CHAPTER TWENTYEDWARD C. TELLING, JR.The ever-changing times have introduced a new economic channel to
the business world: the Internet, the “Net.” Most businesses will use it,
some will barely cope with it, still others will adjust to it and profit by
its potential. The Net has created a unique marketing tool, one with
few of the costs associated with a normal retail store. Remember, the
one constant is change; adjust to it or fail.Retailers, simply put, are the delivery system for manufactured
products desired by the end consumer. As the needs and wants of
customers change, so must the delivery system, or as the corner drugstore/soda fountain, a favorite in the 1930s, 1940s, and 1950s has perished, so will all who fail to deliver their products the way the consumer
wants them. Evolution, indeed revolution, has occurred in the retail
marketplace in the last forty years: the corner diner has given way to
fast-food franchises (clean, convenient, and efficient), and so on!Many retail business characteristics are unlike those of manufacturing and service businesses.
Valuing Retail Businesses
|• ||Typically, a retail business' largest dollar investment is in inventory, followed by accounts receivable (if credit is offered).|
|• ||To stay competitive, often retail businesses stay open around the
clock to serve their customers.|
|• ||In general, retail employees are paid less than manufacturing
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Handbook of Business Valuation.
Contributors: Thomas L. West - Editor, Jeffrey D. Jones - Editor.
Place of publication: New York.
Publication year: 1999.
Page number: 287.
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