Question

Retailing Mix: Retailing mix actions are used to manage a retail store and the merchandise in a store. The mix variables include pricing, store location, communication activities, and merchandise.

Retail pricing- In setting prices for merchandise, retailers must decide on the markup, markdown, and timing for markdown. Markup refers to how much should be added to the cost the retailer paid for a product to reach the final selling price. Markdown occurs when the product does not sell at the original price and an adjustment is necessary.

Store location- involves choosing a location and deciding how any stores to operate.

Retail communication- can play an important role in positing a store and creating its image.

Merchandise-the final element of the retailing mix is the merchandising offering. Managing the breadth and depth of the product line requires retail buyers who are familiar with both the needs of the target market and the alternative products available from the many manufacturers that might be interested in having a product available in the store.

Shops, Restaurants, and Cinemas: A Growing Glut?

Required: Do you think there are too many retail stores, movie theaters, restaurants, etc. in New Jersey and the United States as a whole? Why or why not?
If there is a glut of such establishments, what do you think will happen to this space? How can you use the concept- a retailing mix that will impact the need for retail space in the future?

Write 250 words.

This is the 2nd time, I'm posting my question, please write in your own words and write appropriate answers. Thank You!

Answer 1

Do you think there are too many retail stores, movie theaters, restaurants, etc. in New Jersey and the United States as a whole?

I don’t think there are too many retail stores, movie theaters, restaurants etc. in either New Jersey or United States as a whole. The primary objective of any retail business is to make profit. For any business to make a profit, there need to be enough paying customers who are patrons of that business. If there were excess competing businesses, then customers would get divided between the competing businesses and they would start making losses due to the division of revenue and hence lowering of profits. Hence, the number of businesses in New Jersey and the United States as a whole are the optimum number as per the demand of the customers and if there were an excess, they would shut down.

If there is a glut of such establishments, what do you think will happen to this space?

If there were a glut of retail establishments, the businesses would compete among each other and they all would have their revenues split between themselves and their profits would lower as well, possibly leading to losses. The excess businesses would hence shut down.

How can you use the concept- a retailing mix that will impact the need for retail space in the future?

Retail Pricing: The pricing of products in a store would be in accordance to the other competing businesses in the area and if the prices are too low, businesses would not be viable

Store Location: This is one of the most important aspects for a retail business and it determines based on the customer base available in that area and competing businesses nearby

Retail communication: This is an important factor in the need for a retail space as it helps create demand for the product

Merchandise: Merchandise is one of the most important factors. Even in a cluttered market with many similar businesses, one can differentiate their store and earn profits by having differentiated merchandise