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Retailing Management 9th Edition
What should the report cover?
The report should cover any relevant aspect of the purchase process. All of this can be
observed, however additional insight can be gained from talking with store personnel and
Grading criteria:
Grades for the project will be based on the following criteria:
1. Thoroughness of report: were all aspects of the purchase process adequately
examined, and were differences between the customers bases clearly defined for
each section?
2. Clarity of the report: how well was the report written? Is it clear, well organized,
attractive? Are there spelling or grammatical errors that detract from the review?
3. Insight of the report: does the report provide clear insight to the likely reasons
why there are differences between the customers and their buying behavior at the
different retailers?
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Example 2
You are going to use the multi-attribute model to analyze the current competitive status
of your favorite store and make corresponding recommendations.
DIRECTIONS:
1) For your favorite store (the one that you wrote on your student information sheet),
pick the 5 most relevant store benefits for the retail type that your store belongs to.
(See Chapter Four’s discussion of the multi-attribute model or your notes from class
discussion for assistance).
5) Analyze the results. Provide no more than a three-page bullet-point report on your
findings. In your analysis, consider at least the following: 1) Did the respondents’
evaluation scores correspond with the store that they usually choose? What are some
of the reasons why or why not? 2) What benefits are the most important for people
shopping at this category of retailer? How does this correspond with what you know
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Retailing Management 9th Edition
MYSTERY SHOPPING EXPERIENCE
Date: ___________________________________________
Day of the Week: _________________________________
Total Store Information:
Number of cars in the parking lot: _______________________________
How many times were there 3 or more customers in a check out lane: _____________
General Shopping Information:
1) Were you greeted when arriving at the store?
2) Were shopping baskets/carts available and/or offered?
3) Were salespeople visible on the store floor? Did anyone ask if they could assist you
in finding an item? When asking for assistance, did the salesperson take you to the
item or point to the item?
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14) Does the product look fresh and of high quality? Are there noticeable problems with
any products?
15) Check the restrooms – are they clean, clearly marked, are paper products and soap
available?
Sample Report – Restaurant Mystery Shopping Experience
Prepared by Sam Shopper
Restaurant:
Whipple’s Diner
Location: Mason, MI
Day: Monday, January 1, 2004
Time of Visit: 6:00 pm – 7:30 pm
My guest and I drove around the block of the restaurant four times before finding a
parking space. We had to walk about 2 blocks to the eating establishment. We entered the
restaurant and were immediately greeted by the host (Foster). He greeted us, asked
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The food arrived within 15 minutes. My burger was warm and served open-faced with
lettuce and tomato on the side. A pickle and chips were also provided. The burger was
cooked to my specifications. The burger and chips were good and the pickle was crisp.
My guest’s salad looked fresh and was a large serving. The food was presented in an
appetizing way. Our waiter asked if we would like drink refills.
The restrooms were clean and clearly marked. Although, customers have to walk past
part of the kitchen to get to the restrooms. Toilet paper was missing in one of the stalls in
the women’s restroom. My guest indicated that there were a few sheets of paper towel on
the floor of the men’s restroom.
The restaurant was nicely decorated and music was playing. The music was a little too
loud for conversation and we did feel at times that we had to speak loudly to talk.
Another customer asked that the music be turned down a little, and the host was happy to
accommodate the request.
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FINANCIAL ANALYSIS ASSIGNMENT
The materials related to this assignment are in Chapter 6 – Financial Strategy
Example 1
Financial Analysis Assignment
Evaluate the performance of the focal retailer assigned to you. Using its annual report
that you can get either in the “investor relations” area of its web site or from the Edgar
expenses (General and administrative expenses as a percent of sales, asset turnover,
inventory turnover, sales per square foot, sales per employee. Compare these measures
describing this year’s performance with preceding three years’ measures for the company
(summarize this in Table 1). Next, compare the latest year’s measures for the focal
retailer with the two competitors (summarized in Table 2). Turn in one or two pages of
bullet point conclusions noting differences and analysis (why these differences arise and
what they mean for evaluating performance) along with table 1 and Table 2.
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Example 2
Compare financial strategies of “your store” and another store that sells similar
merchandise categories, but to a very different target market. If yours is a high
margin/low turnover store, compare it with a low margin/high turnover store.
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LOCATION ANALYSIS
Material related to this assignment is in Chapter 7 and 8
Location Analysis
Go to “Your Store.”
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Retailing Management 9th Edition
RETAIL MATH PROBLEMS
Material related to these math problems is in chapter 12 through 15
1. A store sold the following items for the day: 2 sweaters at $39, 16 pairs of jeans at
$59, 2 purses at $29 and 2 suits at $169. What are the gross sales for the day?
2×39=$78
2. Using the problem above, besides the gross sales, the store had customer returns and
allowances: 1 jean returned at $59, 2 skirts at $39. They also had to give a discount
of 10% on a $169 suit because it was soiled. What were the customer returns and
allowances for the day?
1@$59 =$59
3. The store wants to calculate the customer returns and allowances as a percentage of
sales. What is this percent?
4. Using the store above, what were the gross sales for the day?
5. The buyer wants to know her cost of inventory sold. She purchased the jeans at $19,
sweaters at $9, jeans at $27 and suits at $67. What was her cost of inventory sold on
this day?
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6. What is the gross margin, using the number calculated above?
7. The direct expenses for the month included the following: $200 for advertising, $500
for salaries, and $200 in rent expenses for the month. What were the direct expenses
for the month? What were the direct expenses for the day, assuming a 31 day month?
8. Indirect expenses during the month included: $75 for water, $89 for electricity, $60
for insurance. What were the indirect expenses for the month? For the day, assuming
a 31 day month?
9. What would be the total operating costs in this problem for the day?
10. What is the profit for this store on this particular day?
11. A buyer wants to calculate her profit for the month. She knows the following
information:
ADDITIONAL PROJECTS
Retailing Management 9th Edition
a. The store sold $34,600 worth of merchandise
b. Cost of merchandise sold (cost of inventory) was $15,890
c. The store had $600 in customer returns and allowances
d. Her operating expenses were $6,000
Calculate her profit (or loss) for the month
12. What is the gross margin if the store had net sales of $3,267 and cost of inventory
sold of $1346?
13. A store had indirect expenses for the month of $500 for advertising, $30 for security
monitoring, and $75 for insurance. What would the direct expenses be for a day
(when there are 30 days in the month?)
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14. A buyer wants to know her mark-up on a purchase. She purchased 25 sweaters at $9
and will sell them for $25. She also purchased 45 pairs of jeans at $21 and will sell
them for $45. What is her total dollar markup in dollar and percent for this purchase?
Cost:
15. A buyer realized several sweaters were not selling well. As a result, she marked them
down from $58 to $38. There were 30 sweaters she marked down. What is the total
dollar markdown? What is the total dollar markdown in percent?
$58 – $38 = $20 x 30 = $500 Total dollar markup
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16. A store had average markdowns last year of 21%. The projected sales are $230,000.
Assuming she is calculating based on a seven month season, what is her planned
markdowns?
17. A store had sales of $203,562 for the year. Their average stock was $57,640. What
was their turnover for the year?
18. A buyer decides to use the weeks of supply method to develop her buying plan. Her
planned sales are $460,000 and her desired turnover is 4. What should her weeks of
supply be for the coming year?
19. A buyer has determined he desired level of stock per month is $12,800. she plans to
have sales of $5,600 for that month. What would her basic stock requirements be for
the month?
20. A buyer has planned purchases (or desired inventory) of $241,571. She has already
ordered $46,798. She has received $87,623 worth of merchandise. What is her
current open to buy?
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RETAIL PROMOTION ASSIGNMENT
Example 1
July 4 Promotion Project
Students should form teams of two to work on this project. Student pairs should then
select a retailer that is having some sort of July 4 promotion. Selection of the retailer
Deliverable:
The deliverable will be a written report from ranging from 3-5 pages in length. Any
attachments such as ads, circulars, etc, should be attached to the written report.
Due Dates:
Retailer selection will begin the first day of class. Retailer selections must be posted on
the e-companion discussion board to reserve the retailer. Written reports are due at the
beginning of class on July 5.
What should the report cover?
The report should cover any relevant aspect of the promotion. Much of this will be
observed, however a great deal of the questions will need to be answered by store
management. The report should at minimum answer the following questions:
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Communication: What media are being used to communicate the promotion?
When were the media buys made, and who made them? When do the ads run? If
Grading criteria:
Grades for the project will be based on the following criteria:
1. Thoroughness of report: were all aspects of the promotion adequately examined?
2. Clarity of the report: how well was the report written? Is it clear, well organized,
attractive? Are there spelling or grammatical errors that detract from the review?
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STORE LAYOUT, DESIGN AND VISUAL
MERCHANDISISE
These assignments are related to material in Chapter 18, Store Layouts, Design, and
Visual Merchandising
Example 1
Go to a store of your choice and evaluate the store layout, design, and visual
merchandising techniques employed. Be sure to reference the concepts you have learned
in your chapters. If a manager begins to question you because of your suspicious
notetaking, just explain that you are a student at XXX and if they have questions, they
should contact me. If you feel more comfortable having my business card, please ask me
for it.
Explain your answers to the following questions:
I. Appearance
A. Is the store layout, design, and visual merchandising techniques used consistent
with the exterior of the store and the location? What does it say about the type of
store this is and the market it is trying to attract?
II. Fixtures
A. Does the lighting highlight merchandise, structure space, capture a mood, or
downplay unwanted features?
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III. Promotion
A. Evaluate the store’s signage. Does it effectively sell merchandise?
B. Has the retailer used any theatrical effects to help sell merchandise?
IV. Layout
A. Does the store layout help draw people throughout the store? Why or why not?
V. Merchandising
A. Has the retailer employed any techniques for achieving greater space productivity
such as using the “cube,” downsizing gondolas and racks, minimizing no-selling
space, etc.?
VI. Summarize your suggestions on how this retailer can improve the shopping
experience for their customers, increase sales, and improve their image.
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Example 2
Atmospherics on Site
Retail Marketing of Single Store Location In-depth Site Analysis & Audit.
Select a store that you are particularly interested in and do a site location audit. It may be
a mall location or free standing retailer. Examples might be “destination” stores that have
a unique ambiance or different way of creating store atmosphere. These include The
Great Indoors, Rainforest Café, Mongolian BBQ, Pier One, PetsMart, Canterbury
Example 3
Retail Anthropology
This assignment requires you to conduct some retail investigation in the field. Your
report should be presented in summary style (like this description) and should be 4-5
pages long0
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b. Customer traffic flow: In each store, first watch how people move through the store.
Do they follow similar paths? Are they attracted by certain displays or areas of the
stores? Is the traffic flow efficient?
e. Fill in your chart and briefly discuss your findings. Were there patterns in the ways
that customers behaved? Were certain stores “better” than others? What would you
recommend if you were a consultant?
f. Could the stores you visited use e-commerce to improve in these three areas?
Stores
Traffic Flow
Crowdedness
Accessibility
Overall Score
Store 1, name and address
Store 2, name and address
Store 3, name and address