Direct marketing has roots in direct-mail and catalog marketing Lands’ End, L.L.Bean; it

As part of their franchise agreement, new McDonald’s franchisors must attend the company’s Hamburger University for two weeks to learn how to properly manage their restaurants. The New Retail Environment With the onset of the recession in 2008, many retailers had to fundamentally reassess virtually everything they did. Some adopted a cautious, defensive response, cutting stock levels, slowing ex- pansion, and discounting deeply. Others were more creative about managing inventory, adjusting product lines, and carefully avoiding overpromoting. For example, JCPenney held back 60 percent of inventory for the fall 2009 holiday season, compared to its usual 20 percent, to avoid having empty shelves and stock-outs on one hand and overflowing shelves and heavy discounting on the other hand. Some firms, such as the Container Store and Saks, lowered average prices; others, such as Gilt.com and Neiman Marcus, introduced selective and very short-term deep discounts. Restoration Hardware chose to move its furniture product lines more upscale. 6 Although many of these short-term adjustments were likely to remain longer-term, a number of other long-term trends are also evident in the retail marketing environment. Here are some that are changing the way consumers buy and manufacturers and retailers compete see Table 16.3 for a summary. • New Retail Forms and Combinations. To better satisfy customers’ need for convenience, a variety of new retail forms have emerged. Bookstores feature coffee shops. Gas stations in- clude food stores. Loblaw’s Supermarkets have fitness clubs. Shopping malls and bus and train stations have peddlers’ carts in their aisles. Retailers are also experimenting with lim- ited-time “pop-up” stores that let them promote brands to seasonal shoppers for a few weeks TABLE 16.3 Recent Retail Developments • New Retail Forms and Combinations • Growth of Intertype Competition • Competition between Store-Based and Nonstore-Based Retailing • Growth of Giant Retailers • Decline of Middle-Market Retailers • Growing Investment in Technology • Global Profile of Major Retailers • Growth of Shopper Marketing