Definitions of Merchandising

The process of conceptualizing, planning, developing, and presenting product line for identified target markets is called merchandising.

The term merchandising means simply to buy & sell commodities for a profit.

Different Merchandise

Category Killers:

Category killers are big box retail that specialize in a wide variety of product in a few merchandise categories, e.g. Borders, Home Depot, and The Sports Authority

Catalog Retailers:

Catalog Retailers present their merchandise assortment in printed from delivered to customer’s mailboxes. Order may be placed by mail, telephone, or internet and merchandise arrives at the customer’s door in a few days. Victoria’s Secret, Romans’ and LL Bean are example.

Convenience Retailers:

Small stores in neighborhood location carrying a small assortment of regularly used auto accessories, beverage, candy, groceries, magazines, pizza, snack foods, and other items. They are often associated with gasoline pumps and or car washes. E.g. Casey’s General store, Kum & Go and Kwik Trip.

Department store retailers:

Department store retailers are operate relatively large brick and mortar stores offering multiple categories of merchandise usually including apparel for men, women, children, bed and bath textiles and accessories, kitchen equipment, window treatments and home furnishing. Sales associates may be available to assist with merchandise selection. Dillard’s, Macy’s, and Marshall Fields are example.

Internet/Online retailers:

Internet/Online retailers offer merchandise for sale through a computer network. Types include online catalog and online auctions. Customers view the merchandise assortments on a computer and place an order via computer, telephone, or mail. The merchandise arrives at the customer’s door in a few days. Amazon.com is an example.

Manufacturer Outlets:

Manufacturer Outlets offer primarily distressed merchandise last season retailer returns overruns, sales samples, and second quality at less than regular prices. Liz Claiborne, Nike, and Levi Strauss are examples.

Manufacturer owned retailers:

Manufacturer owned retailers offer complete assortments of their own product lines at regular prices. Calvin Klein and Ralph’s Lauren are examples.

Mass Merchandise Store:

Mass merchandise stores are departmentalized retail establishments utilizing much self-service technique to sell merchandise from the following categories; hard goods, apparel, and other soft goods, health and beauty care products and other general merchandise with brood appeal across income range, ethnic groups, and occupations and life styles. Wal-Mart, Target and Shopko are example.

Retail Outlets:

Retail Outlets are operated as clearance center of last season’s and last year’s excess merchandise for the retailer’s department, specialty, catalog, and internet stores. Example includes Spiegel, Saks Fifth Avenue, Lands’ End and J. Crew.

Specialty Boutique:

Specialty Boutique is shop or part of stores that specialize in merchandise that is new and different or where related items from different merchandise categories are gathered together to fulfill special customer requirements.

Specialty Retailers:

Specialty Retailers offer a large selection of a limited line of consumer goods usually with target customers narrowly defined by demographic and/or lifestyle variables. Victoria’s Secret and Brooks Brothers are example of multi-unit specialty chain retailers. 

Warehouse/Whole sale club:

Warehouse/Whole sale club are self-service environment where customers pay an annual membership fee of about $35. Primary customer apparel is national brands at low prices. Costco, Sam’s Club and BJ’s Wholesale Club are example.