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Retailer invests in wholesaling or manufacturing
Backward Integration- retailer performs some distribution and manufacturing activities
Ex. JCPenny sells Arizona Jeans (Private Label)
Forward Integration- manufacturers undertake retailing activities
Ex. Ralph Lauren operates its own stores
Friday, January 18, 2008
*4 Functions of a Retailer*
1. Provides an assortment of products and services
2. Breaking Bulk? Breaking down large shipments so products can be distributed accordingly
3. Holding Inventory? to keep inventory ready for purchase; works hand-in-hand with "breaking bulk"
4. Providing services (lay-away, catalogs, cleanliness, etc...
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