2. The World of Retailing

6. The Distribution Channel Consumer Retailer Wholesaler Manufacturer Point of Production Point of Sale (POS)

7. The Distribution Channel: VERTICAL INTEGRATION Backward Integration Forward Integration Consumer Retailer Wholesaler Manufacturer

10. World’s Largest Retailers

11. “ Hardest hit were clothing and high-fashion chains.” Shares of J.C. Penney Co., Sears Holdings Corp., Target Corp. and Wal-Mart Stores Inc. all rose. Retailers Post Tepid Growth January 11, 2008 The results confirmed pre-holiday worries that falling home prices and high gasoline prices would crimp consumer spending. Retail Metrics Inc.'s index of December same-store sales rose a scant 0.4%, compared to a 3.2% gain the previous year. The weakness among clothing and jewelry was offset elsewhere by sales of food, health care and pharmaceuticals. Among major discount chains, Wal-Mart Stores said grocery, electronics and pharmacy businesses gained while home decor and apparel sales slipped.

12. World’s Largest Retailers

13. Environmental Factors Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political & Economic Issues Environmental Issues RETAILER

14. Environmental Factors Competitors Customers Micro- Environment RETAILER

15. Who is my competitor?

16. Really??

17. Who is my competition?

18. Definitely.

19. I thought they sold coffee...

20. Who is our customer? HINT: They buy a lot of music, watch a lot of movies, drink a lot of coffee and have a lot of disposable income...

21. Retail Strategy Decision Areas (Retail Mix) Customer Service Store Design & Display Location Communications Mix Merchandise Assortments Pricing Retail Strategy

22. Retail Mix: Macy’s Customer Service Retail Strategy Store Design & Display Location Merchandise Assortments Pricing Enclosed Malls Many apparel items and soft home Moderate with frequent sales Communications Mix TV, Newspaper and Special Events Racetrack with displays Modest

23. Retail Mix: Target Customer Service Retail Strategy Store Design & Display Location Merchandise Assortments Pricing Free-standing stores Many Categories Private Labels Few Items in each category Low to modest Communications Mix TV and Newspaper insert ads Colorful, wide aisles displays for products with a grid layout Limited

24. Environmental Factors: “Story of Stuff” (on blog) Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political Issues Environmental Issues RETAILER