Chapter 01 – Introduction to the World of Retailing
1-12
understand what customers want and what competitors
are offering.
• Retailing plays an important role in the U.S. economy. One
out of four workers in the United States works for a
VIII. Appendix 1A: Careers in Retailing
• Retailing offers exciting and challenging career
opportunities. Few other industries grant as many
responsibilities to young managers.
See PPT 1-32, 1-33, and 1-34.
Chapter 01 – Introduction to the World of Retailing
A. Career Opportunities
• Career opportunities in retail firms occur in
merchandising/buying, store management, and corporate
staff functions.
1. Store Management
• Successful store managers must have the ability to lead
and motivate employees. Store management involves all
2. Merchandise Management
• Merchandise management attracts people with strong
analytical capabilities, an ability to predict what
3. Corporate Staff
• Corporate staff opportunities include positions in MIS,
operations/distribution, promotions/advertising, loss
B. Attractiveness of Retailing Careers
Chapter 01 – Introduction to the World of Retailing
1-14
1. Immediate Responsibility
• Management trainees in retailing are given more
2. Financial Rewards
• Compensation varies according to the amount of
responsibility.
• Because information systems enable retailers to assess the
sales and profit performance of each manager, and even
3. Opportunities for Advancement
• While the growth rate of retail parallels the growth rate of
Chapter 01 – Introduction to the World of Retailing
1-15
ANSWERS TO SELECTED “GET OUT AND DO IT!” QUESTIONS
3. INTERNET EXERCISE Data on U.S. retail sales are available at the U.S. Bureau of the Census
Internet site at: www.census.gov/retail/index.html. Under the heading “Monthly Retail Trade
Report” there is a file titled “Retail and Food Services Sales” that lists sales by type of retailer
(view “Not Adjusted Sales”). In which months are sales the highest? Which kinds of
businesses experience the greatest fluctuations in monthly sales? List reasons that help
explain your findings.
Students should notice the importance of the 4th quarter for retail sales during the winter
4. INTERNET EXERCISE Go to the home pages of Macy’s, Target, Walmart, Toys ‘R’ Us, and the
National Retail Federation Retail Careers Center (www.nrf.com/RetailCareers) to find
information about retail careers with these companies/organizations. Review the information
about the different positions described. In which positions would you be interested? Which
positions are not of interest to you? Which employer would interest you? Why?
Students’ answers will vary considerably here. Some students may take a more long-term
view looking to Buyer or Planner positions which call for a variety of skills including strong
5. INTERNET EXERCISE Choose one of the top 20 retailers (Exhibit 1-4). Go to the company’s
website and find out how the company started and how it has changed over time.
From the Exhibit of the Top 20 retailers, students can see that in general, European retailers
have been more successful in expanding to more countries as compared to U.S. retailers. In
Chapter 01 – Introduction to the World of Retailing
1-16
6. INTERNET EXERCISE Go online to the websites of Whole Foods or The Container Store. In a
brief paragraph, describe how this retailer is taking steps to contribute to a social or ethical
cause.
Whole Foods “[creates] economic partnerships with the poor in developing-world
Chapter 01 – Introduction to the World of Retailing
1-17
ANSWERS TO DISCUSSION QUESTIONS AND PROBLEMS
1. How do retailers add value to the products bought by consumers?
Retailers add value in several ways. First, retailers provide an assortment of products and
2. What is your favorite retailer? Why do you like this retailer? What would a competitive
retailer have to do to get your patronage?
Students may choose an example from a wide variety of retailers. Answers will likely range
from national chains including but not limited to Zara, Urban Outfitters, Bloomingdale’s,
3. What are the benefits and limitations of purchasing a home entertainment system
directly from a number of component manufacturers rather than from a retailer?
Students may indicate benefits typically associated with “removing the middleman” such as
reduced price and effort in completing the transaction.
While these benefits will occur in specific cases, it must be noted that the average
Chapter 01 – Introduction to the World of Retailing
1-18
4. What retailers would be considered intratype competitors for a convenience store chain
such as 7-Eleven? What firms would be intertype competitors?
Discussion should lead to those convenience stores in the local market offering the
traditional convenience store retail mix including gasoline, snacks, newspapers, coffee, and
5. How does Walmart contribute to and/or detract from the communities in which it
operates stores?
Students may argue either in favor of or against the large discount stores, such as Walmart.
The arguments against may include:
(1) Smaller family-owned firms may not be able to compete on the basis of price with
Chapter 01 – Introduction to the World of Retailing
1-19
On the other hand, the arguments in favor include:
(1) greater product assortment and choice for the consumer at lower prices;
6. The same brand and style of men’s suits are sold at different prices at a department store
like Macy’s and at a specialty store like Men’s Wearhouse. Why would a customer choose
to buy the suit from one store rather than the other?
There are many different reasons why customers choose one retailer over another. Some
7. Compare and contrast the retail mixes of department stores and full-line discount stores.
Use bullet points or a table to list the similarities and differences.
A department store’s retail mix would include:
• Customer Service- Department stores provide a higher level of customer service
with increased sales associate interactions and add-on services like alterations,
Chapter 01 – Introduction to the World of Retailing
1-20
A full-line discount store’s retail mix would include:
• Customer Service- Discount stores have less customer service than department
stores as they are more focused on keeping the price point down.
• Store design and display- Discount stores optimize display areas to showcase
8. An entrepreneur approaches you about how to sell her new writing pens to consumers.
The pens have a unique benefit-they are more comfortable to use than traditional pens.
The entrepreneur is concerned the retailers she has approached want to buy the pens
from her at $10 a piece and then sell the pens in their stores for $18 to consumers. The
entrepreneur is dismayed at the extra $8 the retailers are getting and has decided to sell
the product directly to consumers for $10. She wants to know your opinion. What do you
think? Why?
Students’ answers may vary on this question. Traditionally, the entrepreneur would be
better off selling the pen through the retailer because the retailer already has a client base
Chapter 01 – Introduction to the World of Retailing
1-21
9. From a personal perspective how does retailing rate as a potential career compared to
others you are considering? Why?
After reading the chapter, some students may already be attracted to retailing as a career,
since they would now have realized the wide variety of opportunities provided in the retail
10. In this chapter, some socially responsible activities engaged in by retailers are described.
Take the perspective of a stockholder in one of these companies. What effect will these
activities have on the value of its stock? Why might they have a positive or negative
effect?
Sometimes CSR initiatives are expensive for a company, making the value of the stock drop.
Chapter 01 – Introduction to the World of Retailing
CONNECT ACTIVITIES FOR CHAPTER 1
Activity Title
Activity Type(s)
Topic
The Supply Chain
Drag and Drop;
Matching (accessible
version)
Understanding supply
chains
1-1 Identify retail
activities.
Physical Retail
Case Analysis
The importance of
1-3 Analyze the
The Retail Industry
Video Case
Retailing as a career
1-4 Recognize the
opportunities for you
in retailing.
Top Global Retailers
Drag and Drop;
The importance of
1-3 Analyze the