Theories of Retailing – Cyclic and Non-Cyclic Theories

Retailing may be defined as the selling of goods to the general public, rather than sales to businesses. The process usually involves sales of relatively small amounts of finished goods, with purchasers mainly motivated by their own consumption needs and not for resale.

Numerous theories have bene developed to explain the patterns and trends that manifest in the retailing and selling. These can be divided into two main categories; cyclic and non-cyclic theories.

Cyclic Theories

Cyclic theories hypothesize the retail environment and competitive practices of retailers will follow a slightly, repeating pattern, with clear identifiable stages.

1. Wheel of Retailing Theory

The wheel of retailing theory is one of the most common cyclic retailing theory.… Read the rest

Traders Oriented Promotion Methods in Retail

With the intention to get the best cooperation from the distribution channel members the companies are using different promotional methods. These methods directed at traders are called traders oriented promotional method. The traders provide the important link between the marketers and the customers. The traders may include dealers, wholesalers and retailers. The company cannot take chance to miss them.  Traders oriented promotional methods are applied to strengthen the team work among all concerned parties of sales. Some of the methods for motivation of traders are following;

  • Point of purchase display: This method is targeted at dealers or traders. It means the display facilities are provided by the manufacturers to the traders for display at their showrooms or shops.
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Retail Store’s Front Design Considerations

A retail store’s front is the first impression that consumer has for a store.  Three components make up retail store’s front namely, front configurations, window displays and store’s entrances.

1. The Store-front Configuration

There are three possible front configurations namely, Straight front Angled front and Arcade front. The “straight front” is a store configuration that runs parallel to the side-walk, street, mall or a parking lot. Usually the only break in the front is a small recess for an entrance. This store front design is operationally efficient because it does not reduce the interior selling space. However, it lacks consumer appeal because it is monotonous and less attractive than either of the other configurations.… Read the rest

Store Positioning in Retail Management

Attracting the customers is the crux of the issue of retail trade. How and where the store is positioned on the site affects the retailer’s ability to attract the customers. Therefore in evaluating the existing store facilities or planning future site layouts, the retailer should answer effectively and satisfactorily these three questions. These are:

  1. How visible is the store?
  2. Is the store compatible with its surroundings?  
  3. Are store facilities placed for customer convenience ?
1.  Ensuring the Store Visibility

The customers must see the store if the retailer wants to achieve the goals of stopping, attracting and inviting the customers.… Read the rest

Retail Store Environment

Environment is something that stands for an atmosphere which is external to the retail organisation. Retail store is a subsystem of a supra-system namely, environment because retail units cannot exist in vacuum. In selecting and developing a retail store environment, the retailer must consider its physical and psychological impacts on customer attraction, employee moral and store’s operations. Store’s operations and consumer shopping are both enhanced by a well planned and creatively designed setting. It is a mad, mad-world where ad, ad plays very important role. To appeal to the fashion conscious, hedonistic and up-scaled shopper, the store must create a theatrical environment enhanced by  colorful  displays and high-tech lighting and audio presentations.… Read the rest

Key Elements of Retail Displays

A retailer must carefully consider and plan each element of retail displays.  Display elements include the merchandise, shelf display areas or window displays, props, colors, background materials, lighting and signs. The retailer is to compare contrast, repetition, motion, harmony, balance, rhythm and proportion of each display to draw the consumer’s attention to it.

Display elements must be evaluated to determine how well and if they attract and hold the attention of the passersby. “Contrast” is one way to attract attention. Contrast is achieved by using different  colors, lighting, form i.e., size and shape, lettering or textures. “Repetition” attracts consumer attention by duplicating an object to reinforce and strengthen the impression.… Read the rest