Exam 13: Retailing

SCENARIOS Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper middle class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound. -Refer to Golden Video.The type of site location you would expect Golden Video to utilize is a:

As a general rule of thumb,a retailer that has a high gross margin will have:

Off-price retailers:

_____ are typically located along busy streets and include a supermarket,a variety store,and a few specialty stores.These are often unplanned business districts and may be crowded and have inadequate parking.Their biggest selling point is their convenience.

The retailing industry is dominated by a large number of small- and medium-sized companies.

What is the first task of developing a retail strategy? What is involved in this task?

The initial attraction of drugstores for consumers was the pharmaceuticals they carried,but now consumers can have their subscriptions filled at mass merchandisers,supermarkets,and through the mail.What have drugstores done to remain competitive?

Athena Goddess is a store that specializes in women's athletic wear.The store has bright lights so that its merchandise can be carefully evaluated,uses lots of brightly colored signs to direct store traffic,is decorated with posters of famous women athletes,and plays bouncy,energetic music in the background.These factors are used to create the store's:

Why is the selection of a retail location so critical to a store's success?

Discount stores are retail chains that compete on the basis of low prices,high turnover,and high volume.Name and briefly describe four types of discounters,and give an example of each type.