Retail Financial Inventory Control: Integrating Dollar and Unit Concepts

Until now, we have discussed dollar and unit control separately. In practice, they are linked. A decision on how many units to buy is affected by dollar investments, inventory turnover, quan­tity discounts, warehousing and insurance costs, and so on. Three aspects of financial inventory control are covered next: stock turnover and gross margin return

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External Factors Affecting a Retail Price Strategy

Several factors have an impact on a retail pricing strategy, as shown in Figure 17-3. Sometimes, the factors have a minor effect. In other cases, they severely restrict a firm’s pricing options. 1. The Consumer and Retail Pricing Retailers should understand the price elasticity of demand—the sensitivity of customers to price changes in terms

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Developing a Retail Price Strategy

As Figure 17-4 shows, a retail price strategy has five steps: objectives, policy, strategy, imple­mentation, and adjustments. Pricing policies must be integrated with the total retail mix, which occurs in the second step. The process can be complex due to the often erratic nature of demand, the number of items carried, and the impact

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Buyer of Sports Equipment

Recently, a sporting-goods retail chain posted a job listing for the position of Buyer of Sports Equipment. The applicant cho­sen would work in Pittsburgh. Following is the position descrip­tion placed at the National Retail Federation Job Board. Pittsburgh has transformed itself into one of the best “made over towns,” evolving from steel to science,

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Adapting to the Internet of Things (IoT) in Retailing

In an era where customization and personalization are the oper­ative words in retailing, the challenge to build closer connec­tions with shoppers has never been greater. Ubiquitous Internet connectivity is driving radical transformation of a retail world whose epicenter of consumer intelligence, long entrenched in the front end and back office, has given rise to

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High Marks by Suppliers and Wholesalers for Retail Convenience Stores

On a broad scale, 2015 was an interesting year for the United States and, with the presidential election, 2016 promised to be every bit as exciting. The same can be said about the conve­nience store industry. Based on the results of an outlook survey conducted in early November 2015 by the National Associa­tion for

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Data-Driven Pricing in Retailing

Retailers are under pressure to improve profitability and gain a greater percentage of spending, so it’s not surprising that more firms realize the value of price optimization to increase same- store sales and improve their competitive position. But how can retailers best optimize pricing? Experts advise them to move away from a “gut-feel” approach

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Knocking Off the Knockoffs?

1. Introduction As E-commerce numbers grow, counterfeiters are heading online. Producers of knockoff merchandise are busy all year long, but the holiday season of 2015 may have set records for the sheer volume of bogus goods that entered the marketplace, with E-commerce earning the dubious distinction of leading the way. “The growth of counterfeit

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The Significance of Retail Image

Image refers to how a retailer is perceived by customers and others, and positioning refers to how a firm devises its strategy so as to project an image relative to its retail category and its competitors— and to elicit a positive consumer response. To succeed, a retailer must communicate a distinctive, clear, and consistent

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A Store-Based Retailing Perspective

Store atmosphere (atmospherics) can be divided into these key elements: exterior, general interior, store layout, and displays. Figure 18-5 contains a detailed breakdown of them. EXTERIOR A store’s exterior has a powerful impact on its image and should be planned accordingly. A storefront is the total physical exterior of the store itself. It includes

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A Nonstore-Based Retailing Perspective

Many atmospherics principles apply to both store and nonstore retailers. However, there are also some distinctions. Let’s look at the storefront, general interior, store layout, displays, and checkout counter from the vantage point of one type of direct marketer, the Web retailer. STOREFRONT The storefront for a Web retailer is the home page. Thus,

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Encouraging Customers to Spend More Time Shopping

Paco Underhill, a pioneer in retail anthropology, advises retailers to encourage consumers to spend more time at the store because shopping time (excluding the time spent waiting in a line) is directly related to total spending. This insight has been supported by a variety of studies with online and store-based retailers that have tried

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Community Relations in Retailing

The way retailers interact with the communities around them can have a significant impact on both their image and performance. Their stature can be enhanced by engaging in such community- oriented actions as these: Making sure that stores are barrier-free for disabled shoppers and strictly enforcing handi­capped parking rules Showing a concern for the

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Elements of the Retail Promotional Mix

Advertising, public relations, personal selling, and sales promotion are the elements of promotion. In this section, we discuss each in terms of goals, advantages and disadvantages, and basic forms. A good plan integrates these elements—based on the overall strategy. For example, a movie the­ater concentrates on ads and sales promotion (food displays), whereas an

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Planning a Retail Promotional Strategy

A systematic approach to promotional planning is shown in Figure 19-12 and explained next. Our blog site (www.bermanevansretail) has posts related to promotional strategy, including word of mouth. 1. Determining Promotional Objectives A retailer’s broad promotional goals are typically drawn from this list. In developing a promotional strategy, the firm must determine which of

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Keep retail Simple

“In this omnichannel shopping era, it is more important than ever to deliver a simplified shopping experience. Retail brands that can deliver the most streamlined experience will drive the highest levels of long-term customer loyalty.” That was the message in branding firm Siegel and Gale’s sixth annual Global Brand Simplicity Index, based on responses

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More than Retail Price

A study released in 2016 by Deloitte, the Food Marketing Insti­tute, and the Grocery Manufacturers Association shows that more than half of Americans surveyed weigh “evolving driv­ers” in their purchasing decisions—health and wellness, safety, social impact experience, and transparency—in addition to the traditional drivers of taste, price, and convenience. “Price is always going to

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Enhancing the In-Store Experience through Facial Recognition Software

The best way to understand what eyeQ is trying to do is to com­pare it to a conventional digital display. Unless it’s a specialized store, that display can’t show shoppers a significant portion of a store’s assortment, so it might instead show a variety: lots of fast fades and dissolves, and maybe some panning

Revitalizing Retail Customer Loyalty

There are many ways to maintain customer loyalty, but experts say consistent and clear pricing may be the most important. Moreover, getting the price right across all products all the time is a key ingredient in strengthening shopper loyalty. The trick is to do so profitably. “Today’s retailers have a unique opportunity to leverage

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Inside the Mind of Shake Shack’s Founder

1. Introduction Danny Meyer is an extremely creative and proactive business thinker and entrepreneur. He has demonstrated this throughout his career—especially with the introduction and expansion of the growing Shake Shack chain. Shake Shack serves a menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, and wine. With its fresh and

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