Publications

The Internet—A
Growing Retailing
Channel

Retailing Trends

Retailing and the Customer

Exercise:
What Type of
Store is it?

Company Profile:
Wal-Mart: A Story
of Retailing Success

-------------Publications

Chain Store Age	National Home Center News
Creative	Nation's Restaurant News
Discount Store News	Retail Tech
DSN Retailing Today	Stores
Drug Store News	Yahoo Retail News

The Internet—A Growing Retailing Channel

IDC, in a recent research report that included over 40,000 interviews, predicts the amount of commerce conducted over the Web will reach more than $400 billion with 128 million buyers by 2002. These numbers confirm the growing importance of the Web as a retailing channel.

Special Report on Interactive Retailing by Chain Store Age Executive Jan ‘97 p.2A (18 pages) Although this report is no longer available free at Chain Store Age, it's worth a trip to the library to obtain it. It offers very extensive coverage of the opportunities to sell products on the Web. Among the topics covered:

• Why the Internet is an appealing retail channel for customers.
• The costs of doing business on the Web compared to a traditional
  retail store.
• What makes for an online store that appeals to customers and what
  are the barriers that may prevent them from making purchases online.
• Examples of successful online businesses.
• Forecasts for the future of retailing on the Web.
• Assessing when and how to begin an Internet-based retail operation.

Consumer E-Commerce Needs More Customer Focus by the Software & Information Industry Association, December 29, 1999. Summary of a survey of online shoppers. Participants answered questions about product information, order fulfillment, return policies, how they located a retail site (ex. going direct or through a search at a portal or comparison site and other themes.

Who Shops the Internet and Why by Inside Retailing. Summary and analysis of the results of marketing research to learn about Internet shoppers. There are separate disucssions about three Internet groups: heavy shoppers, light shoppers and nonshopper browsers of the Internet. For example, heavy shoppers are knowledgeable about the products they are buying and seek price advantages when shopping the Internet. Also, some of the myths about the Internet are explored, such as the idea that Internet shopping will take away sales from traditional retail stores in the community.

Reaping Online Riches by Shannon Oberndorf, Catalog Age. Some interesting data about who is making the most money in online sales and the product categories that sell the most. Also included: a chart ranking the top fifteen companies according to online sales in 1997.

Priceline.com A new retailing approach via the Web: "Priceline is a buying service that lets you name your price. Simply post your request 24 hours a day and guarantee your offer with a major credit card. Priceline then goes about finding a seller who decides whether or not to fill the request."

Retailing Trends

Xtreme Retailing by Janet Ginsburg, BusinessWeek, December 20, 1999. This article covers some of the latest efforts by "bricks and mortar" retailers to compete with online retailers. One of the key strategies: enhance the shopping experience so that it is enjoyable and entertaining in ways that online retailers cannot match. It also describes how the "dot.com" retailers are trying to expand their appeal by offering real shopping experiences to complement their online stores (ex.: eBay's efforts to "stage live auctions in selected malls"). A related BusinessWeek article, No Web Site is an Island ( by Catherine Yang, March 22, 1999), provides examples of retailers using both "real world" and online efforts to sell their products.

The Nation's Biggest Retail Companies by David P. Schulz, Stores. Three major trends are covered:

• Mid-level retailers are consolidating or going out of business while the largest retailers are getting even larger.
• Supercenters are rapidly replacing discount stores, even within the same company—such as Wal-Mart and Kmart.
• U.S. retailers are seeking opportunities to open new stores around the world.

That's Entertailment by Dan Fost, Marketing Tools. An increasing number of retailers are trying to lure customers into their stores by offering entertainment, such as Niketown, Disney, Warner Bros. Studio Stores and Wal-Mart. The article also covers customer reactions to the entertainment approach and the risks retailers face in trying to use entertainment as a basis for getting sales.

Retail Insights by Deloitte & Touche. Key international retail trends are discussed, including retailers who expand into service offerings (ex. Wal-Mart offering check-cashing outlets), emphasize private labels, open do-it-yourself stores (ex. Home Depot) and enter e-commerce.

Retailing and the Customer

How to be a Friend to Your Customers by Tibbett L. Speer, American Demographics. Using friendliness as a way to improve customer satisfaction, but using it selectively to suit customer preferences. For example, some customers want to be left alone during their shopping while others expect an attentive, friendly salesperson.

Fast Food for Thought by Pamela Kasdan, American Demographics. Summary of surveys showing what customers want the most in a fast-food restaurant.