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Retail

Management


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Retail Management

The word retail has its origin in

French word retaillier andmeans to cut a pieceor to

break bulk.


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Introduction

Retailing is the sale of goods and

services to the ultimate consumer for

personal, family or household use.


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Introduction

According to Kotler: Retailing includes allthe activities involved in selling goods or

services to the final consumers for personal,

non business use


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Another Definition...David Gilbert defines retailing as

any business that directs its

business activities towards

satisfying the final customer

based upon the organisation ofselling goods services as a

means of distribution


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Functions of retailers

The interface between the retailler

and customer is is predominantly

service oriented Retailers sell small amount of

goods to customers on a frequent

bases


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Retailers offer a assortment of

merchandise to facilitate choice for

selection of goods to customers retailers use a pricing policy that

is modified according to

customer's demand


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Retailing is high intensitycompetition industry, The reasonsfor its popularity lie in its ability toprovide easier access to variety ofproducts, freedom of choice andmany services to consumers.


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Retailing is responsible for matching final

consumer demand with supplies ofdifferent marketers.

Retailing may be understood as the final

step in the distribution of merchandise foconsumption by the end consumers.


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The Indian retail is dotted bytraditionally market place called

bazaars or haatscomprises ofnumerous small and large shops,selling different or similarmerchandise


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What is Retailing

A theory of retailing wheel

retailingproposed by Maclcom McNair says,

New retailers often enter the marketplace with low prices, margins, and status.

The low prices are usually the result ofsome innovative cost-cutting procedures

and soon


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With the passage of time, thesebusinesses strive to broaden their

customer base and increase sales. Their operations and facilities

increase and become more

expensive.

What is Retailing


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What is Retailing

By this time newer competitors as

low price, low margin, low statusemerge and these competitors toofollow the same evolutionary process.


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What is Retailing

The wheel keeps on turning anddepartment stories, supermarkets, and

mass merchandise went through this

cycles.


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Functions of a retaillier

From the customer point of view, the retailer serves him byproviding the goods that he needs in the required assortment,at the required place and time.

From an economic standpoint, the role of a retailer is toprovide real added value or utility to the customer. Thiscomes four different perspectives


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Breaking Bulk: to reducetransportation costs, manufacturerand wholesalers typically ship large cartons of the products,

which are then tailored by the retailers into smaller quantities to

meet individual consumption needs

Holding stock: Retailers maintain an inventory that allowsfor instant availability of the product to the consumers. It helps

to keep prices stable and enables the manufacture to regulateproduction.

Promotional support: small manufacturers can use retailersto provide assistance with transport, storage, advertising, andpre- payment of merchandise.


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General merchandise retailer: general merchandiseretailer carry a variety of product lines, with considerable

depth. Some major types of these stores includesupermarkets and hypermarkets , discount stores and

department stores.

o Super market: A supermarket is a large self service retailstore that carries a wide variety of consumer products underone roof , such as complete line of food products , laundryrequirement, household maintenance items. In India

cooperative have managed some supermarkets for quitesometime like super bazaar in Delhi, apna bazaar shakaribhandar etc.


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o Department store: a department store is larger retail storeorganized into several departments, offering a broad verity

and depth of product lines. The product mix may includefood products, appliances, clothing, furnishing and otherhousehold goods.

Like Pantaloons, shoppers stop,

department store only for kids is Kids Kemp.

Fashion related department stores in India are Ebony,Globus, pantaloons, lifestyles.


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products and high level of customer service

Specialty store often sell shopping goods such as Jewelry,apparel, computers, music systems, sporting goods.

Like; Tanishq, Titan watches, Van Heusen, Raymond's.

Shopping Malls: shopping malls typically deal with severalbases and product categories and provide a large variety of

merchandise abs service. There are 96 operational malls inIndia and expected to grow 158 by this current year.

Ansal plaza (Delhi), Garuda mall (Bangalore) Sahara plazaGurgaon Spenser Plaza Chennai


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Top 10 Retailers World Wide

USA

France

USA

USA

Netherlands

Germany

USAUSA

USA

USA

Wal-Mart Stores

Carrefour Group

The Home Depot, Inc

The Kroger Co.

Royal Ahold

Metro AG

Target CorporationAlbertsons,Inc.

Sears, Roebuck and Co.

Kmart Corporation

Home CountryRetailer


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The Evolution of Retail in India

Retail in India has evolved to support the unique needs of ourcountry, given its size and complexityHaats, MandisandMelashave always been a part of the Indian landscape. They stillcontinue to be present in most parts of the country and form anessential part of life and trade in Various areas.

The PDS (Public Distribution System) would easily as the

single largest retail chain existing in the country. the evolution ofthe PDS of Grains in India has its origin in the rationingsystemintroduced by the British during world war II


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The system was started in 1939 in Bombay and subsequentlyextended to other cities and towns. the system was abolished

post war but however attaining independence India wasforced to reintroduce it in 1950.

There was rapid increase in the ration shops ( being

increasingly called the Fair Price Shop or FPSs)

The Canteen Stores Department and the PostOffices in India are also among the largest network ofoutlets in the country reaching population across the country.


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In the past decade, the Indian marketplace has transformeddramatically. However from the 1950,s to the 80,s, investmentin various industries was limited due to low purchasingpower in the hands of the consumer and the governments

policies favoring the small scale sector.

The first attempts at organized retailing were noticed in thetextiles sector. One of the pioneers in this field was

Raymonds which set up stores to retail fabric.


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Traditional

FormatsItinerant SalesmanHaatsMelas

Mandis etc.

Established

formats

Kirana shopsConvenience/

department storesPDS/

fair price shops

Pan/ Beedi shops

Emerging

Formats

Exclusive retail outletsHypermarketInternal retail

Malls / Specialty MallsMultiplexes

Fast food outlets

Service galleries

The Evolution of retail in India


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Changes in Consumption patterns: Occupational changes andexpansion of media have caused a significant change in the

way the consumer lives and spends his money.

o The changes in income brought about changes in the

aspirations and the spending patterns of the consumers. thebuying basket of the consumer changed

o The emergence of a young Earning India : Nearly 70% of theIndian population is below the age of 34. taking advantages

of employment opportunity in the booming service sectorthese young Indians are redefining service and consumptionpatterns


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Size of the organized retail market (Rs Cr)

261,426450Books & Music

183,7871,650Cons.Durables

1610,4234,950Clothing

337,4731,800Food1837,21616,000TOTAL

CAGR (%)(compound Annual growth

rate)

20072001-02


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Share of organized & unorganized retail with comparison

source: Ernst &Young, The Great Indian Retail Story, 2006

85 15

81 19

55 45

40 60

36 64

30 70

20 80

3 97

1 99

0% 20% 40% 60% 80% 100%

USA

TAIWAN

MALASIA

THAILAND

BRAZIL

INDONESIA

CHINA

INDIA

PAKISTAN

ORGANISED

UNORGANISED


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