UNIT C

THE BUSINESS OF FASHION

3.03 Identify the types of fashion retailers.

Main types of retailers

•General merchandisers

•Specialized merchandisers

General Merchandisers

•Carry MANY types of goods in SEVERAL price ranges

Specialized Merchandisers•Offer NARROWER lines of related

merchandise

•More distinct group of customers

•Examples:

•Victoria’s Secret (Lingerie, Undergarments)

•Footlocker (Shoes, Athletic Clothes)

•Lane Bryant (Plus Sized Clothing)

Department Store Retailing (cont.)•Large-scale mass merchandisers

•Usually carry a wide range of sizes

•Carry household goods

•Offer numerous customer services such as gift wrap, layaway, and restaurant(s)

•Sell to many income levels, but generally target middle to upper income customers

•Advertise heavily

•Large buying and sales volume

Types of Department Stores

•Branch stores

•Flagship stores

•Junior department stores

•Chain stores

Branch stores

Small retail stores owned and operated by a parent store.

•May be located in suburbs or other urban areas

•RECEIVE merchandise and operation instructions from the original store

Flagship stores

“PARENT” or main stores originally located in a central business district.

•Responsible for merchandising and promotion for entire operation

•Can make merchandise available to branch stores on short notice

Junior Department StoresSmall department stores with

LIMITED ASSORTMENTS of apparel, housewares, gifts, and household textiles.

•LOCALLY OWNED

•Low sales volume makes it difficult for these stores to compete.

Chain storesA group of stores owned, managed, merchandised, and CONTROLLED by a central office.

•All stores carry similar goods at similar prices.

•Decisions made at central headquarters

•May serve as anchor stores

Anchor stores: The attractions that draw customers to shopping centers and malls.

Discount StoresDiscount stores: Mass merchandisers that sell at lower-than-average prices.

•Offer minimal customer services

•Merchandise is paid for at checkout counters located near store exits.

•Extended Operating Hours

•High sales volume

•Many retailers are making an effort to offer more current fashions.

•Appeal to customers with modest clothing budgets

Off-price DiscountersRetailers that sell brand name or designer merchandise at lower-than-normal prices.

•Changing and unstable collection of merchandise

•Make low-cost special purchases during the season when other stores are planning for the next season

•Stock consists of production overruns, end-of-season goods, closeouts, and irregulars.

Factory Outlets

Discount stores that are manufacturer owned and operated

•Sell only merchandise produced by the company

•Products sold include overruns, canceled orders, and discontinued items.

•May be located in factory outlet malls

Specialty StoresSpecialty stores: Retailers that sell LIMITED classifications of merchandise.

•Low sales volume

•High prices

•Offer unusual merchandise, more personalized service, convenience, and ambience

Franchise StoresRetail establishments in which a firm or an individual BUYS the right to USE a famous name or trademark in a specified trading area.

Think McDonalds, Moe’s, Burger King, etc

Franchise stores (cont.)

•Often located in exclusive shopping areas of major cities or boutique areas within large department stores

•The designer or manufacturer does not have direct ownership of the franchise and DOES NOT help run the business. They only supply goods to the retailer.

Boutiques

SMALL, stand-alone shops or areas within larger stores that sell unusual, limited quantity apparel, accessories, or decorative items.

Boutiques (cont.)

•High level of customer service

•Fashion-forward merchandise

•Target special-interest customers

•New, artistic, and handmade items

Nonstore RetailingSelling WITHOUT a conventional store

facility.

•Mail-order retailing

•Telecommunication retailing

•In-home selling

*Nonstore retailing developed for the convenience ofthe consumer…

BECAUSE WE ARE LAZY & HAVE A NEED FOR IMMEDIACY

Mail-order Selling merchandise through CATALOGS distributed to customers.

•Customers select items by looking at pictures and reading product descriptions.

•An alternative for customers who prefer to shop from the comfort of their home or cannot go out to shop

•Orders are placed by mail, toll-free calls, computer, or fax.

Mail-order retailing (cont.)

•Merchandise is usually paid for by credit card and shipped directly to consumer.

•24/7 order-taking hours

•Many retail department stores and chains offer catalog shopping.

•Customers usually pay high shipping and handling fees.

Television retailing•Television channels are used to

show and describe merchandise.

•Many celebrities sell signature lines of merchandise.

•Consumers can control what they view.

•Orders are placed by telephone or online at the company website.

•Used to introduce and test the market for new products

•Reaches a national audience

Computer (Internet) retailing

•Electronic retailing or “e-tailing”

•Shoppers view merchandise on computer monitors and order through a modem connection.

•Allows for comparison shopping

In-home selling•Selling outside of a retail store

•Used to sell cosmetics, jewelry, clothing lines, and other merchandise through selling parties or door-to-door sales

•Merchandise is often high quality and unusual in design.

•Prices may be high.