ASSIGNMENT-4

BY
WOLF OF THE KIIT'S STREET🐺

Assignment on Retail Management Place

Strategy
Q1. What is Organized Retail? What is Modern Trade? Elaborate with examples.
A1. Organized retail is an area which comprises of the organizations which are related with
creation or deals of labour and products that works as private restricted associations which are
administered by organizations act. The organized retail area can be portrayed as follows
1. The retail arrangements are claimed by organizations.
2. Not many of the workers on the finance of the association with others are on agreement.
3. The representatives are administered under the demonstration of least wages.
 Organized retailing alludes to exchanging exercises embraced by authorized retailers, that
is,
the people who are enrolled for deals charge, annual assessment, and so forth These
incorporate the corporate supported hypermarkets and retail chains, and furthermore the
exclusive enormous retail organizations.
 Modern trade includes a more arranged and organized way to deal with dissemination and
operations the board. Modern trade incorporates the bigger players like grocery store
chains, small scale markets (Indonesia), hypermarkets, and so on This includes accumulation
of request across a different item range. EX- Walmart, IKEA, Metro, Big bazar.

Q2. Explain the following Retail Store formats with examples:

i. Convenience Store-A convenience store is a little retail business that stocks a scope of
regular things like nibble food sources, sodas, food, sweet shop, tobacco items, over-
the-counter medications, toiletries, papers, and magazines.
ii. Supermarket-Supermarket, huge retail store worked on a self-administration premise,
selling food, new produce, meat, bread shop and dairy items, and here and there a
grouping of non-food products
iii. Hypermarket-A hypermarket is a retail store that joins a department store and a basic
food item supermarket. ... Probably the most well-known hypermarkets incorporate the
Walmart Supercentre, Fred Meyer, Meijer, also Super Kmart.
iv. Specialty Store-A specialty store is a shop/store that conveys a profound arrangement
of brands, styles, or models inside a moderately limited class of merchandise. Furniture
stores, flower specialists, outdoor supplies stores, and bookstores are all specialty
stores. Stores like Athlete's Foot (sports shoes just) are considered super specialty
stores, like Walmart
v. Department Store-Department store, retail foundation that sells a wide assortment of
merchandise. These normally incorporate prepared to-wear attire and embellishments
for grown-ups and kids, yard merchandise and family materials, little family products,
furniture, electrical apparatuses and adornments, and, frequently, food. Ex: Central
vi. Off-price Retailer-Off-price retailers will be retailers who give superior grade
merchandise at modest prices. They normally sell recycled merchandise, off-the-season

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BY
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things and so on Portrayal: These retailers offer conflicting combination of brand name
and design situated delicate products at low prices Example: Brand factory
vii. Discount Store-A discount store or discount shop is a term that has been utilized after
some time and across various nations for various different retail designs, all of which sell
items at prices that are on a basic level lower than a real or assumed "full retail price".
Instances of these incorporate IKEA for home decorations, Staples for office items, and
Home Depot for equipment and development materials.
viii. Catalogue Showroom-Catalogue showroom usually refers to retail outlets which deal in
hard goods like electronics, jewellery, houseware etc. They are located next to or in
close proximity to their warehouses.

Q3. What is a Franchisee Store? Explain with examples.

A3. A franchise store is a plan wherein a business visionary buys a grant to use another business'
things, picture, selective data, and cutthroat benefits. This allows the business visionary to fire a
business without working up his/her own brand or things. Instances of notable franchise plans of
action incorporate McDonald’s, Dominos and other.

Q4. What is a Private Label or In-house Brand at a Retail Store? Explain with examples.
A4. Private label products are those fabricated by one organization available to be purchased under
another organization's brand. Private-label products are accessible in a wide scope of enterprises
from food to beauty care products. Private label brands oversaw exclusively by a retailer available to
be purchased in a particular chain of stores are called store brands. Instances of private brands
incorporate Doctors that might offer private label medicine ex. Dr. Batra or then again different
things and saloons that might offer their own cosmetic product like. Ex. VLCC.

Q5. Explain the following Store Layouts with examples:

1. Free-flow Layout-Considered as the most straightforward sort of store layout, your free flow
layout bunches your apparatuses and product into a free-flowing example on your business
floor. That basically intends that there is no characterized traffic design, so your clients are
free to peruse your product at their recreation.
2. Grid Layout-Grid Layout contains highlights designated at web application creators. The Grid
can be utilized to accomplish various layouts. It dominates at sharing space for significant
areas of an application, or characterizing the relationship as far as size, position, and layer
between parts of a control worked from HTML natives.
3. Loop Layout-A loop layout (or course layout) is utilized when a retailer gives a significant
client passageway that starts at the entry, loops through the store-generally looking like a
circle, square, or square shape and afterward returns the client to the front of the store.
4. Spine Layout-A spine layout is a layout where a fundamental path is utilized for the
developments between the work cells situated on both side and for the brief stockpiling of
work in process. This plan skeleton is then ideally rendered into a net layout by means of a
whole number straight program.
Q6. What is Visual Merchandising? Explain with examples.
A6 Visual merchandising is introducing or showing products such that makes them visually engaging
and alluring. Things like themed window shows, dressed life sized models, the plan of running shoes

(Group-7) Ajai Krishna Singh_21202075, Muskan Dash _21202093,Swagatika

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 ASSIGNMENT-4
BY
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on a divider, and new natural products organized by shading are largely instances of visual
merchandising.
Q7. Explain the following terms with examples:
1. Shelving-A good shelving strategy will increase sales, improve customer loyalty and
retention and create an alluring display for manufacturers who want to sell their product in
your store. Shelving, in the retail sense of the word, is also commonly referred to as retail
shelving, shop shelving, store shelving, display units, fixtures, retail fixtures and gondolas.
Shelving is used by retailers to display merchandise.
2. Hanging-In marketing speak, this is your core target audience that's already engaged with
your brand and needs little convincing to convert.
3. Pegging-A less known definition of pegging occurs mainly in futures market and entails a
commodity exchange linking daily trading limits to the previous day's settlement price in
order to control price fluctuations.
4. Folding-Above the fold refers to the part of an email message or webpage that is visible
without scrolling. It refers to a printing term for the top half of a newspaper which is,
literally, above the place in the newspaper where it is folded in half.
5. Stacking- A marketing technology stack is a grouping of technologies that marketers
leverage to conduct and improve their marketing activities. Often, the focus of marketing
technologies (aka "marketing tech") is to make difficult processes easier, and to measure the
impact of marketing activities and drive more efficient spending.
6. Dumping-Dumping is a term used in the context of international trade. It's when a country
or company exports a product at a price that is lower in the foreign importing market than
the price in the exporter's domestic market.
7. Colour Blocking- the use of usually bold and bright blocks of colour in clothing design Colour
blocking is making bold style statements through the combination of relatively large areas of
a few solid colours.
8. End-caps-In retail marketing, an endcap, or end cap, is a display for a product placed at the
end of an aisle. It is perceived to give a brand a competitive advantage. It is often available
for lease to a manufacturer in a retail environment.
9. Promotional Aisle-Promotional aisles are basket builders- products that you hope shoppers
will buy to add a little extra to your bottom line. This is a common practice in many stores,
particularly those that feature a weekly or monthly ad sent direct mail to homes. It's a
team member's full-time job to take down and put up those tags.

Q8. Explain the following Retailer Profitability terms with examples:

a. Total Sales, Gross Sales, Net Sales- Total Sales, Gross Sales, Net Sales is a measurement for
the all-out sales of an organization, unadjusted for the expenses connected with creating
those sales. The gross sales recipe is determined by adding up to all deal solicitations or
related income exchanges. In any case, gross sales do exclude the working costs, charge
costs, or different charges-these are deducted to ascertain net sales. Sales Growth, Same-
store Sales Growth- Gross sales=Sum of all sales receipts
b. Gross Margin- This is simply the difference between what an item cost and the price for
which it sells. For example, if Store A and B have the same sales, yet Store A's gross margin is
50 percent and Store B's gross margin is 55 percent, it's easy to see which store is faring
better. Gross Margin = Total Sales - Cost of Goods
(Group-7) Ajai Krishna Singh_21202075, Muskan Dash _21202093,Swagatika
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BY
WOLF OF THE KIIT'S STREET🐺

c. Sales per Square Foot- The sales per square foot data is most normally utilized for arranging
stock purchases. This information can likewise generally ascertain profit from venture and is
utilized to decide lease at a retail store. Sales per Square Foot = Total Net Sales ÷ Square
Feet of Selling Space.
d. Footfall- Footfall is defined as the number of people, or traffic, entering a store, and is an
important indicator of how successful a company's marketing is at bringing customers into
stores.
e. Conversion Rate- Retail conversion rate is the level of guests to a retail outlet who make a
buy. All in all, it shows the quantity of individuals out of all potential customers who
purchase something from your store - and it is this demonstration of buying which "changes
over" them into clients. How about we accept that you're a supervisor at a physical store. To
compute the conversion rate for a particular day, you essentially need to take the quantity
of exchanges made during that day and separation it by the quantity of potential clients who
strolled into your store. Furthermore, you need to increase it with 100 to see the rate .
Conversion Rate = Number of Sales/Total Number of Visitors x 100. Along these lines,
assuming that 32 individuals made a buyout of the 200 individuals who were in your store,
you would have a conversion rate of: 64/400 x 100 = 16% meaning the time has come to go
to lengths to expand the conversion rate.
f. Average Transaction Value- As the name suggests, average transaction value is the average
amount of money – usually measured in dollars – spent by a consumer on a single
transaction. To calculate the ATV for your retailer, all you have to do is divide the total value
of all transactions within a specific time frame by the number of transactions that occurred
during that timeframe. ATV = Total value of all transactions / Number of transactions. Let’s
say you want to calculate the ATV for your clothing store from 2-6 PM on a Saturday. You
would first take the total value of all transactions made at your store during that four-hour
window, which we’ll assume is ₹10,000. Then, you would look at the number of transactions
for that same time period, and here we’ll say you had 200 transactions. That would mean
your clothing store had an average transaction value of ₹50 for that particular Saturday
afternoon.
g. Inventory Turns- The inventory turnover, or sometimes referred to as “inventory turns,”
“stock turn,” or “stock turnover,” is basically how frequently an item is sold and supplanted
in a given time. Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory. This
proportion is utilized to decide how your business performs in general and how effective
your inventory the executives works. The proportion is determined with a couple of
determinants, and by and large, the higher the proportion is, the better the business
performs. In any case, any reasonable person would agree the last number is differed from
one industry to another.
h. Days of Inventory- The days sales of inventory (DSI) is a financial proportion that indicates
the average time in days that an organization takes to turn its inventory, including
merchandise that are a work underway, into sales. DSI is otherwise called the average time
of inventory, days inventory outstanding (DIO), days in inventory (DII), days sales in
inventory or days inventory and is interpreted in numerous ways. Indicating the liquidity of
the inventory, the figure addresses how long an organization's present stock of inventory
will last. By and large, a lower DSI is preferred as it indicates a shorter term to tidy up the

(Group-7) Ajai Krishna Singh_21202075, Muskan Dash _21202093,Swagatika

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 ASSIGNMENT-4
BY
WOLF OF THE KIIT'S STREET🐺

inventory, however the average DSI shifts starting with one industry then onto the
next.DSI=Average inventory/COGS×365 days.
i. Product Return Ration- Product Return Ration is defined as the percentage of total orders
that are returned by the customers. PRR = (Cost of Orders Returned / Total Sales) x 100. For
example, a customer orders five chocolate worth ₹ 100 and returns hats worth ₹ 20. Then
the return rate would be, PRR = (20/100) x 100 = 20%
j. Sales by Department, Sales by Category- The Sales by Department metric measures the
total income a single department gains throughout some stretch of time, allowing your
group to analyse sales between various departments.
k. Accessory Sales Percentage- Accessory are those products which are sold with a product
which or post sales major of the time they are the major source of revenue for retailer. Ex
tempered glass and cases of mobile phones. It is calculated by the formula ASP= Accessory
sale/net sales x 100
l. Sales per Employee, Employee Productivity- The sales-per-employee ratio is determined as
an organization's yearly sales partitioned by its total employees. Yearly sales and employee
numbers are easily found in financial proclamations and yearly reports. The sales-per-
employee ratio gives a wide indication of how costly an organization is to run. Net sales/Full
time equivalent employees.
m. Gross Margin Return on Floor Space (GMROF)- GMROF represents Gross Margin Return on
Footage-a tool that shows the relationship between total sales corresponding to per square
feet region of your store. GMROF is one of the most broadly involved measurements for
retail inventory the board. It shows how much gross profit per square feet inventory
investment brings to the retailer's pocket. The measurements help to look at item
categories, rack plan, department shrewd layout, and item show optimizations. GMROF =
GM% x (Sales* / Sq.Ft.) *Sales for corresponding area & time frame
n. Gross Margin Return on Inventory Investment (GMROII)- The gross margin return on
investment (GMROI) is an inventory profitability evaluation ratio that examines a company's
capacity to turn inventory into cash over the expense of the inventory. It is determined by
dividing the gross margin by the average inventory cost and is utilized often in the retail
industry. GMROI is otherwise called the gross margin return on inventory investment
(GMROII). GMROII= Average inventory cost/Gross profit

(Group-7) Ajai Krishna Singh_21202075, Muskan Dash _21202093,Swagatika

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Dash_21202134, Shyam Sharma_21202287, Riya Rouniyar_21202344.