Reference no: EM131264023

Describe the major types of retail operations. The major types of retail stores are department stores, specialty retailers, supermarkets, drugstores, convenience stores, discount stores, and restaurants. Department stores carry a wide assortment of shopping and specialty goods, are organized into relatively independent departments, and offset higher prices by emphasizing customer service and décor.

Specialty retailers typically carry a narrower but deeper assortment of merchandise, emphasizing distinctive products and a high level of customer service. Supermarkets are large self-service retailers that offer a wide variety of food products and some nonfood items. Drugstores are retail formats that sell mostly prescription and over-the-counter medications, health and beauty aids, cosmetics, and specialty items. Convenience stores carry a limited line of high-turnover convenience goods. Discount stores offer low-priced general merchandise and consist of four types: full-line discounters, specialty discount retailers, warehouse clubs, and off-price retailers.

Finally, restaurants straddle the line between the retailing and services industries; although restaurants sell a product, food and drink, to final consumers, they can also be considered service marketers because they provide consumers with the service of preparing food and sometimes table service.

1 Discuss the possible marketing implications of the recent trend toward supercenters, which combine a supermarket and a full-line discount store.

2 Explain the function of warehouse clubs. Why are they classified as both wholesalers and retailers?

3 Would you be interested in buying luxury items, like expensive jewelry, at a warehouse club? Wal-Mart offered a $350,000 diamond solitaire ring during a recent Christmas shopping season. If you could afford such a ring, would you consider buying it at Wal-Mart? Why or why not?