UNIT - 1

RETAIL
MANAGEMENT
Retail Management - DJG
A perfect example of a dream come true is the story of
Sam Walton, the founder of Wal-Mart (www.walmart.com).
From a single store, Wal-Mart has grown to become the
largest company in the United States in terms of
revenues. And today it dwarfs every other retailer. In
2005, Wal-Mart was rated as one of America’s top five
most admired corporations by Fortune magazine.

Wal-Mart is now the leading company in the world in

terms of sales—ahead of Amazon, Costco Wholesale, the
Kroger Co and other retail giants.
Amazon was founded by Jeff
Bezos from his garage in Bellevue,
Washington, on July 5, 1994. Initially
an online marketplace for books, it
has expanded into a multitude of
product categories, a strategy that
has earned it the moniker “The
Everything Store”.
Retail Sector
• Retail is the 2nd largest sector in India.
• 35% sector belongs to retail, out of which 21% is
organized and 79% is unorganized in 2023.
• 10% of GDP
• 8 % of Employment
• India’s Retail sector investment doubled in 2018 and
reached upto 1300 crore.
• The share of the organized retail market is expected
to increase from 12% in 2017 to 22%-25% by 2022.
• The overall retail market is expected to grow at 12%
growth rate p.a.
Growing Importance of
Retail Sector
• Large and increasing contribution to GDP
• Economic importance more visible
• Major employer
• Retailers as gatekeepers
• Retailers diversifying their activities
• Involvement of technological advancements.
• Organizations growing on an international
scale
Recent Trends in Retailing
#1: Social Commerce
#2: A New Approach to Influencer Marketing
#3: Online Stores in Offline Spaces
#4: Even More AR-Powered Shopping Experiences
#5: Creative Brand Identities on Amazon
#6: Ethical and Values-Based Brands on the Rise
#7: Same-Day (or Faster) Delivery
#8: Increase in Smart Speaker Shopping
#9: Increased Use of Chatbots
#10: Successful retailers become experimential
#11: Ecommerce Grocery Platforms Are the New Norm
#12: Increased Focus on Personal Health and Self-Care
Issues in Retailing
• How can we best serve our customers while
earning a fair profit?
• How can we stand out in a highly competitive
environment where consumers have too many
choices?
• How can we grow our business , while
retaining a core of loyal customers?
Role of Retailer in Channel of Distribution

Manufacturer/Retailer Consumer

Manufacturer Retailer Consumer

Manufacturer Wholesaler Retailer Consumer

Agent/
Manufacturer Wholesaler Retailer Consumer
Distributer
How Retailers Add Value
Breaking Bulk
Buy it in quantities customers want
Holding Inventory
Buy it at a convenient place when you want it
Providing Assortment-Buy other products at
the same time
Offering Services-See it before you buy, get
credit
Concept of Retailing
• Retailing encompasses the business activities involved
in selling goods and services to consumers for their
personal, family, or household use.
• It includes every sale to the final consumer—ranging
from cars to apparel to meals at restaurants to movie
tickets. Retailing is the last stage in the distribution
process.
• Retailing is the activity of selling goods and services to
the final consumers for their own personal use.
• Retailing is concerned with getting goods in their
finished state, handing them in the hands of the final
consumer/customer who are prepared to pay for the
pleasure of eating, wearing or experiencing a particular
product items.
Retailer
• RETAILER comes from French word “retailer” which
means “to cut-up”.
• Retailing includes the activities of buying in bulk
quantity and selling in small quantity.
• It is the type of the customer which differentiates a
retailer from a distributor.
• Baker(1998) define retailing as ‘any establishment
which is engaged in selling merchandise for personal
and household consumption and rendering services
required for the sale of such goods’.
• Term Retailing applies to selling of tangible goods like
bread, pair of shoes.
• Term retailing also applies to the selling of services
products. Eg. Restaurants, haircuts, aromatherapy.
 Small Average Sales
Retailer

Impulse Buying

Store Popularity
Overall Retail Concept

Value Customer
Driven Orientation

Co-
Goal
ordinated
Orientation
Effort
Retail Life Cycle ( S Shaped Curve)
Maturity

S
a
l Growth Decline
e
s

Profit
Innovation

Time
Retail Institution
Retail Institutions

Ownership
Store Based Non- Store Based
Strategy Strategy

1. Independent
2. Chain
3. Franchise
4. Leased Food Merchandize
Department
5. VMS
6. Consumer
Cooperatives
Relationship with Customers
Customer Base
Customer Service
Customer Satisfaction
Loyalty Program
Thank you