AMITY GLOAL BUSINESS SCHOOL

PRESENTATION ON :

Principles of Retailing

SUBMITTED TO: SUBMITTED BY:

DR. RAJEEV SAMUEL SOUMYA NEMANI
SIR
 Definitions
• “A set of business activities carried on to accomplishing
the exchange of goods and services for purposes of
personal, family, or household use, whether performed in
a store or by some form of non-selling.” – American
Marketing Association

• “Retailing includes all the activities involved in selling

goods or services to the final consumer for personal,
non-business use.”   – Philip Kotler
 Meaning
• Retailing is a set of activities performed in selling the goods and
services directly to the end users.
• The goods and services sold to the consumers are meant for their
personal use and not for resale or business activity.
• Retailing is the last activity conducted in the chain of product
distribution down to the consumers.
• In large towns, retailing is organised and mostly performed through
stores and automatic vending machines.
• However, in the rural areas, the retailing of goods and services are
conducted through a traditional pattern by displaying the goods in
mobile vans, carts and on footpaths.
• For understanding the types of retailers and their functions, we can
broadly classify the retailing network into two categories – (i) store
retailing and (ii) non-store retailing.
 Concept of Retailing
The retailing concept covers four broad areas and is an
essential part of the retailing strategy:
• (i)Customer Orientation – The retailer makes a careful study of
the needs of the customer and attempts to satisfy those needs.
• (ii)Goal Orientation – The retailer has clear cut goals and devises
strategies to achieve those goals.
• (iii)Value Driven Approach – The retailer offers good value to the
consumer with merchandise having the price and quality
appropriate for the target market.
• (iv)Coordinated Effort – Every activity of the firm is aligned to the
goal and is designed to maximize its efficiency and deliver value
to the consumer.
 Evolution of Retailing
• Retailing has been a very old phenomenon. It can be
traced back to the time when trade began. Goods were
sold either in some marketplaces or they were sold in
small quantities by some peddlers.

• In the medieval times trade was dependent on local

sources since there was hardly any mode of
transportation and thus they used to be limited to close
by places. For the products that are regarded as
specialty, customers travelled quite a distance.
• Even in prehistoric times, people travelled much space in
order to arrange the merchandise in the areas where
goods or products are less or short in supply.

• Products of basic and outmost necessary were

provided by peddlers.

• Centuries after centuries, there was flourishment of

retail market in top towns and cities globally, providing
huge variety of merchandise worldwide.
• We can find the evolution of retail business in the Indian
subcontinent with the formation of a store of kirana type
as well as a store of mom and pop type.
• Traditional outlets are used by local people for daily use
items. KVIC with government’s help, have many rural
retailing and indigenous franchise stores.
• There were few companies which started their chains of
retail business. As time passes, new entrants entered into
market from manufacturing to pure retailing unit.
• After 1990, different retail outlets such as Foodworld,
Planet M and Music World and Crossword had made their
presence in the market.
• After that, the concept of hypermarket and supermarket
evolved.

• Customers had global experience in the shopping malls in

the towns and urban centres.

• The evolution of retailing sector resulted into continuous

improvement in the supply chain management (SCM),
distribution channels, technological advancement as well
as backend operations which resulted into more and more
mergers and acquisitions and huge investments.