Introduction to Retail

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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 retaillier, which means to break bulk. Retailing is the last stage in the movement of goods and services to the consumer. Retail therefore 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 Time utility Place utility Ownership utility

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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

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The Global Retail Market

Year 2009 (E) 2008 ( E) 2007 ( E) 2006 ( E) 2005 (E) 2004 2003 2002 2001 2000 $ billion 12,104.0 11,561.5 11,029.1 10,496.3 9,981.1 9,498.5 9,005.4 8,620.1 8,366.0 8,144.2 % growth 4.70 % 4.80 % 5.10 % 5.20 % 5.10 % 5.5 % 4.50 % 3% 2.7 % --

Source: Global Retailing, Datamonitor, May 2005 05/03/12 7

Key players in the world of retail

Fortune Rank Fortune Rank 2004 2003 Corporation Revenues $ mn % Change in Revenues

1 22 34 42 49 54 67 82 86 105

1 22 34 41 37 60 56 71 88 111

Wal-Mart Stores Carrefour Home Depot Metro Royal Ahold Tesco Kroger Target Costco Wholesale Albertsons

287,989 90,381.7 73,094 70,159.3 64,675.6 62,458.7 56,434.4 49,934 48,107 40,052

9.50 13.3 12.8 15.7 1.9 21.1 3.7 3.7 13.1 13

Source: Fortune, July 25,2005

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Share of retailing in Total Empl. In select countries

Country India China Poland Brazil U.S.A. Korea U.K Malaysia
Source: FDI In Retail Sector in India, ICRIER publication

Share of retail in total empl 67% 6% 12 % 15 % 11.7 % 18 % 11 % 7%

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The Worlds Biggest Employers

Global Rank 1 314 22 82 67 34 132 54 105 42 Retailer Wal - Mart McDonalds Carrefour Target Kroger Home Depot Sears Roebuck Tesco Albertsons Metro # of Employees 1,700,000 438,000 430,000 292,000 289,000 273,000 247,000 242,980 241,000 208,616
10

Source: Fortune, July 25, 2005 05/03/12

Challenges facing Global Retailers

The emergence of new markets The empowered consumer Technology enabled efficiencies The rise of the e-age

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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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