Topic- To open a retail store in Jaipur, Rajasthan

Retail Store Management

Submitted by Submitted to

Pramod Awasthi Mr. Manish Rajput Sir

RS1905A07

10904592

LSM

May 6, 2010

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 ACKNOWLEGEMENT

A person can't do anything on his own without any kinds of guidance. Since the childhood it
always requires guidance and help of others to achieve success in his mission. Similar It has been
a great challenge for me knowledge on the way preparing this Store Management project. I
would not succeed without my respected teacher Mr. Manish Rajput, who provided me
guidelines and prepared to give me feedback when I needed it.
I am greatly indebted to Project Guide Mr. Mr. Manish Rajput the inspiration and guidance
that he has provided me during the prepare this term paper. I am really very thankful to all the
people who have helped me to complete this project.

Thank You
Sir! By: ~
Pramod Kumar Awasthi
Date___________

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 Contains Table of Contents

*Introduction ………………………………………………………..04

*Environment………………………………………………………..06

*Location……………………………………………………………07

*Layout……………………………………………………………...09

*Material Handling………………………………………………….11

*Merchandise Mix…………………………………………………..17

*Inventory planning & control……………………………………..23

*Storage systems…………………………………………………….28

*Safety & Security…………………………………………………..29

*Legal aspects………………………………………………………..31

*Stores records ………………………………………………………33

*References…………………………………………………………..35

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 *Introduction*

*Launching My Own Business*

Most successful small businesses provide something attractive or advantageous by taking what's
already there and developing some innovative features. I will be developed with an improved
technique for delivering goods and services to the market.
A new retail business needs to be where the customers are. We need such a location with a
reasonable degree of security, access to public transportation for my customers and employees,
adequate parking for commercial as well as personal vehicles.
India has often been called a nation of shopkeepers. Most probably the reason for this is, a large
number of retail enterprises exist in India. In 2004, there were 12 million such units of which
98% are small family businesses, utilizing only household labor. Even among retail enterprises,
which employ hired workers, a majority of them use less than three workers. Retailing is the
combination of activities involved in selling or renting consumer goods and services directly to
ultimate consumers for their personal or household use. In addition to selling, retailing includes
such diverse activities as, buying, advertising, data processing and maintaining inventory.
I will be open my retail store in allotted state i.e. Jaipur in India.

Industry Retailing
Store name A-Mart (value Format)
Founder P.K. Awasthi (2010)
Venue Jaipur, Jaipur (India)
Employee 30
Form of Ownership Independent Retailer
Store type Discount Stores & Grocery Stores

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 About Rajasthan

Rajasthan is situated in the North Western part of India and shares geographical boundaries with
Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat in India. It also has a long
international boundary with Pakistan. It has a total area of 342,214 sq. km and is the largest state
in the country. About 4500 sq. km area of Alwar district of Rajasthan is included in the National
Capital Region (NCR). The National Capital Region (NCR) centred around New Delhi, the
Indian capital, is being developed in an integrated manner as an industrial growth centre with
considerable Central Investment in infrastructural facilities. Seven Industrial Areas in the district
of Alwar fall within this region and are 50 - 100 kms from New Delhi
Archaeological and historical evidence shows a continuous human habitation of the area dating
back 100,000 years. Between the 7th and the 11th century AD, several dynasties arose, with
Rajput strength reaching its peak at the beginning of the 16th c. Emperor Akbar brought the
Rajput states into the Mughal empire; by early 19th century, they allied with the Marathas.
Later, the British established paramountcy in the region. Raj- asthan soon emerged as a centre of
Indian nationalism. When the new constitution went into effect in 1950, Rajput princes
surrendered their powers to the Indian Union.

About Jaipur

Jaipur, popularly known as Pinkcity, was built in 1727 AD by Maharaja Sawai Jai Singh II and
designed by the brilliant young Bengali architect Vidhyadhar Bhattacharya. Designed in
accordance with Shilp Shastra - an ancient Hindu treatise on architecture - Jaipur follows a grid
system. The wide straight bazaars, streets, lanes, mohallas and uniform rows of shops on either

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side of main bazaars are arranged in nine rectangular city sectors called chaukris. Total
population of Jaipur is 6690531 in 2009.

Store retailing

Store retailers operate fixed point-of-sale locations designed to attract a high volume of walk-in
customers. In general, stores have extensive merchandise displays and use mass-media
advertising to attract customers. They typically sell merchandise to the general public for
personal or household consumption, but some also serve business and institutional clients. These
include establishments such as office supply stores, computer and software stores, building
materials dealers, and plumbing and electrical supply stores.

*Environment*

The people of Jaipur are well educated and professional. There is self-respect in every man of
Jaipur, they are after all the sons of kings. Jaipur is a insensitive, scorched land of savage
summer heat but also full of the brightest colors. So there is a lot of scope of growing market, we
have an opportunity to open a new retail store in Jaipur. We seek an opportunity that they have
zeal to spend money because their living standard and life style. Even in everyday life today,
the Rajput's sense of honor, family and tradition come foremost.

Jaipur has made its contribution to Indian art; there is a rich literary tradition. A popular source
of entertainment is the dance drama composed in poetry with festive, historical, or romantic,
which is performed on festive occasions only by women.

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So now seeing the opportunity we decide to open a retail store in Jaipur and I will be provided
grocery items with the all kinds of merchandise which fulfilled the daily routine requirements of
the costumers.

*Store Location*

Location is critical to the success of a retail store. A store's trading-area is the area surrounding
the store from which the outlet draws a majority of its customers. The extent of this area depends
upon the merchandise sold. On deciding the trading area a specific site must then be consider
some factors which affecting the site include, traffic patterns, accessibility, competitors' location,
availability and cost and population shifts within the area. The best retail location combines
visibility, affordability and lease terms you can live with. Brick-and-mortar retailers need to be
where the action is, so deciding where should we go to put our business is very important.

Take the time to analyze the areas that appeal to me, to open there are three phases of choosing a
location for retail business:

*Selection of a city

*Choice of an area or type of location within a city

*Identification of a specific site.

We will consider these factors in choosing a city we will investigate these main factors:

*Size of the city's trading area

*Population and population trends

*Total purchasing power and who has it

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*Total retail trade potential for different lines of trade

*Number and size of competition

*Quality and aggressiveness of competition

After getting a general idea of Jaipur city we like, choose an area or type of location within a city
by evaluating these:

*Customer attraction power

*The nature of competition

*Availability of access routes to the stores

*Zoning regulations

*Geographic direction of the city's expansion

*General appearance of the area

*Sales and traffic growth prospects of the trade area

*Demographics of neighborhoods

We will avoid these factors because these factors in narrowing down our site choices:

*Traffic flow

*Complementary nature of neighboring stores

*Adequacy of parking

*Vulnerability to competition

*Cost of the site

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 *Layout*

Store Image

A store image is the mental picture, or personality of the store, retailer likes to project to
customers. Image is affected by advertising, services, store layout, personnel, as well as the
quality, depth and breadth of merchandise. Customers tend to shop in stores that fit their images
of themselves.

Store Design

A store's exterior and interior design influence its image and profit potential. The exterior should
be attractive and inviting and should blend with the store's general surroundings. The term
“Atmospherics” is used to refer to the retailer's effort at creating the right ambience.
Merchandise display is equally important. An effective layout guides the customer though the
various sections in the store and facilitates to the purchase power.

For the my store the space required is near about 10,000 to 25,000 sq. ft. So that can provided
better facility to our customer, in terms of huge ails, huge parking space and for the
transportation also, which will made us better than others.

The physical setting and visual indication of our retail business set the stage for the consumer's
experience with us.

In the present era the time of 3-D world, so in this case location, architecture and interior design
are matter allot. Our store plan has two key elements i.e. store design and store layout.

Store design is concerned with atmosphere, image, interior design and exterior design factors.

Store layout involves the internal arrangements of each department, selling and sales support
allocation, and the evaluation of space productivity.

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To set up my store I will consulting with architects, interior designers and lighting engineers. so
that they will work with skillful designers gives you an invaluable resource, Not only will they
know the best location for air conditioners and elevators, but they can help build flexibility into
lighting, sound and wiring systems that will keep you from incurring costs when floor layouts are
altered. Designers keep abreast of the hottest color schemes, materials, sources and trends to a
degree that would be impossible for someone outside the trades to do. We can save our self a lot
of aggravation and a fair amount of money with thoughtful preparation.

Some important factors of Space Allocation

*Show the all merchandise to all customers. The more merchandise customers see, the more they
will attract and buy. We want to design our store to attract customers to visit all departments or
at least to see what the store has and return another time. You can accomplish this objective
through strategic location of signs, special values, escalators, stairs, dressing rooms and certain
merchandise.

*Give choice locations, where inside customer traffic is heavy, to the most profitable items.
High-markup and impulse items should be very visible.

*We will be discouraging the shoplifting. Keep small, expensive items under lock and key, use
convex mirrors where blind spots cannot be eliminated, and install video monitors. By keeping
everything wide open, salespeople can observe everyone in the store.

*Experiment to stay exciting. To accommodate changes in layout and merchandise displays, we

need to have fixtures that are movable and adjustable, so keep this in mind when you're buying
cabinets, shelving, lighting and other furnishings.

*Locate related lines next to each other. Ties should be located close to dress shirts, printers next
to computers, vases next to flowers, and so forth.

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*Locate related departments next to each other. Fashion departments complement each other.
Cosmetics, accessories and jewelry often go well together. Cookbooks and gourmet apparatus
stimulate interest in one another. Departments and merchandise categories should be coordinated
as much as possible for customer convenience and cross-selling.

*Give the most important lines the best locations in your store. Play the winners. Anything that is
moving fast should be exploited in every way.

*Material Handling*

Material handling equipment is all equipment that relates to the movement, storage, control and
protection of materials, goods and products throughout the process of manufacturing,
distribution, consumption and disposal. Material handling equipment is the mechanical
equipment involved in the complete system. Material handling equipment is used to increase
throughput, control costs, and maximize productivity. There are several ways to determine if the
material handling equipment is achieving peak efficiency. These include capturing all relevant
data related to the warehouse’s operation (such as SKUs), measuring how many times an item is
“touched” from the time it is ordered until it leaves the building, making sure you are using the
proper picking technology, and keeping system downtime to a minimum.

Material handling equipment is generally separated into four main categories:

*Storage and handling equipment i.e. Hand trucks, Pallets trucks, roller conveyors and stillage
trucks etc.

*Power Driven Equipment systems i.e. Forklift trucks etc.

*Industrial trucks i.e. Platform trucks and Tractors etc.

*Bulk material handling i.e. Hydraulic equipment and Electromagnets equipment etc.

There are some materials handling equipment given as below…..

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On the basis of our requirement we will use the materials handling tools.

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 *Merchandise Mix*

Merchandising mix is the process of developing, securing, pricing, supporting and

communicating the retailer’s merchandise offering. It means offering the right product at the
right time at the right price with the right appeal.

Here is to identify the merchandise that customers want, and make it available at the right price,
in the right place at the right time. Merchandise Management includes three main steps that is..

*Merchandise planning

*Merchandise purchase

Merchandise control

Merchandise planning deals with decisions relating to the breadth and depth of the mix, needed
to satisfy target customers to achieve the retailers return on investment. This involves sales
forecasting, inventory requirements, decisions regarding gross margins and mark ups etc.
Merchandise buying involves decisions relating to centralized or decentralized buying,
merchandise resources and negotiation with suppliers. Merchandise Control: deals with
maintaining the proper level of inventory and protecting it against shrinkage theft, pilferage etc.

Retail merchandising requires management of the merchandise mix including

Developing the merchandise mix allows the retailer to segment the market and appeal to a select
group of consumers.

*Planning Merchandise Variety

*Controlling Merchandise Variety

*Planning Merchandise Assortment/Support

*Controlling Merchandise Assortment/Support

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*Merchandise Mix Strategies

PLANNING MERCHANDISE ASSORTMENT AND SUPPORT

Must organize the merchandise mix as to the number of different product lines carried Must
decide on:

*Brands

*Sizes

*Colors

*Material

*Styles

*Price

We will make the merchandise mix on the basis of customer’s demand. We will take
merchandise as per need and demand. There are some fallowing example of merchandise, which
would kept in our store.

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FORMAL CASUAL

ACCESSORIES

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FORMAL CASUAL

ACCESSORIES

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BOYS GIRLS

INFSNTS

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MEN WOMEN

CHILDERN

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ALL THE HOME CARE PRODUCTS

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ALL THE GROCERIES

&

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 FOOD PRODUCTS

*Inventory planning & control*

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“An inventory control system uses barcode technology to automate the tracking of merchandise”.
It is also known as, “an inventory control system is a set of hardware and software based tools
that automate the process of tracking inventory” is called inventory management. Modern
inventory control systems are almost exclusively based on barcode technology. Though barcodes
were initially developed to automate the process of grocery store checkout, their ability to
encode a wide variety of alphabetic and numeric symbols makes them ideal for encoding
merchandise for inventory applications. Inventory control systems work in real-time using
wireless technology to transmit information to a central computer system as transactions occur.

After the selections of merchandise, now question arises that, what steps should be taken to
control to the inventory? Our decision to go into retail was based on the desire to meet an unmet
need. Product selection is all about positioning. It's one thing to stock every item in a category.

"Successful inventory forecasting and management comes from being in the business,” There are
no shortcuts or formulas. In the beginning, we went to the manufacturers' reps and asked them
what the most popular items were and what was selling.

Uses of Inventory Control Systems

Inventory control systems are engaged in a wide variety of applications, but they all revolve
around tracking delivery of goods to customers. Inventory control is crucial in retail stores,
especially those with a large number or variety of merchandise items for sale.

*Inventory control is used in warehouses to track orders and shipments.

*For automated order processing.

* Other important applications of inventory control systems are in manufacturing, shipping, and
receiving.

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 Importance of Inventory Control

Inventory control is important issue to ensure the quality control in businesses that handle
transactions revolving around consumer goods. Without proper inventory control, a large retail
store may run out of stock on an important item. A good inventory control system will alert the
retailer when it is time to reorder. Inventory control is also an important means of automatically
tracking large shipments. Inventory control system helps to minimize the risk of error. In retail
stores, an inventory control system also helps track theft of retail merchandise, providing
valuable information about store profits and the need for theft-prevention systems.

Automated inventory control systems work by scanning a barcode either on the item. A scanner
is used to read the barcode, and the information encoded by the barcode is read by the machine.
This information is then tracked by a central computer system. For example, a purchase order
may contain a list of items to be pulled for packing and shipping. The inventory control system
can serve a variety of functions in this case. It can help a worker locate the items on the order list
in the warehouse, it can encode shipping information like tracking numbers and delivery
addresses, and it can remove these purchased items from the inventory tally to keep an accurate
count of in-stock items. All of this data works in tandem to provide businesses with real-time
inventory tracking information. Inventory control systems make it simple to locate and analyze
inventory information in real-time with a simple database search

There are some important tools to check and manage the inventory, which are as follow…

Process of inventory handling…

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 Technology Requires to Inventory Control

Another important consideration for inventory control is store-level supply chain completing
capabilities for retail inventory management, order fulfillment and process tracking. To
transform a store from a distribution endpoint into a supply chain execution point, five key
technology capabilities must exist. These key have to consider in our retail store…..

Inventory management: - Research inventory software that lets us receive goods into the
store electronically and perform and audit quality inspections. If we receive shipments
directly from external vendors, also look for the flexibility to print store-specific price tickets
at the point of receipt.
Order fulfillment: - Make sure that our retail inventory control system offers the ability to
negotiate and accept orders being fulfilled from store locations, and also direct store
associates to pull merchandise from shelves efficiently to either pick and ship, or hold,
depending on the customer delivery model
.
In-store task management: - In addition to inbound and outbound activity enablement, find
an in-store retail inventory software solution that make it easy and efficient for store

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associates to execute tasks that support cross-channel retail sales, including performing
periodic cycle counts and inventory lookups at neighboring store locations.

Supply chain visibility: - We should have instant access to information pertaining to

inbound and outbound shipments ‘from any point in the supply chain current order status’ as
well as inventory for both on-hand and in-transit goods. This information should be flexible
and easy for in-store operators to learn and use.

Business analytics: - It is critical to gather key performance measures from each store to
monitor efficiency and effectiveness over time. Look for retail inventory systems that

automate the collection of execution-centric metrics and consolidate them across all
distribution channels.
So keeping all these point in mind we will control our inventory. So that we can avoid the
error in future prospects.

*Storage System*

A warehouse store is a retail location with a limited variety of merchandise sold in bulk at a
discount to customers. This type of store is also referred to as a "Big Box" or "Price-Impact"
store because of the basic, warehouse style of the interior and the low prices. These stores tend to
feature black text on a yellow background in marketing and in decor. Many warehouse stores are
operated by traditional grocery chains both as a way to attract lower income, value conscious
consumers and to maximize their buying power in order to lower costs at their mainstream stores
Warehouses are used by manufacturers, importers, exporters, wholesalers, transport
businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and
towns. They usually have loading docks to load and unload goods from trucks. Sometimes
warehouses load and unload goods directly from railways, airports, or seaports. They often

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have cranes and forklifts for moving goods, which are usually placed
on ISO standard pallets loaded into pallet racks.

Nature of goods

Stored goods can include any raw materials, components, or finished goods associated with
agriculture, manufacturing, or commerce.

*Safety & Security*

Safety is one of the primary concerns in retail stores .A retail store has its own set of safety and
security needs. Retail safety and loss prevention teams require training in local laws, store policy
and best practices, which filter down to a unique set of job training requirements. Unlike other
security jobs in an industrial or residential building, retail security has to deal with an arrival of

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thousands of customers and this requires special training. Creating and maintaining a safe
environment for workers and consumers is a primary concern of a retail store operation.
Following proper procedures, awareness of hazards and maintenance are some of the key
ingredients for achieving this.

We will discus here some facts which are harmful for the retail store, we have need to avoid
these bad factors, so that we can provide to our customers a fearless environment. Which would
helpful for our store to increase the profitability in both terms i.e. money and image.

There are some safety and security rules and regulation as following…..

*Health and safety

*Crime

*Shoplifting

*Insurance and claims

*Accidents

*Training standards

*Store detectives

*Safety personnel

*Safety in Retail Stores

*Personal Injury

We have needed to avoid these causes to make a batter environment inside the retail store with
out side factors. By considering these issues……..

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1~ Basic safety training should have be to the all employees with in organization.

2~ Shoplifting is a common crime that occurs when someone steals merchandise offered for sale
from a retail store. To decrease the shoplifting we have need to use cctv cameras, Guards
etc…

3~Smoking should be strictly forbidden inside the retail store for avoiding fire accident.

4~To keep all floors, steps, stairs, passage and gangways in goo condition.etc….

5~ Robbery is one of the hazards that retail stores have to contend with.

6~ Security guards and security officers assigned to an active post may find themselves in a
situation where they are required to take a criminal into custody or defend themselves.

*Legal aspects*

There are some legal issues, rules and regulation for starting a new business, which is necessary
to follow these legal issues. Some legal issues are as …………………..

*Employees Provident Funds Act, 1952

This Act provides for the institution of compulsory Provident Fund and Deposit-Linked
Insurance Fund, for the benefit of the employees in factories and other establishments.

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 *Employees State Insurance Act, 1948

This legislation has been enacted to provide benefits to employees in case of sickness, any kinds
of accident maternity and employment injury etc.

*Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)

Act, 1979

This Act has been enacted with an aim to regulate the employment of inter-state migrant
workmen and to provide for their conditions of service.

*Health and Safety

Every business owner has to ensure the health and safety of their employees at the workplace.
This is one of the major concerns of business owners of all businesses, whether big or small.
Such responsibilities are both ethical and legal.

*Employment and Age

It is necessary for every business owner to ensure compliance of age and employment-related
laws along with the health and safety laws applicable to their particular business.

*Buildings and Property

As a small business owner, you need to know the building codes in the district where your
business will be operating. This will ensure that there are no building code violations and that
there are no structural issues or other problems that may invite fines.

*Fair Trading Practices

Fair trading practices help to avoid deceptive conduct and prevent economic injury to consumers
and other businesses. Fair Trade includes unfair competition, false advertising, copyright
infringement, etc.

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 *Licensing and Insurance

It is important that all relevant and necessary licenses pertinent to the business be obtained. The
proper way to proceed in applying for any licenses you need is through your state’s Business
License division.

Some others issues in the starting business…………………..

*The license is valid only for a specified period and requires to be renewed at its expiry.

*Focus on the Customer & dealing with Ethical Issues.

*Social Responsibility

*Supplier Relations & Consumer Relations Employee Relations

*The Organizational Environment should be ethically.

*Stores records*

There are various records used in a retail store. By using the store records we can know about
our inventory, financial position and other cost effective issues.

There are some store records are given as…………

*Stock records

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To know about stock or inventory

*Material receipt register

To know how much material comes into the retail store.

*Gate passes record

*Material receipt note and rejection note

*Stock verification register

Etc………………………………………

Some Steps to Improve our Retail Sales

* To know our self

*Make plan to ahead

*Know the industry

* To understand our customer
*Keep good financial records
*Manage our cash
*Use sound management practices
*Develop a distinctive image
*Control our inventory
*Buy and price for profit
*Learn from the pros

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 *References*

*Books

*Michael levy, Barton A Weitz, Ajay Pandit (2008) 06th edition, Retailing Management, Tata
McGraw-Hill Publishing company, New Delhi

*K S Menon (2009),02nd edition, Stores Management, Macmillan publisher India Ltd..

http://www.barcodesinc.com/articles/inventory-control-system.htm

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hl=en&q=merchandise+mix+strategy+in+a+retail+store&btnG=Search&meta=&aq=f&aqi=&aq
l=&oq=&gs_rfai=

http://www.google.co.in/search?
hl=en&q=+records+of+retail+store&btnG=Search&meta=&aq=f&aqi=&aql=&oq=&gs_rfai=

http://www.google.co.in/search?aq=f&sourceid=chrome&ie=UTF-8&q=about+jaipur

http://en.wikipedia.org/wiki/Jaipur

http://retail.about.com/od/storedesign/Store_Design_and_Layout.htm

http://www.google.co.in/search?
hl=en&q=layout+design+of+retail+store&meta=&aq=f&aqi=&aql=&oq=&gs_rfai=

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hl=en&q=material+handling+of+retail+store&meta=&aq=f&aqi=&aql=&oq=&gs_rfai=

Ahttp://www.everythingwarehouse.net/

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