Retailing Management

Retailing Management, Tenth Edition, highlights the many ways the retail industry has transformed and evolved over the past four years. This text is the only retail management educational product in the market that offers a premium digital content companion―McGraw-Hill Connect―to provide best-in-class training. In keeping with its market-leading tradition, this tenth edition focuses on key strategic issues with an emphasis on financial considerations and implementation through merchandise and store management. Strategic and tactical issues are examined for a broad spectrum of retailers, both large and small, domestic and international, selling both merchandise and services. In preparing this edition, the authors focused on five important factors that delineate outstanding retailers: •The use of big data and analytical methods for decision making. •The application of social media and mobile channels for communicating with customers and enhancing their shopping experience. •The issues involved in providing a seamless multichannel experience for customers. •The engagement in the overarching emphasis on conscious marketing and corporate social responsibility when making business decisions. •The impact of globalization on the retail industry. This edition builds on the basic philosophy of the previous editions but every example, fact, and key term has been checked, updated, or replaced to ensure that this cutting-edge product remains up to date. Because the authors realize that retailing is taught in a variety of formats, a comprehensive supplemental package for instructors is provided, as well as a comprehensive online instructor's manual with additional cases and teaching suggestions. In keeping with the authors' goal of providing a "good read" for students, the conceptual material continues to be supported with interesting, current, real-world retailing examples. To facilitate student learning, the presentation has been streamlined, both visually and pedagogically-for example, based on reviewer comments, the chapters on human resource management and store management have been combined. The unique features of McGraw-Hill's Connect support students and offer instructors a proven, effective, and expedient path to engaging and educating their students. New to This Edition •Introductory vignettes provide an example of how a stellar retailer can be particularly successful by excelling in the subject area for that particular chapter. •Retailing views provide new and updated stories that describe how particular retailers deal with the issues raised in each chapter. •New cases highlight concepts and theories. •A regularly updated blog contains relevant, in-the-news content related to the course material, summaries, and discussion questions of recent retailing articles-all of which are associated with specific chapters so that instructors can use them to stimulate class discussion. •Graphics in each chapter provide critical, up-to-date information and lively visuals; almost all of the photos are new to this edition. •Multimedia content, such as videos, simulations, and games, drive student engagement and critical-thinking skills. •Instructors and students gain practical experience by applying the concepts and theories using the Get Out and Do It features at the end of each chapter; these exercises suggest projects that students can undertake by visiting local retail stores or surfing the Internet. •Continuing assignment exercise engage students in an exercise involving the same retailer throughout the course to provide a hands-on learning experience. Cover Page Title Page Copyright Page Dedication About the Authors Preface Connect Acknowledgments Brief Contents Contents Section I: The World of Retailing Chapter 1: Introduction to the World of Retailing What Is Retailing? Economic and Social Significance of Retailing Retailing View 1.1: Retailing at the Bottom of the Pyramid Retailing View 1.2: Whole Foods and John Mackey: The Birth of the Organic Supermarket The Growing Importance of Retailing and Retailers Management and Entrepreneurial Opportunities Retailing View 1.3: Jeff Bezos, Founder of Amazon The Retail Management Decision Process Summary Key Terms Get Out and Do It! Discussion Questions and Problems Appendix 1A: Careers in Retailing Chapter Endnotes Chapter 2: Types of Retailers Retailer Characteristics Retailing View 2.1: Amazon: Retailing in Every Category Food Retailers Retailing View 2.2: How FreshDirect Figures Out How and When Customers Order General Merchandise Retailers Retailing View 2.3: Making Macy’s Meaningful in Multiple Channels Retailing View 2.4: How Sephora Has Revolutionized the Cosmetics Industry Service Retailing Types of Ownership Retailing View 2.5: McDonald’s, the Textbook Franchisor Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 3: Multichannel and Omnichannel Retailing Relative Strengths of Retail Channels Retailing View 3.1: Ensuring Mobile Dominance through In-Store Promotions Retailing View 3.2: Avon’s Direct Selling Channel in Brazil Opportunities Facing Multichannel and Omnichannel Retailers Retailing View 3.3: Apple, the Gold Standard of Omnichannel Challenges Facing Multichannel and Omnichannel Retailers Retailing View 3.4: Warby Parker, the Reverse Omnichannel Retailer Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 4: Customer Buying Behavior The Buying Process Retailing View 4.1: The Supermarket That Gets Customers, and Also Gets Them to Stay Types of Buying Decisions Social Factors Influencing the Buying Process Retailing View 4.2: Pinning Consumption Choices on Online Reference Groups Market Segmentation Retailing View 4.3: No More Smokes at CVS Retailing View 4.4: Fashioning an Effective Segmentation Strategy Summary Key Terms Get Out and Do It! Discussion Questions and Problems Appendix 4A: Customer Buying Behavior and Fashion Chapter Endnotes Section II: Retailing Strategy Chapter 5: Retail Market Strategy What Is a Retail Strategy? Central Concepts in a Retail Market Strategy Retailing View 5.1: The Meaning of Best Value: Whole Foods’s Purpose-Based Marketing Growth Strategies Retailing View 5.2: Starbucks’s Expansion in Italy Global Growth Opportunities Retailing View 5.3: Uniqlo: The Brand without Borders Retailing View 5.4: 7-Eleven Is Trendy Hangout in Indonesia The Strategic Retail Planning Process Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 6: Financial Strategy Objectives and Goals Retailing View 6.1: One for One to Achieve TOMS Shoes’s Societal Objectives Strategic Profit Model Retailing View 6.2: Nordstrom and Walmart: Successful Retailers Using Different Retail Strategies Retailing View 6.3: Calculating the Costs and Profits of Online Channels Retailing View 6.4: Basing Inventory Levels on Crowdfunding Campaigns Evaluating Growth Opportunities Setting and Measuring Performance Objectives Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 7: Retail Locations Types of Retail Locations Unplanned Locations Shopping Centers and Planned Retail Locations Retailing View 7.1: How Apple Stores Transform the Mall Equation Retailing View 7.2: For China’s High-End Fashion Consumers, “Italy” Is Now Just a Bullet Train Away Retailing View 7.3: Subway Goes to Church Nontraditional Locations Location and Retail Strategy Societal and Legal Considerations Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 8: Retail Site Location Evaluating Areas for Locations and Determining the Number of Stores in an Area Retailing View 8.1: Big Payoff from Small Towns Evaluating Specific Sites Retailing View 8.2: It Pays to Locate on the Right Side of the Road Defining Trade Areas Retailing View 8.3: How Lululemon’s Flagship Store Summarizes Its Location Strategy Estimating Potential Sales for a Store Site Illustration of Site Selection: Edward Beiner Purveyor of Fine Eyewear Negotiating a Lease Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 9: Information Systems and Supply Chain Management Creating Strategic Advantage through Supply Chain Management and Information Systems Retailing View 9.1: Kroger’s Communications with Suppliers Benefits Customers The Flow of Information through a Supply Chain The Flow of Merchandise through a Supply Chain Retailing View 9.2: The IKEA Way System Design Issues and Trends Retailing View 9.3: A Robotic Supply Chain, All the Way from the Warehouse to Customers’ Doors Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 10: Customer Relationship Management The CRM Process Collecting Customer Shopping Data Analyzing Customer Data and Identifying Target Customers Retailing View 10.1: How CVS Uses Loyalty Data to Define Coupons Developing CRM through Frequent-Shopper Programs Retailing View 10.2: Whole Foods’s Loyalty Program Goes Beyond Other Grocers’ Retailing View 10.3: InCircle Builds Neiman Marcus’s Share of Wallet Implementing CRM Programs Retailing View 10.4: Staples’s App-Based Small Business Community Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Section III: Merchandise Management Chapter 11: Managing the Merchandise Planning Process Merchandise Management Overview Retailing View 11.1: How Macy’s Manages Its Merchandise Merchandise Planning Processes Retailing View 11.2: Fast Fashion at Mango Forecasting Category Sales Retailing View 11.3: Weather’s Effects on Retail Sales Developing an Assortment Plan Setting Inventory and Product Availability Levels Establishing a Control System for Managing Inventory Allocating Merchandise to Stores Retailing View 11.4: Customer-Centric Merchandise Allocation at Saks Fifth Avenue Analyzing Merchandise Management Performance Summary Key Terms Get Out and Do It! Discussion Questions and Problems Appendix 11A Merchandise Budget Report and Open-to-Buy System for a Fashion Merchandise Category Chapter Endnotes Chapter 12: Buying Merchandise Brand Alternatives Retailing View 12.1: Kroger’s Store Brands Have It All Buying National-Brand Merchandise Developing and Sourcing Store-Brand Merchandise Retailing View 12.2: The Search for Cheaper Garment Factories Leads to Africa Negotiating with Vendors Strategic Relationships Retailing View 12.3: Zappos Values Relationships with Its Vendors, the Merchandise Experts Retailing View 12.4: It Isn’t Easy to Sell to Walmart Legal, Ethical, and Social Responsibility Issues for Buying Merchandise Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 13: Retail Pricing Pricing Strategies Retailing View 13.1: Walmart Offers Low-Priced Organic Foods Setting Retail Prices Retailing View 13.2: The Increasing Costs of Play: New Offers and Pricing by Disney and Universal Theme Parks Markdowns Pricing Techniques for Increasing Sales and Profits Retailing View 13.3: Changing Once, Changing Twice, Changing 3 Million Times: How Amazon Prices to Win Legal and Ethical Pricing Issues Retailing View 13.4: What Makes a Price Regular? Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 14: Retail Communication Mix New Media Elements Retailing View 14.1: Getting Shoppers to Stop at the Site, Even If Just for a Quick Read Retailing View 14.2: Analyzing the Unmeasured: A Snapchat Experiment by Domino’s to Test the Channel’s Effectiveness Retailing View 14.3: YouTube and HSN Traditional Media Elements Retailing View 14.4: Does the Future of Couponing Look Different Than Its Past? Planning the Retail Communication Program Retailing View 14.5: Retailing Communications and Communicaciones Venta al Por Menor Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Section IV: Human Resources and Store Management Chapter 15: Human Resources and Managing the Store Acquire and Retain Human Resources Retailing View 15.1: How Can Retailers Best Recruit Millennial Employees? Retailing View 15.2: Motivated by Ownership at Publix Retailing View 15.3: Dressing Employees for Retail Success Leadership Controlling Costs Retailing View 15.4: Can Retailers Call on Employees Anytime? Should They? The Organization Structure for a Retail Firm Human Resource Management Legal Issues Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 16: Store Layout, Design, and Visual Merchandising Store Design Objectives Retailing View 16.1: Saks: Luxury Shopping as Both Functional and Experiential Store Design Elements Retailing View 16.2: Finding Ways to Get Modern Shoppers to Buy Candy, Gum, and Magazines Space Management Visual Merchandising Creating an Appealing Store Atmosphere Retailing View 16.3: The Primary Colors of Scents Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Chapter 17: Customer Service Balancing Customer Service: Personalization versus Standardization Customer Evaluations of Service Quality Retailing View 17.1: How Appealing to Women Has Helped Home Depot The Gaps Model for Improving Retail Customer Service Quality Retailing View 17.2: Using Analytics to Reduce Wait Time at Kroger Retailing View 17.3: Service-Providing Retail Robots Service Recovery Summary Key Terms Get Out and Do It! Discussion Questions and Problems Chapter Endnotes Section V: Cases 1. Making Macy’s Meaningful: Moves by the Retail Chain to Maintain Its Competitiveness 2. Find “Good Stuff Cheap” at Ollie’s Bargain Outlet 3. Tractor Supply Company Targets the Part-Time Rancher 4. Build-A-Bear Workshop: Where Best Friends Are Made 5. Blue Tomato: Internationalization of a Multichannel Retailer 6. Staples, Inc. 7. Remixing a Green Business: The Green Painter 8. Ashley Stewart 9. The Decision-Making Process for Buying a Bicycle 10. Home Depot: Opportunities and Challenges in China 11. Parisian Patisserie “Maison Ladurée” Goes Global 12. Retailing in India: The Impact of Hypermarkets 13. Diamonds from Mine to Market 14. Starbucks’s Expansion into China 15. Tiffany and TJX: Comparing Financial Performance 16. Choosing a Store Location for a Boutique 17. Hutch: Locating a New Store 18. Avon Embraces Diversity 19. Sephora Loyalty Programs: A Comparison between France and the United States 20. Attracting Generation Y to a Retail Career 21. Active Endeavors Analyzes Its Customer Database 22. Mel’s Department Store under New Management 23. Developing an Assortment Plan for Hughes 24. Preparing a Merchandise Budget Plan 25. Kroger and Fred Meyer: Sourcing Products in a Global Marketplace 26. American Furniture Warehouse Sources Globally 27. How Much for a Good Smell? 28. See It! Scan It! Buy It! Shortening the Path to Purchase with Mobilibuy’s Technology 29. Promoting a Sale 30. Target Marketing with Google AdWords 31. Diamond in the Rough 32. A Stockout at Discmart 33. Customer Service and Relationship Management at Nordstrom 34. Zipcar: Delivering Only as Much Driving as You Want 35. A Musical Quandary in an Italian Restaurant 36. Yankee Candle: Product Management and Innovation 37. Interviewing for a Management Training Position Glossary Company Index Name Index Subject Index