Reference no: EM131267136
Describe the major types of retail operations. The major types of retail stores are department stores, specialty retailers, supermarkets, drugstores, convenience stores, discount stores, and restaurants. Department stores carry a wide assortment of shopping and specialty goods, are organized into relatively independent departments, and offset higher prices by emphasizing customer service and décor. Specialty retailers typically carry a narrower but deeper assortment of merchandise, emphasizing distinctive products and a high level of customer service.
Supermarkets are large self-service retailers that offer a wide variety of food products and some nonfood items. Drugstores are retail formats that sell mostly prescription and over-the-counter medications, health and beauty aids, cosmetics, and specialty items. Convenience stores carry a limited line of high-turnover convenience goods. Discount stores offer low-priced general merchandise and consist of four types: full-line discounters, specialty discount retailers, warehouse clubs, and off-price retailers.
Finally, restaurants straddle the line between the retailing and services industries; although restaurants sell a product, food and drink, to final consumers, they can also be considered service marketers because they provide consumers with the service of preparing food and sometimes table service.
1. Discuss the possible marketing implications of the recent trend toward supercenters, which combine a supermarket and a full-line discount store.
2. Explain the function of warehouse clubs. Why are they classified as both wholesalers and retailers?
3. Would you be interested in buying luxury items, like expensive jewelry, at a warehouse club? Wal-Mart offered a $350,000 diamond solitaire ring during a recent Christmas shopping season. If you could afford such a ring, would you consider buying it at Wal-Mart? Why or why not?
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