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CHAPTER 1

INTRODUCTION TO RETAIL

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Learning Objectives

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Defining retail

The functions of a retailer

The marketingretail equation

The significance of retail as an industry

The new role of the retailer

The global retail scenario

Key issues facing global retailers

Retail as a career

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What Is Retail?

Retailderived from the French wordretailer , which means to break bulk

Retailing- last stage in the movement ofgoods and services to the consumer

Retail consists of- all activities involved

in the marketing of goods and servicesdirectly to the consumers for theirpersonal, family or household use

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Functions Of A Retailer

Form utility- by offering assortment of finished

goods and services in a form that customers

want

Time utility- by keeping the store open whenthe consumers prefer to shop

Place utility-by being available at a convenient

location Ownership utility- by selling the product

Serves the manufacturer- by distributing the

goods to the end consumerSwapna Pradhan Retailing Management 3ed.

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The MarketingRetail

Equation

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Manufacturer

Retailer

Consumer

Manufacturer

Consumer

Manufacturer

Wholesaler

Retailer

Consumer

Feedba

ck

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The Changing Retail

Landscape

Proximity to the customer

The Rise of consumerism

Introduction of the Private LabelTechnology

Retailers are no longer dependent on the manufacturers

to sell what is available and have emerged as the new

leaders in the marketing channel

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The Global Retail Market

Key challenges

Emergence of new markets

Empowered consumer

Technology enabled efficiencies

Rise of the E-age

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Key Players In The World Of Retail

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FortuneRank 2007

Company Revenues ($Mln)

Profits ($ Mln)

1 Wal-Mart Stores 351,139 11,284

32 Carrefour 99,014.7 2,846.2

44 Home Depot 90,837.0 5,761

55 Tesco 79,978.8 3,544.9

62 Metro 75,131 1,324.9

80 Kroger 66,111.2 1,114.9

94 Costco Wholesale 60,151.2 1,103.2

104 Royal Ahold 56,944.9 1,127.9

114 Sears Holdings 53,012 1,490

129 Walgreen 47,409 1,750

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Most Active Emerging Retail Markets

Rank Country Proportion of respondentsthat are actively looking in

each market or first openedthere in 2007

1 India 27%

2 Ukraine 24%

3 Russia 22%

4 Malaysia 19%

5 Turkey 13%

6 South Africa 12%

7 Thailand 11%

8 China 10%

9 Mexico 8%

10 Indonesia 6%

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Retail 2010: Things To Come

Key role of technology

Agility in response and integration within the

organisation

Competitive and cost advantages in retailers lines ofbusiness

In the light of environmental changes, retailers to rethink

their competitive strategies

Internet as a powerful channel of distribution Mobile commerce- a reality

Lifestyle retailing

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Ten Trends In Global Retailing

1. Social responsibility

2. Global consumer growth shifts away from the US

3. Commoditisation run amok

4. The rise of long tail retailing5. The fight to plant the flag in India

6. Retail investment in services

7. Emerging market investment in developed retailers

8. Multi-channel integration

9. Focus on customer experience

10. Retailers as world-class marketers

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Retail As A Career

Buying & Merchandising

Marketing

Store Operations

Sales Finance

Human Resources

Technology & e-commerce Visual Merchandising

Supply Chain Management & Logistics

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