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Chapter 2 Retail Formats

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Chapter 2 Retail Formats
Chapter 2 – Retail Formats

Chapter 2 discusses several types of retail formats. After reviewing this section of your text, complete the table below by listing the key issues impacting each retail format. Be prepared to discuss your responses with the entire class.

Retail Format
Key Issues
Food Retailers

Supplies are depending upon wholesalers or manufacturers Food retailers like supermarkets, their inventories are depending upon the supplies from wholesalers or manufacturers. There will happen some problem like inventory storage period could not be too long due to those inventories are perishable, such as fruits, vegetables, bread and others. Therefore, the inventories have limited period. This may be the challenge to the food retailer to make sure that, while the inventories get from the wholesalers or manufacturers are still fresh and safe and the limit of periods are still able to be purchased by the consumers.

For example: Giant, Cold Storage, Tesco
Discount Stores

High expenses cost

Nowadays, the economic trend has been changed. The prices have been increasing due to the world economic trend. Discount stores will face the high expenses costs like labour cost, inventories handling costs, management costs, taxes and others. This is because discount stores are selling the products at prices lower than the typical market value and they are facing many competitors that provide similar services. Therefore, they need to do more activities to attract the consumers to consume in the stores and increase their sales of the stores to cover the expenses costs that they spent.

For example: F.O.S, Brands Outlets, Daiso Japan
Specialty Stores

Existing of online competitors

The existing of online competitors will give pressure to the specialty stores. These online competitors provided lower price services for the consumers who are purchasing through online such as Groupon, and Zalora. Besides, these websites will provide variety of products by giving details,

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