Retail Management

BSc Program

Course: Retail Management -- 10 ECTS Credits

Professor: Dr. James Reardon, Wells Fargo Professor, Monfort College of Business, UNC
Contact: [email protected]
Website: http://www.mcb.unco.edu/Faculty/ourPeople.cfm/Highlight/James.Reardon\

Class Schedule 17-19 July (Wed-Fri) 9:00-13:00

23-26 July (Tues-Fri) 9:00-13:00
23-31 July (Mon-Wed) 9:00-13:00
1-2 August (Thurs-Fri) 9:00-13:00
5-6 August (Mon-Tues) 9:00- 13:00
Final Exam 13 August

Aim of the course

In today’s tough job environment more people are choosing to become entrepreneurs. One of the more
popular ways to do this is to start up a retail store – either physical or on-line. The main objective of this
course is to enable students to develop a full retail plan that they can use to begin a new business venture. In
the process, students will learn not only how to plan a retailer, but how to deal with retailers from a business-
to-business relationship

Main issues
In this exceptionally competitive environment, the majority of retailers are still small to medium sized
businesses – many operated by entrepreneurs with little training or education for the task. To survive,
operators continually need managers who are familiar with retail operations to survive and become
profitable. Students will develop a retail plan that is competitive in the environment that they choose (Aarhus
or another geographic location). Specifically, the course will enable students to develop a retail plan that
will include:
An intial proposal of retail type and geographic area
A complete analysis of the target audience – demographics, psychographics, and benefits
Store location analysis – it may be anywhere in the world.
Store layout and design – internal and external
Develop an assortment and merchandise mix (fill the store with products).
The development of a promotional plan to communicate your benefits to the consumer
Inclusion of a human resource plan for staffing the right people at the right time
A pricing and financial section – including the development of pro forma statements
Last year the students created very good plans to develop eating and drinking establishments in Aarhus.

Teaching methodology
Students will work both individually and in groups to create a written retail plan. The instructor will
lecture/discuss first the theory of each part and then a practical application to show how create a plan that can
be successful.
Prerequisites
Students are not required to have prerequisites for this course. The skill set necessary to conduct a retail plan
ranges across the spectrum of business and other disciplines. Student will depend on each other’s skills in
areas to learn from their peers as well as from the instructor. The main prerequisite for this course is to have
an interest in Entrepreneurship and/or Retailing.

Learning outcome
By the conclusion of this module, participants should be able to:
Describe how the consumers’ decision process affects retailers
Develop a retail strategy that appeals to a specific target market, which includes
 Location, layout/design, merchandising, pricing, and promotions
 Develop a six-month merchandise plan
 Understand how changes in operational variables (e.g., price, COGS, demand,
expenses) affect profit
 Describe how technology in retailing affects all channel members

Course Assessment
The grade for the course consists of two parts:
Coursework counting 40 %
o Interim project parts -- 4-7 interim project parts that will total 10% of the
course grade. These will be due during the course discussions. The instructor
will then offer detailed comments for the improvement and integration of
these parts into a final project. Each student will be individually responsible
for 1-2 of the parts. The parts consist of:
1. Target Audience
2. Store Location
3. Store Layout and Design
4. Merchandise Plan
5. Promotional Plan
6. HRM Plan
7. Pricing and Financial plan
The final written project will consist of 20% of the course grade.
o Project Reviews will consist of 5% of the course grade
o Google+ Homework will consist of 5% of the course grade
3-hour written exam counting 60 %
o The final exam will cover the learning goals of the course and consist of the
other 60% of the course grade

Literature
Reading of the assigned chapters from the text is required before attending class. Participants are required to
have access to the text. Additional readings will be available online at the beginning of class.

Previous project examples will be available to students to review.

Text: Retailing Management, Levy and Weitz, 7th ed., McGraw Hill-Irwin;
Students are welcome to utilize the 5th, 6th, or 8th edition of the same text
Main Topics: Text Readings Due
July
17 (Wed) Introduction to the Retailing and Retail Types Ch 1-3
Project: Form Groups
Google+ Send me e-mail and accept invitation

18 (Thurs) Responding to and Targeting Consumers Ch 4

Project: E-mail me basic retail type before class

19 (Friday) Developing a Retail Strategy Ch 5

Project: Final Groups and Assignments

23 (Tues) Location, Location, Location Ch 7-8

Google+ - Post Best and Worst Location
Project: Interim Part Presentations: Target and Retail Strategy

24 (Wed) Store Layout and Design Ch 18

Google+ Vote on Best/Worst Location

25 (Thurs) Merchandising and Assortment Planning Ch 12-13

Google+ Post Best/Worst Exterior

26 (Fri) Project: Interim Part Presentations: Location/Layout and Design

Google+ Post Best/Worst Visual Merchandising
Google+ Vote on Best/Worst Exterior

29 (Mon) Pricing Mechanics/Pricing Promotions Ch 15/Lecture

Project: Interim Part Presentations: Merchandising
Google+ Post Most Unique Pricing Scheme
Google+ Vote on Best/Worst Visual Merchandising

30 (Tues) Margin Accelerators/Strategic Profit Model Ch 6/Lecture

Google+ Vote on Most Unique Pricing Scheme

31 (Wed) Human Resource Management Ch 9 & 17

August
1 (Thurs) Promotions and Advertising in Retailing Ch 16
Google+ Post Most/Least Professional Employees

2 (Fri) Project: Interim Part Presentations: Pricing/HRM/Ad-Promo

Google+ Post Best/Worst Promotion or Ad
Google+ Vote on Most/Least Professional Employees

5 (Mon) In-Class Projects

Google+ Vote on Best/Worst Promotion or Ad

6 (Tues) Final Presentations of Projects

12 Monday Final project due via e-mail
 Assignments

Google +

For this Class you will need a Google + account. You may use and existing Gmail account to create this or
you may create another for this class. However, please make sure and login each day during the course.

BEFORE class begins, please send an e-mail from your Gmail account to [email protected] with
the subject “RetailMgmt” . There does not have to be any message in the body of the e-mail. You will be
invited to a circle and community – you will need to join to complete the assignments. If you do not know
how to use Google+ - do not worry, we shall figure it out together.

Google +:

1. Each student will post on the class community an image AND description for the following:
a. Best and Worst Location – Post 2 seperate images and descriptions of the best and worst
locations of retail stores and indicate WHY they are the best or worst. You may post links
(such as google maps) in addition.
b. Best and Worst Exterior Design – Post 2 seperate images and descriptions of the best and
worst exterior designs of retail stores – and indicate why. Remember that the exterior design
should fit the image and postion of the store – so ugly, by itself, doesn’t mean that its the
worst.
c. Best/Worst Visual Merchandising – find the best and worst visual merchandising IN
STORE. Ideally, this is both a function of layout as well as presentation. Tell us why.
d. Most unique pricing scheme – you may link or image this. Tell us how you expect the
consumer would react to this scheme and what effect it has on margins.
e. Best/Worst Promotion or Advertisment – it may be any type of promotion or advertisement
(special event, print, video, web). However, it should not be signage.

Each post is due by 23:59 on the day indicated in the schedule. It may be done before class, but
I suggest to wait until after so that you have a better understanding of the criteria for
’best/worst’.

2. You also must ‘vote’ by “+1” someone else’s post for each category that you believe was the best
example with description for each category. You should have 2 votes for each assignment except the
pricing scheme (one for best and one for worst). Your post was obviously the best, but you need to
vote on who is second best (in other words, you may not vote for yourself).
You must +1 your vote by the end of the break time in class. However, voting DURING class is
HIGHLY DISCOURAGED.

Project Part Reviews:

Each student shall write a comprehensive, critical review of an interim presentation of another group. The
review should include comments related to what is done well, but mostly focus on what could be improved
and WHY it is deficient. Reviews will be evaluated on:

1. Identifying items for improvement – along with critical analysis of why they need improvement.
2. Recommendations on how the above can be improved – and why the recommendations make sense
Learning Outcome: Qualifications and Competences

By the conclusion of this module, participants should be able to:

Describe how the consumers’ decision process affects retailers
Develop a rudimentary retail strategy that appeals to a specific target market, which includes
 Location, layout/design, merchandising, pricing, and promotions
Develop a six-month merchandise plan
Understand how changes in operational variables (e.g., price, COGS, demand, expenses) affect profit
Describe how technology in retailing affects all channel members

Project:

At a minimum, students will develop a comprehensive retail plan. This will include the following
assignments:

Propose Retail Type – Maximum 1 page description of the type of retailer that will be proposed.
Use Chapters 1-5 to describe the type of retail format and sub-industry.

Target Market and Retail Strategy – As per class discussion, this part of the project will first identify
a target market (Chapter 4) and then specify an overall strategy (Chapter 5) that will properly target
that market.

Location Analysis: Students will choose and justify an actual location for their retailer. Material
from Chapters 7 and 8 will be used in the justification.

Store Layout: Students will complete a drawing of the layout of their proposed store with a
justification for why merchandise is located in specific areas. In addition it is necessary to include
are common (public spaces) and administrative/work spaces. Chapter 18 is relevant to this
assignment.

Merchandise Mix: Students will complete a merchandise assortment plan for their proposed retailer.
Chapter 12 and 13 show how to form such a plan.

Financial Plan: A complete strategic profit model using pro forma estimates of an income and
balance sheet

HRM Plan: Number, skill level, pay rates, and scheduling of employees. May include an HRM
manual.

IMC/Promotional Plan: The theme, logic and roughs of an IMC plan for your new store. Should
include copy, creative, and media elements.

Final Project: Students will integrate the above parts into a single, coherent retail plan. Students
may also include promotional/advertising plans and a financial plan to improve their grade above
average.
Evaluation of Goal Achievement:

By the end of the module, students must be able to fulfill the above stated goals.
Grade 12: Grade 12 is denoted to 100% target fulfillment related to the learning outcome
Grade 02: Grade 02 is denoted to the minimum acceptable performance related to the learning outcome.

Literature:

Reading of the assigned chapters from the text is required before attending class. Participants are required to
have access to the text. Additional readings will be available online at the beginning of class.
Text: Retailing Management, Levy and Weitz, 6th ed., McGraw Hill-Irwin;

Exam Form: Individual graded coursework 40%

Three hour exam 60%

Open book, online exam
One final grade

Retake. Retake exam counts for 100%.

Exam Evaluation: Professor