📘 Introduction to Retailing
A Complete Learning Module
📍 Course Description
This module introduces the basic principles and practices of retailing. It provides an overview of
retail institutions, formats, operations, strategies, and customer service. Learners will gain an
understanding of the role of retailing in the economy, retail location and layout decisions,
merchandising, pricing, promotion, and emerging trends in retail such as e-commerce and
omnichannel retailing.
🎯 Learning Objectives
By the end of this module, learners will be able to:
1. Define retailing and explain its role in the economy and society.
2. Differentiate between types of retailers and retail formats.
3. Analyze factors influencing retail location and store layout.
4. Explain the basics of merchandising, pricing, and retail promotion.
5. Describe the importance of customer service in retail success.
6. Evaluate the impact of technology and e-commerce on retail.
7. Develop a simple retailing plan for a small business.
Lesson Outline
1. Unit 1: Introduction to Retailing
2. Unit 2: Types of Retailers and Formats
3. Unit 3: Retail Location and Store Layout
4. Unit 4: Merchandising and Inventory Management
5. Unit 5: Pricing and Retail Promotion
6. Unit 6: Customer Service in Retailing
7. Unit 7: Emerging Trends in Retailing
8. Unit 8: Developing a Simple Retailing Plan
📖 Lesson Content
Unit 1: Introduction to Retailing
Key Topics
Definition of Retailing
Role of Retailing in the Economy
Retailing vs. Wholesaling
Definition:
Retailing includes all the activities involved in selling goods and services directly to final
consumers for personal, non-business use.
Importance:
Connects producers with consumers
Generates employment and income
Supports economic growth
Provides convenience and variety for consumers
Example
Supermarkets like SM Hypermarket and Robinsons Supermarket serve as
intermediaries, making goods accessible to Filipino households.
Activity
Class Discussion: Name your top 3 favorite retail stores. Why do you prefer shopping
there?
Unit 2: Types of Retailers and Formats
Key Topics
Store-based Retailing (Department Stores, Supermarkets, Specialty Stores, Convenience
Stores, Discount Stores, Hypermarkets)
Non-store Retailing (E-commerce, Direct Selling, Vending Machines, Home Shopping)
Franchising as a Retail Format
Example
Convenience Store: 7-Eleven, Ministop
Specialty Store: National Bookstore, Nike Store
E-commerce: Lazada, Shopee
Activity
Group Work: Classify 10 popular Philippine retailers into their respective formats.
Unit 3: Retail Location and Store Layout
Key Topics
Importance of Location
Factors in Choosing a Retail Location (accessibility, competition, traffic flow,
demographics)
Store Layout and Design (Grid layout, Free-flow layout, Boutique layout)
Example
Jollibee often locates stores near schools, terminals, and malls for maximum customer
access.
Activity
Case Analysis: If you were to open a milk tea shop, where would you locate it and why?
Sketch a simple store layout.
Unit 4: Merchandising and Inventory Management
Key Topics
Definition of Merchandising
Merchandise Planning (Assortment, Variety, Depth)
Inventory Control (FIFO, EOQ, Just-in-Time)
Visual Merchandising and Displays
Example
SM Department Store arranges seasonal displays (Christmas decors in November,
school supplies in May–June).
Activity
Hands-on Task: Design a mock-up display for a back-to-school promotion.
Unit 5: Pricing and Retail Promotion
Key Topics
Retail Pricing Strategies: Penetration, Skimming, Competitive Pricing, Psychological
Pricing
Retail Promotion Mix: Advertising, Sales Promotions, Public Relations, Personal Selling,
Digital Marketing
Example
Buy 1 Take 1 promotions in Watsons encourage bulk purchases.
Psychological Pricing: ₱99.00 instead of ₱100.00.
Activity
Role Play: Create a promotional campaign for a small retail store opening.
Unit 6: Customer Service in Retailing
Key Topics
Importance of Customer Service
Elements of Good Customer Service: Responsiveness, Reliability, Empathy, Assurance,
Tangibles
Handling Customer Complaints
Example
Watsons Advantage Card offers personalized discounts, enhancing customer loyalty.
Activity
Role Play: One student acts as an irate customer, another as the retail staff. Handle the
complaint effectively.
Unit 7: Emerging Trends in Retailing
Key Topics
E-commerce and Online Shopping
Omnichannel Retailing
Cashless Payments and Digital Wallets (GCash, PayMaya)
Sustainable Retailing (eco-friendly packaging, CSR initiatives)
Example
Uniqlo Philippines integrates physical stores with an app-based shopping experience.
Activity
Debate: “Online shopping is better than physical shopping.”
Unit 8: Developing a Simple Retailing Plan
Key Topics
Elements of a Retail Plan: Market Analysis, Target Customers, Retail Format, Location,
Merchandise, Pricing, Promotion, Operations, Budget.
Presentation of Group Projects.
Activity
Final Project: In groups, prepare and present a retailing plan for a chosen product (e.g.,
food kiosk, clothing boutique, online store).
📑 Assessment Tools
Quiz Sample (Unit 1–3)
Multiple Choice
1. Which of the following is an example of non-store retailing?
a. Department Store
b. Supermarket
c. Online Shopping ✅
d. Convenience Store
2. Which store layout is most common in supermarkets?
a. Free-flow layout
b. Grid layout ✅
c. Boutique layout
d. Circular layout
Short Answer
1. Explain why location is called the “lifeblood of retailing.”
2. Differentiate between a specialty store and a department store.
📚 References
Berman, B., & Evans, J. R. (2018). Retail Management: A Strategic Approach. Pearson.
Levy, M., Weitz, B. A., & Grewal, D. (2019). Retailing Management. McGraw-Hill.
Kotler, P., Keller, K. L., & Ancarani, F. (2021). Marketing Management. Pearson.
Philippine Retailers Association (PRA) Reports.
