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business
retailing management
Questions and Answers of
Retailing Management
INTERNET EXERCISE Go to the home page of your favorite enclosed mall, and describe the mall in terms of the following characteristics: number of anchor stores, number and categories of specialty
GO SHOPPING Visit a power center that contains a Target, Staples, Sports Authority, Home Depot, or other category specialists. What other retailers are in the same location? How is this mix of stores
INTERNET EXERCISE Go to www.pbs.org/itvs/storewars/. This site contains information about the Ashland town council’s decision to allow Walmart to open a store in Ashland, Virginia. Summarize the
Why is store location such an important decision for retailers? LO-5
Pick your favorite store. Describe the advantages and disadvantages of its current location, given its store type and target market. LO-5
Home Depot typically locates in either a power center or a freestanding site. What are the strengths of each location for this home improvement retailer? LO-5
As a consultant to 7-Eleven convenience stores, American Eagle Outfitters, and Porsche of America, what would you say is the single most important factor in choosing a site for these three very
Retailers are locating in shopping centers and freestanding locations in central business districts that have suffered decay. As a result, these areas are rejuvenating, a process known as
Staples, Office Max, and Office Depot all have strong multichannel strategies. How do competition and the Internet affect their strategies for locating stores? LO-5
In many malls, quick-service food retailers are located together in an area known as a food court. What are the advantages and disadvantages of this location for the food retailers? What is the new
Why would a Payless ShoeSource store locate in a neighborhood shopping center instead of a regional shopping mall? LO-5
How does the mall near your home or university combine the shopping and entertainment experiences? LO-5
Summarize the factors considered in locating a number of stores.
Review the characteristics of a particular site.
Understand how retailers analyze the trade area for a site.
Determine the forecasted sales for a new store location.
Illustrate the site selection process.
Explain the different types and terms of leases.
What are the opportunities and threats Stage Stores faces?
S For what types of retailers is being on the right side more important during afternoon commutes? For which types of retailers is it more important during the morning commute? Are there any types of
CONTINUING CASE ASSIGNMENT Evaluate the location of a store operated by the retailer you have selected for the Continuing Case. What is the size and shape of the retailer’s trade area? Describe the
INTERNET EXERCISE Go to www.esri.com/library/fliers/pdfs/tapestry_segmentation.pdf and identify five segments that you would expect to find in your zip code. Then go to
INTERNET EXERCISE Go to http://www.esri.com/what-is-gis, the home page for ESRI Geographical Information Systems, and read about GIS. Afterwards, explain how retailers can make better decisions with
INTERNET EXERCISE The U.S. Census Bureau tracks key population characteristics, such as age, gender, disability, employment, income, language, poverty, and race. Go to the U.S. Census Bureau home
GO SHOPPING Go to a shopping mall. Get or draw a map of the stores. Analyze whether the stores are clustered in some logical manner. For instance, are all the high-end stores together? Is there a
GO SHOPPING Visit a jewelry store in an enclosed mall and one in a neighborhood strip shopping center.List the pros and cons for each location. Which location is the most desirable? Why is this the
WEB OLC EXERCISE Go to the student side of the book’s website, and click on “Location.” You will see an Excel spreadsheet that contains the sales for 45 retail locations of a sporting goods
True Value Hardware plans to open a new store. Two sites are available, both in middle-income neighborhood centers. One neighborhood is 20 years old and has been well maintained. The other was
Under what circumstances might a retailer use the analog approach for estimating demand for a new store? What about regression analysis?
What retail locations are best for department stores, consumer electronics category killers, specialty apparel stores, and warehouse stores? Discuss your rationale.
If you were considering the ownership of a Taco Bell franchise, what would you want to know about the location in terms of traffic, population, income, employment, and competition? What else would
A drugstore is considering opening a new location at shopping center A, with hopes of capturing sales from a new neighborhood under construction. Two nearby shopping centers, B and C, will provide
Review the objectives of human resource management.
Discuss the major issues facing human resource managers.
Summarize the activities retail employees undertake and how they are typically organized.
Present activities undertaken to win the talent war.
Identify the legal issues involved with human resource management.
Why did Macy’s make such a large investment in social media?
If you were considering a job at Starbucks, would its social media campaign influence your decision?
What does Pret A Manger do to build employee engagement?
What are the advantages and disadvantages of REI’s executive blog from the perspectives of the employees and the executives? What features would you change? Why?
CONTINUING CASE ASSIGNMENT Meet with the store manager of the retailer you have chosen for this Continuing Case Assignment. Ask the store manager which company HR policies he or she feels are very
INTERNET EXERCISE Go to the Society of Human Resource Management’s home page, www.shrm.org. An organization of human resource professionals, SHRM publishes HR Magazine , with articles available
INTERNET EXERCISE The Fair Measures Law Consulting Group provides training and legal services for employers. Go to its website, www.fairmeasures.com, and choose one of the legal areas to
NTERNET EXERCISE Go to the home page of the National Retail Federation Foundation (NRFF), at http://nrffoundation.com/content/retail-careers-center, and click on “Experience Retail” to read about
LIBRARY EXERCISE Go to one of your college’s or university’s library business databases, and find a recent newspaper or journal article that discusses human resource management in the retail
OLC EXERCISEa. Update your résumé, and prepare for an interview for a manager training program with a large lumber and building supply retailer. This fulltime position promises rapid advancement
Why is human resource management more important in retailing firms than in manufacturing firms?
How can retailers use hiring, selecting, training, and motivating employees in their human resource management practices to gain competitive advantage?
Some retailers have specific employees (merchandise assistants) assigned to restock the shelves and maintain the appearance of the store. Other retailers have sales associates perform these tasks.
How can national retailers like Best Buy and Victoria’s Secret, which both use a centralized buying system, make sure that their buyers are aware of the local differences in consumer needs?
Reread Retailing View 9.4 on REI’s internal use of social media. What are the positive and negative aspects of this internal use of social media in general and, more specifically, REI’s use of an
To motivate employees, several major department stores are experimenting with incentive compensation plans, although compensation plans with a lot of incentives often don’t promote good customer
Assume that you’re starting a new restaurant that caters to college students and plans to use college students as servers. What human resource management problems would you expect to have? How
What HR trends are helping meet employees’ needs, increase job satisfaction, and lower turnover?
Understand the strategic advantage generated by a supply chain.
Describe the information and merchandise flows in a supply chain.
Consider the activities that are undertaken in a distribution center.
Review the considerations in the design of supply chains.
Explain how retailers and vendors collaborate to make sure the right merchandise is available when customers are ready to buy it.LO6 Discuss RFID and its implications for retailers.
What are the benefits and costs of Walmart’s efforts to make its supply chain greener?
What are some of the ways that Zara’s supply chain management system has helped create value for its customers? Provide specific examples.
What benefits and risks face West Marine as it engages in CPFR with its vendors?
For what types of merchandise is using RFID systems most appropriate? Why?
CONTINUING ASSIGNMENT Interview the store manager working for the retailer you have selected for the Continuing Case assignment. Write a report that describes and evaluates the retailer’s
INTERNET EXERCISE Go to Barcoding Incorporated’s web page at www.barcoding.com/, and search for retail, warehouse management, and RFID.How is this company using technology to support retailers with
INTERNET EXERCISE Go to the home page of RFID Journal at www.rfidjournal.com/, and search for supply chain in the current issue. Summarize one of the recent articles, and explain how the key
INTERNET EXERCISE Go to the home page of Vendor Managed Inventory at www.vendormanagedinventory.com/index.php, and answer the following questions: What is vendor-managed inventory? What are the
Explain how an efficient supply chain system can increase a retailer’s level of product availability and decrease its inventory investment.
What type of merchandise is most likely to be cross-docked at retailers’ DCs? Why is this often the case?
What is a universal product code (UPC)? How does this code enable manufacturers, distributors, and retailers to track merchandise throughout the supply chain?
For what types of products is item-level RFID most beneficial for retailers?
Describe the customer relationship management process.
Understand how customer shopping data are collected.
Explain the methods used to analyze customer data and identify target customers.
Outline how retailers develop their frequent-shopper programs.
Explain various ways to implement effective CRM programs.
Why is segmentation based on purchase behavior superior for encouraging customer loyalty to segmentation based on demographics?
How and why would a retailer use RFM analysis?
How does CVS Caremark use the data it collects from its ExtraCare program?
What are the elements of Neiman-Marcus’s InCircle program that build customer loyalty?
How does American Girl help ensure that its existing customers spend more with it?
CONTINUING ASSIGNMENT Interview the store manager working for the retailer you have selected for the continuing assignment. Ask the manager if the store offers a frequent-shopper/loyalty program and
INTERNET EXERCISE Go to the home page of a retailer that you frequent and review its privacy policy.How is this retailer protecting its customers’ information?Which policies, or lack of policies,
INTERNET EXERCISE Go to the website of the Electronic Privacy Information Center (www.epic.org), and review the issues raised by the organization.What does this watchdog organization feel are the
INTERNET EXERCISE Go to the home page of 1-800-Flowers at www.1800flowers.com, and read about the Fresh Rewards program. How does this company’s CRM program help it to track its better customers,
Why do customers have privacy concerns about the frequent-shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns?
Which of the following types of retailers do you think would benefit most from instituting a CRM program: (a) supermarkets, (b) banks, (c) automobile dealers, or (d) consumer electronics
Develop a CRM program for a local store that sells apparel and gifts with your college’s or university’s logo. What type of information would you collect about your customers, and how would you
What are the different approaches retailers can use to identify customers by their transactions? What are the advantages and disadvantages of each approach?
Explain the merchandise management organization and performance measures.
Contrast the merchandise management processes for staple and fashion merchandise.
Describe how to predict sales for merchandise categories.
Summarize the trade-offs for developing merchandise assortments.
Illustrate how to determine the appropriate inventory levels.
Analyze merchandise control systems.
Describe how multistore retailers allocate merchandise to stores.
Review how retailers evaluate the performance of their merchandise management decisions.
What are the benefits of fast-fashion retailing from a retailer’s perspective?
Why might Kohl’s sales be more affected by the weather than Nordstrom’s sales?
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