A person engaged in buying and selling:
There are several types of bundles: The prices of the bundle is typically less than when the two items are purchased separately. Price lining is the use of a limited number of prices for all product offered by a business. Price lining is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. In price lining, the price remains constant but quality or extent of product or service adjusted to reflect changes in cost. The underlying rationale of this tactic is that these amounts are seen as suitable price points for a whole range of products by prospective customers.
It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices.
Price lining continues to be widely used in department stores where customers often note racks of garments or accessories priced at predetermined price points e.
Promotional pricing is a temporary measure that involves setting prices at levels lower than normally charged for a good or service.
Promotional pricing is sometimes a reaction to unforeseen circumstances, as when a downturn in demand leaves a company with excess stocks; or when competitive activity is making inroads into market share or profits. Psychological pricing is a range of tactics designed to have a positive psychological impact. Psychological pricing is widely used in a variety of retail settings.
Because patronage at a retail outlet varies, flexibility in scheduling is desirable. Employee scheduling software is sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day.
Usually needs vary widely. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations.
Retailers can employ different techniques to enhance sales volume and to improve the customer experience:. One of the unique aspects of retail promotions is that two brands are often involved; the store brand and the brands that make up the retailer's product range. Retail promotions that focus on the product range, are designed to cultivate a positive attitude to the brands stocked by the store, in order to indirectly encourage favourable attitudes towards the store itself.
Retailers make extensive use of advertising via newspapers, television and radio to encourage store preference. In order to up-sell or cross-sell, retailers also use a variety of in-store sales promotional techniques such as product demonstrations, samples, point-of-purchase displays, free trial, events, promotional packaging and promotional pricing.
In grocery retail, shelf wobblers, trolley advertisements, taste tests and recipe cards are also used. Many retailers also use loyalty programs to encourage repeat patronage. See Merchandising ; Servicescapes ; Retail design. Presentation refers to the physical evidence that signals the retail image. The environment in which the retail service encounter occurs is sometimes known as the retail servicescape. Collectively, these elements contribute to the perceived retail servicescape or the overall atmosphere and can influence both the customer's cognitions, emotions and their behaviour within the retail space.
Retail designers pay close attention to the front of the store, which is known as the decompression zone. An open-plan floor design is effective in retail as it allows customers to see everything.
In terms of the store's exterior, the side of the road cars normally travel, determines the way stores direct customers. New Zealand retail stores, for instance, would direct customers to the left. In order to maximise the number of selling opportunities, retailers generally want customers to spend more time in a retail store.
However, this must be balanced against customer expectations surrounding convenience, access and realistic waiting times. The retail service environment plays an important role in affecting the customer's perceptions of the retail experience.
The retail environment not only affects quality perceptions, but can also impact on the way that customers navigate their way through the retail space during the retail service encounter. Layout, directional signage, the placement of furniture, shelves and display space along with the store's ambient conditions all affect patron's passage through the retail service system. Layout refers to how equipment, shelves and other furnishings are placed and the relationship between them.
In a retail setting, accessibility is an important aspect of layout. For example, the grid layout used by supermarkets with long aisles and gondolas at the end displaying premium merchandise or promotional items, minimises the time customers spend in the environment and makes productive use of available space.
For example, the meat cabinet at the supermarket might use a merchandise outpost to suggest a range of marinades or spice rubs to complement particular cuts of meat. As a generalisation, merchandise outposts are updated regularly so that they maintain a sense of novelty.
According to Ziethaml et al. Signs and symbols provide cues for directional navigation and also inform about appropriate behaviour within a store. Functionality refers to extent to which the equipment and layout meet the goals of the customer. The way that brands are displayed is also part of the overall retail design. Where a product is placed on the shelves has implications for purchase likelihood as a result of visibility and access.
Products placed too high or too low on the shelves may not turn over as quickly as those placed at eye level. Through sensory stimulation retailers can engage maximum emotional impact between a brand and its consumers by relating to both profiles; the goal and experience. Purchasing behaviour can be influenced through the physical evidence detected by the senses of touch, smell, sight, taste and sound. Coffee shops allow the aroma of coffee to waft into streets so that passers-by can appreciate the smell and perhaps be lured inside.
Clothing garments are placed at arms' reach, allowing customers to feel the different textures of clothing. Within the retail environment, different spaces may be designed for different purposes. Hard floors, such as wooden floors, used in public areas, contrast with carpeted fitting rooms, which are designed to create a sense of homeliness when trying on garments.
Peter Alexander , retailer of sleep ware, is renowned for using scented candles in retail stores. Ambient conditions, such as lighting, temperature and music, are also part of the overall retail environment. Studies have found that "positively valenced music will stimulate more thoughts and feeling than negatively valenced music", hence, positively valenced music will make the waiting time feel longer to the customer than negatively valenced music.
The design of a retail store is critical when appealing to the intended market, as this is where first impressions are made. Certain techniques are used to create a consumer brand experience, which in the long run drives store loyalty. Two different strands of research have investigated shopper behaviour. One strand is primarily concerned with shopper motivations. Another stream of research seeks to segment shoppers according to common, shared characteristics.
To some extent, these streams of research are inter-related, but each stream offers different types of insights into shopper behaviour. Utilitarian motivations are task-related and rational.
For the shopper with utilitarian motives, purchasing is a work-related task that is to be accomplished in the most efficient and expedient manner. On the other hand, hedonic motives refer to pleasure.
The shopper with hedonic motivations views shopping as a form of escapism where they are free to indulge fantasy and freedom. Hedonic shoppers are more involved in the shopping experience. Many different shopper profiles can be identified. Retailers develop customised segmentation analyses for each unique outlet. However, it is possible to identify a number of broad shopper profiles. One of the most well-known and widely cited shopper typologies is that developed by Sproles and Kendal in the mids.
Some researchers have adapted Sproles and Kendall's methodology for use in specific countries or cultural groups. At its most basic level, a retail format is a simple marketplace , that is; a location where goods and services are exchanged. In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices.
Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains. In Britain and Europe, the retail sale of goods is designated as a service activity. The European Service Directive applies to all retail trade including periodic markets, street traders and peddlers.
Retailers carrying highly perishable foodstuffs such as meat, dairy and fresh produce typically require cold storage facilities. Softline retailers sell goods that are consumed after a single use, or have a limited life typically under three years in they are normally consumed.
Soft goods include clothing , other fabrics , footwear , toiletries , cosmetics , medicines and stationery. Grocery stores, including supermarkets and hypermarkets, along with convenience stores carry a mix of food products and consumable household items such as detergents, cleansers, personal hygiene products. Consumer consumables are collectively known as fast-moving-consumer goods FMCG and represent the lines most often carried by supermarkets, grocers and convenience stores. For consumers, these are regular purchases and for the retailer, these products represent high turnover product lines.
Grocery stores and convenience stores carry similar lines, but a convenience store is often open at times that suit its clientele and may be located for ease of access. Retailers selling consumer durables are sometimes known as hardline retailers  — automobiles , appliances , electronics , furniture , sporting goods , lumber , etc. Goods that do not quickly wear out and provide utility over time. For the consumer, these items often represent major purchase decisions. Consumers purchase durables over longer purchase decision cycles.
For instance, the typical consumer might replace their family car every 5 years, and their home computer every 4 years. Specialist retailers operate in many industries such as the arts e.
Furniture and homewares retailers are said to be hardline retailers. Pictured Furniture retailer in Hong Kong. Stores that sell a mix of perishable and consumable goods to cater for household needs are known as grocery stores. A shopping arcade refers to a group of retail outlets operating under a covered walkway.
Arcades are similar to shopping malls, although they typically comprise a smaller number of outlets. Shopping arcades were the evolutionary precursor to the shopping mall, and were very fashionable in the late 19th-century.
Stylish men and women would promenade around the arcade, stopping to window shop, making purchases and also taking light refreshments in one of the arcade's tea-rooms. Arcades offered fashionable men and women opportunities to 'be seen' and to socialise in a relatively safe environment. Arcades continue to exist as a distinct type of retail outlet. Historic 19th-century arcades have become popular tourist attractions in cities around the world.
Amusement arcades , also known as penny arcades in the US, are more modern incarnation of the eighteenth and nineteenth century shopping arcade. An anchor store also known as draw tenant or anchor tenant is a larger store with a good reputation used by shopping mall management to attract a certain volume of shoppers to a precinct.
The term, ' bazaar ' can have multiple meanings. It may refer to a Middle-Eastern market place while a 'penny bazaar' refers to a retail outlet that specialises in inexpensive or discounted merchandise. In the United States a bazaar can mean a "rummage sale" which describes a charity fundraising event held by a church or other community organization and in which either donated used goods are made available for sale. A Boutique is a small store offering a select range of fashionable goods or accessories.
The term, 'boutique', in retail and services, appears to be taking on a broader meaning with popular references to retail goods and retail services such as boutique hotels, boutique beers i. By supplying a wide assortment in a single category for lower prices a category killer retailer can "kill" that category for other retailers. Toys "R" Us, established in , is thought to be the first category killer, dominating the children's toys and games market.
Rival retail stores are forced to reduce their prices if a category killer enters the market in a given geographic area. Examples of category killers include Toys "R" Us and Australia's Bunnings hardware, DIY and outdoor supplies and Officeworks stationery and supplies for the home office and small office.
Some category killers redefine the category. For example, Australia's Bunnings began as a hardware outlet, but now supplies a broad range of goods for the home handyman or small tradesman, including kitchen cabinetry, craft supplies, gardening needs and outdoor furniture.
Similarly Officeworks straddles the boundary between stationery supplies, office furniture and digital communications devices in its quest to provide for all the needs of the retail consumer and the small, home office. Chain store is one of a series of stores owned by the same company and selling the same or similar merchandise. Concept stores are similar to speciality stores in that they are very small in size, and only stock a limited range of brands or a single brand. They are typically operated by the brand that controls them.
However, a concept store goes beyond merely selling products, and instead offers an immersive customer experience built around the way that a brand fits with the customer's lifestyle.
A co-operative store ; also known as a co-op or coop, is a venture owned and operated by consumers to meet their social, economic and cultural needs. A convenience store provides limited amount of merchandise at above average prices with a speedy checkout.
This store is ideal for emergency and immediate purchase consumables as it often operates with extended hours, stocking every day. Department stores are very large stores offering an extensive assortment of both "soft" and "hard" goods which often bear a resemblance to a collection of specialty stores. A retailer of such store carries a variety of categories and has a broad assortment of goods at moderate prices.
They offer considerable customer service. A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. These stores are often used to " anchor " a shopping mall or plaza, generating foot traffic, which is capitalized upon by smaller retailers.
Retailers that aim at one particular segment e. Discount stores tend to offer a wide array of products and services, but they compete mainly on price. They offer extensive assortments of merchandise at prices lower than other retailers and are designed to be affordable for the market served. In the past, retailers sold less fashion-oriented brands. Maxx and Marshalls and Ross Stores are discount store operations increasingly offering fashion-oriented brands on a larger scale.
The customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep or an e-tailer.
In some cases, e-retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler.
This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. A general merchandise retailer stocks a variety of products in considerable depth. The types of product offerings vary across this category. Department stores, convenience stores, hypermarkets and warehouse clubs are all examples of general merchandise retailers. A general store is a store that supplies the main needs of the local community and is often located in outback or rural areas with low population densities.
In areas of very low population density, a general store may be the only retail outlet within hundreds of miles. The general store carries a very broad product assortment; from foodstuffs and pharmaceuticals through to hardware and fuel. In addition, a general store may provide essential services such as postal services, banking services, news agency services and may also act as an agent for farm equipment and stock-food suppliers.
As the name implies, a give-away shop provides goods for free. There are several different models of give-away shop in popular use. One is where goods are free to any shopper; an alternative is that shoppers must provide a product before they can take a product and a third variation is where consumers have the option of taking goods for free or paying any amount that they can afford. For example, Australia's restaurant group Lentil as Anything operates on a pay whatever you feel is right model.
Hawkers also known as a peddlers , costermongers or street vendors; refer to a vendor of merchandise that is readily portable. Hawkers typically operate in public places such as streets, squares, public parks or gardens or near the entrances of high traffic venues such as zoos, music and entertainment venues, but may also call on homes for door-to-door seling.
A high street store is a term used widely in the United Kingdom where more than 5, High Streets where a variety of stores congregate along a main road. A hypermarket also known as hypermart provides variety and huge volumes of exclusive merchandise at low margins. A mall has a range of retail shops at a single building or outlet, arranged on a single level or multiple levels.
A shopping mall typically includes one or more anchor stores. A small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set of products. A Pop-up retail store is a temporary retail space that opens for a short period of time, possibly opening to sell a specific run of merchandise or for a special occasion or holiday period.
The key to the success of a pop-up is novelty in the merchandise. A Marketplace is defined as venue for the retail sales of all products, packed and unpacked where the sale is to end users.
Globally, different terms may be used to refer to a retail market. A market square is a city square where traders set up temporary stalls and buyers browse for purchases. In England, such markets operate on specific days of the week.
This kind of market is very ancient, and countless such markets are still in operation around the world. Pricing is usually not the priority when consumers are deciding upon a speciality store; factors such as branding image, selection choice, and purchasing assistance are seen as important. A supermarket is a self-service store consisting mainly of grocery and limited products on non-food items.
Variety stores offer extremely low-cost goods, with a vast array of selection. The downfall to this is that the items are not very high quality. A vending machine is an automated piece of equipment wherein customers can drop the money in the machine which dispenses the customer's selection. The vending machine is a pure self-service option. Machines may carry a phone number which customers can call in the event of a fault. Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.
Warehouse clubs are membership-based retailers that usually sell a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low due to the no-frills format of the stores. In addition, customers may be required to pay annual membership fees in order to shop. Warehouse stores are retailers housed in warehouses, and offer low-cost, often high-quantity goods with minimal services, e.
Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. An effective format will dtermine how products are display products, as well as how target customers are attracted.
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles:. China is currently the largest retail market in the world. Retail stores may or may not have competitors close enough to affect their pricing, product availability, and other operations. In all countries the main competition was domestic, not foreign.
Between and there have been 46, mergers or acquisitions conducted globally in the retail sector either acquirer or target from the retail industry. These deals cumulate to an overall known value of around 2. However the all-time high in terms of number of deals was in with more than 2, deals. In terms of added value set the record with bil. Here is a list of the top ten largest deals ranked by volume in the Retail Industry: The United States retail sector features the largest number of large, lucrative retailers in the world.
Since , the U. Census Bureau has published the Retail Sales report every month. Retail firms provide data on the dollar value of their retail sales and inventories. A sample of 12, firms is included in the final survey and 5, in the advanced one. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. National accounts show a combined total of retail and wholesale trade, with hotels and restaurants.
In all four of the latter countries, this fraction is an increase over , but there are other countries where the sector has declined since , sometimes in absolute terms, where other sectors have replaced its role in the economy.
In China the sector has grown from 7. Emarketer predicts China will have the largest retail market in the world in In , China became the largest retail market in the world. Among retailers and retails chains a lot of consolidation has appeared over the last couple of decades. A French itinerant vendor depicted selling medicine from a stage.
Goods displayed in the souq of Marrakech. Influential thinkers in sales and retail: From Wikipedia, the free encyclopedia. Redirected from Retail merchandising.
For the comic strip by Norm Feuti, see Retail comic strip. Food retail includes charcuteries, butcheries, delicatessens, green groceries, provedores etc. A store that retails a mix of household needs and is open long hours is a convenience store. Companies portal Economy portal.
Design, Culture, and History , Mohammad Gharipour ed. Ancient and medieval marketing". The Routledge Companion to Marketing History. Perhaps the only substantiated type of retail marketing practice that evolved from Neolithic times to the present was the itinerant tradesman also known as peddler, packman or chapman. These forerunners of travelling salesmen roamed from village to village bartering stone axes in exchange for salt or other goods Dixon, Cheshire Penguin, , p. Conflict in the Early Americas: An Encyclopedia of the Spanish Empire's Writing the History of American Retailing", in Retailing: The Evolution and Development of Retailing , A.
Findlay, Leigh Sparks eds , pp. History, Theory and Politics , Sage, , p. Cultural Connections in the Belle Epoque , Routledge, , p. Creating The Ideal Corporate Board , p. An Encyclopedia , Volume 1, Sage, , [E-book edition], n. Retrieved 15 January International Journal of Organizational Innovation, Why it is important business.
Concepts and New Approaches", Directions Magazine , n. Why customers now run companies and how to profit from it Voices That Matter , , p. This Subway Takes Bitcoins", 18 November , https: A 'rule of reason' approach", Journal of Retailing, Volume 70, Issue 2, , pp. Hill and Wang, , pp. The New York Times. Retrieved 28 October Is it effective to accentuate promotion value? An International Journal , Vol. Store design that sells. A Practical Guide , p.
Integrating Customer Focus Across the Firm , 5th ed. A Practical Guide , pp. Marketing to the senses: A multisensory strategy to align the brand touchpoints.
A multi sensory strategy to align the brand touchpoints. The impact of physical surroundings on customers and employees". The Journal of Marketing: Conceptualisation and measurement of optimal consumer decision making. Journal of Consumer Affairs , Vol. Retrieved 22 May Accessed July 10, Evolution and Potential PDF. Retrieved 26 April Retrieved 18 August Retrieved 16 May Archived from the original on Retrieved 9 July Fitness wear Lingerie Sporting goods Swimwear.
Chemical Oil and gas Oil exploration and production Oilfield service Public utilities Solar thermal power.
Asset management Banks international investment Hedge funds Private equity Stock exchanges Venture capital. Biotechnology Health club Pharmaceutical. By July, back-to-school is on the shelves and autumn merchandise is already arriving, and at some arts and crafts stores, Christmas decorations.
Often, a Christmas in July celebration is held around this time. The back-to-school market is promoted heavily in August, when there are no holidays to promote. By September, particularly after Labor Day , summer merchandise is on final closeout and overstock of school supplies is marked-down some as well, and Halloween and often even more of the Christmas merchandise is appearing. As the Halloween decorations and costumes dwindle in October, Christmas is already being pushed on consumers, and by the day after Halloween retailers are going full-force with advertising, even though the "official" season doesn't start until the day after Thanksgiving.
Christmas clearance sales begin even before Christmas at many retailers, though others begin on the day after Christmas and continue on at least until New Year's Day but sometimes as far out as February. Merchandising also varies within retail chains , where stores in places like Buffalo might carry snow blowers , while stores in Florida and southern California might instead carry beach clothing and barbecue grills all year.
Coastal-area stores might carry water skiing equipment, while ones near mountain ranges would likely have snow skiing and snowboarding gear if there are ski areas nearby. In Eastern Europe, particularly in Russian , the term "merchandising" is commonly used within the trading industry and denotes all marketing and sales stimulation activities around PoS point of sale: A merchandiser is someone who is continuously involved in business promotion by buying and selling of goods.
In Asian countries, such as India, this term is more synonymous with activities right from sampling and idea conception to dispatching of the shipment.
It is a job description that involves leading and working with different departments within the organization, suppliers and buyers to deal with timely deadlines and accepted quality levels. In the supply chain , merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store.
In the United Kingdom there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support in new stores. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store.
While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering the product. Product categories where this is common are Beverage all types, alcoholic and non-alcoholic , packaged baked goods bread and pastries , magazines and books, and health and beauty products. For major food manufacturers in the beverage and baked goods industries, their merchandisers are often the single largest employee group within the company.
For nationwide branded goods manufacturers such as The Coca-Cola Company and PepsiCo , their respective merchandiser work forces number in the thousands. In marketing , one of the definitions of merchandising is the practice in which the brand or image from one product or service is used to sell another.
Trademarked brand names, logos, or character images are licensed to manufacturers of products such as toys or clothing, which then make items in or emblazoned with the image of the license, hoping they'll sell better than the same item with no such image.
Merchandising for children is most prominently seen in connection with films and videogames, usually those in current release and with television shows oriented towards children. Merchandising, especially in connection with child-oriented films and TV shows, often consists of toys made in the likeness of the show's characters action figures or items which they use.
However, sometimes it can be the other way around, with the show written to include the toys, as advertising for the merchandise. The first major example of this was the TV show "G. Sometimes merchandising from a television show can grow far beyond the original show, even lasting decades after the show has largely disappeared from popularity.
In other cases, large amounts of merchandise can be generated from a pitifully small amount of source material Mashimaro. The most common adult-oriented merchandising is that related to professional sports teams and their players. A smaller niche in merchandising is the marketing of more adult-oriented products in connection with similarly adult-oriented films and TV shows. This is common especially with the science fiction and horror genres.
For nationwide branded goods manufacturers such as The Coca-Cola Company and PepsiCo, their respective merchandiser work forces number in the thousands. Licensing. In marketing, one of the definitions of merchandising is the practice in which the brand or image from one product or service is used to sell another. Fashion merchandising involves the production of fashion designs and distribution of final products to the end consumer. Fashion merchandisers work with designers to ensure that designs will be affordable and desired by the target market. Fashion merchandising involves apparel, accessories, beauty, . Natural Foods Merchandiser stated, "As we celebrate the inroads natural and organic food has made into consumer consciousness during the last 25 years, we often forget the pioneers who made it possible--the men and women who established sourcing and distribution where there was none, who educated customers when the concepts were strange and new, and who persisted in the face of adversity.