Retail Institutions Assignment Reminder – Due October 28 Include pictures as necessary Make sure you bring a copy of site eval checklist with you.

Retail Institutions Assignment Reminder – Due October 28 Include pictures as necessary Make sure you bring a copy of site eval

checklist with you Trip:

Money MUST be paid to Roseanne Benoit TODAY

Itinerary

BSAD 432 – Retail ManagementRetail Institutions Itinerary

Fall 2013  

7:30 am – Students to be in parking lot at Millenium Centre to board bus7:45 am – Depart StFX 10:00 am – arrive at Winner’s Entrance of MicMac Mall10:00 – 10:20 am – Mall tour provided by Chris Keillor, Manager MicMac Mall and Rebecca Logan, Marketing Manager MicMac Mall10:20 – 10:35 am - GROUP 1 presentation by Chris Keillor and Rebecca Logan, Manager, MicMac Mall10:35 – 10:50 am - GROUP 2 presentation by Chris Keillor and Rebecca Logan, Manager, MicMac Mall10:50 – 11:05 am - GROUP 3 presentation by Chris Keillor and Rebecca Logan, Manager, MicMac Mall11:05 am - 12:30 pm – browse MicMac Mall to complete assignment; make sure you leave a little time to have lunch!12:30 pm – bus departs Mic Mac Mall for Dartmouth Crossing12:30 - 12:45 pm – travel to Dartmouth Crossing 12:45 – 1:15 pm – Visit Hockey Life. Complete assignment question.1:15 pm – bus departs Hockey Life for Sportchek1:20 – 1:45 – Visit Sport Check. Complete assignment question.1:45 – bus departs Sportchek for “The Shops” at Dartmouth Crossing 1:45 – 2:45 – Visit LeChateau. Browse other shops and complete assignment questions.2:45 pm – bus departs Dartmouth Crossing for Antigonish.5:00 pm – bus arrives on campus (parking lot at Millenium Centre) 

Midterm Wednesday October 23rd

In class Chapters 1,2,3,4,5,7,9,10 Review summary to be posted on Moodle

Thursday, Oct. 17 Test Format – short answer conceptual

questions; short/longer answer application questions

Final Exam December 5 7:00 – 9:30 pm Location TBA

Chapter 66Non-traditional Retailing

RETAIL MANAGEMENT:

A STRATEGICAPPROACH,

Nontraditional Retailing Non-store:

Direct Marketing: Internet Catalogue – examples? TV (shopping networks, infomercials)

Direct Selling (phone, in-person)

Other (blurred store/non-store distinctions):

Video Kiosks Vending Machines Airport Retailing

Emerging Trends

Changing customer lifestyles Increasing competition Mounting interest in global direct marketing Technological advances Greater use of multi-channel retailing…

Perhaps even “channel obliteration”? For bricks-and-mortar stores? For catalogues?

Vending Machines•Formerly dominated by tobacco

•Dominated by food in Canada

•94% of $720 million in revenue

•Lean Machine 2005

•Lean Machine Today

•April Glavine, Saint Mary’s MBA

•Urban Vendor

•What items would you consider purchasing from a vending machine?

•New Trends:

•Hot food

•Durables (clothing, souvenirs)

•Electronics

•Beauty

NON-TRADITIONAL RETAILING CLASS #2

Retail Institutions Debrief Reminder:

Assignments due Oct 28 at the beginning of class Printed version and uploaded version (1 copy per

group) Most interesting thing? Wider learning opportunity

Mainstream Media Account Another account Tensions remain high Global Frackdown

Midterm Wednesday, October 23rd In Class Format:

~50% concept: 50% application Short answer, definitions, longer answer

Reminder: If you write at the Counseling Centre, please

email me no later than Tuesday morning.

Airport Retailing Vancouver International Airport Hong Kong International Airport

“Airport Authority with the Most Supportive Approach to Travel-Retail” at the DFNI Asian Awards for Travel-Retail Excellence

Airport retailing is becoming increasingly significant Reduced in-air services Increased waiting times Captive audience

Impulse purchase behaviour Reduced price sensitivity

Extended hours Potential difficulties include:

Higher rent Receipt of inventory (inconvenient) Inventory storage

Multi-channel Retailing Uses more than one channel Studies have shown multi-channel shoppers

spend more (Sears, Canada Post) and are more loyal (Berman and Thelen 2004)

Channels synergistic (JC Williams) Increased customer base, increased

revenue, increased market share (Berman and Thelen 2004)

26% online Canadians make their online purchases from the same stores they shop offline (AC Nielsen 2010)

Different consumer benefits are derived from each channel

Successful multi-channel strategies are integrated Achieve integration:

Protect (initiated for competitive parity) Evolve (become more customer centric) Transform (customer preferences

integrated throughout value chain)

Internet$1

Retail$3

Catalogue$1

$ 5 $ 3

$ 5

$ 7

Name some multi-channel retailers.Do you shop all channels?What benefits do you get from each channel?

Name some multi-channel retailers.Do you shop all channels?What benefits do you get from each channel?

From anywhere… to anyone

It’s really all about maximizing the buying experience

In-depth information

Resource

Personalized

Dynamic

Efficiency/Convenience

Accessible

Tactile interaction

Instant gratification

Human interaction

Service

Destination

Entertainment

Information

Longevity

Tangibility

Portability

Service

Retail ExperienceCatalogue Experience

Online Experience

Consumers look for different experiences in the different channels

Source: J.C. Williams Group

Web Retailing Have you made a purchase online?

76% Canada’s internet users have shopped online Compared with 98% in South Korea and 97% in Japan,

Germany and Great Britain And 94% in the US

What have you purchased and why? Most frequent online purchases in Canada (Dec 2009)

Books DVDs Clothing/shoes Electronics Airline tickets

Resources: Stats Can data; AC Nielsen Report

Reasons Customers Buy Online Convenience Control Choice Communication Customization (My Publisher, American Eagle,

Future Shop, youbobble.ca) Cost*

Everlane Update

Frank and Oak

Reasons Retailers Use Web

Competitive necessity Generate sales Enhance image Reach geographically-dispersed customers Provide information to customers Promotion - new products, special offers Provide customer service (e.g., e-mail, shopping assistants) Obtain customer feedback Employee recruitment Present information to potential investors, franchisees, and

the media

Five Stages of Developing Retail Web Presence

1. Brochure Web Site

2. Commerce Web Site

3. Integrated Web Site

4. The ‘Webified’ Store

5. Site Integrated with Manufacturer Systems

Will online retailing lead to channel obliteration? Showrooming (handout) More

“Despite all the complaints coming from brick and mortar retailers, most online shoppers still don’t do much “showrooming” it seems. This refers to the supposedly popular practice of visiting a retail store, looking at a product and then finding a cheaper version online.

But does this really happen all that much? Not exactly.

According to Lesonsky, 78 percent of online shoppers don’t look at a product in a store before buying it online. Only 12 percent look at a product in a store then buy it from the same retailer online. And just 10 percent see products in the store and later buy them elsewhere.”

- Hessinger, 2013, Retail Trends

The State of Online RetailingOnline sales

Global Trends

Canada:•$18 billion (3.4%) in 2010 per BCG•$3.3 billion in 2009*•0.79% retail sales (2009)*Electronic Shopping and mail-order houses

•Statistics Canada

United States:•5.7% retail sales from Jan-Oct 2010•7.4% retail sales from Nov-Dec 2010

•US Dept of Commerce

United Kingdom:•17% retail sales 2011

•IMRG Capgemini’s Retail Sales Index

Online salesGlobal Trends

Canada:•$18 billion (3.4%) in 2010 per BCG•$3.3 billion in 2009*•0.79% retail sales (2009)*Electronic Shopping and mail-order houses

•Statistics Canada

United States:•5.7% retail sales from Jan-Oct 2010•7.4% retail sales from Nov-Dec 2010

•US Dept of Commerce

United Kingdom:•17% retail sales 2011

•IMRG Capgemini’s Retail Sales Index

Global E-Commerce Report

Connected, but not buying…

40% of Canadian Internet users abandoned at least one virtual shopping cart on a Canadian site. WHY?

40% of Canadian Internet users abandoned at least one virtual shopping cart on a Canadian site. WHY?

•Canada most connected country in the world

•Canadians were the world leader in broadband adoptions

•Canadians spend the most time online (45 hrs/month) comScore

•But, online Canadians aren’t avid online purchasers relative to other countries

Reasons NOT Shopping Online1. Browsing

2. Shipping costs too high

3. Privacy

4. Inconvenience (had to register)

5. Poor site design

Fulfillment issues?? (eg. Red Envelope)

Will online retailing lead to channel obliteration? Not any time soon (modest online sales) BAM stores important for ‘showrooming’ Still a desire for instant gratification for certain

product categories and social aspects of shopping Mobile is a real risk to expensive BAM offerings,

though; will force retailer efficiencies Therefore, multi-channel is preferred.

The Value of Multi-Channel Using the Internet is most successful when it is part of an integrated multi-

channel strategy. Mobile offerings round out multi-channel

Clicks-and-mortar retailers address the consumer's emerging preference to enjoy the same shopping experience and convenience in all channels (e.g., store, catalogue, Internet).

Internet retailing may not result in channel obliteration as once expected, but many retailers are planning substantial growth from this area.

http://www.businessweek.com/news/2010-10-26/u-k-retailers-boosting-online-offering-deloitte-s-geddes-says.html

Two challenges are: converting browsers to shoppers regardless of the channel they

choose. repatriating the 45% of Canadian online shoppers who are buying

from foreign sites. Retail Interactive (http://retailinteractive.ca/SSG/ri00913e.html)