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INTRODUCTION 2 RETAILING

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A set of business activitiesinvolved in selling goodsandservices to consumers for theirpersonal, family, orhouseholduse.

A retaileris a business that sellsproducts and/orservices to

consumers forpersonal or familyuse.

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Examples ofRetailers . . .

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RetailShops . . .

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The 10 Largest Retailers in the United States

Rank Company Main Emphasis

1 Wal-Mart Full-line discount stores, supercenters,membership clubs

2 Home Depot Home centers, design centers

3 Kroger Supermarkets, convenience stores,jewelry stores

4 Target Full-line discount stores, supercenters

5 Costco Membership clubs

6 Albertsons Supermarkets, drugstores

7 Walgreens Drugstores

8 Lowes Home centers

9 Sears Department stores, specialty stores

10 Safeway Supermarkets

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RetailProcess

POS ERP

Reports & Transactions

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Retail formats in INDIA

India is fifth most attractive emerging retail market: a potentialgoldmine.

Indian retail is largest among all industries(200 billion $).

10% - Indias GDP.

Growth rate 20-25%

8% - employment

Potentiality to grow 427 billion $ by 2010 and 637 billion $ by 2015.

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Retail formats inINDIA

Malls

Specialty stores

Discount stores

Department stores

Hyper marts / Super marts

Convenience stores

Multi brand outlets

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INDUSTRYREVOLUTION

Textiles sector with companies like Bombay Dyeing,

Raymond's, S Kumar's and Grasim first saw theemergence of retail chains

1990s saw a fresh wave of entrants with a shift fromManufactures to Pure Retailers.

Growth of Retail in INDIA

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For e.g. Food World, Subhiksha and Nilgiris in food andFMCG; Planet M and Music World in music; Crosswordand Fountainhead in books.

Post 1995 onwards saw an emergence of shoppingcenters.

Emergence of hyper and super markets trying to providecustomer with 3 Vs - Value, Variety and Volume.

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ManufacturersPerspective

Retailers are part of the

distribution channel

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A Typical Channel of Distribution

Manufacturer

Wholesaler FinalConsumer

Retailer

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The Retailers Role in the Sorting Process

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DistributionTypes

Exclusive:suppliers make agreements with one or fewretailers that designate the latter as the only ones in aspecified geographic area to carry certain brands orproducts

Intensive: suppliers sell through as many retailers aspossible

Selective: suppliers sell through a moderate number ofretailers

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Multi-ChannelRetailing

A retailer sells to consumers through

multiple retail formatsWeb sites

Physical stores

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RetailStrategy

An overall plan for guiding a retail firm

Influences the firms business activities

Influences the firms response to market forces

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RetailStrategy

Location

Store Design& Display

Pricingmixing

Customerservice

MerchandiseAssortments

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Six Steps in Strategic Planning

1. Define the type of business

2. Set long-run and short-run objectives

3. Determine the customer market

4. Devise an overall, long-run plan

5. Implement an integrated strategy

6. Evaluate and correct

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Pay Less +Expect More at Target

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Aspects ofTargets Strategy

Growth objectives

Appeal to a prime market

Distinctive image

Focus

Customer service

Multiple points of contact

Employee relations

Innovation

Commitment to technology

Community involvement

Monitoring performance

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Applying theRetailing Concept

Customer OrientationCoordinated Effort

Value DrivenGoal Orientation

RetailingConcept

RetailStrategy

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EliminatingShoppers Boredom

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CustomerService

Activities undertaken by a retailer with the basicgoods and services

Store hours

Parking

Shopper-friendliness

Credit acceptance

Salespeople

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How Retailers Add Value . . .

Doll isdeveloped atmanufacturer

Doll isdeveloped inseveral styles

Doll is offered inconvenient

locations inquantities of one

Doll isfeatured onfloor display

Doll can bebought on

credit or puton lay away

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RetailMix

The combination of merchandise, assortment,

price, promotion, customer service, and storelayout that best serves the segments targetedby the retailer.

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Types ofCompetition

1. Intratype Competition

2. Intertype Competition

3. Divertive Competition

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IntratypeCompetition

Itoccurs when two or more retailers of the same type,compete directly with each other for the samehouseholds.

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It occurs when two or more retailers of a different type,compete directly by attempting to sell the samemerchandise lines to the same households.

IntertypeCompetition

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It occurs when retailers intercept or divertcustomers from competing retailers.

DivertiveCompetition

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The Retail Life Cycle

M

arketshare

orprofit

Early

growth

Accelerated

development

Maturity Decline

V

alue-retailstores

On-lineretaile

rs

Single-price

stores

Warehouseclubs

Fas

tfoodoutlets

Conveniencestore

s

Supermarkets

Departmentstores

Catalog

Retailers

Malls(?)

Generalsto

re

Factoryoutletstores

Profit

Market share

Single-brand

stores

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Future Changes in Retail

Nonstore

RetailingNew Retail

Formats

Integration of

Technology

Heightened

Global

Competition

Increased useof Private Labels

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E-tailing

Catalog

Sales

Direct

Selling

Non store Retailing

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Liquidators

Recycled

MerchandiseRetailers

Super centers

New Retail Formats

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Creation of

New RetailFormats

Greater

Diversity

Increased

Rate of

Change

Heightened Global Competition

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Customer

Satisfaction

Customer

Management

Supply Chain

Management

Integration ofTechnology

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M.RAVISHANKAR

MBA(AB) 2008-2010 Batch

NIFTTEA KNITWEAR FASHION INSTITUTE

TIRUPUR

Oxygen024@gmail.com

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FIN