BSAD 432 Introduction
Agenda
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Administrative Items
Course details
 http://moodle.stfx.ca
Introduce some core retail concepts and trends using an
illustrative case.
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Discussion will incorporate:
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Special Characteristics of Retailing
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The Retail Concept
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Total Retail Experience
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Retail Positioning
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Strategic Options in Economic Downturn
Administrative Items
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Last day to add/drop courses: Wednesday,
September 10, 2014.
BSAD 471 – EMPIRE AGM, Thurs Sept 11
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Count of students attending
Responsibilities of students missing class
Retail Institutions Trip Planning
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October 23 – on campus presentation, 12:45 pm
October 24 - trip
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Current head count
Retail Institutions Trip
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On October 24, 2014 we will travel to Dartmouth Crossing
and Mic Mac Mall via bus to complete a Retail Institutions
Assignment for BSAD 432.
You will complete an assignment in groups of 4-5 students
worth 10% of your final course grade.
You are NOT expected to miss regularly scheduled classes to
participate. If you have a scheduling conflict with this
assignment, an alternate assignment will be made available.
For planning purposes, you must indicate your intention to
participate in the group trip by signing the sheet being
circulated now.
The 10 largest Canadian retailers according to “Global Powers of
Retailing: Retail Beyond Begins 2014”
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Couche Tard
Loblaws
Empire
Metro
Shoppers
Canadian Tire
Rona
Hudson’s Bay Company
Liquor Control Board of Ontario
The Q ratio (pG31-32)
•The ratio of a publicly traded
company’s market capitalization to
the value of its tangible assets.
•If the value is greater than 1, it
means that the market believes part
of the company’s value comes from
its intangible assets.
•Look at some Q ratios
The Canadian Retail Landscape
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Major US Retailer Entry
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Think about how Canadian retailers can
compete in this changing environment.
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CBC Video
Story Update
Special Characteristics Affecting Retailers
Small
Average
Sale
Impulse
Purchases
Retailer
Strategy
Popularity
of
Stores
© 2006 Pearson Education
Canada Inc.
1.7
Figure 1.10 Applying the Retail Concept
Customer Orientation
Coordinated Effort
Value driven
Goal Orientation
Retailing
Concept
Retail
Strategy
Overall Strategy Components
The Retailing Strategy Mix is a combination of:
 Product
 Price
Controllable Factors
 Location
 Communication
 Operations Management
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Need to balance with uncontrollable environmental
and marketplace factors
Figure 3.7 Selected Retail Positioning Strategies
The Positioning Approach of
High-End Jewellery Stores
Handout
Take 10 minutes to read the case and discuss
the questions with classmates.
Costco
Tiffany
The Positioning Approach of High-End Jewellery Stores
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Positioning Chart – Jewellers
Blurred positioning?
Pros and cons of Tiffany’s low price strategy
How would you expect the total retail
experience to differ in Wal-Mart, department
stores and high-end retailers?
Total Retail Experience
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The elements in a retail offering that
encourage or inhibit consumers during their
contact with a retailer.
Includes both controllable and uncontrollable
factors
Think again about the reasons you gave when
choosing your favourite retailer last day…
“It is critical … for a retailer to choose
his or her spots…to accept the notion
that you can’t be everything to
everyone.”
- Kevin Coupe, Morningnewsbeat.com
Strategic Options in Weak Economic Times p. 23-4
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Rethink existing store formats (including popup shops)
Low inventory to reduce markdowns
Begin holiday season earlier
Shop now pay later
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Discounts on credit card purchases
Re-introduce layaway plans
Couponing?
1.15
Takeaways
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Retail strategy is influenced by the nature of retail’s
special characteristics
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Retail strategy should reflect the retail concept
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The retail strategy mix consists of product, price,
location, communication, and operations
management factors
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The combination of retail strategy mix creates a
perception or ‘position’ of the retailer in consumers’
minds