Understanding Relationship of Retail Trades to the Local Economy 8. 1. Concepts in Retail and Merchandising Introduction 8 All businesses that sell goods and services to customers are defined as Retailers. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from suppliers or distribute directly or through a wholesale then re-sells smaller quantities to the customer at a markup/profit. Retailing can be done in either fixed locations like stores or markets, door to door or by delivery.
The term “retailer” is also applied where a service provider accommodates the needs of a large number of shoppers. 1. 1 . Job Outlook 1. 1. 1 . Employment of retail sales workers is projected to grow 10 percent from 2012 to 2022, about as fast as the average for all occupations. 1. 1. 2. Online sales have had a negative effect on certain in-store retailers, primarily book and media stores. Amazon offers online purchase of books and a variety of household items that are delivered to the customer address. 1. 2. Education 1. 2. 1 .
Although retail or parts sales positions usually have no formal education requirements, some employers prefer applicants who have a high school diploma or equivalent, especially those who sell technical products or “big-ticket” items, such as electronics or cars. Vocational Training in Retail can be categorized as “Higher Education Level” in the candidates resume. 1. 3. 1 . Retail sales workers typically have opportunities to advance to supervisory or managerial positions. Some employers want candidates for managerial positions to have a college degree or vocational training. 2.
Understanding Concept Terms and Phrases Listed below are terms and phrases used in the purchase and the resale of goods and services through direct or online purchase methods. Listed below are common terms and phrases used. 2. 1 . Advertisement A paid announcement for sale of products or services, in newspapers ,magazines, on radio or television, etc. 2. 2. Retail store Sells products/services directly to general public at retailed prices. Wall-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under the Walter name in the United States, including the 50 states and Puerco Rich.
It operates in Mexico as Walter De M©OIC y Centre America, in the United Kingdom as USDA, in Japan as Seize, and in India as Best Price. Target is an American retailing company, founded in 1902 and headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, Walter being the largest. 2. 3. Online Retailer Sells products or services to end customers using online methods over the internet. Amazon (Amazon. Com), Inc. Is an American international electronic commerce company with headquarters in Seattle, Washington, United States.
It is the world’s largest online retailer. Overstock. Com, Inc. , also known by its shortcut, O. Co, is an American online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. CEO Patrick M. Byrne launched the company in May 1999. 2. 4. Vertical Integration same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages.
However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated. Apple – Vertical integration dictates that one company controls the end product as well as its component parts. In technology, Apple for 35 years has championed a retrial model, which features an integrated hardware and software approach. For instance, the phone and pad have hardware and software designed by Apple, which also designed its own processors for the devices 2. . MOM-Original Equipment Manufacturer MOM is used to refer to the company that acquires a product or component and reuses or incorporates it into a new product with its own brand name. Frigidaire might sell its refrigerators to a retailer like Sears to resell under a brand name owned by Sears. A number of companies, both equipment suppliers and equipment resellers, still use this meaning. 2. 6. EDM-Original Design Manufacturer Designs and manufactures a product which is specified and eventually branded by another firm for sale.
Such companies allow the brand firm to produce (either as a supplement or solely) without having to engage in the organization or running of a factory. Dell is an example of outsourcing Electronics which makes notebook computers and monitors, and operates as a mass producer for numerous brand companies, assisted by low labor costs, low-cost transport, and the near commodity nature of the physical inputs. 2. 7. Turnkey Refers to a product that is ready for immediate use, generally used in the sale or supply of goods or services.
Turnkey is often used to describe a home built on the developer’s land with the developer’s financing ready for the customer to move in. If a contractor builds a “turnkey home” they frame the structure and finish the interior. “Turnkey Hospital” Is an example that would be the creation off turnkey which 2. 8. Inventory Turns A measure of the number of times inventory is sold or used in a time period such as a year. The equation for inventory turnover equals the Cost of goods sold divided by the average inventory. Also known as inventory turnover, stock turn, stock turns, turns, and stock turnover. 2. 9. General Contractor
The general contractor is a manager, and possibly a tradesman, employed by the client on the advice of the architect, engineer or the architectural technologist or the client him/herself if acting as the manager. A general contractor is responsible for the overall coordination of a project. A General contractor must first assess the project-specific documents, referred to as a bid, proposal or tender documents. 2. 10. Target Demographics The study characteristics and analysis of a specific population such as age, sex, income, and place of residence. Example: Sales of Ski Equipment is not as profitable in Miami Florida, as in Aspen
Colorado or Lake Tahoe due to the availability of snow. 2. 11. Manufacturing The production of products for use or sale using labor and machines, tools, chemical and processing. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. 2. 12. Distribution Channels Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
Distribution of products takes place by means of brokers are intermediaries that act on behalf of the producer but do not take title to the products. . Distribution Channels are sets of interdependent organizations (called intermediaries) involved in making the product available for consumption. 2. 13. Lot Genealogy Historical production information of a product lot. It provides you with detailed information about where the lot has moved, sub inventory stocking points, lot transaction types, and forward and backward tracking.
Example: The Lot Genealogy of the defective Nikkei running shoes was traced to the factory in Thailand. . 14. End User Person who uses a finished product. A product may be purchased by several intermediaries, who are not users, between the manufacturer and the end user, or be directly purchased by the end user as a consumer Example: The End User off pharmaceutical product is the patient who takes it, rather than distributors, pharmacists and physicians who may purchase it in their behalf; or the user can buy the product at a drugstore. . 15. Bricks and Mortar Retailer A brick and mortar retailer is the opposite of an online retailer. Brick and mortar retailers sell their products at stores, not online or through catalogs. . 16. Bricks and Clicks Retailer A retailer that sells products both in stores and online. The Vitamin Shoppe- Is an example of a bricks and clicks retailer is the. They have physical stores where they sell vitamins and nutritional supplements, and they also sell their products on their website. Is a group of stores that are owned by the same company. Barnes and Noble is an example off retail chain. They have many stores in the United States which are similar in appearance and in the product selection they offer. They are all owned by the same company). 2. 18. Big BOX Retailer A big box retailer is a very large retailer which is usually part of a chain. Wall-Mart and Target are examples of big box retailers. They are very large retail stores that offer a wide selection of products. Both companies are also retail chains. 2. 19. Independently Owned Retail Store Retail store is not part of a chain.
In the past, independently owned retail stores were more common in the United States. Now, big box retailers and other retail chains have replaced many of these smaller independently owned retail stores. 2. 20. Mom and Pop Store A term used in the United Sates to refer to a small, independently owned business tit a small number of employees. A small bookstore not owned by a larger company would be an example of a mom and pop store. 2. 21. Department Store A large retail store that offers many different types of products.
These stores have different departments offering many different products. Customers can find sporting goods, clothes, home appliances, electronics, and more at these stores. Sears, Macy’s, and Harrow’s are examples of popular department stores. 2. 22. Discount Store A retail store that offers merchandise at a lower price than many of its competitors. Discount stores are always more popular during recessions. Discount price. 2. 23. Specialty Store A retail store that specializes in one kind of product or services.
Best Buy – Best Buy sells consumer electronics and a variety of related merchandise, including software, video games, music, DVD’s, Blue-ray discs, mobile phones, digital cameras, car stereos and video cameras, in addition to home appliances (washing machines, dryers, and refrigerators), in a non-commissioned sales environment.. 2. 24. Convenience Store A store in a convenient location which offers a small number of goods for purchase. These items are often priced higher than they are at other retail locations. Convenience stores usually have extended hours, and some are open 24 hours a day.
Convenience stores are very different from discount stores, products usually cost more and there is a smaller selection. Lines are usually short, however, and customers do not have to travel to a store located farther away. 2. 25. Franchise A store, restaurant, or other business operating under a license agreement to market and sell its products at a specific geographical location. The concept of the agreement must be duplicable at all locations. Example: McDonald’s is franchise that operates many restaurants in Santa Cruz County.
The price of the Big Mac is the same in Santa Cruz as it is in San Francisco. 2. 26. Warehouse Club Sell products in bulk and competitive prices based on I-COM (Unit of Measure). A membership is required for purchase of products and services. 2. 27. General store A rural or remote store that supplies the main needs for the local community. A large retail market that sells food and other household goods and that is usually operated on a self-service basis. Some supermarkets now offer delivery services and can order the products online ND have them delivered to their house. . 29. Mall Also referred as shopping mall. A large retail complex containing a variety of stores and often restaurants and other businesses housed in a series of connected or adjacent buildings or in a single large building. Malls are convenient when you have many items to purchase without traveling long distances to get from one store to another. 2. 30. Dollar store A retail store that sells a wide range of inexpensive household goods for approximately a dollar. 2. 31. Storefront Store The side of a store facing a street, usually containing display windows. . 32.
Customer Service Assistance and other services that a retailer provides to people who buy its products or services. For some people, customer service is very important. For others, price is more important. 2. 33. Store Associate Common title for an employee of a retail store. He started as one of our store associates. Now, he is the store manager. 2. 34. Merchandise The manufactured goods bought and sold in any business. 2. 35. Stock Could you check our stock to make sure that we don’t have any expired products? 2. 36. Out Of stock Indicates that a product is not available for sale. During the holiday season, a lot of popular products are out of stock. 2. 37. Sale A marketing campaign to offer products at reduced prices. Sales assist in reducing inventory, and allow retailers to promote new product lines. 2. 38. Discount A reduction in the price of goods or services. Discounts are used for promotions of certain products or product lines. Companies sometimes offer discounts if products are delivered late. Distributors or Suppliers offer volume discounts in order to sell closeout or slow moving items. 2. 39. Return Return of a prior purchase to the retailer that the item was initially purchased.