accepting personal checks, displaying department store or an Internet retailer.
merchandise, providing parking, and being
open long and convenient hours.
Discuss how customers’ expectations differ at
Some retailers charge customers for other each type of store.
services, such as home delivery and gift
wrapping, although upscale retailers offer
customers these services at no charge.
C. Prices and the Cost of Offering Breadth and See example in PPT 2-10 for illustration
Depth of Merchandise and Services
Stocking a deep and broad assortment is Customers like wide variety, deep assortments,
appealing to customers but costly for and a lot of service, though some customers
retailers. When a retailer offers many appreciate having the retailer edit the
SKUs, inventory investment increases assortment for them. Ask students why all
because the retailer must have back-up retailers don’t have this type of offering?
stock for each SKU.
Retailers have constraints of money , size of
Similarly, services attract customers to the
store, and limited number of employees.
retailer, but they are also costly.
To make a profit, retailers that offer Why don't discount stores offer more services?
broader and deeper assortments and (They appeal to a target segment that does not
services need to charge higher prices. want to pay the cost for more service options.)
A critical retail decision involves the trade-

off between costs and benefits of PPT 2-12 shows a comparison of sales and growth
maintaining additional inventory or rates in various retail sectors
providing additional services.
II. Food Retailers See PPT 2-13
Twenty years ago, consumers purchased

food primarily at conventional Where do students make the majority of their
supermarkets. Now conventional off-campus food purchases? What are the pros
supermarkets account for only 60 percent and cons of these different food retailer
of food sales. formats?
Supercenters, warehouse clubs,
convenience stores and extreme value food
retailers are significantly changing Ask students where they see the direction of food
consumers' food purchasing patterns retailers going in the next 20 years.
because they too sell food. At the same
time, traditional food retailers carry many
nonfood items.
The world's largest food retailer is Wal-
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Mart with supermarket-type sales of more

than $134 billion.
A. Supermarkets See PPT 2-14
A conventional supermarket is a self-

service food store offering groceries, meat, Ask students to consider the retail mixes of the
produce, and limited non-food items. major supermarkets in the area surrounding
campus. Which compete on price? On
A limited assortment supermarket (also merchandise? On service? A combination?
called an extreme value food retailer)
only stocks about 2,000 SKUs. The two
largest US examples of these stores are
Save-A-Lot and ALDI. Do students have concerns about the quality of
items at conventional supermarkets versus limited
Limited assortment supermarkets are assortment supermarkets?
designed to maximize efficiency and
reduce costs through limited assortment
and service offerings. These cost savings
and efficiencies allow the stores to charge
significantly lower (40-60% lower) prices
than conventional supermarkets.
1. Trends in Supermarket Retailing See PPT 2-17
Today, conventional supermarkets are

under substantial competitive pressure.
Supercenters are attracting customers with Ask students about why they would continue to
their broader assortments and general shop at conventional supermarkets. Alternatively,
merchandise at attractive prices. Full-line why would they shop for food at supercenters,
discount chains and extreme value retailers warehouse clubs or convenience stores? What
are increasing the amount of shelf space types of needs are fulfilled by conventional
they devote to consumables. supermarkets that can’t be filled through other
food retailing formats? Based on these
Competitive pressure also comes from discussions, will conventional supermarkets be
convenience stores who are selling more driven out of business by competing formats?
fresh merchandise.
Low cost competitors are especially

challenging for conventional supermarkets
because of their superior operating
efficiencies.
To compete successfully with intrusions by

other types of retailers, conventional
supermarkets have taken steps to
differentiate their offerings, such as
emphasizing their “power perimeters”
(areas around the outside walls with fresh
perishables such as dairy, produce, florist,
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deli and bakery departments), targeting

health conscious and ethnic consumers,
providing a better in-store experience, and
offering more private-label brands.
Conventional supermarkets are also

offering more natural, organic, and fair
trade foods for their increasingly health
and environmentally conscious consumers.
Fair trade means purchasing from
factories that pay workers a living wage,
well more than the prevailing minimum
wage, and offer other benefits like onsite
medical treatment.
Through adjustments to the traditional

merchandise mix, conventional
supermarkets are also targeting more
ethnic shoppers.
Conventional supermarkets chains are

leveraging their quality reputations to offer
more private-label merchandise. Private-
label brands benefit both customers and
retailers.
The online grocery market also represents

a growing category.
Creating an enjoyable shopping experience

through wider variety, better store
ambiance, and customer service is another
approach supermarket chains may use to
differentiate themselves from low-cost,
low-service competitors. Some have begun
to integrate “food as theater” concepts,
such as cooking and nutrition classes and
food tastings.
B. Supercenters See PPT 2-18 for an illustration of the

characteristics of supercenters and warehouse
Supercenters are the fastest growing retail clubs.
category. At 150,000 to 220,000 square
foot these stores offer a wide variety of
food and non-food merchandise. The
largest supercenters are Wal-Mart The supercenter is one of the fastest growing
supercenters, Meijer, Kmart, Fred Meyer retail formats. Why is the supercenter more
(a division of Kroger), and Target. attractive than a hypermarket in the U.S., but
not in Europe? What are benefits to consumers
By offering broad assortments of grocery shopping in supercenters versus conventional
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and general merchandise under one roof, supermarkets? What are the disadvantages?
supercenters provide a one-stop shopping
experience.
Ask students if they prefer the supercenter model to
General merchandise items are often
a traditional supermarket? How do students feel
purchased at supercenters. These items
about the growth of Walmart? Do students prefer
have higher margins, which allows
Walmart’s format over Target? Why?
supercenters to offer food items at a more
aggressive price.
However, since supercenters are very

large, some customers find them
inconvenient because it can take a long
time to find the items they want.
Hypermarkets are also large (100,000 to

300,000 square feet) combination food and
general merchandise retailers. They
typically stock fewer SKUs than
supercenters.
Popular in both Europe and South

America, hypermarkets are not common in
the United States. Located in large,
warehouse-type structures with large
parking facilities, hypermarkets typically
carry a larger selection of food items than
supercenters with a focus on perishables.
Supercenters place greater emphasis on

general merchandise and dry grocery items
such as breakfast cereals and canned
goods.
Although supercenters and hypermarkets

are the fastest growing categories in global
retailing today, these retailers do face
challenges in finding and acquiring
appropriate land for building (particularly
in Europe and Japan), along with backlash
against these supersize stores, particularly
in the U.S.
C. Warehouse Club See PPT 2-18 for an illustration of the

characteristics of supercenters and warehouse
A warehouse club is a retailer that offers a clubs.
limited and irregular assortment of food
and general merchandise with little service
at low prices to ultimate consumers and Ask students to give local examples of
warehouse clubs. What is the target market for
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small businesses. warehouse clubs? (Consumers with larger

families and small businesses.)
Stores are large (at least 100,000 to
150,000 square feet) and located in low
rent districts.
Warehouse clubs reduce prices by using Are warehouse clubs wholesalers or retailers?
low-cost locations and inexpensive store (When they sell to small businesses they are
designs, and offering little customer wholesalers. When they sell to individual
service. They reduce inventory holding members for personal or household use, they
costs by carrying a limited assortment of are retailers.)
fast-selling items and buying merchandise
opportunistically.
Most warehouse clubs have two types of Ask students if they are members of a warehouse
members: wholesale members who own club? Do they prefer warehouse clubs to
small-businesses and individual members supercenters?
who purchase for their own use. Typically
members must pay an annual fee.
D. Convenience Stores See PPT 2-19 for an overview of the

characteristics of convenience stores
Convenience stores provide a limited
variety and assortment of merchandise at a
convenient location in a 3,000-to-5,000- Ask students to give examples of local
square-foot store with a speedy checkout, convenience stores.
with higher prices than supermarkets. They
are a modern version of the neighborhood
mom-and-pop grocery/general store. Which products do they tend to buy most often
at convenience stores?
Convenience stores enable consumers to
make purchases quickly without having to
search through a large store and wait in
What do they like/dislike about them? In
long checkout lines.
general, what is so "convenient" about
Convenience stores generally charge a convenience stores?
higher price than supermarkets for staple
items like milk, eggs, and bread?
What services do students believe would make a
Convenience stores are facing increasing convenience store more “convenient”?
competition from other retail formats,
especially from supercenters and
supermarket chains who have added
gasoline to their merchandise offerings,
offering tying gasoline sales to their
frequent shopper programs.
In response to these competitive threats,

convenience stores are taking steps to
decrease their dependency on gasoline
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sales by tailoring their merchandise

assortments to local markets, making their
stores even more convenient to shop, and
adding new services.
To increase convenience, some

convenience stores are opening smaller
stores close to where consumers shop and
work. Others are exploring the use of
technology to increase shopping
convenience such as self-service kiosks.
III. General Merchandise Retailers See PPT 2-20

PPT 2-20 compares the various types of general
The major types of general merchandise merchandise retailers along several
retailers are department stores, full-line characteristics.
discount stores, specialty stores, category
specialists, home improvement centers,
off-price retailers, and extreme value
retailers.
A. Department Stores See PPT 2-21, 2-22, 2-23

Ask students to give examples of local
Department stores are retailers that carry
department stores. Why do customers go to
a broad variety and deep assortment, offer
some customer services, and are organized department stores? What do they like/dislike
into separate departments for displaying about them?
merchandise.
The largest department store chains in the Ask students to give local examples of specialty
U.S. are Macy’s, Sears, JCPenney, and stores. What are the differences between specialty
Kohl’s, Nordstrom, Dillard’s and Saks stores, department stores, and discount stores?
Fifth Avenue. Where do students buy business suits, dresses,
jeans, computers, electronics? Why do they go to
Today, most department stores focus that type of store?
almost exclusively on soft goods. The
major departments are women’s, men’s,
and children’s clothing and accessories;
home furnishings; cosmetics; and Which department stores do students prefer?
kitchenware and small appliances. Which tier do they shop most often? Discuss
differences in these responses.
Each department within the store has a
specific selling space allocated to it as well
as salespeople to assist customers, often
resembling a collection of specialty shops.
Department store chains can be categorized

into three tiers: (1) upscale, high fashion
chains with exclusive designer
merchandise and excellent customer
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service (Neiman Marcus, Nordstrom); (2)

traditional chains with more moderately
priced merchandise and less customer
service (Macy’s and Dillard’s); and (2)
value-oriented chains catering to price-
conscious consumers (Kohl’s and
JCPenney).
Today many customers question the

benefits of shopping at department stores
due to: (1) lack of convenient locations, (2)
decreases in customer service and (3)
relatively high prices.
B. Full-Line Discount Stores See PPT 2-24
A full-line discount store is a retailer that Discuss the target markets of the three largest full-
offers a broad variety of merchandise, line discount store chains (Wal-Mart, Target and
limited service, and low prices. They offer Kmart). How will the category specialists (Toys R
both private and national brands. Us, Staples, and Home Depot) affect the retail
strategy of full-line discount store chains? What
The big three full-line discount store about Internet only retailers? Are discount stores
chains are Wal-Mart, Target and Kmart. going to succeed in the “clicks” environment?
A significant trend in this sector is Wal- In general, what are the factors that contribute to the
Mart’s conversion of discount stores to success of discount stores despite increasing
supercenters as a result of increased competition from other formats?
competition faced by the full-line discount
stores, as well as the significant operating
efficiencies realized by supercenters.
Target is becoming one of the most

successful retailers in terms of sales
growth and profitability, succeeding
because its stores offer fashionable
merchandise at low prices in a pleasant
shopping environment.
C. Category Specialist See PPT 2-25

Ask students to give local examples of category
A category specialist is a big box discount
store that offers a narrow variety but deep
specialists. How are they similar to specialty
assortment of merchandise. These retailers stores? Discuss the differences and similarities
predominantly use a self-service approach, with discount stores.
but they offer assistance to customers in
some areas of the store.
By offering a complete assortment in a

category at low prices, category specialists
can "kill" a category of merchandise for
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other retailers and thus are frequently

called category killers.
Ask students to describe an experience at a home
Because category specialists dominate a improvement center such as Home Depot or
category of merchandise, they can use their Lowe’s in terms of merchandise, atmosphere and
buying power to negotiate low prices, and salesperson service.
assured supply when items are scarce.
One of the largest and most successful

types of category specialist is the home
improvement center. A home
improvement center is a category
specialist offering equipment and material
used by do-it-yourselfers and contractors to
make home improvements.
While merchandise in home-improvement

centers is displayed in a warehouse
atmosphere, salespeople are available to
assist customers in selecting merchandise
and to tell them how to use it.
Competition between specialists in each

category is very intense (Staples vs. Office
Depot; Home Depot vs. Lowe’s) as firms
expand into the regions originally
dominated by another firm. Direct
competition focuses on price, resulting in
reduced profits because the competitors
have difficulty differentiating themselves
on other elements of the retail mix.
In response to this increasing competitive

intensity, the category killers continue to
concentrate on reducing costs by
increasing operating efficiency and
acquiring smaller chains to gain scale
economies, although some category killers,
like Home Depot and Lowe’s are
attempting to differentiate themselves with
service through licensed contractors.
D. Specialty Stores See PPT 2-26

Why do customers go to specialty stores?
A specialty store concentrates on a limited
What do they like/dislike about them?
number of complementary merchandise
categories and provides a high level of
service in a relatively small store.
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Manufacturers are also opening their own

specialty stores (Levi’s, Godiva, Cole Haan,
Coach, etc). What are the implications for other
Specialty stores tailor their retail strategy
retailers like department stores who also sell these
toward very specific market segments by
brands?
offering deep but narrow assortments and
sales associate expertise.
Discuss the “fast fashion” specialty store model
with students. Which of these stores have they
Today, competitors from other countries
visited? What do they like/dislike about the
also are making some of the most
concept?
successful specialty stores in the U.S.
rethink how they satisfy their customers’
needs. For instance, Zara and H&M have
introduced “fast fashion” to the U.S.
market. Fast fashion is cheap and chic
offering new, fresh merchandise 2-3 times
per week.
E. Drugstores See PPT 2-27

Ask students if they have shopped online for
Drugstores are specialty stores that drugstore products. What has been their
concentrate on health and personal experience? Do they think the Internet is a viable
grooming merchandise. Pharmaceuticals channel for drugstore merchandise?
often represent 50 percent of drugstore
sales and an even greater percentage of
their profits.
Drug stores, particularly the national

chains, are experiencing sustained sales
growth because the aging population
requires more prescription drugs.
Prescription pharmaceutical margins are
shrinking due to governmental health care
policies and HMOs.
Drugstores are also being squeezed by

competition from pharmacies in discount
stores and supermarkets, as well as
prescription mail-order retailers.
In response, drug store chains are building

larger stand-alone stores offering a wider
assortment of merchandise, more
frequently purchased food items, and
drive-through windows for picking up
prescriptions. Also, drugstore retailers are
encouraging pharmacists to take the time to
provide personalized service.
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F. Extreme Value Retailers See PPT 2-28 for a summary of issues facing
extreme value retailers.
Extreme value retailers, such as Family
Dollar Stores and Dollar General, are
Ask students to name the extreme value
small, full-line discount stores that offer a retailers in the local marketplace. How many
limited merchandise assortment at very have shopped at one of them? For what types
low prices. of merchandise? What is the primary appeal of
these retailers?
By offering limited assortments and
operating in low-rent locations, extreme
value retailers are able to reduce costs and
maintain very low prices.
Despite some of these chains’ names, few

just sell merchandise for $1. Rather, the
names imply a good value but do not limit
prices to the arbitrary dollar price point.
The growing popularity of extreme value

retailers has led some vendors to agree to
create special, smaller packages just for
them.
Once considered low-status retailers

catering to low-income consumers,
extreme value retailers have broadened
their appeal to higher-income consumers
by offering exciting bargains and unique
merchandise.
G. Off-Price Retailers Ask students to give examples of local off-price

retailers. What do consumers like about off-
* Off-price retailers, also known as close- price retailers? What don't they like?
out retailers, offer an inconsistent
assortment of brand name merchandise at
low prices.
* Off price retailers can sell brand name and See PPT 2-29 for a summary of the issues
even designer-label merchandise at low facing off-price retailers
prices due to their unique buying and
merchandising practices. Most
merchandise is bought opportunistically
from manufacturers or other retailers with
excess inventory at the end of the season.
* End of season merchandise that will not be

used in following seasons is called close-
outs. The merchandise may be in odd sizes
or unpopular colors or styles, or it may be
irregulars, merchandise that has minor
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Hill Education.
mistakes in construction.
* Typically, merchandise is purchased at

one-fifth to one-fourth of the original
wholesale price. Off-price retailers can
buy at low prices because they don't ask
suppliers for advertising allowances, return
Ask students which type of off-price retailer
privileges, markdown adjustments, or
delayed payments. offers consumers truly the best value? Why?
* Due to this pattern of opportunistic buying,

customers can't be confident that the same
type of merchandise will be in stock each
time they visit the store.
* Outlet stores are off-price retailers owned

by manufacturers, or by department or
specialty store chains.
* Outlet stores owned by manufacturers are

frequently referred to as factory outlets.
* Manufacturers view outlet stores as an

opportunity to improve their revenues from
irregulars, production overruns, and
merchandise returned by retailers. Outlet
stores also allow manufacturers some
control over where their branded
merchandise is sold at discount prices.
IV Differences between Services and

Merchandise Retailers PPT 2-30
* Four important differences in the nature of
the offering provided by services and
merchandise retailers are: (1) intangibility,
(2) simultaneous production and
consumption, (3) perishability, and (4)
inconsistency of the offering to customers.
1. Intangibility
Ask students how customers can evaluate the
* Services are generally intangible --
customers cannot see, touch, or feel them. quality of an intangible service offering. What
Services are performances or actions rather problems does intangibility cause for the
than objects. services retailer?
* Intangibility introduces a number of

challenges for services retailers. It is
difficult for customers to evaluate services
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Hill Education.
before they buy them, or even after they

buy and consume them. Services retailers
often use tangible symbols to inform
customers about the quality of their
services.
* Services retailers also have difficulty in

evaluating the quality of services they are
providing. To evaluate the quality of their
offering, services retailers place emphasis
on soliciting customer evaluations and
complaints.
2. Simultaneous Production and

Consumption What problems does simultaneous production
* Service providers create and deliver the cause for the services retailer?
service as the customer is consuming it.
The simultaneity of production and
consumption creates some special
problems for services retailers.
* First, the customers are present when the

service is produced, may have an
opportunity to see it produced, and in some
cases, may be part of the production
process.
* Other customers consuming the service at

the same time can affect the quality of the
service provided.
* Finally, the services retailer often does not

get a second chance to satisfy the needs of
their customers. While customers can
return damaged merchandise to a store,
customers that are dissatisfied with
services have limited recourse. Thus it is
critical for services retailers to get it right
the first time.
* Because services are produced and

consumed at the same time, it is difficult to
reduce costs through mass production.
3. Perishability
* Because the creation and consumption of

Give examples of retailers for which
services is inseparable, services are perishability is a real problem? [movie
perishable. They can't be saved, stored, or theaters, airlines, cruise lines, public golf
courses] What do these retailers do to
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Hill Education.
resold. This is in contrast to merchandise, minimize the problem?

which can be held in inventory until a
customer is ready to buy it.
* In addition, the demand for a service varies What actions have students seen services retailer
considerably over time. Thus, services take to make waiting time more enjoyable for
retailers often have times when their customers?
services are underutilized and other times
when they have to turn customers away
because they cannot accommodate them.
* Services retailers use a variety of programs

to match demand and supply. They also
attempt to make customer waiting time
more enjoyable.
4. Inconsistency What problems does inconsistency cause for

the services retailer? Are there services
* Merchandise is often produced by retailers whose inconsistency is acceptable?
machines with very tight quality control. (Custom designers, hair “artists”)
Because services are performed by people,
no two services will be identical.
* Thus, an important challenge for service

retailers is providing consistently high-
quality services.
V. Types of Ownership See PPT 2-34
* Another way to classify retailers is by their

ownership. The major classifications of .
retail ownership are: (1) independent,
single-store establishments, (2) corporate
chains, and (3) franchises.
A. Independent, Single-Store Ask students to give examples of local

Establishments independent, single-store retailers. Do they
shop at independents? Why or why not?
* Retailing is one of the few sectors in our
economy in which entrepreneurial activity
is extensive. Many of these retail start-ups Do students believe national chains will drive
are owner managed which means all independents out of business?
management has direct contact with their
customers and can respond quickly to
those customers’ needs.
* While single-store retailers can tailor their

offering to their customers' needs,
corporate chains can more effectively
negotiate lower prices for merchandise and
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advertising due to their larger size.
* To better compete against corporate

chains, some independent retailers join a
wholesale-sponsored voluntary chain. A
wholesale-sponsored voluntary
cooperative group is an organization
operated by a wholesaler offering a
merchandising program to small,
independent retailers on a voluntary basis.
B. Corporate Retail Chains Wal-Mart has pursued a strategy of opening

stores on the outskirts of small rural towns
* A retail chain is a company operating with populations between 25,000 and 50,000.
multiple retail units under common These stores offer broader selection of
ownership and usually having some merchandise at much lower prices than
centralization of decision making in previously available from local retailers.
defining and implementing its strategy.
Discuss the pros and cons of this strategy in
class. What ramifications may result?
(Monopolizing market, demise of small stores,
potential to become major employer in rural
area).
C. Franchising Ask students to give examples of local
franchises. If they wanted to own a retail
* Franchising is a contractual agreement business, would they want a franchise or their
between a franchisor and a franchisee that own store? Why? What are the advantages of
allows the franchisee to operate a retail being a franchisee?
outlet using a name and format developed
and supported by the franchisor.
Approximately 40% of all US retail sales
are made by franchisees. PPT 2-35 provides a brief introduction to the
Franchising form of retail ownership.
* In a franchise contract, the franchisee pays
a lump sum plus a royalty on all sales for
the right to operate a store in a specific
location. The franchisee also agrees to
operate the outlet as per the procedures
prescribed by the franchisor. The
franchisor provides assistance in locating
and building the store, developing the
products and/or services sold, management
training, and advertising.
* The franchise ownership format attempts

to combine the advantages of owner-
managed businesses with efficiencies of
centralized decision-making in chain store
operations.
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VIII. Summary
Over the past 30 years, U.S. retail markets
have been characterized by the emergence of
many new retail institutions. Traditional
institutions have been joined by category
specialists, hypermarkets and superstores,
extreme value retailers, and nonstore
retailers among others.
IX. Appendix 2A: Comparison Shopping

For an exercise on comparison shopping see
* All retailers learn about their competitors Ancillary Exercise 2-2. Breaking the class into
through comparison shopping. It might be groups and having each group do a
as informal as walking through a comparison shopping exercise is a good way to
competitor's store and looking around.
get students to understand the difference
However, a structured analysis is more
helpful in developing a retail offering that
between retailers and the types of decisions
will attract consumers from a competitor's retail manager make. Have each group
store. compare different institutions selling the same
merchandise category. For example, men's
* The first step is to define the scope of the suits in a department store and men's specialty
comparison; the comparison might be store, athletic shoes in a discount store and
between two retail chains, two specific specialty shoe store, CD's in a discount store
stores, two departments, or two categories and a specialty music store.
of merchandise, depending on
responsibilities of the person undertaking
the comparison.
* Comparisons might also focus on chains'

financial resources, inventory levels,
number of stores and employees, store
locations, merchandise sold, employee
compensation programs, and return
policies.
ANS WE RS T O S E L E CTE D “GE T OUT AND DO IT S ”
2. GO SHOPPING Go to an athletic footwear specialty store such as Foot Locker, a sporting

goods category specialist, a department store, and a discount store. Analyze their variety and
assortment of athletic footwear by creating a table similar to that in Exhibit 2–2.
Students should be able to fill in this type of table and explain their findings.
Variety of Athletic Footwear Assortment of Athletic Footwear
Breath of Merchandise Depth of Merchandise
Footlocker
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Specialty Store
Sporting Goods Category
Specialist
Department store
Discount Store
3. GO SHOPPING Keep a diary of where you shop, what you buy, and how much you spend for
two weeks. How did each retailer meet your shopping needs? Get your parents to do the same
thing. Tabulate your results by type of retailer. Are your shopping habits significantly different or
are they similar to those of your parents? Do you and your parents’ shopping habits coincide with
the trends discussed in this chapter? Why or why not?
Students should keep a list of places shopped. Results can be compared to a parent or
another classmate. Thais assignment should give student insight to their own consumer
buying behavior and how they select merchandise and retail formats. Ask students to
discuss the managerial implications of their findings. How should retailers with differing
target markets communicate with the different audiences based on the differences in
buying behaviors, as discovered by this assignment.
4. GO SHOPPING Describe how the supermarket where you shop is implementing organic,
locally grown, ethnic and private label merchandise. If any of these categories of merchandise are
missing, explain how this could be a potential opportunity for growth for this supermarket. Then
describe any strategies or activities that you believe are providing any a better shopping
experience than its competition. If you believe that competing stores are providing a better
shopping experience than your store, explain what they are doing, and evaluate whether or not
these activities would benefit from your supermarket.
Responses here will vary. Some stores have big commitment to organic, locally grown,
ethnic and private label merchandise. Students should consider the demographics of the
store’s customers to evaluate the potential demand for these categories.
5. INTERNET EXERCISE Data on U.S. retail sales are available at the U.S. Bureau of the
Census Internet site at www.census.gov/retail. Look at the unadjusted monthly sales by NAICS
(found in the Monthly Retail Trade Report Section). Which categories of retailers have the
largest percentage of sales in November and December? Do your findings make sense to you?
Students will notice that many retail categories generate their largest percentage of sales in the
fourth quarter. Some are:
(443) Electronics and Appliance Stores
(44312) Computer and Software Stores
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(4453) Beer, Wine and Liquor Stores

(44812) Women’s Clothing Stores
(45111) Sporting Goods Stores
(454) Nonstore Retailers
The higher level of sales in the last quarter of the year are likely due to holiday sales. Do these
categories make sense to students? Are there other categories students would expect to see
similar sales?
6. INTERNET EXERCISE Three large associations of retailers are the National Retail
Federation (www.nrf.com), the Food Marketing Institute (www.fmi.org) and the National
Association of Convenience and Petroleum Stores (www.nacsonline.com). Visit these sites and
report on the latest retail developments and issues confronting the industry.
Information on these sites will change daily. The National Retail Federation will likely have
information on trends in retailing like showrooming and omnishopping. Similarly, the NRF will
also report on federal regulations, like taxes and swipe fees, that impact retailing. The Food
Marketing Institute will provide information on trends in food retailing and manufacturing as
well as legal and economic concerns. For example, the FMI may report on information about
changes in regulations on what constitutes organic The NACS will report on regulations as well,
such as debit card swipe fees, as well as information on oil prices and petroleum.
7. INTERNET EXERCISE Go to Entrepreneur Magazine’s Franchise Zone web page at

http://www.entrepreneur.com/franchise and view the top 500 franchises for the past year.
How many of these retailers in the Top Ten have you patronized as a customer? Did you know
that they were operated as a franchise? Look at the list for previous years to see changes in the
rankings. Click on the link, About the Franchise 500, and describe what factors were used to
develop the list. Finally, what is the nature of the business that seems to lend itself to
franchising?
The Top 10 Franchises for 2013 include many familiar names. Students will likely report having
visited a Subway, McDonald’s, or 7-Eleven. Students should uncover some notable changes in
the Top 10. Perhaps most significant, Subway has been moved into the number 2 spot after many
years at number 1. For 2013, Hampton Hotels is number 1. Why is Hampton Hotels rated higher
than Subway? An interesting point for discussion of competitive strategy is the reintroduction of
fast food retailers like McDonald’s and KFC to the top 10.. What do students believe are behind
the reinvigoration of these fast food franchise retailers? Will they be able to maintain these
positions in the face of changing trends in consumer lifestyles and food retailing?
The web site notes that the list of the Top 500 franchises is based on quantifiable measures such
as financial strength and stability, growth rate, size of the system, and number of years in
business. Students will likely notice that service-based retailers tend to lend themselves best to
the franchise system, particularly those services that allow for standardization of business
practices and retail operating formats.
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8 Bed Bath & Beyond is the number one superstore domestics retailer in the US with about 1,000
stores throughout the US and Ontario, Canada. This retailer sells domestics (bed linens,
bathroom and kitchen items) and home furnishings (cookware and cutlery, small household
appliances, picture frames, and organizing supplies). What are the SIC and NAICS codes used by
this retailer? What other retailers compete against Bed Bath & Beyond and which store format is
implemented by each competitor?
Primary SIC Code 5023: Home furnishings
Primary NAICS Code 442299: All Other Home Furnishings Stores

Other SIC Codes
2273 Carpets and rugs 35 Household vacuum cleaners
2391 Curtains and draperies 39 Household appliances, nec
2392 House furnishings, nec 61 Telephone and telegraph apparatus
2519 Household furniture, nec 21 Furniture
2844 Toilet preparations 41 Children's and infants' wear stores
3631 Household cooking equipment 19 Misc. home furnishings stores
3633 Household laundry equipment 22 Household appliance stores
3634 Electric housewares and fans 47 Gift, novelty, and souvenir shops
Key Competitors
Macy's Department store
Target Discount Store
Wal-Mart Discount store
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Other Competitors
Anna's Linens J. C. Penney
Art.com Kmart Macy's
Babies "R" Us Pier 1 Imports
Burlington Coat Ross Stores
Factory Saks
The Children's Place Sears
Container Store Sensational Beginnings
Cost Plus Target
Dillard's TJX Companies
Euromarket Designs Tuesday Morning Corporation
Garden Ridge Wal-Mart
Gymboree Williams-Sonoma
IKEA
ANSWERS TO DISCUSSION QUESTIONS AND PROBLEMS
1. Distinguish between variety and assortment. Why are these important elements of retail
market structure?
The main difference between variety and assortment is that variety refers to the number of
different merchandise categories a retailer sells, whereas assortment is the number of
different items or SKUs in a merchandise category. In addition, variety is often referred to as
the breadth of merchandise carried by the retailer, and assortment is referred to as the depth
of merchandise. These elements form an integral part of the retail market structure, since it is
the retail offering that ultimately distinguishes one retailer from another.
2. What sorts of competitive pressures are confronting traditional grocery stores? What
options do these stores have to ease these pressures?
Supermarkets are under competitive pressures from supercenters, warehouse clubs, extreme-
value retailers, convenience stores, and even drug stores. These retailers have increased the
amount of space that they provide for consumables. In addition, these competing retailers offer
food merchandise to build the traffic in their stores and increase the sales of more profitable
nonfood merchandise. To compete against these stores, supermarkets are offering more fresh
merchandise, green merchandise, ethnic merchandise and private label merchandise. In addition,
supermarkets are also working on ways to enhance the store ambience and customer service to
provide a more enjoyable shopping experience.
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3. What do off-price retailers need to do to compete against other formats in the future?
The main competitive weapon for the off-price retailers is their low price. While they may
not directly compete with higher service formats, such as department and specialty stores,
they do face increasing competition from discount stores. Here, the off-price stores may be at
a relative disadvantage since their merchandise is based upon opportunistic buying, while
discount stores offer a relatively stable mix of merchandise at stable prices (everyday low
pricing).
Since the option of improving service may increase costs and weaken their only source of
competitive advantage, low price, off-price retailers should focus on strategies to keep their
costs and prices low and explore low cost methods of attracting and retaining customers. In
terms of keeping operational costs low, they can locate in lower cost urban and rural areas
(note that outlet stores are more clustered within outlet malls located farther from the city but
near major highways). They can also implement more efficient inventory and merchandise
management systems (note that for a discount store, such as Wal-Mart, operational efficiency
and costs reductions are crucial to offering lower prices to customers). Also, they can expand
their sourcing to include imports from low cost international markets.
Another threat for off-price retailers may be from Internet stores. Often several stores
publicize their low prices and also attempt to match consumer price preferences through
reverse bidding and auctions (sites such as Priceline and eBay). Off-price retailers can
explore the possibility of using the Internet for relatively low cost advertising about current
merchandises (since their merchandise stocks fluctuate more rapidly due to opportunistic
buying). Factory outlet stores, on the other hand, can compete more directly over the
Internet.
4. Compare and contrast the retail mixes of convenience stores, traditional supermarkets,
superstores, and warehouse stores. Can all of these food retail institutions survive over
the long run? How? Why?
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Element of Traditional
Retail Mix Convenience Store Supermarket Superstore Warehouse Store
Location Typically Typically in strip Typically in strip Typically in strip
freestanding, easily shopping centers shopping centers shopping centers
accessible sites
Merchandise Limited variety and Average variety and Greater variety with Greater variety with
Assortment assortment assortment deeper assortment about the same
than supermarket assortment as
supermarket. Primary
difference is that
merchandise assortment
varies because of
opportunistic buying.
Pricing Higher pricing than Average pricing. Lower pricing than Lower pricing than
supermarkets Some chains have supermarkets. supermarkets. Pricing
constant (every day) Typical every day depends on cost of
pricing and others pricing. merchandise bought on
have special sale special buys.
(high-low) pricing.
Advertising and Limited advertising, High-low pricing Limited advertising Minimal promotion
Promotion frequent shopper chains advertise since most have since all merchandise is
programs tied to weekly specials. everyday pricing. basically on sale.
gasoline sales.
Personal selling Minimal Minimal Minimal Minimal
Store design and Designed for quick Typically use a grid- Same as Same as supermarket. A
display and easy merchandise iron with cross-hatch supermarket. bit more disorganized to
selection and aisles, extensive give the customers the
checkout signs. feel of searching for a
bargain.
Service Minimal Some services for Some services for Minimal

produce, bakery, produce, bakery,
meat and fish meat and fish areas.
categories.
All four types will persist because they appeal to different customer needs. The warehouse
stores typically have larger pack sizes that are very attractive to customers with large families
and to small business owners like local restaurants. In addition, due to the varying
assortments, customers who are brand loyal might not want to shop in these stores.
Convenience stores are located and designed to offer customers a snack, quick meal or
minimal grocery/general merchandise purchase along with their gasoline. These retailers
offer easy in and out access and speedy transactions. In response to competitive pressures
from other food retailers, as well as dependency on gasoline sales, many convenience stores
are now offering consumers fresh food and healthy fast food choices to reduce dependency on
fuel sales while maintaining on-the-go ease and convenience.
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The superstores are low in price but more inconvenient to shop in because of the large size.
Thus they appeal to customers who are very price conscious and are willing to drive a longer
distance and spend more time shopping in a larger store.
Conventional supermarkets are the most convenient. In major metro areas, there is a
conventional supermarket two to three miles from everyone’s home. They also provide more
services for customers such as cutting meat to order. Conventional supermarkets appeal to
customers who value service and convenience and are not as price conscious.
Note that the same consumer may shop at all four types of food retailers depending on the
nature of the shopping trip. For example, a consumer might stock up on basic such as toilet
paper, soft drinks, and can goods at a warehouse or superstore and then go to a supermarket
to buy meat, produce, and gourmet food.
5. Why is Walmart, the largest retailer in the world, facing slower growth than in the
past? What can it do to accelerate its growth?
Full line discount stores, like Walmart, face challenges from category specialists that
dominate specific product categories. In response to this pressure, Walmart has converted
many of its stores into supercenters that are more efficient and generate higher traffic. In
addition, Walmart is expanding to more urban locations using smaller storefronts.
6. Why are retailers in the limited assortment supermarket and extreme value discount
store sectors growing so rapidly? From which retailers are they getting these additional
sales.
Both limited assortment supermarkets and extreme value discount stores focus on relatively
limited merchandise offerings at highly appealing (low!) prices. The retail formats are able to
offer their extremely low prices through maximizing efficiency. By reducing extras and
service offerings, as well as managing a relatively low merchandise assortment, these
retailers are able to provide consumers with the “thrill of the hunt” for amazing deals.
Extreme value retailers are attracting customers away from supermarkets and supercenters.
7. The same brand and model of tablet is sold by specialty computer stores, discount
stores, category specialists, online retailers and warehouse stores. Why would a
customer choose one retail format over the others?
Each type of retail store provides a unique combination of price and services tailored to the
needs of different types of customers. The specialty store typically will have higher prices,
but will offer more services. It will have salespeople with technical expertise available to
provide information to customers and answer questions. This service is particularly valuable
to customers who do not know much about computers.
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On the other hand, discount stores, category specialists, and warehouse stores have lower
prices and do not offer much personalized service. These stores are more attractive to
customers who have more expertise and do not need personalized service.
Due to the greater assortment in category specialists, customers are able to compare the prices
and features of different brands in one store visit. Warehouse and discount stores have
limited assortments and thus customers can only see a limited set of brands and models. But
they can also buy merchandise in different product categories at the same time they are
buying a computer.
Some customers will prefer the convenience and selection offered online. The Internet may
also be used to collect information and compare features and prices prior to shopping in a
store location.
8. Choose a product category that both you and your parents purchase (e.g., business
clothing, casual clothing, music, electronic equipment, shampoo). In which type of store
do you typically purchase this merchandise? What about your parents? Explain why
there is (and is not) a difference in your store choices.
Students may emphasize specialty stores such as The Gap, Old Navy, Abercrombie and Fitch,
Express, and Best Buy etc. for their purchases for clothing, or electronic equipment, while
mentioning that their parents favor traditional department stores such as Macy's or Sears for
the purchase of such product categories. If price is a major factor, there may be some
similarities between the students and their parents; both may shop at discount stores.
The merchandise, service and prices for the various retail formats stocking different product
categories are different. In general, stores deliberately targeting a younger population will be
favored by students since these stores would better match their expectations of merchandise
(such as fashion clothing), prices and services (students may consider themselves savvy
customers for certain products, such as music and electronic equipment, and may not need
the type of service demanded by their parents for instance in purchasing business clothing).
9. At many optical stores you can get your eyes checked and purchase glasses or contact
lenses. How is the shopping experience different for the service as compared to the
product? Design a strategy designed to get customers to purchase both the service and
the product. In so doing, delineate specific actions that should be taken to acquire and
retain optical customers.
Optical stores present an interesting mix of service and related merchandise. On one hand,
the eye examination is usually done by a trained and licensed eye doctor and here the service
experience is often very professional and similar to a visit to any physician or hospital. On
the other hand, the glasses or contact lenses are displayed in a retail store setting with the
service being mostly oriented towards helping the customer try out various options. The
contrasts between the service and retail environments may be unnerving for some customers.
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One strategy to reduce the gap is to ensure that the retail setting is very professional and
courteous. Since the problem has been detected and identified by the eye doctor, the sales
staff in the retail setting could engage and interact more directly with the customer with more
of a problem-solving approach. This would involve educating consumers on various issues,
including the merits/demerits of using glasses or contact lenses, the types of lenses and
coatings, proper care of glasses and contact lenses, etc.
It must also be recognized that most customers who are prescribed glasses for the first time
are likely to continue wearing glasses or contact lenses for the rest of their lives. Thus, it is
important to start building consumer trust and confidence through professional service and
expertise. One strategy would be to encourage customers to return for an eye examination
every year and also have their current prescription for the glasses or lenses checked. Another
is to provide free repair service for the frames.
10. There are services and products involved when buying or renting a car, and in both
cases, the customer drives away in a car. But buying a car focuses more on the product,
whereas renting involves the service. Explain four ways in which marketing for a
rental car company differs from marketing for an automobile dealership.
The differences in offerings provided by service retailers include (1) intangibility, (2)
simultaneous production and consumption, (3) perishability, and (4) inconsistency of the offering
to customers. Although the automobile at the rental car company is tangible, the experience of
renting is an intangible offering. The services surrounding the accessibility of the car rental or
what is most important to the customer. Similarly, the service is consumed at the same time it is
being produced. This differs from the experience of purchasing a car. The rental car service is
also perishable. If a day goes y and an car is not rented, the revenue from renting the car for that
day is gone forever, making the rental car service perishable. Finally, the experience with the
rental car company may be inconsistent. As personalities and training programs might differ by
location, the experience the consumer has with a rental car provider at different locations may
vary significantly.
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ANCILLARY LECTURES
LECTURE # 2-1: FRANCHISING

--------------------------------------------------
Instructor’s Note: Franchising is one of the most popular and successful ways for individuals to start their
own business. The growth in franchising as a retail format will probably continue in the near future.
Many students who take a retailing course have intentions of someday starting their own business and
this lecture may provide them with an interesting possibility to consider. Instructors might want to use
this lecture as a stimulus to a class discussion on the topic. PowerPoint slides 2-59 to 2-67 can be used with
this lecture.
--------------------------------------------------
Introduction
Franchising is the licensing of an ENTIRE business format by a parent company

(FRANCHISOR) to a number of outlets (FRANCHISEES) to market a product or service and
engage in a business developed by the FRANCHISOR using the FRANCHISOR’S trade
names, trademarks, know-how, and methods of doing business.
In 1985, sales of goods and services by all franchising companies exceeded $529 billion,
approximately 33 percent of all U.S. retail sales flow.
There are roughly half a million establishments in franchise-related businesses.
The growth of franchising
Franchising has had a steady stream of growth. Some of the reasons include
1. Technological advances,
2. Profitable utilization of capital resources,
3. Attainment of the American dream,
4. Demographic expansion, and
5. Product/service consistency.
Technological advances
Equipment and systems--reduce product variability and more efficient marketing and
distribution systems.
For example: Electronic Data interchange.
Profitable utilization of capital resources
Can tap savings and credit capacity of individuals to realize national product/service
saturation
Attainment of the American dream
Owning your own business.
Demographic expansion
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Hill Education.
Urban “sprawl” creates need for more small retail establishments.

No-longer just downtown locations.
Product/service consistency
Due to geographic mobility, franchises have provided a level of homogeneous (boring)
quality in its product or service.
For example: A Big Mac tastes the same everywhere.
Types of franchise systems
There are various types of franchise systems including
1. Territorial,
2. Operating,
3. Mobile,
4. Distributorship,
5. Co-ownership,
6. Co-management,
7. Leasing/Licensing,
8. Manufacturing, and
9. Service.
Territorial franchise
The franchise granted encompasses several counties or states.
The holder of the franchise assumes the responsibility for setting up and training individual
franchisees within his territory and obtains an ‘override” on all sales in his territory.
For example: McDonalds and Burger King Regional franchises.
Operating franchise
The individual independent franchisee that runs his own franchise.
He deals either directly with the parent organization or with the territorial franchise holder.
For example: McDonalds and Burger King individual locations.
Mobile franchise
A franchise that dispenses its product from a moving vehicle, which is either owned by the
franchisee or leased from the franchisor.
For example: Country Store on Wheels and Snap-On Tools.
Distributorship
The franchisee takes title to various goods and further distributes them to sub-franchisees.
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Hill Education.
The distributor has exclusive coverage of a wide geographical area and acts as a supply house
for the franchisee that carries the product.
For example: Texaco gasoline supply centers.
Co-ownership
The franchisor and franchisee share the investment and profits.
For Example: Denny’s Restaurant.
Co-management
The franchisor controls the major part of the investment.
The partner-manager shares profits proportionately.
For example: Travelodge and Holiday Inn.
Leasing/Licensing
The franchisor leases/licenses the franchisee to use his trademarks and business techniques.
The franchisor either supplies the product or provides franchisees with a list of approved
suppliers.
For example: Sheraton Hotels.
Manufacturing
The franchisor grants a franchise to manufacture its product through the use of specified
materials and techniques.
The franchisee distributes the product, utilizing the franchisor’s techniques.
This method enables a national manufacturer to distribute regionally when distribution costs
from central manufacturing facilities are prohibitive.
For example: Sealy.
Service
The franchisor describes patterns by which a franchisee supplies a professional service, as
exemplified by employment agencies.
For example: Personnel One.
Why franchises fail
Individuals who are interested in franchising need to recognize that there is risk despite the
high potential for success.
Franchises can fail for several reasons including
1. Inept management,
2. Fraudulent activities, and
3. Market saturation.
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Hill Education.
Inept management
Poor finances, product/service mix rejected, grew too quickly.
Fraudulent activities
The selling of unsound or unproven franchises to ignorant buyers, unfair contracts, etc.
Market saturation
Too many franchises of same type, e.g., chicken fast-food.
Franchisors and the marketing channel
A franchisor may occupy any position in the marketing channel.
Manufacturer-retailer franchise
Automobile dealers and service stations.
Manufacturer-wholesaler franchise
Coca-Cola, Pepsi, Seven-Up, etc. sell syrup they manufacture to franchised wholesalers who
bottle and distribute to retailers.
Wholesalers-retailer franchise
Rexall Drugs and Sentry Drugs.
Service Sponsor--Retailer franchise
Avis, Hertz, and National, McDonald’s, Chicken Delight, KFC, Howard Johnson’s and
Holiday Inn, Midas and AMCO, Kelly Girl and Manpower
Franchisor benefits
Franchisees (the store) provide benefits for the franchisor (the parent company).
Continuous market
Insured through consistent quantity and quality and strong promotion.
Market information
Information such as sales, local advertising, employee turnover, profits, etc. is usually
provided.
Money
Principal sources of franchise company revenue.
Royalty fees
Royalties provide continuous income although often the rate may decrease as sales volume
increase.
Sometimes a flat rate is established regardless of level of sales.
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Hill Education.
Another random document with
no related content on Scribd:
“With sympathetic approach and with due appreciation of Dr
Chapman himself, one lays down the book with a feeling that Dr
Ottman has fallen short of the possibilities in the case.”
+ − Springf’d Republican p11a S 5 ’20 580w
OUR unseen guest. *$2 (3c) Harper 134
20–3803
Philosophical discussions communicated to Joan and Darby, the

anonymous authors of this book—by a young soldier who had
recently died, or “graduated,” and was living and working “on the
other side.” In the beginning this spirit gave proof of his identity,
which the authors quite accidently found corroborated. The
communications center about “quality of consciousness.” Our
development is both qualitative and quantitative. At birth we are
given quality of soul—which is definitely fixed—a rebirth of a certain
quality of consciousness, which has been developing on the other
side, into our human body. During our earth life, if we are true to our
“quality,” we develop quantity of soul, which upon our “graduation”
we bring as our contribution to the whole of consciousness on the
other side. There are many rebirths, until the supreme consciousness
is reached. Joan and Darby at first were very material skeptics,
holding fast to the theories of subconsciousness, telepathy, etc., but
in the end were quite convinced.
“In view of the unconvincing and emotional quality of many of the

popular books upon psychical research, the readers of ‘Our unseen
guest’ will be inclined to [say]—‘the best thing of the kind!’” Margaret
Deland
+ N Y Times 25:4 Je 27 ’20 1250w
“Wordy nonsense as this is, it is more coherent because more

modest than most of the revelations from the beyond; the evasion (in
the vernacular bluff) is more transparent, less likely to produce the
semblance of profundity by which the judgment is soothed to a
blissful ignorance mistaken for knowledge.” Joseph Jastrow
+ − Review 3:43 Jl 14 ’20 350w
OVERTON, GRANT MARTIN. Mermaid. il

*1.75 (2c) Doubleday
20–1891
A story of the sea and of sea-faring life seen from the coast and a
coast-guard station. Captain Smiley and his crew have rescued a little
girl of six, the only survivor of a wreck, and have called her Mermaid,
from the ship’s name. With the captain as Dad and the crew as uncles
she lives a life full of poetry and adventure. In spite of her name she
grows into a sane and healthy womanhood, surrounded in her school
days by boy friendships that later turn into love. From among these
she chooses Guy Vanton the lonely poet boy, shadowed by a dark
family history. In the course of the story several family histories of
the old coast town are revealed and withal much human nature,
some philosophy and the light of a new era is shown to lay old ghosts
and to conquer old fears. Mermaid’s husband, Guy, pays for his
conquest with his life, and Dick Hand, overstepping conventions
with the courage of love, reaps his reward.
OVINGTON, MARY WHITE. Shadow. *$1.75
(2c) Harcourt
20–5123
A story of the race problem told with an effective restraint. The

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cabin, to be brought up as a negro child and until the age of nineteen,
to believe herself of negro blood. Then a dying and repentent
grandfather restores her to her name and position and she is free to
cross the line into the white world. Realizing what her fate will be
wherever her story is known, she chooses to lose herself in New York,
earning a living in the garment trades. Here she finds herself on the
edge of the labor movement, but she is never quite drawn into it. She
remains outside the conflict. The call to action comes to her when the
life of her dark brother, the playmate of her childhood, is
endangered, and to save him from the fury of a lynching mob,
enraged to the point of blood lust at thought of a negro who has laid
his hand on a white woman’s arm, she again crosses the color line
and falsely declares herself of negro birth. The story ends as it began,
in the South, with Hertha entering the beautiful southern home of
which she is to be mistress, but even within its protection, with her
lover’s arm about her, she looks ahead and knows that “the shadow
of man’s making” will always lie beside her path.
Booklist 16:314 Je ’20
“Miss Ovington has written a novel of keen interest. She has

handled the story unfalteringly. She has shown the immense
possibilities that lie in such a theme when treated truthfully and
artistically. She treats her colored characters with the same attributes
of nature and temperament as the whites, and in so doing opens up
the way to the possibilities in the future of American fiction.”
+ Boston Transcript p4 Je 2 ’20 2000w
“In no recent book has the American negro’s problem been more
sympathetically treated than in ‘The shadow.’ She succeeds
throughout in treating them as individuals rather than as racial types
and does so with a simple and unselfconscious realism.” M. G.
+ Freeman 2:93 O 6 ’20 160w
“The execution is unexceptionable, but the people and the

incidents lack concreteness. No doubt Miss Ovington has seen them
in the flesh. But she has seen them as a sociologist rather than as an
artist. But this will not trouble the average reader at all. And since in
most of the novels he gets the characters are conventionalized into
conformity with the demands of intolerance and hatred, one cannot
but desire a wide popularity for this book in which the controlling
spirit is one of humanity and of the civilized instincts.”
+ − Nation 110:558 Ap 24 ’20 160w
“There can be no doubt of Miss Ovington’s love and sympathy for

the negroes. Each page is full of the burning resentment she feels for
their wrongs, but one cannot help wondering what her real belief is
with regard to the race.”
+ − N Y Evening Post p3 My 1 ’20 630w

“Miss Ovington’s book is well constructed and faultlessly written.”
+ N Y Times 25:25 Je 27 ’20 560w
“Incidentally, the race question is touched upon with sympathy

toward all sides of the problem.”
+ Outlook 124:657 Ap 14 ’20 40w
“The story is written throughout with a deep sympathy for all the
characters.”
+ Springf’d Republican p9a Ag 29 ’20

240w
“Her black characters are drawn lovingly: for she seems to possess
in rare combination that sympathetic affection which the southern
white feels for the black when he ‘keeps his place’ together with
comprehension of the aspiring mind and soul of the black race.” M.
K. R.
+ World Tomorrow 3:287 S ’20 260w
OWEN, ROBERT. Life of Robert Owen. *$1.50

(1c) Knopf
20–26889
The book is the first of a series of economic reprints which form a
new social economic section of the famous Bohn libraries. The
volumes deal with the great writers and pioneers in the field of
economics of whom Robert Owen was the first to grasp the meaning
of the industrial revolution. The present volume has an introduction
by M. Beer, a bibliography of the works of Owen, and an index.
+ Ath p784 Je 11 ’20 50w

Booklist 17:85 N ’20
“A comparison of Owen’s ‘Life’ with contemporary records will

reveal a number of substantial discrepancies.” R: Roberts
+ − Freeman 2:187 N 3 ’20 850w
OYEN, HENRY. Plunderer. *$1.75 (3c) Doran
20–4782
Roger Payne, an energetic young northerner, buys a thousand acre

tract of “prairie” land in Florida. When he goes down to look it over
he finds that the quality of the land corresponds quite exactly to the
agent’s description, but that it is covered with about two feet of
water. With the aid of his friend Higgins, an engineer, he works out a
plan for drainage, but finds that the physical difficulties are the least
of his obstacles. One of the men in the company that sold him the
land is Senator Fairclothe, but he soon learns that this statesman is
only the catspaw for Garman, the real villain in the situation. The
senator’s beautiful daughter is engaged to Garman, but there is love
at first sight between her and Roger and the outcome of the tale,
which abounds in scenes of brutality, is the winning of the girl as well
as title to the reclaimed land.
Reviewed by H. W. Boynton
+ Bookm 51:683 Jl ’20 290w
“The book is an adventure tale of good quality: and if the reader

will overlook its lack of plausibility it will hold his attention to the
end.”
+ N Y Times 25:134 Mr 21 ’20 300w
“The tale is exciting and adventurous.”
+ Outlook 124:563 Mr 31 ’20 20w

Springf’d Republican p13a My 2 ’20
200w
OZAKI, YEI THEODORA. Romances of old

Japan. *$8.50 Brentano’s 895
“Madame Ozaki’s ‘romances’ are for the most part stories dealt
with by the popular drama of the eighteenth and nineteenth
centuries. They are of two types, the sanguinary and the
supernatural. The first corresponds to the earlier period of the Yedo
popular stage and to the careers of the first three Danjūrōs, famous
for their impersonations of ferocious warriors. In the present work
‘The quest of the sword,’ ‘The tragedy of Kesa’ and ‘The Sugawara
tragedy’ belong to this type. The second type, represented in this
book by ‘The spirit of the lantern,’ ‘The reincarnation of Tama,’ ‘The
badger-haunted temple,’ etc., corresponds to the popularity of the
great ghost-impersonator Matsusuke, who died c.1820.”—Ath
“These characteristic native idylls are charmingly translated.”
+ Ath p1170 N 7 ’19 70w
“It is not difficult to discover why Madame Ozaki’s material is

drawn from the stage, and not from the classical literature of Japan.
Her rendering of one or two poems in this book shows that she is
imperfectly acquainted with the older language. Her style is that of
cinema-libretti, a medium thoroughly suited to the nature of her
material. Numerous illustrations by the contemporary artists Keishū
and Hōsai add to the impression of modernity produced by the book.
Might not it have been illustrated by old theatrical woodcuts?” A. D.
W.
+ − Ath p1398 D 26 ’19 440w
“Mme Ozaki’s very readable tales gain by being associated with

native pictures, though the artist seems to have been influenced by
western painting.”
+ Spec 123:696 N 22 ’19 140w
“The illustrations are Japanese. None of them, we suppose, would

be considered anything but negligible in Japan. But to the western
eye there is hardly one which does not possess some of those
qualities of grace, decision, and style which are seldom absent from
the most trifling Japanese work.”
+ − The Times [London] Lit Sup p747 D 11
’19 400w
P
PACKARD, FRANK LUCIUS. From now on.

*$1.75 (2c) Doran
20–6
Dave Henderson, through environment a crook, steals one

hundred thousand dollars, which unfortunately is coveted by other,
more hardened crooks. Scarcely has he hidden his prize securely
when he is hotly pursued. Caught and convicted, he serves five years
in the “pen” patiently, for is not the reward worth while? Released,
he is a marked man to both police and crook. Nevertheless, after
hair-raising adventures, he at last holds in his hands the hundred
thousand dollars, only to find he can no longer enjoy this stolen
money. Association with an honest, great hearted gentleman and a
girl who loves Dave, creates in him values other than material, and a
desire for clean straight living. He accepts “God’s chance,” and
together with the woman he loves, looks forward to an honest,
decent, constructive life “from now on.”
“As a well-constructed, plausible and exciting story, ‘From now on’

deserves unstinted praise.” A. A. W.
+ Boston Transcript p10 Ja 31 ’20 300w

N Y Times 25:71 F 8 ’20 550w
Springf’d Republican p11a Mr 21 ’20
210w
PACKARD, FRANK LUCIUS. White Moll.

*$1.75 (1½c) Doran
20–8628
The White Moll is the name Rhoda Gray has earned for herself in
New York’s East side district by always playing on the square with its
denizens. So Gypsy Nan, when dying in a slightly penitent frame of
mind, entrusts her with the secret of a crime about to be committed.
Rhoda tries to stop it, but is arrested, charged with committing it.
She escapes but her career of charity as the White Moll is thus
wrecked and she is forced for safety to disguise herself as Gypsy Nan
in which rôle she finds herself in the midst of a criminal gang. She
resolves to circumvent their schemes, and so plays the double part of
Gypsy Nan, who is hand in glove with them, and the White Moll,
their bitterest enemy and a fugitive from justice. Her part is hard, but
her luck is good, and with the “Adventurer” as her ally she finally,
after many exciting experiences, breaks up the gang and brings it to
punishment. Then she makes the gratifying discovery that the
Adventurer is not the thief she had thought him and that they had
been working for the same ends.
“If a thrill on every page is any consideration, here you have it.” H.
W. Boynton
+ Bookm 51:585 Jl ’20 140w

“As is usual in his stories of the underworld, Mr Packard’s tale is
filled with exciting adventures. He has without doubt built a place for
himself and his particular type of tale.”
+ Boston Transcript p6 Jl 17 ’20 300w
“There is no need for anyone to find life unexciting so long as there

are men in the world with imaginations like Frank L. Packard’s.”
+ Ind 104:381 D 11 ’20 140w
“It is a clever, absorbing story, with a certain freshness in its

theme.”
+ N Y Times 25:329 Je 20 ’20 480w

Springf’d Republican p9a Jl 4 ’20 180w
Wis Lib Bul 16:238 D ’20 50w
PACKARD, WINTHROP. Old Plymouth trails. il

*$3 (4c) Small 917.4
20–26567
“He who would see Plymouth and the Pilgrim land about it as the
Pilgrims saw it may do so. Nature holds grimly onto her own and
sedulously heals the scars that man makes.... Plymouth is a
manufacturing city, a residence town, a resort and a thriving
business centre all in one ... but you have only to step out of town to
find their very land all about you, traces of their occupancy, the very
marks of their feet, worn in the earth itself.... Along the old Pilgrim
trails you may step from modern culture and its acme of civilization
through the pasture lands of the Pilgrims into glimpses of the forest
primeval.” (Chapter I) A partial list of the contents is: Plymouth
mayflowers; Nantucket in April; Footing it across the Cape; Along
the salt marshes; Ghosts of the northeaster; White pine groves; The
pasture in November; Coasting on Ponkapoag; Yule fires.
“Pleasant informal essay style with special appeal to the lover of

the out-of-doors.”
+ Booklist 16:342 Jl ’20
Reviewed by W. A. Dyer
+ Bookm 52:126 O ’20 30w

+ Cath World 112:257 N ’20 160w
“As a prose technician, Mr Packard is, of course, inferior to W. H.

Hudson, lacking both the English writer’s restraint and his sense of
nervous rhythm. Yet he writes with great vividness at times, and his
accuracy of observation is hardly less keen.” W. P. Eaton
+ − Freeman 2:117 O 13 ’20 900w

+ N Y Times 25:5 Jl 25 ’20 100w
+ Outlook 125:715 Ag 25 ’20 60w
+ Springf’d Republican p8 Jl 23 ’20 240w
Wis Lib Bul 16:236 D ’20 70w
Reviewed by C. L. Skinner
+ Yale R n s 10:181 O ’20 750w
PAGE, GERTRUDE (MRS GEORGE

[2]
ALEXANDER DOBBIN). Paddy-the-next-best-
thing. *$2 (2c) Stokes
20–18935
When Paddy Adair was born, her father had ardently wished for a
boy, but as she grew up he had become quite contented with the
“next-best-thing,” and Paddy, while longing herself to be a boy, had
satisfied herself with being as hoydenish and wild as the “next-best-
thing” could be. But for all that, she had a way with her with the
opposite sex, a captivating Irish way which won and held the heart of
Lawrence Blake, as her sister Eileen’s dreamy moods could never do.
But Paddy, because she thought Eileen was breaking her heart over
Lawrence’s defection, swore eternal hatred against him. Altho
patience was far from natural to him, he cultivated it and in the end
won out. The story in play form has had a successful run both in this
country and England.
“As fiction of the very lightest sort this tale has its good points.
Although over-played, its heroine, Paddy, is real and often behaves
like a human sort.”
+ N Y Evening Post p22 O 23 ’20 50w

“The author does not rely on plot for the appeal of her book. What
she does is to offer a pleasing, polite, mildly amusing sketch of
certain phases of life in Ireland, with nothing to remind one of Sinn
Fein uprising and hunger strikes, and this work she has done with
commendable skill.”
+ N Y Times p18 D 5 ’20 410w

Springf’d Republican p8 D 28 ’20 130w
[2]
PAGE, KIRBY. Something more. *90c Assn.
press 248
20–11091
The book, “a consideration of the vast, undeveloped resources of

life” (Sub-title) is the first in the New generation series. It contains
four essays enlarging respectively on the latent possibilities in God,
in man, in Jesus Christ, in life—that are man’s for the searching. The
last essay, Enemies of life, enumerates the negative factors, both
material and spiritual, all rooted in ignorance, that keep man from
entering into his true heritage.
“An invigorating book.”
+ Bib World 54:645 N ’20 120w
PAGE, THOMAS NELSON. Italy and the world

war. *$5 Scribner 940.345
20–21941
Ambassador Page was in Italy during the entire period of the war
and followed sympathetically the part played therein by the Italian
people. He holds that the key to Italy’s relation to the war is to be
found in her traditions, her history and in her geographical and
economic situation. Accordingly the book falls into three parts: “The
first is introductory and contains in outline the history of the Italian
people in the long period when they were included in and bound
under the Holy Roman empire. The second contains the story of their
evolution, from the conception of their national consciousness on
through the long and bitter struggle with the Austrian empire for
their liberty down to the time when ... they developed into a new and
united Italy.... The third part contains the story of the diplomatic
struggle to establish herself in a position to which Italy considers
herself entitled as a great power.” (Preface) The book has six maps,
appendices, giving the texts of the armistice with Austria and of the
pact of London, and an index.
“A much needed contribution to the political history of the war.”
+ Booklist 17:149 Ja ’21
“It is not impertinent to say that an experienced newspaper man,

equipped with a good encyclopædia, a good atlas, and the newspaper
files for the past five years, could produce an excellent replica of
‘Italy and the world war’ without having crossed the Atlantic. Mr
Page had an opportunity to write a very remarkable pamphlet, and
he wrote instead a hurried, congested, and unnecessary hotch-potch
history of the war.” W: McFee
− N Y Evening Post p4 Ja 29 ’21 1400w

“It is to be regretted that the American public could not have had
the benefit of this unequaled book months ago. Mr Page smashes
beyond recovery many illusions which, during and after the war,
militated against the character of Italy, her people, her statesmen.”
Walter Littlefield
+ N Y Times p3 N 28 ’20 2500w

R of Rs 63:222 F ’21 130w
Springf’d Republican p6 D 4 ’20 80w
PAGÉ, VICTOR WILFRED. Automobile

starting, lighting and ignition. 6th ed rev and enl il $3
Henley 629.2
20–9556
“Mr Pagé first explains the nature of electricity—how a current is

produced—and then goes on to explain in general the systems used
for ignition, starting and lighting. This is followed by a detailed
explanation of the individual systems on various cars. Many
illustrations and diagrams make this book easy to understand.” (R of
Rs) “The sixth edition repeats the material of the second edition with
the addition of eight new chapters on leading electrical ignition
systems, design of electrical measuring instruments and use in
testing, and wiring diagrams of popular cars.” (Booklist)
Booklist 16:357 Jl ’20

R of Rs 62:336 S ’20 50w
The Times [London] Lit Sup p669 O 14
’20 20w
PAGÉ, VICTOR WILFRED. Model T Ford car.

rev and enl il $1.50 Henley 629.2
20–4100
“Victor W. Pagé’s ‘Model T Ford car’ has appeared in its new and
enlarged 1920 edition. This edition should be even more popular
than the earlier editions, as it contains information and instructions
for the Fordson farm tractor and the F. A. lighting and starting
system, as well as all the principles and parts of the Ford. Numerous
illustrations and diagrams make the instructions and explanations
easily understood by a novice.”—N Y P L Munic Ref Lib Notes
Booklist 16:291 My ’20

N Y P L Munic Ref Lib Notes 7:35 O 13
’20 50w
R of Rs 62:336 S ’20 50w
PAGÉ, VICTOR WILFRED, ed. Motor boats

and boat motors. il $3 Henley 623.8
20–11842
“Mr Pagé has compiled a volume full of interest to the novice as

well as to the experienced motor-boat enthusiast. It covers fully the
design, construction, operation, and repair of boats and motors in
general, including full instructions, with working drawings, for
building five boats from tested designs by A. Clark Leitch, naval
architect. A chapter on seaplanes and flying-boat construction gives
both theory and practical application.”—R of Rs
Booklist 17:100 D ’20
“Clearly written and has nearly 400 exceptionally good

illustrations. Anyone contemplating the purchase of a boat should be
guided by the excellent advice given in the first chapter.”
+ N Y P L New Tech Bks p60 Jl ’20 80w

R of Rs 62:336 S ’20 70w
PAGE, WILLIAM, ed. Commerce and industry;

with a preface by William Ashley. 2v il v 1 *$15 v 2
*$10 Dutton 330.9
(Eng ed 19–18954)
“In the twelve chapters that make up the main text of the first
volume of this work, and the three appendices, an historical review of
the economic conditions of the British empire for ninety-nine years,
largely based upon parliamentary debates as reported by Hansard, is
given. The second volume consists of statistical tables of the
economic factors, such as population, taxation, imports and exports,
production, finance, etc., in supplementation proof of the conditions
as set forth in the text of the first volume. The subjects dealt with in
the main portion of the work cover the Effects of war (1815 to 1820);
Commercial reform (1820 to 1830); The reform Parliament (1830 to
1841); Repeal of the Corn laws (1841 to 1852); War and finance (1852
to 1859); Free trade (1859 to 1868); Retrenchment and reform (1869
to 1880); Organization (1880–1892); Foreign competition (1892 to
1900); The movement towards tariff reform (1900 to 1910); and
Unrest (1910 to 1914). The three appendices discuss The Cabinet and
Parliament, Ministries 1812 to 1912, and A chronicle of the British
empire beyond the seas.”—Boston Transcript
“The volume is a storehouse of facts for politicians and

economists.”
+ Ath p745 Ag 15 ’19 1150w

+ Boston Transcript p4 S 29 ’20 720w
“Impartiality is a dominant quality of the work, as it ought to be.”
+ Spec 122:151 Ag 2 ’19 1050w
PAGET, STEPHEN. Sir Victor Horsley; a study

of his life and work. il *$6 Harcourt
(Eng ed 19–18661)

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Four elements of the retail mix that are

A. Variety and Assortment. See PPT 2-7

Variety is the number of merchandise

Retailers also differ in the services they

A critical retail decision involves the trade-

II. Food Retailers See PPT 2-13

Twenty years ago, consumers purchased

The world's largest food retailer is Wal-

Mart with supermarket-type sales of more

A. Supermarkets See PPT 2-14

A conventional supermarket is a self-

1. Trends in Supermarket Retailing See PPT 2-17

Today, conventional supermarkets are

Low cost competitors are especially

To compete successfully with intrusions by

deli and bakery departments), targeting

Conventional supermarkets are also

Through adjustments to the traditional

Conventional supermarkets chains are

The online grocery market also represents

Creating an enjoyable shopping experience

B. Supercenters See PPT 2-18 for an illustration of the

However, since supercenters are very

Hypermarkets are also large (100,000 to

Popular in both Europe and South

Supercenters place greater emphasis on

Although supercenters and hypermarkets

C. Warehouse Club See PPT 2-18 for an illustration of the

small businesses. warehouse clubs? (Consumers with larger

D. Convenience Stores See PPT 2-19 for an overview of the

In response to these competitive threats,

sales by tailoring their merchandise

To increase convenience, some

III. General Merchandise Retailers See PPT 2-20

A. Department Stores See PPT 2-21, 2-22, 2-23

Department store chains can be categorized

service (Neiman Marcus, Nordstrom); (2)

Today many customers question the

B. Full-Line Discount Stores See PPT 2-24

Target is becoming one of the most

C. Category Specialist See PPT 2-25

By offering a complete assortment in a

other retailers and thus are frequently

One of the largest and most successful

While merchandise in home-improvement

Competition between specialists in each

In response to this increasing competitive

D. Specialty Stores See PPT 2-26

Manufacturers are also opening their own

Bank Management & Financial Services Rose 9th