Retailing and wholesale

Wholesale – sale of commodities(товары) in quantity for resale.

Retailing – selling products to general public.

Outlets – shops or stores for retailing.

Large retail chains are organized nationally and sell standardized selection of products

(their outlets in shopping centres (US malls): large variety of stores in the same location).

Hypermarkets (over 30,000 sq. m.) or superstores (under 30,000) – of town locations with parking facilities.

Department stores – large shops which sell a wide variety of products, usually from a city centre location (organized in departments, each with own manager).

Problems of British retailers in the US market:

- lack of cultural awareness (assume that US and UK consumers have same tastes-what can be perceived as traditional, high quality merchandise in the UK may appear in US to be old fasioned)

- difference in whole structure of the industry and the way how the outlets organised (us market is dominated by the malls, UK failed to grasp the size factor, not able to adapt to huge US market)

- underestimating the competition (US retailers – aggressive players, consumers – bargain hunters, industry changes quickly, requires flexibility and being dynamic)

- choosing wrong places for stores (expensive town centre locations)

Richer Sounds' Keys to Success in Rretail Business:

- end-of-line or surplus equipment

- suppliers – manufacturers hoping to off-load the end-of-line equipment (often at a discount price)

- outlets – 28 small stores in UK (walk-in warehouses), “bargain bins”, special offers, equipment stacked from floor to ceiling, banners hanging

- regular advertising in national newspapers (they buy late space at a discount)

- customer service training: not to be pushy, to take responsibility, follow the correct administrative procedures, attend training seminars at Richer’s country house

- free phone number on customer receipts to dial in case of problem

- seasonal gifts and gifts-away offered

- staff motivation: customer service competition – win a car and petrol for month, gold aeroplane badges handed out to “high fliers”

Safeway Superior Service Program

- eye contact with the customer

- smile, greet, offer samples of products, accompany to locate items, thank shoppers by name

- “mystery shoppers” to control performance

- staff motivation: $500 worth of company stock, additional bonuses

- side effects: customers’ debates about false and genuine frendliness, misinterpretation of friendliness, growing morale problems among the staff