A REPORT

ON
RETAIL SECTOR IN INDIA
By
MITESH BAJAJ
228
Satyawati College
A report s!"itte# i$ partial %l%ill"e$t o%
t&e re'ire"e$ts o%
(i$al )ear Pro*e+t O%
T&e SAT)A,ATI College
-$#er t&e gi#a$+e o%
Pro%. Ma$* D!ra$

Page
2
/. INTROD-CTION
Retailing consists of the business activities involved in selling goods and services to
consumers for their personal, family, or household use. It includes every sales of goods and
services to the final consumer.
Retailing as an industry
Retailing is world's largest private industry with annual sales over $ 6600 billion. Wal!art
annual sales over $ "#0 billion. It has share of ".$% of &.'. (.).*. +here are nine retailers in
,ortune -00, which highlights the importance of retailing as category.
.ccording to a mar/et estimate after agriculture, retail is the largest single sector, both in term
of turnover or will as employment in India. With mar/et si0e of $"00 billion. +he report
said the Indian retail industry is in revolution phase.
1rgani0ed retailing in India, which account for less than 2%, is li/ely to grow four fold in
the ne3t five years. +hat means it will grow from current si0e of around $2 billion 4Rs.
-5,000
6rore7 to around $-# billion 4Rs. 66000 6rore7 the neighborhoods corner shops estimated at
50 million across the country, and village !ela8s characteri0e the unorgani0ed and
fragmented nature of retailing in India.
RETAILE RS IN I NDIA
-7 0. Ra&e*a 1rop
'hopper8s stop
9ome 'top
!other care
9yper city
6rossword
*lanet !
"7 Tata Tre$t
Westside
'tar India :a0aar
;andmar/
$7 RP1 1rop
'pencer8s supermar/et
'pencer8s daily
'pencer8s hypermar/et
!usic world
27 Relia$+e 1rop
Reliance fresh
'ubhi/sha
#7 B&arti 1rop
67A#itya Birla 1rop
57 Ca%2 Co%%ee Day
<7 Pa$taloo$ retail 3I4 P5t. Lt#
*antaloons
:ig ba0aar
,ood ba0aar
,ashion station
.ll
:lue s/y
= >one
6ollection I
9ome +own
6entral !all
?7 1o#re* 1rop
(odre@ .adhar
Aature8s :as/et
T A B LE 1 . 1 : T O P 20 R ET A I L E R S WOR LD W I D E
Retailers Sales (US$)
1 Wal-mart Stores, Inc 163,532
2 Carrefour grou 52,1!6"1#
3 $%e &roger Co '5,352
' (etro ) * '',163
5 $%e +ome ,eot I-C 3.,'3'
6 )l/ertsons inc 30,'0.
0 I$( 1nterrise S) 36,062
. sears, Roe/uc2 an, co" 36,02.
! &mart Cororation 35,!25
1# $arget Cororation 33,0#2
11 3"C" enn4 Coman4, Inc" 31,5#3
12 Ro4al ) %ol, 31,222
13 Safe5a4 Inc 3#,.#1
1' Re5e-*rue 3#,50.
15 $esco 67C 3#,'#'
16 Ito-8o2a,o Co", 7t," 3#,230
10 1,e2a-*rue 3#,##2
1. Costco Comanies, Inc 26,!06
1! $engelmann
5aren%an,elsgesellsc%aft
26,5#!
2# $%e ,aiei, Inc 26,'.6
RETAIL IN INDIA
+he retail industry in India is largely unorgani0ed B predominantly consists of small ,
independent, ownermanaged shops. Retailing is IA)I.8s largest industry in terms of
contribution to ()* B constitutes -$% of ()*. +here are around # million retail outlets in
India. +here are also an uncounted number of low cost /ios/s 4tea stalls, snac/s centre, barber
shops, etc7 B mobile vendors. +otal retail sales area in India was estimated at $"< million
sC.mt.in "00-, with an average selling space of "?.2sC.mt. per outlet. In India the per capita
retailing space is about " sC. ft, which is Cuite low compared to that of developed economies.
In "000, the global management consultancy .+ Dearney put retail trade at 200,000 crore ,
which is e3pected to increase to Rs.<00,000 crore by year "00# E an annual increase of
"0%. .ccording to the survey, an overwhelming proportion of the Rs.200,000 crore retail
mar/et is unorgani0ed. In fact only a Rs"0,000 crore segment of mar/et is organi0ed.
+here is no integrated supply chain management outloo/ in Indian traditional retail industry.
,ood sales constitute a high proportion of the total retail sales. +he share was 6".5% in
"00-,worth appr3. Rs 50$"." billion, while non food sales were worth Rs.2-<?.# billion.
9owever the nonfood retailing sector registered faster yearonyear growth than the food sales
sector. +he trend to mar/et private labels by specific retail store is catching on in India as
it helps to improve margins. +he turnover from private labels by ma@or retail chains was
estimated at around Rs -"00 million in "00-.
C-RRENT SCENARIO O( INDIA RETAIL6
&norgani0ed mar/etF Rs. #<$,000 crores.
1rgani0ed mar/etF Rs. #,000 crores.
# 3 growths in organi0ed retailing between "000"00#.
+he top $ modern retailers control over 5#0,000 sC.ft of retail space.
1ver 200,000 shoppers wal/ through their doors every wee/.
(rowth in organi0ed retailing on par with e3pectations and pro@ection of the last # yearsG on
course to touch Rs. $#,000 crore or more by "00#06.
TABLE/. 26 1RO,TH IN RETAIL O-TLETS 3MILLIONS46
Year Urban Rural Total
1978 0.58 1.76 2.35
1984 0.75 2.02 2.77
1990 0.94 2.42 3.36
1996 1.80 3.33 5.13
Source: w w w. n! a n " o ln e .co #
TABLE /.76 COMPOSITION O( -RBAN O-TLETS6
Retail otlet Co"positio$
(rocers $2.5%
6osmetic stores 2.0%
6hemist 6.$%
,ood stores 6.6%
(eneral stores -2.2%
+obacco, pan stores -5.0%
1thers -5.0%
'ourceG w ww. i nd i a i n f o l in e . c o m
TABLE /.86 COMPOSITION O( R-RAL O-TLETS6
Retail otlet Co"positio$
(rocers ##.6%
(eneral stores -$.#%
6hemists $.$%
1thers "5.6%
'ourceG www . i ndi a in folin e . c om
Retaili$g i$ I$#ia

)iversities differentiates itself from the standard development of modern retail anywhere in
the world. 6onventionally, retailers focus on homogeneity and continuity in order to derive
benefits of scale and efficiency in their system. (lobally, retailers develop two or three
ma@or formats which are largely standardi0ed, may not wor/ in India.
'ignificantly large, truly panIndian, multiformat modern retailing model needs to be
developed in India. +he Indian mar/et will provide the footsteps to develop a model
for globali0ing retailing. +his will be the biggest contribution of Indian retailers to the
world.
Indian retailers can establish Hthought leadership8 is in the field of technology. &nli/e
in developed countries, Indian retailers do not have Hlegacy systems8 on which they
have to build their technology platform. .s retail grows and develops fresh
technologyled solutions, India will ta/e a leap and the ne3t generation retail
technology solutions may well come out of India. &sage of R,I) and the ne3t
practices in technologybased retail solutions may well emerge from Indian retailing.
Indian retailers would do well to develop their own systems and benchmar/s that are
admired and followed the world over.
Ne9t 7:; years are tog& %or retail !iggies
+he retail sector is e3pected to grow 20% to $2"5 billion by "0--.
:y "0-5, organi0ed retail will be -#"0% of the total retail mar/et.
+otal retail mar/et $ <00billion by "0-5.
Impact on rural incomes and urban prices will be real and positive.
1rgani0ed retailing in India will need painsta/ing, often frustrating, effort to chisel out
India ready business models, retail formats and delivery models.
Pro#+ts< Properties< People a$# Pro%ita!ility are goi$g to !e &ge
+&alle$ges.
+he real estate prices and shortage of talented staff, the runup e3penses for growth are
going to shoot up sharply. 'ignificant delay in completion of shopping malls by developers
and unreasonably high property prices is adversely affecting the growth of the sector. +he
situation is e3pected to improve in "00?, when a large, and probably an oversupply of retail
space is e3pected to come onstream.
:y the year "0-0, it is e3pected that there will be around #00 shopping malls, adding over
"#0 million sCuare feet of retail space. Its' @ust the first phase of retail playing out in India
currently, where lot of players are merely 'landgrabbing'.
In second phase the focus will be on creating differentiation. .nd in a couple of years, half
of the new entrants of today will simply die. In "00<, the competitive landscape is also
e3pected to unfold with many large entrants finally launching their operations.
&nderstanding, interpreting and catering to Indian consumer behavior, ta/ing into account
the social diversity in the country will be crucial to the success of new players. Aew formats
in specialty retail, wholesale retail and lu3ury retail are e3pected to emerge. +he ne3t few
years will provide the answers to the most crucial Cuestions on the sustainability of modern
retailing in India. Whether the Indian consumer mar/et can sustain such large growth in
modern retail, whether more and more people will @oin the consuming class and what the
real mar/et si0e in small cities will be, become clearer. :y "0-0 a conclusion on the
consumption potential in India can be reached.
Ao one can stop the growth of modern retail and the conseCuent impetus to consumption
and development in India.
I No one can stop an idea whose time has comeJ Kictor 9ugo.
TABLE /.;6
Organised retail market in India (Rs r!re"
,&ere is t&e opport$ity=
Retailers inspired by the Wal!art story of growth in small town .merica are tempted to
focus on smaller towns and villages in India. 9owever, a careful analysis of the town strata
wise population, population growth, migration trends and consumer spend analysis reveals a
very different picture for India.
.s per our estimates, the share of the $# towns with a present population of greater than -
million in India's total population would grow much faster than their smaller counterparts,
from -0." per cent today to reach -2.2 per cent by "0"#. 'imultaneously, the share of
these towns in the overall retail mar/et would grow from "- per cent today to 20 per cent by
"0"#. Within these top $# towns, an estimated 50 to <0 per cent of retail trade could be in
the organised sector. +his is similar to the e3perience in 6hina, where in cities li/e
'hanghai and :ei@ing, the organised sector accounts for 50 to <0 per cent of overall retail
trade in certain categories. Retailers
should therefore focus on the top $5 towns in the ne3t decade, as the opportunity in smaller
rural India would be smaller and more fragmented, compared to the larger towns.
TABLE 1.#: Organised retail market in India
/.2 OBJECTI>ES O( THE ST-D)6
PRIMAR) OBJECTI>E:
-. 'tudy about the ;1L.;+L schemes run by the mall.
". 'tudy the customer approach towards the mall.
$. 'tudy about the floor operations in a shopping mall.
2. 6omparative analysis of all retailers in this section to differentiate with other competitors.
SECONDAR) OBJECTI>E:
-. &nderstand the customer behavior inside the mall.
". 6ustomers e3pectation from the mall.
$. (ather all the information about all the competitors.
2. .ll details about the loyalty scheme in retail sector.
#. +o ma/e suggestion towards the improvement in loyalty schemes.
6. +o ma/e suggestion towards '+1R= *.+R1A.(=.
2. RESEARCH METHODOLO1)
INTROD-CTION G
Research methodology is a way to systematically solve research problem. In it we study the
various steps that are generally adopted by researcher in studying his research problem along
with the logic behind them. It is necessary for a researcher to /now not only the research
methodsMtechniCues but also the methodology. It may be noted, in the conte3t of
planning B development, that the significance of research lies in its Cuality and not in
Cuantity. Researchers should /now how to apply particular research techniCues, but they also
need to /now which of these methods or techniCues, are
relevant and which are not, and what would they mean and indicate and why.
+here are various stages to solve the research problem as shown in following
diagramG

Resear$ Pr!%lem
Rati!nal& S!'e !(
St)d*

Resear$ Design
Researc%
(et%o,olog4
$4e of researc%
Sam'ling
Design
$ec%ni9ue of
samling
Samle 6oulation
Samle :rame
Samle unit
Samle Si;e
Data +!lleti!n
6rimar4 <ata
Secon,ar4 <ata
(ig /./
DATA COLLECTION 6
PRIMAR) SO-RCEG +he method of data collection is done by the way of surveyF this is
a process where by first hand information is collected. +his method is needed for meeting the
specific ob@ective of research study. I have collected primary data in the form of filled
structured Cuestionnaire by customers. In first Cuestionnaire I collect whole data about
customer8s feedbac/
about ;1L.;+L 6.R). In second I collect all the data regarding to comparative analysis.
SECONDAR) SO-RCEG +he secondary data was collected in the form of company profile
and product profile from the Web 'ite of *.A+.;11A'. 'ome other Web 'ites were also
referred. ,or collecting the reCuired data the 6'.8' of the mall were also consulted. +he data has
helped in ascertaining the strategies and approaches of ma@or players in mar/et. +hus the study
involved collection, analysis and interpretation of a lot of data relating to this sector. +he data is
collected from various sites, boo/s, @ournals, etc.
SAMPLE DESCRIPTION6
.fter deciding on the research approach and instruments, the mar/eting research must design the
sampling planG
-. SAMPLIN1 SI?EG +he target for this the customers who come for shopping inside the mall.
'ample si0e of the study is "00 customer8s who come for shopping inside the mall.
2. SAMPLE SELECTION PROCED-RE: 'ince it is the survey of customer, to obtain an unbiased
result the customers sample from the population were interviewed randomly. 'o the sampling
techniCue chosen for the research is Random sample techniCue. =very customer inside the mall
had an eCual chance of being interviewed.
7. SAMPLE -NITG +he customer who come for shopping inside the mall is the sample unit.
8. CONTACT METHOD6 *ersonal approach to each and every customer for all surveys and
interviews were the 6ontact method used for obtaining a proper and detailed feedbac/. . faceto face
Interaction too/ place with each sample representative. +he data collected through Cuestionnaire was
properly classified and tabulated in the form of a report. +hese reports formed the basis for the
comparative analysis and drawing inferences there from. ,rom the inferences drawn certain conclusions
and recommendations were made.
;. (IELD ,OR06
+he fieldwor/ was conducted for a period of -# days for both the research. Interviews were
conducted inside the mall by face E face interviewing.
2./ RE>IE, O( CONCEPT AND THEORIES6
,IR'+;L W= )I'6&'' .:1&+ W9.+ I' 6&'+1!=R ;1L.;+LN
'9=+9 B !I++.; have defined customer loyalty as I a customers commitment to a brand , store
or supplier based on a strong favourable attitude & manifested in consistent re-patronage .
Fig2.
1
Strong Behavior wea
Strong
$TT%TU&'
(ea)
+he above given definition of customer loyalty includes both behavior B attitude, which
can result in four possible situations as shown in above fig.
When both attitude B behavior are wea/ , it means no loyalty e3ists , wea/ attitude indicates
the customer may not have any li/ing for the brand B the store. While wea/ behavior
means that the purchase of the brand or visiting the store is sporadic. When the attitude B
behavior are strong , it means that the customer has a strong brand or store loyalty. +he
remaining two situation cases are interesting.
When behavior is high but attitude is low, it can be said that the customer has spurious
loyalty, i.e the customer may buy the same brand again B again or shop at same store
regularly but may not have
a preferential attitude towards it. Kery often in such instance the choice of the brand or store
may due to convenient location or the customer loyalty is incidental B not yet well
founded, he or she may easily switch brands change stores if given more choice or
interesting price deals. +hus the retailers or mar/eters would have to ma/e efforts at
strengthening the customer8s perception of the brand8s or store8s image. In the Cuadrant
with strong attitude B wea/ behavior, the customer can be said to be having latent loyalty.
+he customer li/es the brand or store but is unable to buy or visit the same probably
because the price is too high or he or she lac/s accessibility to the brand or the store. +hus
in such instances , the retailers or mar/eters needs to reduce whatsoever barriers B tap
the hidden potential of the mar/et. Retailers are beginning to focus their attention on
encouraging customers to visit outlets, treating them to attractive promotions, thus adding
more value to their best customers B satisfying them in the process. ,or to the retailers,
customer loyalty will indicate that customer are committed to purchasing merchandise B
services from them B will resist the activities of competitors attempting to attract their
patronage. +he term customer lo!alt! is used to describe the behavior of repeat customers,
as well as those that offer good ratings, reviews, or testimonials. 'ome customers do a
particular company a great service by offering favorable word of mouth publicity regarding
a product, telling friends and family, thus adding them to the number of loyal customers.
9owever, customer loyalty includes much more. It is a process, a program, or a group of
programs geared toward /eeping a client happy so he or she will provide more business.
6ustomer loyalty can be achieved in some cases by offering a Cuality product with a firm
guarantee. 6ustomer loyalty is also achieved through free offers, coupons, low in te r e s t r a te s
on financing, high value tradeins, e3tended warranties, rebates, and other rewards and
incentive programs. +he ultimate
goal of customer lo y a lty p r o g r a m s is happy customers who will return to purchase again and
persuade
others to use that company's products or services. +his eCuates to profitability, as well
as happy sta/eholders.
6ustomer loyalty may be a onetime program or incentive, or an ongoing group of
programs to entice consumers. :uyonegetonefree programs are very popular, as are
purchases that come with rebates or free gifts. .nother good incentive for achieving customer
loyalty is offering a ris/ free trial period for a product or service. .lso /nown as b r a nd
n a m e lo!alt!, these types of incentives are meant to ensure that customers will return, not
only to buy the same product again and again, but also to try other products or services
offered by the company.
=3cellent customer service is another /ey element in gaining customer loyalty. If a client
has a problem, the company should do whatever it ta/es to ma/e things right. If a
product is faulty, it should be replaced or the customer's money should be refunded. +his
should be standard procedure for any reputable business, but those who wish to develop
customer loyalty on a largescale basis may also go above and beyond the standard. +hey may
offer even more by way of free gifts or discounts to appease the customer.
'ome of the common bases for attracting customers are having dedicated employees,
variety, uniCue merchandise B superior customer service. :ut the challenge for the retailer is
to have a loyal database of customer, who will be unwilling to switch their loyalty. +he
strategies are built afterG
-. )eveloping a clear B specific positioning strategies.
". !a/ing customer develop an emotional attachment with the retailer8s product offerings.
Te$ Tips to Bil# Csto"er Loyalty
+he /ey to a successful business is a steady customer base. .fter all, successful businesses
typically see <0 percent of their business come from "0 percent of their customers. +oo many
businesses neglect this loyal customer base in pursuit of new customers. 9owever, since the
cost to attract new customers is significantly more than to maintain your relationship with
e3isting ones, your efforts toward building customer loyalty will certainly payoff.
9ere are ten ways to build customer loyaltyG
-. Co""$i+ate. Whether it is an email newsletter, monthly flier, a reminder card for
a tune up, or a holiday greeting card, reach out to your steady customers.
". Csto"er Ser5i+e. (o the e3tra distance and meet customer needs. +rain the staff
to do the same. 6ustomers remember being treated well.
$. E"ployee Loyalty. ;oyalty wor/s from the top down. If you are loyal to your
employees, they will feel positively about their @obs and pass that loyalty along to your
customers.
2. E"ployee Trai$i$g. +rain employees in the manner that you want them to
interact with customers. =mpower employees to ma/e decisions that benefit the
customer.
#. Csto"er I$+e$ti5es. (ive customers a reason to return to your business. ,or
instance, because children outgrow shoes Cuic/ly, the owner of a childrenNs shoe store might
offer a card that ma/es the tenth pair of shoes half price. ;i/ewise, a dentist may give a free
cleaning to anyone who has seen him regularly for five years.
6. Pro#+t Aware$ess. Dnow what your steady patrons purchase and /eep these items in stoc/.
.dd other products andMor services that accompany or compliment the products that your
regular customers buy regularly. .nd ma/e sure that your staff understands everything they
can about your products
5. Relia!ility. If you say a purchase will arrive on Wednesday, deliver it on
Wednesday. :e reliable. If something goes wrong, let customers /now immediately and
compensate them for their inconvenience.
<. Be (le9i!le. +ry to solve customer problems or complaints to the best of your ability.
=3cuses N such as O+hat's our policyO N will lose more customers then setting the store on
fire. Read our 60 'econd (uide to !anaging &pset 6ustomers for more information.
?. People o5er Te+&$ology. +he harder it is for a customer to spea/ to a human being
when he or she has a problem, the less li/ely it is that you will see that customer again.
-0. 0$ow T&eir a"es. Remember the theme song to the television show "heersN (et to
/now the names of regular customers or at least recogni0e their faces.
Bil#i$g loyalty t&rog& a#5o+ati$g +ertai$ esse$tial
%a+tors6
6ustomers are constantly changing B their e3pectations also rising. 6onsumer
behavior in the organi0ed retail industry has altered drastically in the last few years. +he
retail mar/et is growing not only in terms of nos. but also in terms of stature, image B
class. .longside with Indians becoming world class service. 'o it becomes vital for retailers
to pay attention to every little detail in order to be successful. +his can be done by providing
a good brand B store e3perience. ,or this in general the retailer will have to loo/ into
various aspects such asG
+iming of the store
In store design B layout Welcome the customer receives +he ability to browse easily
+he behavior B product /nowledge possessed by sales persons
+he facility for ma/ing payments
+he attractiveness of the loyalty programs
+he pac/aging B +he e3it.
.ll these above aspects are really very important for the customer to e3perience
delightful shopping e3perience in the mall. If not handled well, it could result in a
disgruntled consumer ,
who will spread a bad wordofmouth. 1n the contrary, if the overall brand B store e3perience is
positive B pleasant , the retailer may gain a flow of customer who would li/ely to patroni0e
the outlet again B again. ,urther it is also li/ely that the popularity of the store increases
through word of mouth.
How to i"pro5e C-STOMER LO)ALT) i$ orga$i@atio$=
'trong customer service is the bedroc/ for creating loyal customers. !a/e it a priority by
properly training your staff and continually reinforcing the message that the customer comes
first. Lou can also let your customers /now that you value their business by reaching out to
them through newsletters, postcards, and email, so they're aware of seasonal sales and special
products. Install a strategy for responding to customer inCuiries and complaints and create a
fair, fle3ible return policy. ,inally, once you've developed a rapport with loyal customers,
you can reward them with special discounts on products or services.
;oyalties schemes are different for different organi0ations. :asically loyalty schemes
are there for the e3isting customers or for coming customers for their benefits.
In CENTRAL for loyalty scheme there is a card named #$%&%'( ")'*. &his card we
called it as a credit card which is powered b! +"+"+ "'(*+& card. +he customer can collect
it from any I6I6I ban/ branch or from any *.A+.;11A8' outlets. Its available all over.
+his future card can be applicable in any store or mall comes under ,&+&R= (R1&*.
.nyone whose monthly income is above min.#000 can be a part of this loyalty card.
Aaj se 0&ar+&ey ban gaye Aa"ai B
.part from this 6=A+R.;8s goes with various loyalty services such as ,R== redeem of
par/ing coupons, free alteration to all customers, sometimes free home delivery to customers
etc. this is the loyalty scheme run by 6=A+R.;. +he main benefit beyond this future card is
you can use this card in various outlets run by ,&+&R= (R1&*P .part from this as we tal/
about other player in retail sector '91**=R' having ,IR'+ 6I+I>=A card. IA)I. :&;;
!=(. '+1R= having **64pyramid power club7 which goes with loyalty card. :efore
,&+&R= 6.R) there were 6=A+R.; 6.R) which is only applicable for 6=A+R.;8'
purpose. It is a loyalty card for 6=A+R.;8' customers. ,ollowing are some details about
6=A+R.;8s card.
=3clusive :enefits
Q (et 0% =!I option for purchases more than Rs. $,000M at 6entral.
Q (et free gift voucher of 6entral worth Rs. "#0M with the offer boo/let.
Q =arn 2 reward points for every Rs.-00M spent at 6entral. .lso earn - reward point for
every Rs. "00M spent at merchant establishments other than 6entral.
Q *riority *ayment 6ounters at 6entral for cardholder to save valuable time.
Q 6ardholder gets priority to view the product launches and seasonal collections at 6entral.
Q (et -" free coffee vouchers on approval of card.
Q +he 6ardholder will get access to select airport lounges across the country
with complimentary snac/s and nonalcoholic beverages.
+hese were all the benefits provides by 6=A+R.;8' card. +his type of card really change the
mind of customer towards the ;1L.;+L.
3 COMPANY PROFILE
Abo u t Fu tur e G r ou p
,uture (roup is one of the country8s leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. +he group8s
flagship company, Pantaloon Retail (India) Limited operates over 6 million sCuare feet through 2#0
stores in 2# cities. 'ome of its leading retail formats include, ,antaloons, Big Ba-aar, "entral, $ood
Ba-aar, .ome &own, e/one, *epot, $uture 0one! and online retail format, futureba-aar.com.
,uture (roup companies includes, $uture "apital .oldings, $uture 1enerali +ndia, +ndus 2eague
"lothing and 1ala3! (ntertainment that manages Sports Bar, Brew Bar and Bowling "o. ,uture
6apital 9oldings, the group8s financial arm, focuses on asset management and consumer credit.
It manages assets worth over $- billion that are being invested in developing retail real estate and
consumerrelated brands and hotels.
+he group8s @oint venture partners include +talian insurance ma4or, 1enerali, $rench retailer
(&)0 group, %S-based stationar! products retailer Staples +nc, %5-based 2ee "ooper and +ndia-
based &alwalars, Blue $oods and 2ibert! Shoes.
,uture (roup8s vision is to, IDeliver Everyting! Every"ere! Every time to Every Indian
#on$umer in te mo$t pro%itable manner.J +he group considers HIndian&ne$$8 as a core value and its
corporate credo is Rewrite rules, Retain values.
Pa n t a l oo n Ret a i l (I nd i a ) Limit ed
*antaloon Retail 4India7 ;imited, is India8s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer mar/et.
9eadCuartered in !umbai 4:ombay7, the company operates over 5 million sCuare feet
of retail space, has over -000 stores across #$ cities in India and employs over "#,000
people.
+he company8s leading formats include ,antaloons, a chain of fashion outlets, Big
Ba-aar, a uniCuely Indian hypermar/et chain, $ood Ba-aar, a supermar/et chain, blends
the loo/, touch and feel of Indian ba-aars with aspects of modern retail li/e choice,
convenience and Cuality and #entral, a chain of seamless destination malls. 'ome of
its other formats include, *epot, Shoe $actor!, Brand $actor!, Blue S!, $ashion Station,
)22, &op 67, mBa-aar and Star and Sitara. +he company also operates an online portal,
%utureba'aar.(om.
. subsidiary company, 9ome 'olutions Retail 4India7 ;imited, operates 9ome +own, a
largeformat home solutions store, 6ollection i, selling home furniture products and =>one
focused on catering to the consumer electronics segment.
I NTERNATI ONAL C NATI ONAL A, ARDS
*antaloon Retail was recently awarded asG
-. International Retailer o% te )ear 2**+ by the ,-&ba$ed .ational Retail Federation ( .RF)
2. /e Emerging 0ar1et Retailer o% te )ear 2**+ at te 2orld Retail #ongre$$ eld in 3ar(elona.
$. 3e$t o% te 3E-/ RE/AILER 2**4 5 2**+! by A-IA PA#IFI# /6P 7**! -I.GAP6RE.
2. 3u$ine$$ Leader$ip A"ard in retail by .D/8!
#. Reader$ Dige$t /ru$ted 3rand$ Platinum A"ard.
6. #.3# A2A9 mo$t pre%erred Large Food 5 gro(ery -uper mar1et.
,antaloon 'etail is the flagship company of Future Group, a business group catering to
the entire Indian consumption space.
CENTRALDS
;aunched in !ay 802, 6entral is showcase, seamless mall and the first of its /ind in India. +he thought
behind this pioneering concept was to give customers an unobstructed and a pure shopping e3perience
and to ensure the best brands in the Indian mar/et are made available to the discerning Indian
customer.
6entral offers everything for the urban aspiration shopper to s&op< eat a$# +ele!rate. ;ocated in
the heart of the city, 6entral believes its customers should not have to travel long distances to reach
usF instead we must be present where customers freCuently visit.
In a short span of its e3istence 6entral has revolutioni0ed and redefined the shopping e3perience in
India. .t 6entral, customers no longer only shop, they get '91*
.+.IA=)P
# e n t r a l $ tr a t e g y
$ig 8.6
centralstrateg!
)ppl!ing the 'etailing concept in 'elation to "entral
-. #u$tomer 6rientation E central determine the attribute and needs of it's customers.
". #oordinated E%%ort E central integrates all plan and activities to ma3imi0e efficiency. .ll the
employees ma/e their best service to customer.
$. 8alue Driven E central offer good value to customers whether it to be discounter or up sale
this means having the price appropriate for the level of product and customer service
2. Goal 6rientation central set goals and then uses a strategy to attain them. central set goal to
achieve the one hundred crore target in "00<.
:
e
e
,
/
a
c
2

-trategi( Planning in Retailing
. retail strategy is overall plan that guide a firm. It consists of situation analysis ob@ectives
identification of customer mar/et, broad strategy specific activities, control and ,eedbac/.
Situation )nal4sis
=/>ecti?es
=rganisational mission
=5ners%i (anagement alternati?es
*oo,s@Ser?ices Categor4
Sales
6rofit
Satisfaction of 6u/lics
Image
I,entification
(ass (ar2eting
Concentrate,
(ar2eting
<ifferentiate,
(ar2eting
=?erall
Strateg4
Controlla/le Aaria/les
Uncontrolla/le Aaria/les
Secific acti?ities
<ail4 an, S%ort term =erations
Resonses of en?ironment
Control
1?aluation
),>ustment
1lement of Retail Strateg4
Fig 3.2 retail strategy

1b@ectives are the retailer's long term and short term goal. . firm may pursue one or more of their
ob@ectives 'ales 4growth, 'tability and mar/et share7 *rofit 4level, return on investment, and
efficiency7 'atisfaction of public 4'toc/holders, consumers and others7 and image pinioning
4customer and industry perception7 . Ae3t consumer characteristics and needs are determined and a
retailer elects a target mar/et. . firm can sell to a broad spectrum of consumers 4!ass !ar/eting7
>ero in an one consumer group 4concentrated !ar/eting7 or aim at two or more distinct group s of
consumers 4differentiated mar/eting7 with repeated retailing approaches for each.
. broad strategy in then formed. It involve controllable variables 4aspects of business a firm can
directly affect7 &ncontrollable variable 4factors of a firm cannot control and to which it must adapt7
C o$ t r o ll a ! le > a r i a ! le s - $ + o$ t r o l la! l e > a r ia ! l e s
-. 'tore ;ocation -. 6onsumers
". !anaging business ". 6ompetition
$. !erchandise management
and pricing
$. +echnology
2. 6ommunicating with the 2. =conomic 6ondition
6ustomer #. 'easonality
#entral 0all
#ontrollable 8ariable$ o% :Pune (entral;
Store Location *
1. %t +o,er t-e cu.to#er o" .-,a/nagar0 aun!-0 1 nort-*
we.tern 2art o" Pune0 w-c- -a. e#erge! a. an %T -ub.
2. +entral 2ro,!e. a co#2lete .-o22ng .er,ce "or a #a/or 2art o"
con.u#er .-o22ng.
6entral also include for certain type of home wares B other thing.
0 anagi n g o% 3 u $ in e$ $ E
+he record area of strategic planning managing a business into two ma@or element human resources.
/e Retail 0anagement !anagement loo/ li/e promotion, display are very good at central there
are special promo area for different event.
'pecial price policy li/e 3uy 2 get$ one Free.
.t the end of wee/ central give special offer in merchandise.
0er( andi$ e 0anagem e nt and Pr i(i ng<
Produ(t 0i= E 6entral /eep all the category of merchandise. )ifferent choices of
merchandise are in the !ore is according to their classification.
Pri(e 6entral charge mediumB high price but offer wide range of deep assortment. With regard
to pricing central choose several pricing techniCues 4such as leading following, cost plusMdemand
oriented and so on7 then decide what range of price is set, consistent with the !ore is image and
Cuality of goods and service offered.
, n ( on t r ol l ab l e 8 a r i ab l e $ <
#on$umer$ :asically central target upper mediumB high class people .ccording to this
central learns about its target mar/et and from a strategy consistent with consumer trends and
desire. 'electing a target mar/et is within a retailer's control but the firm cannot sell goods or services
that are beyond the price range of its customers not wanted, or not displayed or advertised I n
proper manner.
# o m p e tition - 6ompetition in retail sector increasing in India. Retail industry even organi0ed retail
is fragmented industry in India. =very region has local competitors 4!argin ,ree in Derala,
'ubi/sha ,Ailgiri in 6hennai7 :ig :a0aar , Reliance and 'pencer are close rivals of !ore ma/e a
good presence in !aharashtra while R.*.(. ma/e good presence in south India.
(overnment has gave the approval ,.).I. in retail sector so it will increase competition n retail
rector wall !art R.6 *enny, !ar/ B 'pencer could inter in Indian !ar/et.
/ e ( no l ogy In today's world of retailing technology is advance rapidly. 6omputer system is
available for inventory control and chec/ out. 1peration. :ar coding has revolutioni0ed merchandise
handling and inventory control.
E ( o n om i ( # ond i ti o n$ : =conomic condition of India is more better than one decade before. *er
capita income as increase by #."% in this fiscal year. (.).*. also increase people have more
disposal income. &nemployment Interest rate, inflation ta3 levels and the annual gross )omestic
product 4()*7 are Rust some economic factors with which a retailer copes and which it cannot change
In outlining the controllable to consider and adapt to forecast about international, national state and
local economics.
; ,OR0 DONE
Un!er.tan!ng t-e Retal o2eraton..
In 6entral !all, there are 2 floors and each floor is divided into each segment .
Ground %loor is having all international brands li/e ;acoste , +ommy 9ilfiger , Aautica and some
electronic stores li/e Ae3t B Ao/ia and many more.
Fir$t %loor is having ladies and /ids section and 'hoes section .
-e(ond Floor is for all !en8s formal dressings li/e .rrow, =3calibur, *eter =ngland,
&rbana,Kan 9ausen, Wills lifestyle etc. and we also have ethnic wears also in which we have
.//riti and !anyawar.
/ird Floor is for 6asual8s wearing and 9ome ,urnishing also in casuals we have brands li/e
*rovogue, 'tatus Cuo, ! 'Cuare, *roline and many more brands.
Fourt Floor is divided into " segments. - is for ,ood court named as I'poon the food courtJ
and another section is for Food ba'aar in which you can get all the ,!6( goods .
+hese are the segments and floors in which 6entral !all is divided. +his pro@ect basically
focuses on $rd floor which is /nown for ,1R!.;8' '=6+I1A.
In each floor there is the ,loor !anager, .)!4asst. departmental manager7, +eam leader,
6'.8s. all these people wor/ing for a floor.
+here are basically 6 *.R.!=+R=' 1, R=+.I; 1*=R.+I1A'. +hese are the parameters
which is to be followed and maintained by every organi0ation .
- '+16D.
" '+.,,.
$ 6&'+1!=RB 6&'+1!=R '=RKI6=.
2 '.;='.
# KI'&.; !=R69.A)I'IA(.
6 !.RD=+IA( B *R1!1+I1A.;
=K=A+'.
STOC0
'toc/ is very essential part of operation. We should /now about the stoc/ presence on the floor.
1n which brand we have a full option B cut option .so we have to ma/e option plan of the floor
every !onday.
We ma/e stoc/ reCuirement also of those product which is fast moving B on demand items.
. manager should also aware about each and every brand reCuirement and he has to ma/e sure about
the refilling and replenishment of the stoc/ . +he stoc/ has to be refilled accordingly. 'ometimes some
of the items are not moving in brands then we send it bac/ to the vendors or sometimes we
send it to :rand ,actory.
Pro%it Ma9i"i@atio$
In Retail industry at the end of the day the one thing which matters is only one thing that is profit .
In central for earning profit we daily distributed the targets for each and every brands and these
brands have to perform better for the achievement of the their targets . +hey also got there brands
targets on monthly , Cuarterly and yearly bases . ,or the achievement they do hard wor/ and if
they succeed in achieving their targets then they get incentives according to their contribution.
-ta%%
In 1perations 'taff plays a important role in achieving the targets . 'ales e3ecutives are the persons
which are directly interacted to the customer and they /now what the customer actually want.
6ustomer can8t meets to the !anagers directly.
'o it8s necessary that staff should be well groomed B interactive to the customer.
We daily chec/ the grooming of staff @ust li/e hair cut, clean clothes, etc B their eye contact, body
language, communication s/ill etc.
We should train the staff time to time li/eG
Q 9ow to communicate with customersN
Q 9ow to increase the sellingN
Q 9ow to ma/e the customer to purchase moreN
#u$tomer 5 (u$tomer
$ervi(e
6ustomer is most important thing in retail
.
In retail, this idea of focusing on the best current customers should be seen as an ongoing
opportunity. +o better understand the rationale behind this theory and to face the challenge,
we need to brea/ down shoppers into five main typesG
Q Loyal #u$tomer$G +hey represent no more than "0% of our customer base, but ma/e up more than
#0% of our sales.
Q Di$(ount #u$tomer$G +hey shop our stores freCuently, but ma/e their decisions based on the si0e of
our mar/downs.
Q Impul$e #u$tomer$G +hey do not have buying a particular item at the top of their I+o )oJ list, but
come into the store on a whim. +hey will purchase what seems good at the time.
Q Nee#&3a$ed #u$tomer$G +hey have a specific intention to buy a particular type of item.
Q 2andering #u$tomer$: +hey have no specific need or desire in mind when they come into the
store. Rather, they want a sense of e3perience andMor community.
If we are serious about growing our business, we need to focus our effort on the loyal
customers, and merchandise our store to leverage the Impulse shoppers. +he other three types
of customers do represent a segment of our business, but they can also cause us to misdirect
our resources if we put too much emphasis on them. We can delight our customer if we
give them better service. In 6entral8s we give some following service to our customers G
Q *iscounts.
Q 1ift wrapping.
Q Some time we do home deliver! also
Q (3change in 9 da!s.
Q $ree alterations.
>IS-AL MERCHANDISE: Kisual !erchandising is the art of displaying
merchandise in a manner that is appealing to the eyes of the customer. It sets the conte3t of
the merchandise in an aesthetically pleasing fashion, presenting them in a way that would
convert the window shoppers into prospects and ultimately buyers of the product. . creative
and talented retailer can use this upcoming art to breathe in new life into his store products.
Kisual merchandising is acted as a silent communicator to the customer. +he main function
of K.! is to aware about what merchandise is available in store. Kisual merchandising
includes window displays, signage8s, interior displays, cosmetic promotions and any other
special sales promotions ta/ing place.
K.! also helps to customers as E
Q =ducating the customers about the productMservice in an effective and creative way.
Q =stablishing a creative medium to present merchandise in $) environment, thereby
enabling long lasting impact and recall value.
Q 'etting the company apart in an e3clusive position.
Q =stablishing lin/age between fashion, product design and mar/eting by /eeping the
product in prime focus.
Q 6ombining the creative, technical and operational aspects of a product and the business.
Q )rawing the attention of the customer to enable him to ta/e purchase decision
within shortest possible time, and thus augmenting the selling process.
-ale$
9ow will you survive and grow in profitability in today's very competitive mar/etplaceN
"onsider these facts.
-. Lour margins are already stretched.
". Lou're stretching your advertising dollars as far as they'll go.
$. Lou don't have the brand or product loyalty that you once had.
&hen how will !ou compete:
It's simpleP
Lou'll compete by ma3imi0ing your greatest source of productivity your people>
;oo/ at these realities.
-. ,ew companies budget sufficient dollars to professionally train their sales and customer contact
people.
". !ost retail salespeople are poorly trained in professional selling s/ills.
$. !ost training is product training.
2. 1ldfashioned sales techniCues are outmoded and contribute to turnover and poor @ob performance.
.s a !anager we have to loo/ up following thing, so that we /now about our actual selling B
achievement of our targetG
Q 2al1 in$ no. of customers is coming in our mallN
Q Ao. o% bill$ how many customers are purchasing out of themN
Q Average bill value total saleMno. of bill
Q Floor (ontribution to"ard$ mall for e3. ,loor $ contributes -# to-5 % of mall selling.
Q -pe(i%i( brand$ (ontribution to"ard$ mall Kan hausen, .rrow etc. is the brands who are
contributing higher in floor $.
Q -?. %eet return o% te brand each brand has to provide a specific area in sC. feet
Sales i$ "o$t& Es'. %eet area Fs' %eet retr$ i$ "o$t&E $o. o% #ays.
Ma$agi$g Pro"otio$s< E5e$ts< Allia$+es a$# part$ers&ip:
In order to ensure the success of an event or promotion, it is necessary that the store where action
is to ta/e place be geared for the same.
!anaging alliances and partnership with local partners is also an important part of store
operations.
)isplay of merchandise and point of purchase material has to be managed at the store level. .n integral
part of managing a super mar/et is an understanding of fresh produce and its storage needs and
replacing the product when needed. 6ontrol of perishables and sanitations are two important aspects of
the operations of the store. )uring my pro@ect in central they organi0ed event named as I+9= (R=.+
,R=A69 .,,.IRJ. +he main purpose of this event was to get familiar our customers with the Fren(
(ulture. :y celebrating this festival they tried to e3perience the ,rench culture.
0ar1eting promotion5 event$
It can be defined as strategic and tactical planning program and the attendant e3ecution e3ercises for a
brand using the full mi3 of communication.
4S&ort ter"4 Co$s"er pro"otio$ +a$ #o
-. Increase sales
". :uild !ar/et share
$. (enerate awareness and trial of new brand
2. 'timulate retrial
#. =ncourage repeat purchases
6. (enerate purchase continuity
5. *rovide alternate usage suggestions.
<. 'timulate tradeup to larger si0es
?. +emporary ad@ust pricing
-0. )efense against competitive activity
--. =3cite the sales force.
+he three main events organi0ed there wereG
-. +he (reat ,rench affair.
". Louth bu00.
$. =1'' 4end of season sale7.
In the 1reat (re$+& A%%air, they were in focus to =3perience the glamour of =iffel +ower at
6entral
2ine /a$tingG 6ome get a heady taste of the finest ,rench wines on all wee/ends.
Fren( Fea$tG Watch mouth watering ,rench delicacies being whipped up by a renowned chef on
all wee/ends.
Le Pa$try< )electable ,rench pastries will have you begging for more.

Pari$ Run"ay< ;atch the leading models si--le on the ramp in designer $rench collections
on 0a! 69th & <=th <77>.
Fren( 0a1eover: 1et a stunning ?@oh la la? $rench St!le maeover.
La /roupe: Si--le, Shae and "heer with $rench "ancan dances on 0a! 67th <77>.
Dan(e #la$$e$< 2earn charming $rench moves from leading dancers on all weeends
Art De Portrait : 1et !our portrait setched b! a true blue $rench
)out bu'' <
*ouble !our shopping.
*ouble !our eat
*ouble celebrate
Louth bu00 offering you no. of discounts B offers li/e
Q )enim e3change mela.
Q !agic wee/end
Q 1ffering apparels li/e future 6.=.1., 'aturday night fever.
1verall response from the customer was good.
E6--< (E.D 6F -EA-6. -ALE)
/@E 3IGGE-/ DI-#6,./ #@ALLE.GE 3)
#E./RALA- @APPI.E-- -ALE ,P/6 7*B 6FFC
:asically =1'' means stoc/ clearance sale. )uring this period there were huge no. of discounts
are over there.
)uring this sale period huge crowd was there, because of discounts on each and every item. !ain thing
in this period is stoc/. :efore -0 days of the sale period we send reCuirement of the stoc/ to each and
every company for this period. !ain wor/ during this season is to manage all thing including
signage8s, proper updates of offers. +here were special offers on -#
th
,-6
th
,-5
th
.&(&'+ because of
IA)=*=A)=A6= ).L, R.D'9. :.A)9.A.
G DATA ANAL)SIS
Resear+& 6
O!*e+ti5e6 +o collect data for COMPARATI>E ANAL)SIS wit& respe+t to ot&er stores i$ Del&i
PARAMETERS DELHI
CENTRAL
TRAL
ME1A MART
Pri+e GH 8H
Bra$#s
A5aila!le
2H 8H
Pro#+t Ra$ge ;; 8;
Trial Roo"s
5#
2;
O%%ers IH 7H
Csto"er
Ser5i+e
8; /;
E5e$ts J8 HG
A"!ie$+e / /
(oo# +ort 8H 2H
Loyalty s+&e"e / H
Ta!le $o. 7.8
I$terpretatio$ C Co$+lsio$ 6
,rom the above comparison chart and comparing the factors in both the !alls, we can say that on
the basis of price as a parameter 60% people li/es to shop in 6=A+R.;8s. +he main reason behind
is the in house brands of *.A+.;11A' which are really very affordable to everyone who comes
for shopping B wide range of options B sufficient space for each and every brand B good service.
.s compare to product range there is close competition. 'o 6=A+R.; have to /eep focus on each B
every brands.
,rom the above chart we can say that on the basis of brands available <0% people prefer to shop in
!egamart. +he reason is availability of various brands as more space for each and every brand, wide
range of options.
.lso 50% people feel the offers in 6=A+R.;8' are really good B attractive. 'o customers are
satisfied with the offers that 6=A+R.;8' launches at regular intervals.
1n the basis of chart, we can see that
<#% people feel that the service 4free alteration, e3change policy, staff suggestions, redeem par/ing
coupon etc.7 given by 6=A+R.;8' are much better as compared to other store. 'o they should
/eep enhancing the loyalty program and should /eep in mind that customer is the /ing so we need to
provide best services to /eep the customers loyal.
.lso we can interpret from the above chart that ?0% people feel that events organi0ed in 6=A+R.;8' is
better than other store. =ven !ega !art has very less focus on organi0ing these events. 'ome of the
events include (re$+& A%%air< )ot& B@@ etc.
We can interpret from the above chart that <0% people feel that the ,11) 61&R+ in
6=A+R.;8' is better than the other store. :ecause only 6=A+R.;8' goes with the concept that ,
I'91* ,=.+, B 6=;=:R.+=J.
I RECOMMENDATION6
.s per this data, the price range, offers, =vents, ,ood 6ourt B 6ustomer service are
the bac/ bone of 6entral8s but there is a wide deficit in the field of product B brands
availability to the customer.
6entral8s have very less variety available to the customer. +hus 6entral8s have to
focus on enhancing various product range. +hey should not only focus on In9ouse
brands but various other brands available in the mar/et.
6onsidering the various enhanced features, 6ustomer service and various events B
offers available to the customer is a strong opportunity for 6entral8s. +he 6ustomer
service basically increases the ;oyalty. +hus 6entral8s should /eep focusing on
enhancing the 6ustomer service. Karious events B offers attract the customer. +hus
various offers should be introduced in the premises to attract more of the customer and
then by providing great customer service, the customer satisfaction can be increased to
a larger e3tent which would increase the 6ustomer ;oyalty and ;oyalty is an important
factor in increasing the profitability of any organi0ation.
8 ILIO!RAP"Y
,EBSITES
www .r e ta il bi 0 . c om
www . g o o g le . c om
www .r e ta il y a tr a . c om
www . w i/ ip i d e a . c o m
www . ti m e s o f i nd i a . c om
www . ec o n omi c tim es . c om
www .f u t u r e b a 0 a a r. c om
BOO0S C MA1A?INES
o Retail management boo/ by 69=+.A :9.(.+
o :oo/ IR=+.I;IA(J by *.+RI6D ! . )&AA=
o I6,.I R1&RA.;'.
o 9.RK.)' R1&RA.;'
o !.RD=+IA( !.A.(=!=A+ :L *9I;I* D1+;=R

Resear+& 6
K-ESTIONNARE
O!*e+ti5e 6 +o collect data for COMPARATI>E ANAL)SIS wit& respe+t to ot&er store
i$ DELHI 3ME1A MART4
Sa"ple si@eG #0 customers.
K./4 ,&i+& store yo %i$# t&e pri+e !est=
K.24 ,&i+& store yo %i$# t&at t&ere is a goo# ra$ge o% !ra$#s a5aila!le= L
K.74 ,&i+& store &as a goo# pro#+t ra$ge a5aila!le=
K.84 ,&i+& store &as a goo# trial roo" %a+ility=
K.;4 ,&i+& store &as got goo# pro"otio$al o%%ers=
K.G4 ,&i+& store pro5i#es t&e !est ser5i+e=
K.I4 ,&i+& store &as orga$i@e goo# e5e$ts=
K.84 ,&i+& store &as goo# a"!ie$+e=
K.J4 ,&i+& store &as goo# %oo# +ort=
K./H4 ,&i+& store &as goo# loyalty s+&e"e=