RETAIL MANAGEMENT

What Is Retailing?
• Retailing:
– includes all the activities involved in selling
products or services directly to final
consumers for their personal, non-business
use.

• Most retailing is done by retailers, but

nonstore retailing has recently grown by
leaps and bounds.

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 Manufacturer’s Perspective

Retailers
Retailersare
are part
part of
of the
the
distribution channel
distribution channel
Product

Distribution Price

Promotion
Distribution Channel
Growing Importance of Retail
Sector
• Large and increasing contribution to
GDP
• Economic importance more visible
• Major employer
• Retailers as gatekeepers
• Retailers diversifying their activities
• Organizations growing on an
international scale
Relationship Management Among
Retailers and Suppliers
• Disagreements may occur :
– Control Over Channel
– Profit allocation
– Number of Competing Retailers
– Product Displays
– Promotional Support
– Payment terms
– Operating flexibility
 Characteristics of Retailing
• Direct Interaction with Customers
• Lower Average Amount of Sales Transaction
• Point-of-Purchase Display and Promotion
• Large Number of Retail Business Units
 Functions of Retailing
• Providing an assortment of products and
services.
• Breaking bulk
• Holding inventory
• Providing services
 Types of Retailers
• Retailers are classified based on:
– Amount of service they offer
– Breadth and depth of product lines
– Relative prices charged
– How they are organized

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Self-Service Retailers

Serve customers
who are willing to
perform their own
“locate-compare-
select” process to
save money.

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 Limited-Service Retailers:
– Provide more sales assistance because they
carry more shopping goods about which
customers need information
• Big C, Tesco Lotus etc
Full-Service Retailers:
Usually carry more specialty goods for
which customers like to be “waited
on.”

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Major Store Retailer Types
• Specialty stores
• Department stores
• Supermarkets
– Category Killers
• Convenience stores
• Discount stores
• Off-price retailers
• Superstores
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 Specialty stores
• They carry narrow product lines with deep
assortments within those lines.
• The increasing use of good market
segmentation, market targeting and product
specialization has resulted in a greater need
of stores that focus on specific products and
segments.

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 Specialty store

Copyright 2007, 11-15

Prentice Hall, Inc.
 Department stores
• A retail organization that
carry a wide variety of
product lines- typically
clothing, home furnishings,
and house hold goods; each
line is operated as a separate
department managed by
specialist buyers or
merchandisers.

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 Supermarkets
• These are the most frequently shopped
type of retail store.
• Supermarkets are the Large, low-cost, low-
margin, high-volume, self service stores
that carries a wide variety of food, laundry,
and household products.
• Thus most supermarkets are
making improvements in to
attract more customers.

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 Convenience stores

These are small stores that

carry a limited line of high-
turnover convenience goods.

These shops will be open for

long hours seven days a week
and will be located a
residential area.

Copyright 2007, Prentice 11-18

Hall, Inc.
 Superstores
• A store much larger than a regular
supermarket that carries a large assortment
of routinely purchased food products, non
food items and service.
• Wal-Mart, Kmart etc

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 Category killers
• Giant specialty store that carries
a very deep assortment of a
particular line and is staffed by
knowledgeable employees.
• Category killers are prevalent in
a wide range of categories,
including books, baby gear,
toys, electronics, home
improvement products etc.

Copyright 2007, Prentice 11-20

Hall, Inc.
 Warehouse club
• A warehouse club is a retail store,
usually selling a wide variety of
merchandise, in which customers
are required to buy large, wholesale
quantities of the store's products,
which makes these clubs attractive
to both bargain hunters and small
business owners.
• In addition, customers may be
required to pay annual membership
fees in order to shop.

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-Gradual development of something into a more complex or better form.
PHASE 1:

Barter system
-is a system of transactions where people used to
exchange, the valuables they used to possess and has
some value in the eyes of other persons
Adoption of common means of currency

-the transactions became much easier.

-retailing is limited to commodities that fulfill their
basic needs.
Small stores transforming to bigger size stores.

-retailers responded to the changing needs and shopping

expectations of the buyers.
-to take advantage of scale economy ang value-pricing to
customers.
RETAILING IN INDIAN
CONTEXT
 EVOLUTION OF RETAIL IN INDIA

•EBOs
•Super Markets
•Weekly Market •Department
•Convenient •PDS
•Village Fairs Stores
Store •Khadi
•Melas •Shopping
•Mom N Pop •Cooperatives
Malls
 1980’s
-organised retailing in India slowly began.
-Among the first companies were Bombay Dyeing, Raymonds, S
Kumar’s and Grasim.

TITAN
-A maker of premium watches that successfully created an
organised retailing concept in India by establishing a series of
elegant showrooms.

1991(economic liberalisation)
-Manufacturers saw a great value in integrating forward
by investing into retailing of their own manufactured
goods.
RETAIL MARKET IN INDIA

ORGANISED UNORGANISED
MARKET SIZE - SEGMENTS
RETAIL FORMATS IN INDIA
COMPETITIVE LANDSCAPE
• The retail Sector in India is
emerging as one of the largest
sector in the economy. (5 th
Largest)

• Retail Industry is expected to

grow to US$1.3 trillion by
2020
STRATEGIES ADOPTED
GROWTH DRIVERS
OPPORTUNITIES
OPPORTUNITIES
FUTURE ??????