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.