One function of these clubs is to provide small businesses with merchandise and supplies at low prices. List and explain the ways that retailers compete. The U.S. has about 2.3 million retail stores. About 11 million people work for retail organizations. Service organizations, such as Southwest Airlines, also compete on price.
Retail service involves putting the customer first and providing follow-up service.
Consumers are frequently willing to pay a little more if the retailer offers outstanding service. Smaller retailers compete with category killers by offering more selection within a smaller category of items. Service organizations that compete successfully on selection include Blockbuster Video and most community colleges. A total quality retailer offers low price, good service, wide selection, and total quality management. The benchmark retailer in this category is Wal-Mart.