Page 440 - Foundations of Marketing

Retailing, Direct Marketing, and Wholesaling | Chapter 14 407

Some shopping center developers are bypassing the traditional department store anchor
and combining off-price stores and small stores with category killers in power shopping
center formats. These centers may be anchored by stores such as Gap, Toys”R”Us, PetSmart,
and Home Depot. The number of power shopping centers is growing, resulting in a variety of
formats vying for the same retail dollar.
Factory outlet malls feature discount and factory outlet stores carrying traditional
manufacturer brands, such as Polo Ralph Lauren, Nike, Guess, and Sunglass Hut. Some outlet
centers feature upscale products from last season, discounted for quick sale. Manufactur-
ers own these stores and make a special effort to avoid confl ict with traditional retailers of
their products. Manufacturers place these stores in noncompetitive locations, often outside
of metropolitan areas. Factory outlet centers attract value-conscious customers seeking qual-
ity and major brand names. They operate in much the same way as regional shopping cen-
ters, but usually draw customers, some of whom may be tourists, from a larger shopping
radius. Promotional activity is at the heart of these shopping centers. Craft and antique shows,
contests, and special events attract consumer traffi c.

Retail Positioning

Retailing competition has intensified over the years, with many retailers fighting for the loy- power shopping center
A type of shopping center that
alty of customers. The large variety of shopping centers and the expansion of product offer-
combines off-price stores with
ings by traditional stores, along with the increased use of online retailing, have all contributed
category killers
to intensified retailing competition. Retail positioning is therefore an important consider-
retail positioning Identifying
ation. Retail positioning involves identifying an unserved or underserved market segment
an unserved or underserved
and reaching it through a strategy that distinguishes the retailer from others in the minds of
market segment and serving
customers in the market segment. Once known as an organic grocer for city dwellers, Whole it through a strategy that
Foods is working to reposition itself as more accessible and more affordable by shifting to distinguishes the retailer
opening smaller stores in smaller markets that are not served by a gourmet grocer and by from others in the minds of
holding prices steady in spite of increasing food costs and offering frequent sales. Whole consumers in that segment

Entrepreneurship in Marketing

The Floyd Country Store Swings into Its Second Century

What was once a modest farmer’s supply store in a out opportunities to draw attention to the Floyd General
small Virginia town is now a bustling country store Store’s unique atmosphere and its tradition of spotlight-
with old-fashioned merchandise like bib overalls and ing Appalachian music. For example, Crenshaw became
a nationally known weekly bluegrass jamboree. When active in The Crooked Road, a southwestern Virginia
Woody Crenshaw and his wife Jackie bought the building tourism initiative that promotes places connected to
in 2005, the store wasn’t operational, although the Friday traditional music. Today, he serves as the chairman of its
night music had been drawing crowds to the site every board, as well as president of SustainFloyd, a local non-
week for 20 years. Crenshaw, an experienced entrepre- profit supporting sustainable economic growth for Floyd.
neur, had moved his family’s lighting business to Floyd The Floyd General Store celebrated its 100 th birthday
after falling in love with the town’s scenic setting in the in 2010, and it’s still going strong as a retail business
Blue Ridge Mountains. He was as interested in the area’s and a community gathering place. The Crenshaws are
cultural significance as he was in its business potential. twenty-first-century retail entrepreneurs, relying on
Together, the Crenshaws invested thousands of dol- digital media to stay in touch with fans via Facebook, an
lars and countless hours supervising the store’s restora- e-mail newsletter, and live-streamed radio shows. Thanks
tion, adding a kitchen, making more room for performers, to their smart marketing moves, the Floyd General Store
c
and stocking locally made merchandise. They sought is swinging into its second century.

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