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As goods are sold through more retail outlets, their markup percentage should decrease.
While a chocolate-covered donut would taste great right now, the second, third, or tenth
one, purchased and consumed today, would be less desirable. This is an example of
declining marginal utility.
Venture-capital firms are primarily used by retailers starting a new operation or format.
A retail chain's practice of charging different prices in different geographical areas in
order to eliminate competition is known as predatory pricing.
An effective store layout and design creates a comfortable environment that enhances
the merchandise and entices shoppers to browse and buy.
Retailers that wish to have greater pricing freedom are likely to carry private brands
because consumers find it difficult to make exact comparisons between private brands
and national brands.
Local retailers can expect to compete with large discount stores such as Walmart and
Target.
When a market has too many stores to yield a fair return on investment, it is said to be
'overstored'.
