ICBM SBEHyderabad1RETAIL MANAGEMENTPrepared by : Ajay Kumar Gupta PGDM(2008-10ICBM-School of Busiess E!celleceHyderabad! I"d#aICBM SBEHyderabad2Introduction to RetailUnit IIntroduction to Retail: what is Retail, The functions of retail, retailing in India. The evolution of retail in India, retail Change in India ICBM SBEHyderabad$Introduction:The word retail has its origin in French word retaillier and means to cut a piece or to break bulk.Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use. According to Kotler: Retailing includes all the activities involved in selling goods or services to the fnal consumers for personal, non business useICBM SBEHyderabad%Retailing may be understood as the fnal step in the distribution of merchandise for consumption by the end consumers.Retailing is responsible for matching fnal consumer demand with supplies of diferent marketers.Retailing is high intensity competition industry, The reasons for its popularity lie in its ability to provide easier access to variety of products, freedom of choice and many services to consumers.The Indian retail is dotted by traditionally market place called bazaars or haats comprises of numerous small and large shops, selling diferent or similar merchandise ICBM SBEHyderabad& Wheel of Retailing better known theory of retailing !wheel of retailing proposed by "aclcomb "c#air says, $. #ew retailers often enter the market place with low prices, margins, and status. The low prices are usually the result of some innovative cost%cutting procedures and soon attract competitors.&. 'ith the passage of time, these businesses strive to broaden their customer base and increase sales. Their operations and facilities increase and become more e(pensive.ICBM SBEHyderabad'). They may move to better up market locations, start carrying higher *uality products or add services and ultimately emerge as a high cost price service retailer.+.,y this time newer competitors as low price, low margin, low status emerge and these competitors too follow the same evolutionary process.-. The wheel keeps on turning and department stories, supermarkets, and mass merchandise went through this cycles.ICBM SBEHyderabad(Functions of a retaillierFrom the customer point of view, the retailer serves him by providing the goods that he needs in the re*uired assortment, at the re*uired place and time. From an economic standpoint, the role of a retailer is to provide real added value or utility to the customer. This comes four diferent perspectivesICBM SBEHyderabad81. Form: First is utility regarding the form of a product that is acceptable to the customer. The retailer does not supply raw material, but rather ofers fnished goods and services in a form that the customers want. The retailer performs the function of sorting the goods and providing us with an assortment of product in various categories.2. Time: .e cerates Time utility by keeping the store open when the consumers prefer to shop. preferable shopping hours. ICBM SBEHyderabad)5. Place: ,y being available at a convenient location, he creates place utility.6. Ownership/ Finally, when the product is sold, onership utility is created.part from these functions retailer also performs like/5. Arranging Assortent: manufacturers usually make one or a variety of products and would like to sell their entire inventory tofew buyers to reduce costs. Final consumers, in contrast prefer a large variety of goods and services to choose from and usually buy them in small units. 0 Retailers are able to balance the demands of both sides, by collecting an assortment of goods from diferent sources, buying them in suficiently large *uantities and selling them to consumers in small unitsICBM SBEHyderabad105. !rea"ing !ul": to reduce transportation costs, manufacturer and wholesalers typically ship large cartons of the products, which are then tailored by the retailers into smaller *uantities to meet individual consumption needs 6. #olding stoc": Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacture to regulate production.$. Prootional support: small manufacturers can use retailers to provide assistance with transport, storage, advertising, and pre% payment of merchandise.ICBM SBEHyderabad11Maor t!"e of retail stores There is no universally accepted method of classifying retailer. 1arious schemes have been proposed to categories retailers based on #umber of outlets"argin vs. turnover2ocation3i4e.,ecause of overlap of classifcation criteria, some stores may *ualify as under two diferent categories*ICBM SBEHyderabad12%. &eneral erchandise retailer/ general merchandise retailer carry a variety of product lines, with considerable depth. 3ome ma5or types of these stores include supermarkets and hypermarkets , discount stores and department stores. o 'uper ar"et/supermarket is a large self service retail store that carries a wide variety of consumer products under one roof , such as complete line of food products , laundry re*uirement, household maintenance items. In India cooperative have managed some supermarkets for*uite sometime like super ba4aar in 6elhi, apna ba4aar shakari bhandar etc.ICBM SBEHyderabad1$o (iscount store: these stores are self service, standard general merchandise retailers regularly ofering brand name and private brand items at low price, earn lower margins and push for high sales turnover. The characteristics of true discount stores include3elling products at discounted price7arry standard international , national, or store brand toi build image3elf service stores to minimi4e operational costs8referred store location are low rent areas. 2ike best known discountstore is 'al%"art. In India almost all retail stores ofer discounts, subhiksha ICBM SBEHyderabad1%o (epartent store/ a department store is larger retail store organi4ed into several departments, ofering a broad verity and depth of product lines. The product mi( may include food products, appliances, clothing, furnishing and other household goods. 2ike 8antaloons,shoppers9 stop, department store only for kids is :ids :emp.Fashion related department stores in India are ;bony, Tanish*, Titan watches, 1an .eusen, Raymond?s.+. 'hopping ,alls: shopping malls typically deal with several bases and product categories and provide a large variety of merchandise abs service. There are @A operational malls in India and e(pected to grow $-B by this current year. nsal pla4a C6elhiD, 9Ajay Kumar GuptaICBM SBEHyderabad$$