Question Describe the business in terms of (i) form of ownership, (ii) service level, and (iii) merchandise line (breadth vs. depth).
Breadth of Line 3 Stores that carry a broad product line, with limited depth, are referred to as general merchandise stores. For example, large department stores carry a wide range of different types of products but not unusual sizes. Classifying Retail Outlets I Retail outlets can be classified in several ways. > Form of ownership - distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet. > Level of service - is used to describe the degree of service provided to the customer ranging from self-, limited-, and full-service retailers. > The type of merchandise line - describes how many different types of products a store carries and in what assortment. Depth of Line r Stores that carry a considerable assortment (depth) of a related line of items are limited-line stores. Henry's photography stores carry considerable depth in photography equipment. a Stores that carry tremendous depth in one primaryr line of merchandise are single-line stores. Lids is a retail outlet that specializes in selling hats to teens. h Both limited- and single-line stores are often referred to as specialty outlets. Form of Ownership #- The most common form of retail ownership is the independent business, owned by an individual. Example - an independent barber or cupcake shop. I The corporate chain, involves multiple outlets under common ownership. Examples include; Hudson's Bay, Loblaws and First Choice Haircutters. b Contractual systems involve independently owned stores that band together to act like a chain. Franchising falls under this system. Merchandise Line Retail outlets also vary by their merchandise lines. Depth of product line means that the store carries a large assortment of each item. Breadth of product line refers to the variety of different items a store carries. Breadth: Number of different product lines Shoes Appliances Books Men's clothing Nike running shoes General Electric Mystery Suits Depth: Florsheim dress shoes dishwashers Romance Ties Number of Sperry boat shoes Panasonic Science Fiction Jackets items within Adidas tennis shoes microwave ovens History Overcoats each product Whirlpool washers Poetry Socks line Frigidaire Entertainment Shirts refrigeratorsLevel of Service I Self-service is at the extreme end of the level of service continuum because the customer performs many functions, and little is provided by the outlet. Home building-supply outlets and gas stations are often self-service. I Limited-service outlets provide limited services, such as return of merchandise, but not others. Walmart is considered a limited-service outlet. P Full-service retailers, which include most specialty stores and some department stores, provide many services to their customers. Services can include more knowledgeable and friendly salespeople to special delivery of purchases to customers' homes
