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Coping with Retail Giants This page intentionally left blank Copin g w i th Reta i l G i an t s Gaining an Edge Over Discounters A. Cos kun Samli COPING WITH RETAIL GIANTS Copyright © A. Coskun Samli, 2015. Softcover reprint of the hardcover 1st edition 2015 978-1-137-47633-3 All rights reserved. First published in 2015 by PALGRAVE MACMILLAN® in the United States—a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-50197-7 ISBN 978-1-137-47634-0 (eBook) DOI 10.1057/9781137476340 Library of Congress Cataloging-in-Publication Data Samli, A. Coskun. Coping with retail giants : gaining an edge over discounters / A. Coskun Samli. pages cm Includes bibliographical references and index. 1. Stores, Retail—Management. 2. Retail trade—Management. 3. Marketing—Management. 4. Small business—Management. 5. Consumer behavior. 6. Discount houses (Retail trade) I. Title. HF5429.S274 2015 658.8 7—dc23 2014041902 A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: April 2015 10 9 8 7 6 5 4 3 2 1 This book is dedicated to smaller independent retailers who can make a major difference in our quality of life. It is also dedicated to the memory of Stan Hollander of Michigan State University. He was a great scholar and my mentor. He gave me my first start. I am indebted forever. This page intentionally left blank Contents List of Exhibits ix Preface xi Acknowledgments xv About This Book Introduction xvii 1 1 Preopening Preparations 11 2 Retail Marketing Strategy Development 17 3 Fitting into Multilayered Retail Competition 27 4 Major Trends in the Retailing Sector Which Independents Must Know 41 5 The Retail Evolution 55 6 Capitalizing on Market Potentials 65 7 Consumer Behavior and Retail Strategy 83 8 Strategy Alternatives 103 9 Developing, Measuring, and Managing Store Image 119 10 People Are Our Strength 135 11 We Must Communicate with Our Market 149 12 Developing a Merchandise Mix 161 13 Pricing Strategies 175 14 Being Connected to a Supply Chain 183 15 Store Performance Evaluation 191 viii C on t e n t s Postscript 199 References 201 About the Author 203 Index 205 Exhibits P.1 Retail Strategy Development xiii I.1 Key Forces behind Retail Darwinism 5 I.2 The General Orientation to Success 7 1.1 A Preliminary Checklist for Promotion 12 1.2 Preopening Consideration of the Physical Facility 14 2.1 Retailing Mixes 20 2.2 The Workings of Differential Congruence 24 3.1 Levels of Retail Competition 28 3.2 Markup and Turnover Classification 29 3.3 Natural Dominance Theory 30 3.4 Retail Mixes as Strategic Tools 34 4.1 Consumer-Driven Key Retailing Trends 44 4.2 Contrast between Large-Scale versu