Part I Formats and Players in Retailing Part II Strategic Marketing in Retailing Part III Marketing Mix in Retailing Part IV Buying, Logistics and Performance Measurement Part I Formats and Players in Retailing Part II Strategic Marketing in Retailing Part III Marketing Mix in Retailing Part IV Buying, Logistics and Performance Measurement Part I Formats and Players in Retailing Part II Strategic Marketing in Retailing Part III Marketing Mix in Retailing Part IV Buying, Logistics and Performance Measurement
Joachim Zentes | Dirk Morschett | Hanna Schramm-Klein Strategic Retail Management Joachim Zentes | Dirk Morschett | Hanna Schramm-Klein Strategic Retail Management Text and International Cases Bibliographic information published by Die Deutsche Nationalbibliothek Die Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data is available in the Internet at Joachim Zentes (J.Zentes@mx.uni-saarland.de) is Professor of Marketing and Management at the Saarland University, Saarbrücken, Germany He is Director of the Institute for Commerce & International Marketing (H.I.MA.) and Director of the Europa-Institut at Saarland University He holds a chair in Business Adminstration, with a focus on Foreign Trade and International Management Joachim Zentes is also a member of various boards of directors and advisory boards in Germany and abroad Dirk Morschett (D Morschett@mx.uni-saarland.de) is Assistant Professor of Marketing and Management at the Institute for Commerce & International Marketing (H.I.MA.), Saarland University, Saarbrücken Hanna Schramm-Klein (H.Schramm@mx.uni-saarland.de) is Assistant Professor of Marketing and Management at the Institute for Commerce & International Marketing (H.I.MA.), Saarland University, Saarbrücken 1st edition February 2007 All rights reserved © Betriebswirtschaftlicher Verlag Dr Th Gabler | GWV Fachverlage GmbH, Wiesbaden 2007 Gabler is a company of Springer Science+Business Media www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, mechanical, photocopying or otherwise without prior permission of the copyright holder Registered and/or industrial names, trade names, trade descriptions etc cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked Cover design: Ulrike Weigel, www.CorporateDesignGroup.de Printing and binding: Wilhelm & Adam, Heusenstamm Printed on acid-free paper Printed in Germany ISBN 978-3-8349-0287-0 Preface Retailingȱ isȱ becomingȱ consistentlyȱ moreȱ importantȱ inȱ economicȱ terms.ȱ Thisȱ becomesȱ evidentȱ whenȱ lookingȱ atȱ theȱ developmentȱ ofȱ manyȱ individualȱ countries,ȱ inȱ Europe,ȱAmericaȱ andȱAsia.ȱ Inȱ highlyȱ developedȱ countries,ȱ reȬ tailingȱ isȱ assumingȱ moreȱ andȱ moreȱ ofȱ aȱ leadershipȱ roleȱ inȱ theȱ distributionȱ channel.ȱ Theȱ expansionȱ strategies,ȱ retailȱ brandingȱ strategies,ȱ innovativeȱ solutionsȱ forȱ supplyȱ chainȱ managementȱ etc.,ȱ allȱ reflectȱ thisȱ trend.ȱ Inȱ transȬ formationȱ countries,ȱ suchȱ asȱ inȱ Centralȱ andȱ Easternȱ Europe,ȱ asȱ wellȱ asȱ inȱ emergingȱcountries,ȱsuchȱasȱChinaȱandȱIndia,ȱfundamentalȱchangesȱinȱretailȬ ingȱstructuresȱbecomeȱapparentȱandȱmayȱleadȱtoȱcomparableȱdevelopments.ȱ Inȱ viewȱ ofȱ internationalisation,ȱ aȱ furtherȱ profoundȱ changeȱ canȱ beȱ noticed.ȱ Retailingȱcompaniesȱthatȱwereȱformerlyȱcharacterisedȱbyȱaȱlocalȱorȱnationalȱ orientationȱareȱincreasinglyȱdevelopingȱintoȱglobalȱplayersȱ withȱworldwideȱ operations.ȱ Book Concept and Overview Theȱ presentȱ bookȱ isȱ devotedȱ toȱ theȱ dynamicȱ developmentȱ ofȱ retailing.ȱ Theȱ variousȱ strategyȱ conceptsȱ adoptedȱ byȱ retailingȱ companiesȱ andȱ theirȱ impleȬ mentationȱ inȱ practiceȱ areȱ atȱ theȱ coreȱ ofȱ theȱ book.ȱ Thisȱ isȱ notȱ aȱ traditionalȱ textbookȱ orȱ collectionȱ ofȱ caseȱ studies,ȱ butȱ isȱ intendedȱ toȱ demonstrateȱ theȱ complexȱ andȱ manifoldȱ questionsȱ ofȱ retailȱ managementȱ inȱ theȱ formȱ ofȱ 15ȱ lessonsȱthatȱprovideȱaȱthematicȱoverviewȱofȱkeyȱissuesȱandȱtoȱillustrateȱthemȱ withȱ theȱ helpȱ ofȱ comprehensiveȱ caseȱ studies.ȱ Internationallyȱ knownȱ retailȱ companiesȱ areȱ usedȱ asȱ examplesȱ toȱ facilitateȱ anȱ understandingȱ ofȱ whatȱ isȱ involvedȱinȱstrategicȱretailȱmanagementȱandȱtoȱpresentȱsomeȱbestȱpractices.ȱȱ Theȱ bookȱ isȱ dividedȱ intoȱ fourȱ mainȱ parts.ȱ Partȱ Iȱ introducesȱ “Formatsȱ andȱ PlayersȱinȱRetailing”ȱandȱcomprisesȱChaptersȱ1ȱtoȱ3.ȱInȱPartȱII,ȱgrowth,ȱinterȬ nationalisationȱ andȱ positioningȱ strategies,ȱ asȱ fundamentalȱ aspectsȱ ofȱ “StraȬ tegicȱMarketingȱinȱRetailing”ȱareȱdealtȱwithȱ(Chapterȱ4ȱtoȱChapterȱ6).ȱPartȱIIIȱ focusesȱ onȱ theȱ “Marketingȱ Mixȱ inȱ Retailing”.ȱ Storeȱ location,ȱ merchandiseȱ andȱ categoryȱ management,ȱ pricing,ȱ instoreȱ marketingȱ andȱ customerȱ relaȬ tionshipȱ managementȱ areȱ discussedȱ inȱ Chaptersȱ 7ȱ toȱ 11.ȱ Theȱ finalȱ Partȱ IVȱ “Buying,ȱ Logisticsȱ andȱ Performanceȱ Measurement”ȱ dealsȱ withȱ retailȱ purȬ chasingȱ strategiesȱ andȱ concepts,ȱ modernȱ conceptsȱ ofȱ physicalȱ distributionȱ andȱITȬbasedȱsupplyȱchainȱmanagement,ȱasȱwellȱasȱmethodsȱofȱperformanceȱ andȱfinancialȱcontrollingȱ(Chaptersȱ12ȱtoȱ15).ȱ V Preface Teaching and Learning Theȱbookȱisȱtargetedȱprimarilyȱatȱstudentsȱinȱtheirȱthirdȱandȱfourthȱacademicȱ yearȱ(undergraduateȱandȱgraduateȱlevel)ȱinȱtheȱfieldȱofȱBusinessȱAdministraȬ tion/Marketing/Managementȱ atȱ differentȱ institutions,ȱ suchȱ asȱ universities,ȱ academiesȱ andȱ businessȱ schools.ȱ Inȱ addition,ȱ practitionersȱ inȱ theȱ consumerȱ goodsȱindustryȱandȱinȱretailingȱcompanies,ȱwhoȱwishȱtoȱobtainȱcompactȱandȱ practiceȬorientedȱ informationȱ onȱ currentȱ retailȱ concepts,ȱ willȱ alsoȱ benefitȱ fromȱreadingȱthisȱbook.ȱ Furthermore,ȱtheȱbookȱcanȱbeȱusedȱinȱeducationȱasȱaȱbasisȱforȱworkingȱwithȱ caseȱstudies.ȱForȱthisȱpurpose,ȱtheȱcaseȱstudiesȱareȱintegratedȱintoȱtheȱlessonsȱ inȱsuchȱaȱwayȱthatȱtheyȱprovideȱadditionalȱcontentȱandȱaȱspecificȱapplicationȱ ofȱtheȱindividualȱlessons.ȱThatȱis,ȱtheyȱformȱpartȱofȱtheȱmainȱtopic,ȱbutȱalsoȱ leadȱ toȱ suggestedȱ discussionȱ subjectsȱ andȱ questionsȱ inȱ orderȱ toȱ deepenȱ theȱ understandingȱ ofȱ theȱ topic.ȱ Instructorsȱ areȱ providedȱ withȱ additionalȱ reȬ sources.ȱForȱeachȱcaseȱstudy,ȱaȱsuggestedȱsolutionȱcanȱbeȱrequestedȱfromȱtheȱ H.I.MA.ȱ (Instituteȱ forȱ Commerceȱ &ȱ Internationalȱ Marketing,ȱ Saarlandȱ UniȬ versity,ȱGermany,ȱeȬmail:ȱhima@mx.uniȬsaarland.de).ȱ Acknowledgements Aȱ caseȱ studyȱ approachȱ cannotȱ beȱ developedȱ effectivelyȱ withoutȱ theȱ activeȱ supportȱ andȱ cooperationȱ ofȱ theȱ selectedȱ retailingȱ companies.ȱ Thus,ȱ weȱ firstȱ ofȱ allȱ thankȱ theȱ companiesȱ andȱ theirȱ representativesȱ whoȱ haveȱ willinglyȱ supportedȱusȱinȱtheȱdevelopmentȱofȱtheȱcaseȱstudies.ȱ Atȱ Gablerȱ Verlag,ȱ Barbaraȱ Roscherȱ supervisedȱ ourȱ bookȱ conceptȱ fromȱ theȱ beginningȱandȱweȱareȱindebtedȱtoȱherȱforȱherȱsupport.ȱ Atȱ theȱ H.I.MA.,ȱ whereȱ theȱ threeȱ authorsȱ teachȱ andȱ researchȱ retailȱ manageȬ ment,ȱ weȱ wouldȱ particularlyȱ likeȱ toȱ thankȱ Julianeȱ Krebsȱ forȱ preparingȱ aȱ numberȱofȱcaseȱstudiesȱinȱcooperationȱwithȱtheȱretailȱcompanies,ȱasȱwellȱasȱ forȱtheȱlayoutȱ designȱandȱfinalȱediting.ȱCaseȱstudiesȱwereȱalsoȱpreparedȱbyȱ MarkusȱLehnert,ȱSandraȱPocsayȱandȱLambertȱScheer.ȱȱ Finally,ȱ thanksȱ goȱ toȱ Brianȱ Blochȱ andȱ Heikeȱ Frenschȱ forȱ supportȱ withȱ theȱ translationȱ ofȱ partsȱ ofȱ theȱ manuscriptȱ andȱ theȱ proofreading.ȱ Heikeȱ Frenschȱ hasȱ typedȱ severalȱ versionsȱ ofȱ theȱ scriptȱ withȱ greatȱ accuracyȱ andȱ commitȬ ment.ȱ Saarbrücken,ȱJanuaryȱ2007ȱ ȱ JOACHIMȱZENTESȱ VI ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱDIRKȱMORSCHETTȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱHANNAȱ SCHRAMMȬKLEIN Contents Prefaceȱ Introductionȱ Vȱ ȱ1ȱ Part I Formats and Players in Retailing Chapterȱ1ȱ RetailȱFormatsȱ–ȱFood 9ȱ CaseȱStudy:ȱCarrefour 20ȱ Chapterȱ2ȱ RetailȱFormatsȱ–ȱNonȬFood 31ȱ CaseȱStudy:ȱMediaȱMarktȱandȱSaturnȱ 42ȱ Chapterȱ3ȱ NewȱCompetitorsȱ–ȱVerticalȱStrategies…………………….53ȱ CaseȱStudy:ȱEsprit 62ȱ Part II Strategic Marketing in Retailing Chapterȱ4ȱ GrowthȱStrategies 77ȱ CaseȱStudy:ȱFressnapf/MaxiȱZoo 88ȱ Chapterȱ5ȱ TheȱInternationalisationȱofȱRetailing 101ȱ CaseȱStudy:ȱAldi 109ȱ Chapterȱ6ȱ RetailȱBrandingȱandȱPositioning 121ȱ CaseȱStudy:ȱIKEA 130ȱ Part III Marketing Mix in Retailing Chapterȱ7ȱ ȱ StoreȱLocationȱ–ȱTradingȱAreaȱAnalysisȱandȱSiteȱȱ Selection 143ȱ CaseȱStudy:ȱECEȱProjektmanagement 154ȱ Chapterȱ8ȱ MerchandiseȱandȱCategoryȱManagement 163ȱ CaseȱStudy:ȱCoopȱ(Switzerland) 174ȱ ȱ ȱ VII Brief Contents Chapterȱ9ȱ Pricing 187ȱ CaseȱStudy:ȱWalȬMart 198ȱ Chapterȱ10ȱ InstoreȱMarketing 209ȱ CaseȱStudy:ȱGaleriesȱLafayette 220ȱ Chapterȱ11ȱ CustomerȱRelationshipȱManagement 231ȱ CaseȱStudy:ȱTesco 243ȱ Part IV Buying, Logistics and Performance Measurement Chapterȱ12ȱ Buyingȱ–ȱStrategyȱandȱConcepts .255ȱ CaseȱStudy:ȱKingfisher 266ȱ Chapterȱ13ȱ Logisticsȱ–ȱPhysicalȱDistribution 277ȱ CaseȱStudy:ȱSainsbury’s 286ȱ Chapterȱ14ȱ ȱ Logisticsȱ–ȱSupplyȱChainȱManagementȱandȱȱ InformationȱManagement 297ȱ CaseȱStudy:ȱBenetton 308ȱ Chapterȱ15ȱ ControllingȱandȱFinancialȱManagement 317ȱ CaseȱStudy:ȱMetro 325ȱ ȱ Referencesȱ Indexȱ ȱ VIII 337ȱ 363ȱ Introduction Introduction Retailingȱisȱoneȱofȱtheȱworld’sȱlargestȱindustries.ȱItȱisȱinȱaȱpermanentȱstateȱofȱ change,ȱandȱtheȱpaceȱofȱthisȱchangeȱhasȱbeenȱacceleratingȱoverȱtheȱlastȱdecȬ ade.ȱFromȱtheȱmarketingȱperspective,ȱretailersȱare,ȱbyȱdefinition,ȱcloserȱtoȱtheȱ consumerȱ thanȱ manufacturingȱ companiesȱ (Reynoldsȱ 2004b,ȱ p.ȱ 3).ȱ Retailersȱ representȱ theȱ culminationȱ ofȱ theȱ marketingȱ processȱ andȱ theȱ contactȱ pointȱ betweenȱconsumersȱandȱmanufacturedȱproducts.ȱWhileȱretailingȱhasȱlongȱsetȱ buyingȱdecisionsȱasȱitsȱhighestȱpriorityȱandȱwasȱveryȱfocussedȱonȱtheȱprodȬ uctȱassortment,ȱitȱnowȱfollowsȱaȱmoreȱholisticȱapproachȱtoȱmanagementȱandȱ marketingȱandȱisȱseizingȱtheȱopportunityȱtoȱbeȱconsumerȬoriented,ȱengageȱinȱ theȱ personalȱ contactȱ withȱ customers,ȱ gatherȱ informationȱ onȱ consumerȱ beȬ haviourȱandȱexploitȱinsightsȱintoȱconsumerȱbehaviourȱandȱpreferences.ȱWhatȱ wasȱ onceȱ aȱ simpleȱ wayȱ ofȱ doingȱ businessȱ isȱ transformingȱ intoȱ aȱ highlyȱ soȬ phisticatedȱ formȱ ofȱ managementȱ andȱ marketing.ȱ Retailȱ marketingȱ consisȬ tentlyȱ featuresȱ moreȱ efficient,ȱ moreȱ meaningfulȱ andȱ moreȱ profitableȱ marȬ ketingȱpracticesȱ(Mulhernȱ1997,ȱp.ȱ103).ȱ Evolutionȱofȱ Retailȱȱ Managementȱ Retailingȱinvolvesȱthoseȱcompaniesȱthatȱareȱengagedȱprimarilyȱinȱtheȱactivityȱ ofȱ purchasingȱ productsȱ fromȱ otherȱ organisationsȱ withȱ theȱ intentȱ toȱ resellȱ thoseȱ goodsȱ toȱ theȱ finalȱ customer,ȱ generallyȱ withoutȱ transformation,ȱ andȱ renderingȱservicesȱincidentalȱtoȱtheȱsaleȱofȱmerchandise.ȱTheȱretailingȱprocȬ essȱisȱtheȱfinalȱstepȱinȱtheȱdistributionȱofȱmerchandise;ȱretailersȱareȱthereforeȱ organisedȱtoȱsellȱmerchandiseȱinȱsmallȱquantitiesȱtoȱtheȱgeneralȱpublic.ȱTheȱ servicesȱaddedȱtoȱtheȱproductsȱcommonlyȱincludeȱtransportationȱandȱstockȬ keepingȱtoȱensureȱthatȱtheȱproductsȱareȱavailableȱatȱtheȱpointȬofȬsale.ȱHowȬ ever,ȱ theȱ processȱ alsoȱ encompassesȱ theȱ selectionȱ ofȱ productsȱ forȱ aȱ retailȱ asȬ sortment,ȱ theȱ provisionȱ ofȱ salesȱ advice,ȱ afterȬsalesȬserviceȱ andȱ manyȱ otherȱ functions.ȱ Definitionȱ ofȱRetailingȱ AȱnumberȱofȱdevelopmentsȱareȱresponsibleȱforȱtheȱdynamicȱchangeȱinȱmodȬ ernȱ retailȱ management.ȱ Inȱ mostȱ developedȱ countries,ȱ retailingȱ hasȱ experiȬ encedȱaȱdramaticȱincreaseȱinȱtheȱscaleȱofȱoperationsȱandȱinȱmarketȱconcentraȬ tion.ȱThisȱisȱdueȱpartlyȱtoȱtheȱappearanceȱofȱlargeȬscaleȱretailȱchainsȱthatȱhaveȱ takenȱ overȱ marketȱ shareȱ fromȱ independentlyȱ ownedȱ smallȱ shops.ȱ Theseȱ retailȱ chainsȱ firstȱ developedȱ intoȱ regionalȱ groupsȱ andȱ thenȱ intoȱ nationallyȱ andȱevenȱinternationallyȱactiveȱretailȱoperations.ȱInȱtheȱlastȱdecade,ȱmergersȱ andȱ acquisitionsȱ betweenȱ alreadyȱ largeȱ playersȱ haveȱ intensifiedȱ thisȱ develȬ opment.ȱManyȱretailersȱnowȱhaveȱmassiveȱturnover,ȱveryȱlargeȱnumbersȱ ofȱ employeesȱ andȱ extensiveȱ storeȱ networks.ȱ Theȱ world’sȱ largestȱ retailer,ȱ WalȬ Emergenceȱofȱȱ LargeȬScaleȱȱ RetailȱChainsȱ Introduction Mart,ȱachievesȱaȱturnoverȱofȱ312ȱbillionȱUSDȱwhichȱexceedsȱtheȱgrossȱdomesȬ ticȱproductȱofȱmanyȱsmallerȱcountriesȱandȱemploysȱ1.8ȱmillionȱpeople.ȱCarreȬ four,ȱtheȱlargestȱEuropeanȱretailerȱandȱtheȱno.ȱ2ȱinȱtheȱworld,ȱoperatesȱmoreȱ thanȱ12,000ȱstoresȱworldwide.ȱ Internationalȱ MultiȬChannelȱ Retailersȱ Atȱ theȱ sameȱ time,ȱ manyȱ retailersȱ haveȱ developedȱ intoȱ internationalȱ multiȬ channelȱretailers,ȱthatȱis,ȱtheyȱoperateȱinȱmanyȱcountriesȱandȱofferȱdifferentȱ retailȱformatsȱforȱtheirȱcustomers.ȱForȱexample,ȱtheȱFrenchȱCarrefourȱisȱnowȱaȱ multiȬformatȱ groupȱ thatȱ usesȱ hypermarkets,ȱ supermarkets,ȱ convenienceȱ stores,ȱhardȱdiscountersȱandȱotherȱformatsȱtoȱsellȱitsȱassortmentȱtoȱcustomersȱ inȱ overȱ 30ȱ countries.ȱ Moreȱ thanȱ halfȱ ofȱ itsȱ turnoverȱ isȱ earnedȱ outsideȱ theȱ homeȱ market.ȱ Theȱ Germanȱ Metroȱ Groupȱ employsȱ foodȱ superstoresȱ (Real),ȱ foodȱ supermarketsȱ (extra),ȱ consumerȱ electronicsȱ categoryȱ killersȱ (Mediaȱ Marktȱ andȱ Saturn),ȱ cashȱ &ȱ carryȱ wholesaleȱ storesȱ (Metroȱ C&C),ȱ andȱ otherȱ formatsȱ andȱ earnsȱ moreȱ thanȱ 50ȱ %ȱ ofȱ itsȱ turnoverȱ inȱ 29ȱ marketsȱ outsideȱ Germany.ȱTescoȱisȱexpandingȱrapidlyȱintoȱEasternȱEuropeanȱandȱAsianȱmarȬ ketsȱand,ȱinȱadditionȱtoȱseveralȱstoreȬbasedȱformats,ȱveryȱsuccessfullyȱoperȬ atesȱ anȱ eȬcommerceȱ channel,ȱ Tesco.com.ȱ Whileȱ theȱ riseȱ ofȱ eȬcommerceȱ inȱ reȬ tailingȱwasȱinitiallyȱoverȬestimatedȱinȱtheȱdaysȱofȱInternetȱhype,ȱitȱhasȱnoneȬ thelessȱ developedȱ slowlyȱ butȱ surelyȱ andȱ Tescoȱ nowȱ achievesȱ salesȱ ofȱ overȱ 1ȱbillionȱEURȱwithȱitsȱonlineȬchannel.ȱ HighȱLevelsȱ ofȱConcentrationȱ Inȱmostȱcountryȱmarkets,ȱretailingȱisȱalsoȱaȱveryȱconcentratedȱindustry.ȱAcȬ cordingȱtoȱtheȱmarketȱresearchȱcompanyȱPlanetȱRetail,ȱtheȱtopȱ5ȱfoodȱretailersȱ accountȱ forȱ moreȱ thanȱ 55ȱ %ȱ ofȱ theȱ marketȱ inȱ theȱ UKȱ Inȱ Germanyȱ andȱ inȱ France,ȱitȱisȱevenȱaboveȱ70ȱ%.ȱConsequently,ȱaȱshiftȱinȱpowerȱwithinȱtheȱdistriȬ butionȱ channelȱ isȱ oneȱ ofȱ theȱ mostȱ influentialȱ developmentsȱ overȱ theȱ lastȱ decades.ȱ Theȱ powerȱ ofȱ individualȱ retailȱ organisationsȱ isȱ growing;ȱ theyȱ areȱ nowȱcomparableȱtoȱand,ȱinȱmanyȱcases,ȱevenȱlargerȱthanȱmanyȱmanufacturȬ ers,ȱ evenȱ forȱ globalȱ brandȱ manufacturersȱ suchȱ asȱ Procterȱ &ȱ Gamble,ȱ Sonyȱ orȱ Nestlé.ȱThus,ȱmanufacturersȱ nowȱdependȱonȱaȱfewȱlargeȱretailersȱforȱaȱsubȬ stantialȱshareȱofȱtheirȱturnover.ȱHandȱinȱhandȱwithȱtheȱincreasingȱsize,ȱretailȱ marketingȱ budgets,ȱ ITȱ budgets,ȱ andȱ budgetsȱ forȱ topȱ managers,ȱ haveȱ beenȱ increasing.ȱ Notȱ onlyȱ theȱ growingȱ sizeȱ andȱ concentration,ȱ butȱ alsoȱ theȱ inȬ creasedȱsophisticationȱofȱretailȱmanagement,ȱcombinedȱwithȱtheȱbetterȱavailȬ abilityȱofȱcustomerȱdata,ȱcontributedȱtoȱtheȱpowerȱshift.ȱRetailingȱisȱcurrentlyȱ oneȱofȱtheȱleadingȱindustriesȱinȱtheȱapplicationȱofȱnewȱtechnologies.ȱRetailerȱ PoSȱdataȱhasȱbecameȱmoreȱvaluableȱasȱITȱsystemsȱhaveȱfacilitatedȱtheȱcollecȬ tionȱ ofȱ dataȱ atȱtheȱ checkout.ȱ Furthermore,ȱ asȱ retailersȱ haveȱ grownȱ fromȱ reȬ gionalȱ toȱ nationalȱ chains,ȱ theyȱ haveȱ beenȱ ableȱ toȱ accumulateȱ knowledgeȱ aboutȱ consumerȱ trends,ȱ theȱ developmentȱ ofȱ productȱ sales,ȱ etc.,ȱ thatȱ hasȱ enhancedȱ theirȱ relevanceȱ asȱ gatekeepersȱ forȱ productsȱ onȱ theirȱ routeȱ toȱ theȱ 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Ansoff’sȱmatrixȱȱ77ȱ Concentrationȱofȱretailersȱȱ2ȱ Assortmentȱȱ164–165ȱ Continuousȱ replenishmentȱ (CRP)ȱȱ 297,ȱ302ȱ Auctionsȱȱ38,ȱ197,ȱ261,ȱ271ȱ Controlledȱdistributionȱȱ57–60ȱ Bȱ Controllingȱȱ317–325ȱ B2Bȱȱ285ȱ Convenienceȱstoresȱȱ16ȱ Bigȱboxȱretailingȱȱ15ȱ Corporateȱ socialȱ responsibilityȱ (CSR)ȱȱ184,ȱ193,ȱ260,ȱ324ȱ BoxȱstoresȱȱSeeȱHardȱdiscountersȱ Brandȱarchitectureȱȱ125ȱ Brandȱequityȱȱ123–124ȱ Brandȱextensionȱȱ123,ȱ166ȱ Brandȱhierarchyȱȱ125ȱ Bullwhipȱeffectȱȱ298–300ȱ Businessȱ improvementȱ districtsȱ (BID)ȱȱ153ȱ Buyingȱinȱretailingȱȱ255–266ȱ Cȱȱ Catalogueȱretailingȱȱ37ȱ Catchmentȱareaȱȱ144,ȱ147,ȱ157ȱ Categoryȱkillersȱȱ33–34ȱ Categoryȱ managementȱ ȱ 170–173,ȱ 175–78ȱ Categoryȱmigrationȱȱ19,ȱ166ȱ Cityȱmarketingȱȱ153ȱ Collaborativeȱ planning,ȱ foreȬ castingȱ andȱ replenishmentȱ (CPFR)ȱȱ304ȱ CrossȬdockingȱȱ259,ȱ281,ȱ304ȱ Customerȱlifetimeȱvalueȱȱ232–234ȱ Customerȱloyaltyȱȱ234–236ȱ Customerȱ relationshipȱ lifecycleȱȱ 232–234ȱ Customerȱ relationshipȱ manageȬ mentȱ(CRM)ȱȱ231–242ȱ Ȭȱprinciplesȱofȱȱ231–232ȱ Dȱ Departmentȱstoresȱȱ34,ȱ220–230ȱ Definitionȱofȱretailingȱȱ1ȱ Differentiationȱȱ128,ȱ169ȱ Directȱproductȱprofitabilityȱ(DPP)ȱȱ 188ȱ Directȱsellingȱȱ38,ȱ54ȱ Directȱsourcingȱȱ268–270ȱ Distributionȱcentreȱ(DC)ȱȱ280ȱ Distributionȱ ofȱ onlineȱ purchasesȱȱ 283–284ȱ Diversificationȱȱ78,ȱ123,ȱ166ȱ 363 [...]... Other retail sale in non-specialized stores 52.2 : Retail sale of food, beverages and tobacco in specialized stores 52.21 : Retail sale of fruit and vegetables 52.22 : Retail sale of meat and meat products 52.23 : Retail sale of fish, crustaceans and molluscs 52.24 : Retail sale of bread, cakes, flour confectionery and sugar confectionery 52.25 : Retail sale of alcoholic and other beverages 52.26 : Retail. .. 52.43 : Retail sale of footwear and leather goods 52.44 : Retail sale of furniture, lighting equipment and household articles n.e.c 52.45 : Retail sale of electrical household appliances and radio and television goods 52.46 : Retail sale of hardware, paints and glass 52.47 : Retail sale of books, newspapers and stationery 52.48 : Other retail sale in specialized stores 52.5 : Retail sale of second-hand... 52.27 : Other retail sale of food, beverages and tobacco in specialized stores 52.3 : Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles 52.31 : Dispensing chemists 52.32 : Retail sale of medical and orthopaedic goods 52.33 : Retail sale of cosmetic and toilet articles 52.4 : Other retail sale of new goods in specialized stores 52.41 : Retail sale of textiles 52.42 : Retail sale... areȱimplementedȱbyȱsuccessful retail companiesȱaroundȱtheȱworld.ȱȱ ȱ ȱ 5 Buying,ȱLogisticsȱ and Performanceȱ Measurementȱ Formats and Players in Retailing PartȱIȱ Formats and Playersȱ inȱRetailingȱ 7 Part I Formats and Players in Retailing Part I Chapter 1 Retail Formats – Food Retailers have various ways of meeting customer needs through organising and designing their retail outlets The objective of... businessȱoperations.ȱThus,ȱeachȱtypeȱrepresentsȱaȱspecificȱretailingȱstrategy.ȱȱ Figureȱ1.1ȱ NACEȱCodesȱȬȱExamplesȱ Section G : Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods 52 : Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods 52.1 : Retail sale in non-specialized stores 52.11 : Retail sale in non-specialized stores with... bestȱ practiceȱ cases inȱ theȱ respectiveȱ strategyȱ fields.ȱ InȱPartȱI,ȱformats and playersȱinȱretailingȱareȱdiscussed.ȱA retail formatȱrepreȬ sentsȱ aȱ specificȱ configurationȱ ofȱ theȱ retail marketingȱ mixȱ (e.g.ȱ storeȱ size,ȱ typicalȱ location,ȱ merchandise,ȱ priceȱ and serviceȱ offered)ȱ and itȱ oftenȱ formsȱ theȱcoreȱofȱthe retail strategy.ȱDifferentȱformatsȱareȱdescribed and thereȱisȱaȱ... 52.50 : Retail sale of second-hand goods in stores 52.6 : Retail sale not in stores 52.61 : Retail sale via mail order houses 52.62 : Retail sale via stalls and markets 52.63 : Other non-store retail sale 52.7 : Repair of personal and household goods ȱ Source:ȱ EuropeanȱUnion.ȱ Severalȱsystemsȱof retail classificationȱhaveȱbeenȱdevelopedȱbyȱgovernmentalȱ institutionsȱ inȱ orderȱ toȱ collectȱ and analyseȱ... ofȱ retail institutionsȱ inȱ termsȱ ofȱ theȱ characteristicsȱ ofȱ theȱ strategiesȱ thatȱ retailersȱ employȱ inȱ sellingȱ goodsȱ and services,ȱisȱimportant.ȱSuchȱtypesȱof retail institutionsȱareȱreferredȱtoȱas retail formats.ȱA retail formatȱrepresentsȱaȱspecificȱconfigurationȱofȱthe retail marȬ ketingȱ mixȱ (e.g.ȱ natureȱ ofȱ merchandiseȱ and serviceȱ offered,ȱ pricingȱ policy,ȱ advertising and promotionȱprogramme,ȱapproachȱtoȱstoreȱdesign and visualȱ... advertising and promotionȱprogramme,ȱapproachȱtoȱstoreȱdesign and visualȱ merchandising,ȱ typicalȱ location,ȱ etc.)ȱ whichȱ isȱ maintainedȱconsistentlyȱ overȱ timeȱ(Fox/Sethuramanȱ2006,ȱp.ȱ193).ȱȱ Theories of Retail Evolution Aȱnumberȱofȱtheoriesȱexplainȱtheȱpresentȱstructureȱofȱthe retail industry and predictȱtheȱfutureȱdevelopmentȱofȱcurrent and new retail formats.ȱTheȱwheelȱ ofȱretailing and the retail lifeȱcycleȱareȱtwoȱparticularlyȱimportantȱtheories.ȱ... functionsȱ ofȱ theȱ retailerȱ isȱ toȱ selectȱ theȱ appropriateȱ breadthȱ and depthȱofȱtheȱassortment and theȱspecificȱproducts,ȱe.g.ȱmanufacturerȱbrandsȱ orȱstoreȱbrands, and toȱtailorȱtheȱofferȱtoȱtheȱtargetȱcustomers.ȱAȱnewȱconceptȱ isȱcategory management thatȱaimsȱatȱimplementingȱaȱmore strategic and holisȬ ticȱapproachȱtoȱmerchandisingȱ(Chapterȱ8).ȱCloselyȱrelatedȱtoȱtheȱassortmentȱ itselfȱ isȱ theȱ