Characteristics of Retail Trading Areas

After the size and shape of alternative trading areas are determined, the characteristics of those areas are studied. Of special interest are the attributes of residents and how well they match the firm’s definition of its target market. An auto repair franchisee may compare opportunities in sev­eral locales by reviewing the number of car

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Types of Retail Locations

There are three different location types: isolated store, unplanned business district, and planned shopping center. Each has its own attributes as to the composition of competitors, parking, near­ness to nonretail institutions (such as office buildings), and other factors. Step 2 in the location process is to determine which type of location to use. 1.

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The Choice of a General Retail Location

The last part of Step 2 in location planning requires a retailer to select a locational format: isolated, unplanned district, or planned center. The decision depends on the firm’s strategy and a careful evaluation of the advantages and disadvantages of each alternative. Next, in Step 3, the retailer chooses a broadly defined site. Two

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Retail Location and Site Evaluation

Assessment of general locations and the specific sites within them requires extensive analysis. In any area, the optimum site for a particular store is called the one-hundred percent location. Because different retailers need different kinds of sites, a location labeled as 100 percent for one firm may be less desirable for another. An upscale

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Are Smaller and Faster Better in Retailing?

As the grocery industry diversifies, whose lunch will get eaten? The first 365 formatted stores from Whole Foods Market opened in mid-2016. Kroger opened the first Main & Vine in February 2016. Fresh Formats, an Ahold company, debuted bfresh stores in fall 2015; and Fresh Thyme Farmer’s Market, which opened its first store in

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Organize, Optimize, Synchronize the Retail Location

To get closer to its customers, American Eagle Outfitters (AEO) conducted several site assessments that factored in its customer population, order profiles, transportation, and labor costs. Chris­tine Miller, the firm’s director of operations, says AEO estab­lished a strategy based on what its road map would look like for the next 5 years: A second

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Removing Barriers to Cross-Border Retail Commerce

If you ask online retailers what methods of payment they accept, most would say credit cards. But a study of global E-commerce payments found that in many parts of the world, credit cards account for a very small portion of payments made online. The conclusion? Retailers need to expand significantly the number of payment

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Warehouse Management: Right Time, Right Place in Retailing

There’s an evolution from the existing physical and technical warehouse management infrastructure to capabilities offering multiple methods to store, pick, and process orders. Dan Grimm, solution strategist at JDA, sees progress in a number of areas of warehouse management systems (WMS), including value-added services (VAS), food safety, the use of voice, and mobile tech­nology.

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Autenticidad en Acción: Mexican Delights the Real Deal at Food City Remodel

1. Introduction When it comes to food, today’s consumers are more sophisti­cated and knowledgeable than ever. For a truly rewarding gro­cery store experience, shoppers want freshness, diversity, and authenticity. In response, grocery retailers have “upped” their games in those areas, even some value/price operators. 2. Food City Overview A case in point is Food

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Setting Up a Retail Organization

Through a retail organization, a firm structures and assigns tasks (functions), policies, resources, authority, responsibilities, and rewards to efficiently and effectively satisfy the needs of its target market, employees, and management. Figure 11-1 shows various needs that should be taken into account when planning and assessing an organization’s structure. As a rule, a firm

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Organizational Patterns in Retailing

An independent retailer has a simple organization. It operates only one store, the owner/manager usually supervises all employees, and workers have access to the owner/manager if there are prob­lems. In contrast, a chain must specify how tasks are delegated, coordinate multiple stores, and set common policies for employees. As examples, the organizational arrangements used

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Human Resource Management in Retailing

Human resource management involves recruiting, selecting, training, compensating, and super­vising personnel in a manner consistent with the retailer’s organization structure and strategy mix. Personnel practices depend on the line of business, number of employees, store location, and other factors. Because good personnel are needed to develop and carry out strategies, and labor costs can

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Profit Planning in Retailing

A profit-and-loss (income) statement is a summary of a retailer’s revenues and expenses over a given period of time, usually a month, quarter, or year. It lets the firm review overall and specific revenues and costs for similar periods (such as January 1, 2016, to December 31, 2016, versus January 1, 2015, to December

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Asset Management in Retailing

Each retailer has assets to manage and liabilities to control. This section covers the balance sheet, the strategic profit model, and other ratios. A balance sheet itemizes a retailer’s assets, liabilities, and net worth at a specific time—based on the principle that Assets = Liabilities + Net worth. Table 12-2 has a balance sheet

Budgeting in Retailing

Budgeting outlines a retailer’s planned expenditures for a given time based on expected per­formance. Costs are linked to satisfying target market, employee, and management goals. What should labor costs be to attain a certain level of customer service? What compensation will moti­vate salespeople? What operating expenses will reach intended revenue and profit goals? There

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Resource Allocation in Retailing

In allotting financial resources, the magnitude of various costs as well as productivity should be examined. Each has significance for asset management and budgeting. 1. The Magnitude of Various Costs As noted before, spending can be divided into two categories. Capital expenditures are long-term investments in fixed assets. Operating expenditures are short-term selling and

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Operating a Retail Business

We now look at the operations blueprint: store format, size, and space allocation; personnel uti­lization; store maintenance, energy management, and renovations; inventory management; store security; insurance; credit management; computerization; outsourcing; and crisis management. 1. Operations Blueprint An operations blueprint systematically lists all operating functions to be performed, their char­acteristics, and their timing. When developing

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Assistant Store Manager

Recently, a national discount apparel store chain posted a job listing for Assistant Store Manager. The applicant chosen would work in Oregon. Here is the position description placed at the National Retail Federation Job Board. The Assistant Store Manager (ASM) is responsible for the management and supervision of all assigned departments and all nonexempt

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Manager, Training and Development in Retailing

Recently, a major global retail chain posted a job listing for the position of Manager of Training and Development. The applicant chosen would work in New Jersey. Following is the position description placed at the National Retail Federation Job Board. The Manager of Training and Development (MTD) is responsible for designing, implementing, and sustaining

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Retail Senior Manager of Digital Operations

Recently, a cosmetics firm posted a job listing for the position of Senior Manager of Digital Operations. This firm sells online, operates its own boutiques, and distributes via other retailers. The applicant chosen would work in San Francisco. Here is the job description placed at the National Retail Federation Job Board. Reporting to the

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