Introduction to Retail Business Essay Example

on your own, you need a few things that you can’t provide yourself in order to compete with the big chains. You need buying power, a recognizable name, and marketing power that goes beyond one store in one market. That’s where we come in. We’re the icing on the cake”. Piggly Wiggly’s mascot, Mr. Pig, has high awareness through-out the south. Franchisees can even borrow a Mr. Pig costume to use at local parades and events. Piggly Wiggly employs field representatives to periodically visit each franchise location and apprise franchisee operators and their staffs of its current marketing programs.

Stores operators can also review the programs at a dedicated Website, Pignet. com. One recent program featured a Mr. Pig Pack of three Kellogg cereal varieties-and coca-cola vending machines at Piggly Wiggly locations showing Mr. Pig drinking an ice-cold bottle of coke classic. In contrast with its southern stores, the units Wisconsin use the fresh brands name and do not participate in some promotions with a distinct southern emphasis. However, these units use the same logos and trademarks as the southern stores. Many of their promotions involve the green bay packers, the Milwaukee bucks, and the Milwaukee brewers sports teams.

Questions 1. As an independent supermarket operator, would you want to become a Piggly Wiggly franchisee? Why or why not? 2. What are the advantages to Piggly Wiggly of having franchised outlets instead of its own stores? The disadvantages? 3. What criteria should Piggly Wiggly use in evaluating potential franchisees? 4. Should Fleming require Fresh Brands to use Piggly Wiggly name and all of its promotions? Explain your answer. Answers 1. I would to

become a Piggly Wiggly franchisee because they offer great deals for the franchisee, they managed to uniform the qualities of Piggly Wiggly in franchise.

The Franchisor has good control to organize and help every franchisee. 2. Advantages : - They could expand their market to the extent - Franchisee could attract the market from sharing experience and their testimonials - Franchisee offers them buying power, a recognizable name, and marketing power Disadvantages: - Franchisor must maintain the qualities of all franchise - Franchisor have to provides extensive purchasing assistance - Franchisor handles every management responsibilities 3.

The criteria Piggly Wiggly use in evaluating potential franchisees: - Have financial resources - Strong credit - Full-time commitment - Customer and employee focus - Willingness to learn and improve - Their spirit, strength and courage to run the franchise 4. I don’t think it is necessary for Fleming to use Piggly Wiggly name and their promotions. Piggly Wiggly is already attracting customers and investors with their own image and system. Customers and franchisees would doubt the continuation of Piggly Wiggly if Fresh Brands use Piggly Wiggly name and promotions because Fresh Brands have the possibility to overtake Piggly Wiggly.

Customers and franchisees start to lose their focus on Piggly Wiggly because they think that Fresh Brands are better than Piggly Wiggly. CAN TRADITIONAL DEPARTMENT STORES REVIVE THEMSELVES? When the first department stores appeared 150 years ago, they were hailed as one-stop shopping outlets where people could purchase a wide range of goods for their homes and apparel for the entire family in a full-service environment. Today, a question that is often raised among retailing experts

is whether department stores, or at least some of them, are bordering on extinction.

Analysts who challenge the long-term viability of department stores typically point out these stores are now subject to competition on multiple fronts. According to a spokesperson for the international Council of Shopping Centers (www. icsc. org), “Department stores find themselves stuck between specialty retailers and discounters. ” The specialty store is able to effectively compete against department stores on the basis of selection, exclusive merchandise, well-trained salespeople, and customer service and support.

The discount store chain, through its purchasing power, low-rent locations, centralized purchasing, and self-service merchandising, can generally out price the department store. In addition, Web retailers offer 24/7 conveniences, a high level of product information, and freedom from local sales taxes. Dues to the extensive competition from these formats, many department stores have stopped selling such merchandise lines as cameras, consumer electronics, and large appliances. In addition, a number of department stores have closed their doors forever. These include such notables as Abraham & Straus, John Wanamaker’s, Stern’s, and

Montgomery Ward. Many of the remaining department stores have also been experiencing declining same-store sales. Department stores have a number of operational issues that need to be addressed. These include their being too jammed with clothes to easily allow browsing, the use of centralized buying that results in appropriate merchandise at some stores (such as winter clothing stocked in Florida department stores), and a lack of a distinctive image (it may sometimes be difficult to figure out if you are in Macy’s or Bloomingdale’s based on merchandise, displays and store interiors).

Many department stores are “not

sitting well” in the light of these criticisms and declining sales. Sears’ (www. sears. com) merger with Lands’ End (www. landsend. com) is an attempt to increase its apparel business and appeal to a more affluent target market. In addition, Sears is trying to reposition itself somewhere between a department store and a discount store. It is remodeling its largest stores, installing central banks of cash registers, and displaying easy to read signs to facilitate browsing and self-service. The chief executive officer of Bloomingdale’s (www. loomingdales. com) acknowledges that too many department stores sell indistinctive merchandise: “I believe the biggest challenge that we have is how we continue to give uniqueness of product. ” Bloomingdale’s goal is to better attracting the young male segment, while continuing to keep its traditional middle-aged female shopper. To appeal to the young high-fashion shopper, Bloomingdale’s has proposed opening a new store in New York City’s trendy Soho neighborhood. The chain is also planning on increasing the number of salespeople on the floor.

Department stores are also experimenting with ways to make their stores a better shopping environment for families with young children. A Canadian chain now has a lounge for children and parents that includes a play area for children a sitting area that includes current newspapers. Federated Department Stores (www. federated-fds. com) recently opened a laboratory store that offers a free child care, a salon and spa, a coffee bar, and even a demonstration kitchen. Questions 1. Evaluate department stores in terms of the wheel of retailing. How can they better apply this concept 2.

Given the age of this institution and competitive environment it faces,

are department stores doomed to continue their download 3. As a retail executive, how would you better differentiate your department store from the full-line specialty store? 4. As a retail executive, how would you better differentiate your department store from specialty stores? Answer 1. In this era, department store has been one big part of retails unit. They coming up with their own concept and being the wheel of retailing. According to me, they can apply this concept due to they have already doing some research about the customer needs in this era.

They come with good concept which can make the customer satisfy about their retails unit. 2. Barnes & Noble had a rough holiday season: Same-store sales fell compared to a year ago and revenue from sales of the Nook tablet stalled. Despite a heavy investment in the Nook business, Barnes & Noble is expected to have a three-year cumulative loss of more than $700 million, according to Barclays Capital -- an indication that the bookstore's multi-front war with online retailer Amazon. com doesn't seem to be working. On January 3, Barnes & Noble leadership acknowledged that the firm faces many challenges.

The company said its holiday sales for the nine-week period ending December 29 were $1. 2 billion, down 10. 9% from a year ago. Same-store sales for the period were down 3. 1% due to "lower bookstore traffic. " Nook product sales fell 12. 6% from a year ago. 3. I am as the retail executive will doing some action to make the positioning. For example, doing some promotion or give the interested discount is the things can differentiate

us with others. 4. When we walking around the department store, we can find so many brands. It means we can compare one of brand with other brands.

We can’t do the comparison with each brand due to there is only one brand in that store. JILL MOVES INTO MULTI-CHANNEL RETAILING In addition to its successful catalog operations, j. Jill operates more than 70 stores in 25 states (as of 2002) and has a successful Web site (www. jjill. com) while the merchandise collections for its catalog, stores, and Web site are identical, the catalog offers largest selection. The firm strongly believes that its multi-channel retail strategy is the key to its future growth. There is a high degree of integration among its catalog, store, and Web businesses.

Each store has a concierge desk with a Web portal wherein costumers can place orders for out-of-stock merchandise or special sizes. Items ordered at thescut] shipped the following morning. About 8 pe sales occur at the concierge desk. J. Jill’s W view the retailer’s latest catalogs. In addition an item from its Web site by using the catalog product. J. Jill Web site has a real-time connec ensure that ordered goods are available to deleted from the firm’s Web site after inve certain level. The Web site has been enha from customers, as well as a “live chat room site as a clearinghouse for markdowns on items, and end-of-season specials.

The firm data base to notify shoppers of these specials Gordon R. Cooke, J. Jill’s current pre tive, joined J. Jill in 1996. Previously, he dent of sales promotion and marketing founded Bloomingdale’s By

Mail. In 1997 J. Jill would increase the circulation of it successful that in 1997 sales at J. Jill $165 million and the company Group. younger audience, and hire a new creative lion from $22. 6 million in the previous were so again to J. Jill – with 2002 sales exceeding $300 to 35- to 55-year-old women with hou $75,000. While its customer profile is sim talbots. com), J.

Jill focuses more on casual tured clothing. J. Jill clothing can be best Most of its garments have a signature style middle ground between being fashion-forw ser of buttons, special embroidery, or select clothing is private label and is developed a house staff. Even though J. Jill is committed to a m believes that most of its future growth will stores, which accounted for 31 percent (Catalogs and the Web site accounted for 50 tively. ) According to Gordon Cooke, a major relative to the catalog or Web site is that a fa can be better visualized. J. Jill hopes to grow five years.

Petite-sixed merchandise does es stores and has a separate department in most Questions 1. What are the pros and cons of J. Jill mu 2. How can J. Jill better integrate its catalog actions in the future? 3. Evaluate J. Jill Web site (www. jjill. com) 4. What criteria can J. Jill use to assess its answer? The material in this case is drawn from Maria Physical” Chain Store Age (January 2002), pp 42-46 “J. Jill Net Balliins as Margins Grow, Petites to Expa (July 26, 2002), p. 2. CAN EBAY KEEP BOOMING? According to Meg Whitmen, eBay’s chief executive,

the online firm (www. ebay. om) has come a long way in its quest, “to built the largest online trading platform where practically anyone can made practically anything. ” Sales on eBay generate more than $10 billion annually. Over $1 billion in sales come from auto sales alone, category that did not even exist on eBay a few years ago. eBay is the largest online seller of autos, collectibles, computes, photo equipment and supplies, and supporting goods. In addition traditional goods, eBay has literally created a market for products that did not previously exist (such as unused wedding presents and for discontinued camera). Bay takes advantage of the low communication and transaction cost of the Web to bring buyers and sellers together. The more buyers who visit eBay, the more sellers that are attracted to use the service. eBay earns its own revenues and listing fees, as well as the 1 to 5 percent commission from every trade. The company is credited with coming closer than any firm to establishing a virtual corporation that can flourish without inventories, warehouses, stores, fixtures, or a sale force. As eBay’s chief financial officer says, “We have no real cost of goods, customer acquisition is largely driven by word of mouth. Even efficient firm like Wal-Mart has close to $16 billion in long-term in contrast, eBay is virtually debt free. Since eBay is free of a retailing expenses, it generates a profit margin percentage that force to four times higher than Wal-Mart. eBay organizes its operation by having a separate manager responsible for each its major categories (such as books, music, real estate) and for each of its major

global market. These manager are responsible for growing their units, for making sure nothing impedes sales in their units, and for determining when category needs to be split into new categories to maximize sale initial.

A recent innovation is eBay’s “Buy It Now” feature. This enables a buyer to avoid the traditional bidding process by paying a preselected price on a product. Another major avenue of growth is the use of eBay by Disney, IBM, Home Depot and Dell as a channel to sell discontinued, shopworn and refurbished goods. A number of state governments also now use eBay to sell off assets seized in foreclosure judgments. Despite its continued success, a number of retail analysts have begun to question whether eBay can continue to grow at its hyper pace.

Clearly, eBay needs to expand into new product categories and new geographic markets. This will be increasingly difficult. Furthermore, although eBay has usually taken a neutral stance when there is a dispute between a buyer and seller, some sellers argue that eBay needs to take their side when dealing with such issues as dead-beat buyers who bid and then refuse to purchase the goods. And some sellers are concerned that eBay has been so effective that their prices have actually dropped. The Internet Antique Shop reported that the average selling prices for collectibles and antiques declined by 30% between 2001 and 2002.

Says one appraiser, “They [eBay] leveled the playing field, but unfortunately they leveled it underwater. ” Question 1. Visit eBay (www. ebay. com) evaluate that site from the perspective of both (a) prospective sellers and (b) prospective buyers. 2. What a

pros and cons of dell’s selling discontinued equipment though an eBay store versus its own web site ? 3. What type of infrastructure must a local camera store develop to effectively sell collectible cameras on the web through eBay ? 4. What can eBay do to better manage buyer-seller relationships in the exchange process ? Answer 1.

From the side of prospective sellers they are can easier finding stuff from different country, when you are in Asia, if you buy stuff in same country in Asia you can get free shipping From the side of prospective buyers any kind of thing costumer need always available on eBay, from the not popular brand until popular brand like Victoria Secret or anything else 2. Pros Acquisitions: With its strong cash flows, Dell has been purchasing a variety of companies, with a focus on virtualization, storage and the cloud. This is a smart strategy, as these markets should continue to grow.

And Dell can leverage its massive user base to monetize its deal making. Cost Cutting: This has always been a part of the Dell culture. To this end, the company said it plans to reduce the cost structure by about $2 billion over the next three years. It will do so by fixing inefficiencies in the supply chain and the sales support organization. In other words, Dell should continue to generate substantial cash flows. Keep in mind that the company currently has about $17. 2 billion in the bank. This compares to a market cap of only $21. 75 billion.

New Dividend: Dell will pay a dividend of 8 cents per quarter, good for

a roughly 2. 6% yield on Wednesday’s prices. While modest, it’s still a nice bonus for investors. What’s more, Dell has been aggressively buying back its shares. A quarterly payout won’t help Dell’s cash situation, but it also shouldn’t gum the works up too much, either. Cons PC Market: The personal computing business is undergoing disruptive changes, especially thanks to the huge growth in Apple’s iPad and the rest of the tablet market. Unfortunately, Dell has been flat-footed with its tablet strategy.

The company also is losing ground to other PC makers. It now is the No. 3 player, behind Hewlett-Packard and Lenovo Group. Macro Headwinds: In the latest quarter, Dell indicated that it experienced a slowdown in its European business. That weakness might extend into the U. S. market, which is showing signs of deceleration. The Cloud: This could be a big threat to Dell. The rise of cloud computing likely will mean decreased demand for powerful desktop computers as consumers and businesses continue to access more applications from the Internet.

As a result, the computing capacity will be centralized in datacenters, not in local hardware. 3. Just search category electronics and click cameras or photos and then anything kind of accessories offer, from digital camera until film photography 4. eBay now use paypal to easy transaction between buyer – seller around the world, eBay sometimes give a daily deals for big discount, in UK ebay make own wibste for buyer-seller in UK, all you want already have in your laptop and ou can enjoy finding stuff.