LIKHO XEGO 213036959 07/03/2016
B-Tech: Retail Business Management
RESEARCH METHODOLOGY 4
Topic: RETAILING IN DISADVANTAGED COMMUNITIES: THE OUTSHOPPING
PHENOMENON REVISITED
Introduction
The Supermarkets where you could purchase on credit forms part of the folktale of South African retailing. With the beginning of improved infrastructural development and generally better-informed customers, the nature and range of retail facilities have changed. Today, consumers have a wide range of retailing facilities available and are supported by retailers ranging from near to home to regional shopping centers some distance from their home environment. Progressively, some consumers travel further to these faraway trade areas to buy goods and services, spending a large part of their income outside the local community. These specific customers are described as outshoppers (Choe, Pitman & Colins 1997:1; Dunne & Lusch 2008:104; Engel, Blackwell & Miniard 1993; Paddison & Calderwood 2007:138).
Market gravitation, which takes place in many countries of the world, is especially prevalent in rural and disadvantaged areas where fewer retailing options exist, and where retailers that have been serving the local community for years are ending. This is called the “triple jeopardy phenomenon” where small rural retailers have scarcer customers, who purchase less often and spend fewer per shopping trip (Kim & Stoel 2010:70). Some of the main retailing groups have established reduced
The shop windows displayed signs boasting ‘nothing over 1/-’, yet even the ever-optimistic owner gJ Coles was unprepared for the rush of customers who came that day, keen to take advantage of the bargains in this innovative new style of shop. what followed has been a century of delivering quality, service and value to the australian public, and yet, the Coles story doesn’t really begin with the opening of that
The third challenge facing Asda Group is the saturation of the food retailing market. Food sales are only growing about 2% per year yet the retailers are growing much more quickly and expanding their stores to include a wider range of items to compensate for the lack of growth in the market and in an attempt to increase profit. The market already comprises a large portion of superstores and the only way to gain market share is to take sales from an existing store. High entry barriers make it harder for new competitors to enter the market but, nonetheless, the market is already saturated with too many large and competitive
Their idea is that convenience is what Bob’s was trying to sell in a price conscience market that was focused on saving money because of the economic down turn in 2008. (Parnell, 2014). In the article, “The Changing Face of Food Retailing” the article describes the economic change that is penetrating the country described as “The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers. In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers” (Senauer & Seltzer, n.d.).
Taylor accuses enormous box stores for equating so as to empower American "hyper-consumerism," yet she misrepresents huge box stores with awful values and little organizations with great qualities. Like her different focuses, this case overlooks the monetary and social substances of American culture today. Huge box stores don't compel Americans to purchase more. By offering lower costs in an advantageous setting, on the other hand, they permit shoppers to spare time and buy products they won't not have the capacity to bear the cost of from little organizations. The presence of all the more little organizations would not change what most Americans can bear, nor would it diminish their longing to purchase moderate stock.
The recently shifted economy resulted in some patrons purchasing from grocery stores and convenience stores. 4.0 Market Analysis J &
Neighborhood shops are disappearing.” This is another example that brick-and-mortar stores are still going out of business today. Overall, another reason shopping has changed is big
Based on the Threat of New Entrants completive forces J. C. Penney implemented lowering their prices by 40 percent. By doing this Penney is trying to discourage others that department stores from opening. Based on the bargaining power of supplies, Penney decided to reduce the number of private label products and only have a few key products. By doing this Penney is reducing the number of suppliers they must have contact with. Based on the bargaining power of buyers Penney will have select products on sale for a month.
In this essay “The Supermarket: Prime Real Estate,” by Marion Nestle, Nestle discusses the different tactics used by supermarkets to attract and expose customers to more products. Supermarkets argue that people's food intake is not their responsibility, it is their own; however, supermarkets sell their more unhealthy products at lower prices. While many people go to grocery stores for certain items, they tend to come back with extras. A supermarkets priority is to sell their products, but their underlying goal is to sell as much as possible. Some grocery stores have even hired social scientists to help learn about humans and how to manipulate them into buying more products.
In Attachment 8, this chart shows the Hi-Value Supermarket shopper interview results the studies that were conducted. This breaks down all 3 stores and provides more in-depth knowledge of their superior characteristics. In Attachment 9, it shows the financial situation which breaks down the 5%, 7%, and 10% possible price reductions. It is easier to compare the numbers in the different categories. Gross profit margin and breakeven sales numbers were conducted so
Consumers are opting for online purchasing options that make them buy the products as per their own convenience, which includes in store pickups and home delivery. It also helps them get products that are refurbished, discounted, and have the best reviews. Therefore, the main reason for the closing of the stores is the competition between online and offline retailing. This competition has led to the rapidly declining annual income of major retailers such as Macy’s and Kohl’s. Macy’s and Kohl’s are closing their store and consolidating their strategic positions.
IPPE Introductory Assignment Please provide the following information for each of the following pharmacy settings: A. Explain the role of the pharmacist B. What are the advantages and disadvantages of each setting C. Do you see yourself working in that setting? Explain. 1. Retail/Independent Ownership A. A retail or independent pharmacist typically provides a person with general healthcare advice and has the authority to supply a prescription or a non-prescription medication to the public.
Notably, differentiation between the merchandise is minimal concerning building materials, electrical, and plumbing applications. Therefore, price factor, national and international brands, and service to the clients plays a significant role in the growth of sales. Hence, to have a competitive advantage over its competitor, LOW have employed various techniques such as acquisitions to expand offerings, integrated retail channels, and internal expansion. Acquisition to Expand Offerings Procurement of a maintenance supply headquarters a distributor of commodities intended to maintain multi-family households has enhanced its customer base as numerous clients can easily access the place (Lowes, 2017). Similarly, the firm acquired Central Wholesalers located in Mid-Atlantic that has enabled the industry to expand its services to pro-customers through the provision of a range of offerings.
The article “The Science of Shopping” written by New Yorker staff writer Malcom Gladwell, is based on retail anthropologist and urban geographer Paco Underhill. Underhill studies the shopping characteristics through frequently watched surveillance tapes to help store managers improve the setup of their goods and services. Through those footages he evaluated his observations and the statistics to help define his theories with the purpose to make sellers conform to the desires of the shoppers. Underhill, an insightful and revolutionary man, provides a view of science to displaying merchandise and creates a positive experience for both the buyer and seller. I agree that Underhill’s scientific theories; the Invariant Right, Decompression
TRADER JOE’S – INDUVIDUAL ASSIGNMENT 1 Part 1 – Introduction What Joe Coulombe did was opening an ordinary supermarket into the industry but the strategies he took were separating the Trader Joe’s from its rivals. What he did was to offer products targeting sophisticated costumers who were searching for good bargains. The offerings of Trader Joe’s were so unique which are not found at rival shelfs. Another crucial decision he made was to take advantage of recent environmental movements such as the rising trend of costumers searching organic foods. The company also decided on selling private labelled products with lower prices than other brands of the same product.
The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process.