Marketing Management – 406
(Retail Management)
What is retailing?
Republic Act No 1180, also known as the
Nationalization Retail Trade Act -defines the
term “retail” as “any act, occupation, or
calling of habitually selling direct to the
general public, merchandise, commodities,
or goods for consumption”.
• The term Retailing refers to all forms of
selling direct to the ultimate consumer. The
individual engaged in this method of sale is
termed as the RETAILER, from the French
word retail the re in it signifying “AGAIN”
and the tailer – meaning “TO CUT”.
• In Italian language, he is the “VENDITORI
AL MINUTO” one who sells goods in small
quantities only.
• According to Julita R. Gomez on her book
entitled Retail Management Concepts and
Procedures defines retailing – is the process of
selling the right merchandise at the right time
and place to the ultimate consumers.
• Retailing – (Manish V. Sidhpuria) is the final
step in the distribution of merchandise – the
last link in the Supply Chain – connecting the
bulk producers of commodities to the final
consumers.
Final
Manufacturer Wholesaler Consum
Retailer ers
Typical Channel of Distribution
• According to Barry Berman & Joel R. Evans –
Retailing encompasses the business activities
involved in selling goods and services to
consumers for their personal, family, or
household use. It includes every sale to the final
consumer – ranging from cars to apparel to
meals at restaurant to movie tickets. Retailing is
the last stage in the distribution process.
What is Retail Management?
The process calls for an organization of
activities related to the selling of goods to
consumers is called as retail management.
Retail Management is defined as planning,
organizing, directing and controlling business
activities at the retail level to assure the
optimum use of resources, both material and
human in its effort to provide maximum level
of customer satisfaction.
Retailing and the Process of Management
* Retail owners and managers need to design
their business structure is such a way that it
follows the pattern of operations in a successful
business enterprise.
Planning. The plan of any form or type of
business sets the direction of the enterprise. A
plan specifies the objective of the business. In
making a plan, certain criteria must be
considered: The objectives of the plan must pass
through the process called SMART.
Reasons for Studying Retailing
• Retailing is an important field to study because of its
impact on the economy, its functions in distribution,
and its relationship with firms selling goods and
services to retailers for their resale or use.
• The impact of Retailing on the Economy
– Retailing is a major part of the world commerce. Retail
sales and employment are vital contributors, and retail
trends often mirror trends in nation’s overall economy.
Type of Retailers
Retailers can be classified according to the type
of merchandise and services they sell, location, various
strategic differences, and method of ownership
Types of
Retailers Description
Independent Own and operate only one retail outlet. Local sari-sari store
Retailers (Convenient store in the neighborhood) falls under this category
Own and operate multiple retail outlets. They have the ability to
Chains service large assortment of products and services. Ex. SM, Robinsons,
Ever-Gotesco, Rustan’s & Gaisano.
Retail A form of chain ownership in which a franchisee pays the franchisor
Franchising (Parent Company) fees or royalties and agrees to run the franchise by
prescribed norms, in exchange for use of the franchisor’s name.
Global franchisors include MCDonald’s, etc.
Leased Sections in a retail store that the owner rents to a second
Departments party. Typically, department stores rent their jewelry,
shoe, hairstyling, and cosmetic departments. As with
franchising agreements, a leasehold department
arrangement benefits both lessor (owner and lessee). The
lessor receives rental fees, gains expertise in a specialized
area, and enjoys the benefits derived from the store
traffic generated by the leased department. Lessees
benefit by operating in an established location with the
assurance of store traffic and advertising.
Cooperatives A retail cooperative store in the Philippines is typical
among companies with a large number of employees. To
respond to high prices of goods in the free market,
employees band together to establish a cooperative store
that can offer them goods at lower prices.
BIG RETAILERS, USA, AND THE PHILIPPINES
USA PHILIPPINES
Company Base Company Base
Wal-Mart Bentonville, ShoeMart (SM) Manila/Nationwide
Arkansas
Sear, Roebuck Chicago Robinsons Manila/Cebu
Kmart Troy, Michigan Ever-Gotesco Manila
Kroger Cincinnati Isetann Manila
JC Penny Dallas Gaisano Cebu/Davao
Daylon Hudson Minneapolis Rustan’s Shopwise Manila/Cebu
American Stores Salt Lake City Mercury Drug Manila Nationwide
Safeway Stores Oakland , California Rose Pharmacy Cebu/Visayas/Mind
ano
