INTRODUCTION TO

RETAIL MANAGEMENT

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LEARNING OBJECTIVES

 Defining retail
 The functions of a retailer
 The marketing – retail equation
 The significance of retail as an industry
 The new role of the retailer
 The global retail scenario
 Key issues facing global retailers
 Retail as a career

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WHAT IS RETAIL?

 Retail – derived from the French word “retailler”, which

means to break bulk
 Retailing- last stage in the movement of goods and
services to the consumer
 Retail consists of- all activities involved in the marketing
of goods and services directly to the consumers for their
personal, family or household use

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FUNCTIONS OF A RETAILER

 Form utility- by offering assortment of finished goods and

services in a form that customers want
 Time utility- by keeping the store open when the consumers
prefer to shop
 Place utility-by being available at a convenient location
 Ownership utility- by selling the product
 Serves the manufacturer- by distributing the goods to the end
consumer

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THE MARKETING – RETAIL
EQUATION

Manufacturer Manufacturer Manufacturer

Wholesaler

Retailer

Retailer
Feedback

Consumer Consumer Consumer

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THE CHANGING RETAIL
LANDSCAPE
 Proximity to the customer
 The Rise of consumerism
 Introduction of the Private Label
 Technology

 Retailers are no longer dependent on the manufacturers to sell what is available

and have emerged as the new leaders in the marketing channel

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THE GLOBAL RETAIL MARKET

Key challenges
 Emergence of new markets
 Empowered consumer
 Technology enabled efficiencies
 Rise of the E-age

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KEY PLAYERS IN THE WORLD OF RETAIL

Fortune Company Revenues ($ Profits ($ Mln)

Rank 2007 Mln)

1 Wal-Mart Stores 351,139 11,284

32 Carrefour 99,014.7 2,846.2

44 Home Depot 90,837.0 5,761
55 Tesco 79,978.8 3,544.9
62 Metro 75,131 1,324.9
80 Kroger 66,111.2 1,114.9
94 Costco Wholesale 60,151.2 1,103.2
104 Royal Ahold 56,944.9 1,127.9
114 Sears Holdings 53,012 1,490
129 Walgreen 47,409 1,750

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MOST ACTIVE EMERGING RETAIL
MARKETS

Rank Country Proportion of respondents

that are actively looking in
each market or first opened
there in 2007

1 India 27%
2 Ukraine 24%
3 Russia 22%
4 Malaysia 19%
5 Turkey 13%
6 South Africa 12%
7 Thailand 11%
8 China 10%
9 Mexico 8%
10 Indonesia 6%

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RETAIL 2010: THINGS TO COME

 Key role of technology

 Agility in response and integration within the organisation
 Competitive and cost advantages in retailers’ lines of business
 In the light of environmental changes, retailers to rethink their competitive
strategies
 Internet as a powerful channel of distribution
 Mobile commerce- a reality
 Lifestyle retailing

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RETAIL AS A CAREER

 Buying & Merchandising

 Marketing
 Store Operations
 Sales
 Finance
 Human Resources
 Technology & e-commerce
 Visual Merchandising
 Supply Chain Management & Logistics

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RETAIL IN INDIA
THE CONCEPT OF ORGANISED
RETAIL
 Unorganised sector includes units whose activity is not
regulated by any statute or legal provision, and/or those, which
do not maintain regular accounts.
 Eg. Neighbourhood baniya, the paanwala, the cobbler, the
vegetable, fruit vendor etc. would be termed as unorganised
sector.
 Organised Retail in India is a new reality.
 Indian market is at the growth stage.

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EVOLUTION OF RETAIL IN INDIA

 Barter
 Haats, Mandis & Melas
 Public Distribution Sysytem
 Canteen Stores Department and the Post Offices
 Khadi & Village Industries
 Independent Retail Stores

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DRIVERS OF RETAIL CHANGE IN
INDIA
 Socio- Economic Factors
 Changing Income Profiles
 The Age Factor
 The Changing Role of Women and the Evolving Family Structure
 The Changing Consumption Basket
 Increased Credit Friendliness
 Geographical Dispersion of Market Potential

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