A T Y P I C A L R E TA I L B U S I N E S S :

FUNCTIONS, MERCHANDISE FLOW AND

S TA K E H O L D E R S

Store Manager
Buyer Zonal /
Vendors Regional
Warehouses
Retail
Stores
Vendors Company DCs
Zonal /
Regional
Warehouses
Vendors Merchandiser
Retail
Stores
The movement of merchandise across the channel
Is regarded as the supply chain.
MAIN RESOURCES AT THE DISPOSAL OF THE
RETAILER ?

• SPACE
• INVENTORY
• PEOPLE

2
Strategic Management Tasks
Performed in a Retail Firm
Merchandise Management Tasks
Performed in a Retail Firm
 Store Management Tasks
Performed in a Retail Firm

Recruit Motivate
Prevent Shrinkage Maintain Facilities

Sell Merchandise Train Employees

Provide Services Take Inventory

Plan Schedules Hire Personnel

Evaluate Performance Display Merchandise

Administrative Management Tasks Performed in
a Retail Firm

Promote the Firm, its Merchandise and

its Services
Manage Human Resources
Distribute Merchandise
Establish Financial Control
ASSIGNMENT OF RESPONSIBILITY FOR TASKS

• Strategic – Top Management, Board of

Directors
• Merchandise Management – Merchandise
Division
• Store Management – Stores Division
• Administrative – Corporate Specialists
RETAIL FORMATS
 CLASSIFICATION

Food Type of
Retailers Retailing Ownership

General
Merchandize Non-Store
Retailers Retailers
 F O O D R E TA I L E R S – C L A S S I F I C AT I O N

Supercentres

Supermarkets A C Hypermarkets

FOOD
RETAILERS

Convenience E D Warehouse Clubs

Stores
 FOOD RETAILERS

SUPERMARKETS
• Self Service Food Store
• 70-80% of sales comes from Food Products
• 20000-30000 sq ft Size
• Limited assortment Supermarkets: Stock lesser number of
SKU’s than conventional supermarket; Limited variety and
assortment of brands
• Example: Food Bazaar
 FOOD RETAILERS

SUPERCENTRES
• Combines a supermarket and a full line discount store
• Broad Assortment
• One stop shopping experience
• Usually outside the city, customers have to travel distances
• 150000-220000 sq ft in size
 FOOD RETAILERS

HYPERMARKETS
• Combination of Food (60-70%) and General Merchandize
stores (30-40%)
• Carry larger proportion of food items than supercentres with
high emphasis on Perishables
• Stock fewer SKU’s than supercentres
• 100000-300000 sq ft in size
• Example: Big Bazaar
 FOOD RETAILERS

WAREHOUSE CLUBS
• Offers a limited and irregular assortment of food and general
merchandize
• Low Prices for the small Businesses
• Equivalent to Wholesalers in India
• 100000-150000 sq ft in Size
 FOOD RETAILERS

CONVINIENCE STORES
• Convenient Location near residential areas
• Limited variety and assortment
• Easy access, storefront parking, quick in and out access are key
benefits
• Open for long hours, seven days a week
• Modern version of conventional mom and pop stores
• Example: In & Out
 GENERAL MERCHANDIZE
RETAILERS

DEPARTMENT STORES
• Broad Variety and Deep Assortment
• Offer Customer Services
• Not very convenient as usually located inside large malls and
not the local neighborhood
• Example: Shoppers Stop

FULL LINE DISCOUNT STORES

• Broad Variety of Merchandize
• Limited Service
• Low Prices
• Offer private labels and National Brands
• Example: Target
 GENERAL MERCHANDIZE
RETAILERS

SPECIALITY STORES
• Offer a limited number of complimentary merchandize
categories
• Focus towards very specific market segment
• Offer deep but narrow assortment
• Example: Archies Gallery, Planet M

DRUGSTORES
• Concentrate on Health and Personal Grooming merchandize
• Pharmaceuticals represent over 50% of sales
• Highly fragmented market in India
• Example: 98.4, Apollo Pharmacies
 GENERAL MERCHANDIZE
RETAILERS

CATEGORY SPECIALISTS
• Discount Stores with narrow but deep assortment of
merchandize
• Also known as “category killers” for offering very low prices
in the category they operate in

EXTREME VALUE RETAILERS

• Small full line discount stores
• Offer limited merchandize assortment at very low prices
• Example: The Dollar Store,
 GENERAL MERCHANDIZE
RETAILERS

FACTORY OUTLETS
• Sell Branded Merchandize at discounted price
• Located away from conventional shopping places
 NON STORE RETAILERS
CHANNEL MODE OF COMMUNICATION FEATURES
Electronic Dramatically changed the traditional
Internet
retailing
Catalog Catalog General and specialty catalog retailers
Successful with rural customers who
Direct Mail
Letters and Brochures lacked access to retail stores. Compete
with CRM
Direct selling
Salespeople Party plan system , Multi level network

Television Home Customers watch TVB program and Cables channels

Shopping then place orders for the merchandise Infomercials
by telephone Direct response advertising
Automated Machine Services are stores in machine and Vending machine placed at
Retailing dispensed to customers when they convenient ,high traffic locations
deposit cash/credit card primarily contain snacks or drinks