First step - Select and visit a local retailer (I suggest you pick a pure retailer (i.e., a retailer that is not also a wholesaler or a service retailer). You need to choose a retailer with a physical store who sells a physical product - otherwise it will be difficult to complete this project. If you are thinking of opening your own store, choose a retailer that sells the same type of merchandise that you would like to sell. (i.e., ski shop, music store, pizza place, furniture store, apparel boutique, hardware store etc...).

After making some observations on its operations, prepare for writing a report on this retailer.

Second step - Interview the manager or owner at the retail store you selected. This is a required part of your project.

2) Project Report (100 points):

Below are the outline and the corresponding points:

Section 1: Introduction of the retailer (20 points for this section)

The location youve visited and the type of retailer

Who did you interview? (Full name and position.)

How long have they been in business?

How has their business changed over the years?

What is their mission statement?

Type of retailer by retail mix and by ownership

Competitors of the retailer (major, direct, and indirect competitors)

Channel(s) it operates in

Do they plan to expand, penetrate, diversify, or change their retail format in the near future?

Section 2: Strategy of the retailer (55 points for this section)

A. Target market (primary and secondary targets) (1-2 paragraphs 5 marks)

Define their customer according to demographics (age, gender, income level, education etc.)

Trade Area - primary, secondary, tertiary (refer to Chap. 5)

B. Merchandise Assortment (1-2 paragraphs 5 marks)

What are the major brands they carry?

Do they have private brands?

Does this retailer carry convenience goods, shopping goods or specialty? (Chap. 2)

C. Store Location (1-2 paragraphs 5 marks)

Where is this retail store located? (Shopping Center, Specialty Center etc.)

Why do you think they chose this location?

Is this site accessible for the customer?

D. Store Layout: (2-3 paragraphs, 10 pts.)

What type of design layout does this store use? (Grid, Racetrack, Free Form etc.)

Is it effective for customer flow?

What type of fixtures do they use?

What type of lighting are they using?

Include a map of the store layout or 2-3 pictures of the store

E. Pricing: (2-3 paragraphs 10 pts.)

What is this stores pricing policy? (Everyday Low Pricing, High/Low Pricing etc.)

What other practices do they use to compete with price? (Coupons, Rebates, Price Bundling)

Does this retailer use the cost-oriented method of pricing or demand-oriented pricing.

Is there a frequent shopper program?

F. Competitive Advantage: (10 pts.)

Does this retailer have a competitive advantage over similar stores?

How can they retain this advantage or achieve an advantage over their competition?

(This section should be 2-3 paragraphs minimum -- think about it!)

G. Human Resources: (1-2 paragraphs 10 pts.)

How does this store prepare and train their salespeople?

Are they paid on commission, salary, or hourly wage?

Are the salespeople allowed to cross-sell? (if there are separate departments)

Do they outsource any activities in their business?

Section 3: Recommendations for the retailer ( 10 points for this section)

Growth opportunities, operational, or strategic recommendations (Select any two of the three)

(This section should be 2-3 paragraphs minimum -- think about it!)