INTRODUCTION TO RETAIL

SMITU MALHOTRA

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 WHAT IS R ETA IL?

• RETAIL – DERIVED FROM THE FRENCH WORD “RETAILLIER”,

WHICH MEANS TO BREAK BULK.

• RETAILING – A SET OF BUSINESS ACTIVITIES THAT ADDS VALUE

TO THE PRODUCTS AND SERVICES SOLD TO CONSUMERS FOR
THEIR PERSONAL OR FAMILY USE.

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 FUNCTIONS

• PHYSICALLY DELIVER THE PRODUCT

• PRODUCT INFORMATION
• BULK BREAKING
• ASSORTMENT
• AFTER SALES SERVICE
• INFORMATION FLOW TO THE CO.

• AND NOW
• EXPERIENCE
• CONVENIENCE 3
T HE MARKETING – RETAIL EQUATION

Manufacturer Manufacturer Manufacturer

Wholesaler

Retailer

Retailer
Feedback

Consumer Consumer Consumer

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 THE RISE OF THE RETAILER-THE POWER
SHIFT

• PROXIMITY TO THE CUSTOMER

• TECHNOLOGY- BARCODE
• THE RISE OF CONSUMERISM
• INTRODUCTION OF THE PRIVATE LABEL

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Source : https://www.statista.com/chart/22016/top-10-global-retailers/
 Top Global Retailers by FY2020 Growth

Source: https://www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.html
Source:
https://www.marketingcharts.com/charts/the-10-most-valuable-global-retail-brands-in-2020/attachment/brandz-most-v
Source: https://www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.html
 Impact of COVID-19 on leading global retailers

Source: https://www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.html
 I M PA C T O F C O V I D - 1 9 O N L EA D I N G G LO B A L
R ETA I LER S


In the United Kingdom, the proportion of retail sales spent online soared to 35.2% in January 2021, up from
19.5% in January 2020.”


“In France, the online share of retail reached 13.4% in 2020, up from 9.8% in 2019. Sales of products were up
by 32%, while sales of services were down by 10%.”


“In Germany, online grocery sales grew by almost 90% in the second half of 2020, compared to the same
period in 2019.”


“In the United States, online share of retail increased from 11.8% in the first quarter of 2020 to 16.1% in the
second quarter of 2020.”


“In China, the online share of retail rose to 24.6% in August 2020, up from 19.4% in August 2019.”


“In Thailand, downloads of shopping apps jumped by 60% in a single month in March 2020.”


“In Latin America, online marketplace Mercado Libre saw deliveries per day more than double for the second
quarter of 2020 compared to 2019.”


“In Argentina, the online share of retail jumped from 18% to 49% in the first half of 2020.”

Source: https://www2.deloitte.com/global/en/pages/consumer-business/articles/global-powers-of-retailing.html
Source: https://www.smartinsights.com/digital-marketing-strategy/online-retail-sales-growth
Source: https://www.smartinsights.com/digital-marketing-strategy/online-retail-sales-growth/
 INDIA - THE TOP RETAIL DESTINATION

• The retail market in India has undergone a major transformation and has witnessed
tremendous growth in the last 10 years.
• The overall retail market is set to cross the $1.75 tn mark by 2026 from $795 bn in 2017.
• India’s e-commerce retail market which stood at $30 bn in 2019 is also set to grow at a
CAGR of 30% for gross merchandise value to be worth $200 bn by 2026. 
• The Indian e-commerce sector is expected to grow at a 27% CAGR over 2019-24 and is
expected to reach $99 bn by 2024
• Direct-to-Consumer segment could have a $100 billion addressable market by 2025.
• The number of households carrying out online transactions in India is estimated to grow from
154 mn in 2020 to 233 mn in 2025
• India ranked No. 2 in Global Retail Development Index (GRDI) in 2019.
• Retail is India's largest industry, currently accounting for over 10% of the country's GDP and
8% of total employment.

Recent policy changes allow 100% FDI under the automatic route for single-brand retail
trading.
Source: https://www.investindia.gov.in/sector/retail-e-commerce
 India - The Top Retail
Destination

Source: https://static.investindia.gov.in/s3fs-public/202006/Retail%20Sector%20Brochure_0.pdf
India - The Top Retail Destination

Source: https://www.ibef.org/industry/retail-india.aspx
 India - The Top Retail Destination

Source: https://www.aidio.in/yoy-retail-market-challenges-in-india-2020/#page-content
India - The Top Retail Destination

Source: https://www.aidio.in/yoy-retail-market-challenges-in-india-2020/#page-content
 E-commerce Industry in India

Source :https://www.ibef.org/industry/ecommerce/infographic
 E-commerce Industry in India

Source: https://www.ibef.org/industry/ecommerce/infographic
Source:
https://www.thehindubusinessline.com/info-tech/pandemic-tailwinds-push-e-commerce-growth-estimate-to-40-i
n-2020/article32620816.ece

Source: https://www.proschoolonline.com/blog/top-5-reasons-why-india-is-a-hot-e-commerce-destination
 POTENTIAL UNTAPPED MARKET
15 Mn outlets in India, 96% of which are smaller than 500 sq ft

Indian retail density of 6% is highest in the world

100%
10%
20% 20%
30%
80% 40% 36%
55%

60% 85% 81%

40%

20%

0%
US Taiwan Malaysia Thailand Brazil Indonesia Poland China India

Traditional Channel Modern Channel

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 TOP 10 RETAILERS -- FORTUNE 500 list 2013

% change in the % change in

Revenue Profit
Fortune Rank Corporation $ million revenue $ million profit from
from 2011 2011

Wal-Mart
1 Stores 469,162 5 16,999 8.3
40 CVS Caremark 123,133 14.3 3,877 12
59 Carrefour 105,996 -12.9 1,585 207.2
63 Tesco 104,425 0.6 197 -95.6
Costco
67 Wholesale 99,137 11.5 1,709 16.9
72 Kroger 96,751 7.1 1,497 148.6
87 Metro 85,768 -7.5 4 -99.6
106 Home Depot 74,754 6.2 4,535 16.8
113 Target 73,301 4.9 2,999 2.4
120 Walgreen 71,633 -0.8 2,127 -21.6

From the May 20, 2013 issue

KEY PLAYERS IN THE WORLD OF

RETAIL 26
 2018 FORTUNE 500 LIST

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Source: https://www.patentlyapple.com/patently-apple/2019/05/the-2018-fortune-500-list-published-today-ranks-apple-3.html
Here’s the top 10 with projected global retail sales for 2019:

1. Walmart US   $517.7 billion

2. Amazon US $213.8 billion
3. Costco US   $144.3 billion
4. Schwarz Group Germany $130.3 billion
5. Kroger US   $124.3 billion
6. Walgreens Boots Alliance US $114 billion
7. Aldi Germany   $109.5 billion
8. Home Depot US $108.9 billion
9. Carrefour France $101.1 billion
10. JD.com China $94.4 billion

https://www.producebluebook.com/2019/06/01/kantars-top-50-world-retailers-for-2019/
 Geographi
c Analysis

Source: https://www.thebalancesmb.com/worlds-largest-us-retail-chains-2892856
 •Seven U.S. retail chains have
been included in the list’s top 10
with four of the them leading in
the top four rankings.

•Walmart, Costco, and Kroger

remained the top three with
Walmart leading revenue at
$500.3 billion.

•Amazon jumped two spots to

move into fourth place with
revenue of $118.6 billion.

Source: https://www.thebalancesmb.com/worlds-largest-us-retail-chains-2892856
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Source: https://wearesocial.com/blog/2020/01/digital-2020-3-8-billion-people-use-social-media
R E TA I L I N G - T W O C A R E E R PAT H S

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