Retail - McGraw-Hill Introduction to Business

Product Returns Drive a Multi-Billion Dollar Resale Industry

August 30, 2023

America’s biggest retailers have often embraced product returns as a key aspect of their business, starting with J.C. Penney and his namesake company in the early 20th century. Allowing customers to return any product with no questions asked, other big companies like Walmart and Amazon would go on to follow his example in the years to come. “It’s a hallmark of successful American retail,” said Dale Rogers, business professor at Arizona State University. “If you make it easy to shop, Continue reading →

[VIDEO] Why Primark Is Thriving As Other Retailers Struggle

August 2, 2023

NickelsMcHughMcHugh

Experts estimate that as many as 80,000 American retail stores will close over the next five years as companies like Forever 21, JCPenney, and Neiman Marcus struggle to stay afloat. That’s not the case for the British retailer Primark, however, which has 18 locations in the U.S. with plans for a lot more to come. This video looks at how the company became a multibillion dollar brand in Europe by sticking to brick-and-mortar stores stocked with high quality items at Continue reading →

[VIDEO] The Business Model Behind Buy Now, Pay Later Apps

July 6, 2023

NickelsMcHughMcHugh

Retailers have long relied on credit cards and companies like Paypal to provide payment options for customers, but recently these services have faced some new competition. Firms like Affirm, Klarna, and Afterpay offer “buy now, pay later” models that can be an appealing alternative to credit cards. As the video below shows, though, these services could potentially be dangerous to consumers while also failing to maintain steady profits for investors.

Questions:

What are the potential advantages and disadvantages of using Continue reading →

Credit, Currency, Ecommerce, Ethics, Money, Payment services, Paypal, Retail

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 17: Accounting, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Videos

[VIDEO] How T.J. Maxx Prices Products to Move

June 7, 2023

NickelsMcHughMcHugh

The parent company of T.J. Maxx earned more than $50 billion last year, more than Nordstrom and Macy’s combined. This video shows how the retailer lives up to its promise to give customers “the max for the minimum price” through ever-changing inventory and eye-catching deals.

Questions:

What is “price-anchoring,” and how does T.J. Maxx utilize it to drive sales?
Why does T.J. Maxx continuously restock its stores with new inventory?

Branding, Marketing, Pricing, Product Distribution, Promotions, Retail, Supply & Demand, T.J. Maxx

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Videos

[VIDEO] How Commodity Markets Work

March 3, 2023

NickelsMcHughMcHugh

Florida’s orange crop is shrinking year after year, sending commodity prices skyrocketing for orange juice concentrate. This video examines the intricacies of commodity markets through the lens of concentrated OJ, looking at concepts like futures contracts and how they affect both farmers and retailers.

Questions:

Why has Florida’s plummeting orange production caused juice prices to increase significantly?
What are the benefits of futures contracts for farmers and manufacturers?

Agriculture, Commodities, Food & Drink, Operations Management, Pricing, Product Distribution, Retail, Supply & Demand

Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Videos

Businesses Suffer Blowback from Russia Sanctions

April 5, 2022

NickelsMcHughMcHugh

After the invasion of Ukraine last month, thousands of companies around the world either ceased operations in Russia or started divesting from the aggressor nation. This corporate response to the invasion followed a string of sanctions by governments around the world who intended to deal an economic blow to Russia. But cutting financial ties with the country has also led to some unexpected ripple effects on small businesses as well as multinational companies who must adjust to this complicated situation. Continue reading →

Entrepreneurship, Ethics, Global, Manufacturing, Operations Management, Product Distribution, Retail, Russia, Supply & Demand, Ukraine

Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management

Foreign Retailers Cease Operations in Russia

March 4, 2022

NickelsMcHughMcHugh

The appalling invasion of Ukraine has convinced many companies to halt their operations in Russia during this catastrophic event. Last week, for instance, the clothing company H&M announced that it would close its 170 Russian stores while Nike shuttered its 116 retailers in the country. Other big brands like Apple, T.J. Maxx, and Ikea followed with announcements that laid out similar plans to close stores during this frightening time.

“The devastating war in Ukraine is a human tragedy, and our Continue reading →

Ethics, Global, Product Distribution, Retail, Russia, Supply chains, Ukraine

Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management

Companies Pull Back on Discounts as Demand Soars

December 14, 2021

NickelsMcHughMcHugh

In holiday seasons past, retailers would commonly slash prices by 50 to 90 percent on Black Friday in an effort to entice shoppers into stores. But that was not the case in 2021 as companies reduced prices by “10, maybe 20 percent” according to Zarah Reeves, who usually waits until the Thanksgiving shopping weekend to buy her clothes, appliances, and home goods. “The deals are just horrible [this year],” said Reeves. “I’m looking at these discounts, thinking: That’s it? Never Continue reading →

Black Friday, Holidays, Marketing, Pricing, Promotions, Retail, Supply & Demand

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics

Black Friday and Cyber Monday Sales Drop As Consumers Spread Out Spending

December 2, 2021

NickelsMcHughMcHugh

In years past, the day after Thanksgiving marked a singular bonanza of sales as retailers held literal “door-buster” events that attracted crowds of determined customers desperate for deals. The rise of e-commerce gradually changed the holiday sales game, however, with companies now largely opting to spread sales throughout the season rather than concentrating on one day or weekend. As a result, this year’s Black Friday and Cyber Monday sales slowed down for the first time in history while overall retail Continue reading →

Amazon, Black Friday, Cyber Monday, E-commerce, Marketing, Product Distribution, Promotions, Retail, Sales events

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits

[VIDEO] The History Of Macy’s Thanksgiving Day Parade

November 23, 2021

NickelsMcHughMcHugh

The 2020 edition of the Macy’s Thanksgiving Day Parade was unlike any in the event’s 97-year history: limited to just one block, no marching bands, and no crowds of cheering spectators. This Thursday, though, the big balloons and bands will largely be back as Macy’s continues one of the longest running promotional efforts in business. The brief video below from 2019 looks at the history of the parade and the various ways it has both evolved and stayed the same Continue reading →

Advertising, Holidays, Macy's, Marketing, Promotions, Retail, Thanksgiving

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Videos