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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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Functions of retailers
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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Functions of retailers
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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Functions of retailers
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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