Page 43 - DMGT554_RETAIL_BUYING

Retail Buying

Notes The most successful of these warehouse companies merchandises primarily a wide assortment
of food products that include everything from packaged staples to fresh produce. Along with
these “bread and butter items” is a comparatively small selection of high-volume clothing
articles, linens, electronics, cameras, office supplies, and pharmaceuticals.
Unlike their discount counterparts, these organizations do not allow free access to their premises.
Consumers must pay an annual fee in order to avail themselves of the bargains that await them.
While such an arrangement might seem unusual, the success of companies like Costco, Sam’s,
and BJ’s indicates its wide acceptance by the public.

Example: The Retail Buying Focus explores Costco.
Table 3.1 represents the top ten discount operations in the United States according to sales
volume.

Table 3.1: Top Ten Discount Operations

Company Major Merchandise Classification(s)
Wal-Mart Apparel, accessories, home furnishings, food products
Home Depot Home products, nursery supplies
Costco Food, beverages, wines, apparel
Target Apparel, accessories, home furnishings, small appliances, electronics, garden
supplies, food
Lowe’s Home products, nursery supplies
Best Buy Electronics, appliances
TJX Apparel, home fashions
Staples Office supplies and furniture, printing
Kohl’s Family apparel
Toys R Us Toy’s, juvenile furniture, baby clothing

Task Visit a specialty discount retail store in your city and understand its operations.

Self Assessment

Fill in the blanks:

1. In a ............................... store, one is able to purchase anything to satisfy both personal and
household needs.
2. A ............................... store is a retail chain that parallel to the traditionalists, but offers
discounts on all of its merchandise.
3. Somewhere between the merchandise generalists and the specialty discounters are
the ...............................

3.2 Characteristics of the Discount Operations

In many ways, the discount operation is similar to the classification of retail organizations.
Their tables of organization are often comparable to the chains and the titles and people involved
in purchasing are also similar. The characteristics that are different most often are concerned
with merchandising philosophy and product acquisition.

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