Power Center Shopping center that is dominated by several large anchors, including discount stores (Target), off-price stores (Marshalls), warehouse clubs (Costco), or category specialists such as Home Depot, Office Depot, Circuit City, Sports Authority, Best Buy, and Toys “R” Us. Regional Center Shopping mall that provides general merchandise (a large percentage of which is apparel) […]
accrued liabilities Liabilities that accumulate daily but are paid only at the end of a period. activity-based costing (ABC) A financial management tool in which all major activities within a cost center are identified, calculated, and then charged to cost objects, such as stores, product categories, product lines, specific products, customers, and suppliers. bottom-up planning
retail market A group of consumers with similar needs (a market segment)and a group of retailers using a similar retail format to satisfy those consumer needs. retail strategy A statement that indicates (1) the target market toward which a retailer plans to commit its resources, (2) the nature of the retail offering that the retailer
direct investment The investment and ownership by a retail firm or a division or subsidiary that builds and operates stores in a foreign country. diversification opportunity A strategic investment opportunity that involves an entirely new retail format directed toward a market segment not presently being served. joint venture An entity formed when the entering retailer
bargaining power of vendors A competitive factor that makes markets unattractive when a few vendors control the merchandise sold in it. In these situations, vendors have an opportunity to dictate prices and other terms, reducing retailer’s profits. barriers to entry Conditions in a retail market that make it difficult for firms to enter the market.
Multi attribute attitude model A model of customer decision making based on the notion that customers see a retailer or a product as a collection of attributes or characteristics. The model can also be used for evaluating a retailer, product, or vendor. The model uses a weighted average score based on the importance of various
demographic segmentation A method of segmenting a retail market that groups consumers on the basis of easily measured, objective characteristics such as age, gender, income and education. fashion Category of merchandise that typically lasts several seasons, and sales can vary dramatically from one season to the next. functional needs The needs satisfied by a product
Multi-channel retailer Retailer that sells merchandise or services through more than one channel. share of wallet The percentage of total purchases made by a customer in a store. Shopping bots Computer programs that simply search for and provide a listing of all Internet sites selling a product category or brand with the price of the