Take only Memories Leave only Footprints. Chief Seattle

IT ALWAYS SEEMS IMPOSSIBLE UNTIL IT'S DONE. NELSON MANDELA.

Reference Books/Text Books): Barry Berman , Joel R. Evans, Mini Mathur, Retail Management – A Strategic Approach, 11 th ed., Pearson Levy Michael, Weitz A Warton. ,2009 Retail Management, 7th ed., Tata Mcgraw Hill, India Berman Barry, Evans Joel., 2010., Retail management ,10th ed., Pearson, India Bajaj Chetan, Tuli Rajnish, Srinivasan Nidhi, 2005 Retail Management, 1st ed., Oxford, India Pradhan Swapna ,2010, Retailing management , 3rd ed ., Mcgraw –Hill, India Hasty Ron, Reardon James, 1997 Retail Management, 1st ed .,Irwin Mcgraw Hill, India David Gilbert, Retail Marketing Management, 2 nd ed., Pearson Other readings & relevant websites: Journals: Journal of Retailing International Journal of Retail & Distribution Management Harvard Business Review Knowledge @ Wharton Additional study material Retail-Organized Vs Unorganized or co-existence of Organized & Unorganized, Zee Research Group, 2011 Retail Sector in India: Issues & challenges, International Journal of Multidisciplinary Research, May 2012 Deloitte Global Powers of Retailing, 2013.

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Definitions. According to William J Stantons, “ A Retailer or Retail store is a business enterprise which sells primarily to the ultimate consumers for non business use.” According to Cundiff and Still, “Retailing consist of those activities involved in the selling directly to ultimate consumers. ” According to Mc. Carthy. “ Retailing is selling to final consumer products to households.”.

Characteristics of Retailing. Direct Interaction with Customers. Lower Average Amount of Sale Transaction. Point of Purchase and Display and Promotion. Sale volume is comparatively large in quantities Customer service Sales promotions are offered at this point only Different forms Location and layout are critical factors More employment opportunities.

Importance of Retailing. Services to Wholesalers and Producers. b) Advertisement of new products. c) Arrangement to sell the goods. d) Information about consumer habits, tastes and needs. e) Sharing of Risks. Services to consumers. g) Selection. h) Variety of goods. Demand creation. j) Distribution. k) Credit Facility..

Functions of Retailing. Sorting. Breaking Bulk. Holding Stock. Channel of Communication. Transport and Advertising Functions.

Main Activities involved in retailing. Choosing the Store Location. Sourcing/buying or partnership/supply chain management. Merchandising and category Management. Visual Merchandising (Display) Sales Promotion.— Store Positioning and Building the store as a Brand. Store Operations. IT Task. Inventory Management. Shrinkage Loss Prevention. Real estate development. Achieving efficiencies in Retail Operations..

Retail formats and types.

The changing structure of retailing. • All dynamic developments in retailing (department stores, and hypermarkets) are responses to a changing environment • Changing customer demand, new technologies, intense competition, and social change create new opportunities • The Internet and web technologies have itself created a myriad of opportunities for web based business model of retailing • This has created competition for the retailer in order to maintain and grow its share of market and compete within its band of retailers.

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Retailing Channels Classification on the basis of Ownership.

1. Independent Retailer. Owns and operates only one retail outlet Either propriety/ joint-family/ partnership Local baniya / karyana stores/ apparel stores + ve – Good rapport with customers, flexible and thus can react quickly to market changes and customer needs - ve – no economies of scale and thus low bargaining power with suppliers.

A Chain Retailer/ Corporate Retail Chain. When two or more outlets are under a common ownership, it is called a retail chain. These stores have similar merchandise offered to customers along with similarities in ambience, advertising and promotions E.g. Arrow, Van Heusen, departmental stores like Pantaloons, Westside, Planet M, Foodbazaar + ve - bargaining power, cost effectiveness in advertising and sales promotion - ve – no consideration to local preferences and inability to manage each store, heavy investment.

3. Franchising. A franchise is a contractual agreement between the franchiser and the franchisee, allowing franchisee to conduct a business under an established name as per a particular business format in return for a fee or compensation. Types A product or trade mark franchise - e.g. Archie’s A business format franchise – e.g. McDonald.

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4. Leased Departments. Shop-in-shops When a section of a department in a retail store is leased or rented to an outside party, it is termed as a leased department Only display a fraction of the merchandise sold Aim to make products available E.g. CCD in Shopper’s Stop.

5. Consumer Co-operative. Aim to provide essential commodities at reasonable prices E.g. Apna Bazaar etc..

Classification on the basis of the Merchandise Offered.

Convenience Stores. Relatively small, located near residential areas, open for long hours, limited line of convenience products like egg, bread, groceries Provide limited variety and assortment of merchandise at convenient locations with speedy check-outs Targeted at customers who want to make quick purchases Near petrol pumps + local baniya.

Supermarkets. Large, low cost, low margin, high-volume, self- service operations, designed to meet needs for food, groceries and other non-food related items. Area -400 sqm – 2500 sqm (4305 sqft-26910 sqft ) Internationally – 8000-20000 sqft At least 70% of the merchandise comprising of foodstuff and everyday commodities E.g. Foodworld , Foodbazaar , Reliance Fresh in India.

Variations in Supermarket. Over the years, variations in this business model have emerged Superstore A variation in supermarket Larger than conventional supermarket with at least 25000 items and more non-food such general merchandise, health and beauty etc. Combination store Is a superstore and full-line pharmacy with general merchandise and health & beauty care items accounting for at least 15 % of sales.

Department Stores. Aristide Boucicaut , the son of a successful hat maker founded the first department store Bon Marche’ in Saint-Germain, Paris in the year 1838. Large-scale retail outlet, often multi-levelled, with multiple product categories, Pleasing ambience, attentive service Avg. Indian store 20000-40000 sq.ft . with avg. 50,000-1,00,000 SKU’s E.g. Marks & Spencers , Sears, J. C. Penny E.g. Shopper’s Stop, Lifestyle etc..

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