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Retail Management

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What is Retail?

Foodworld

FabMall

Big Bazaar Shoppers Stop

Akbarallys

Nilgirs

49-99

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What is Retail?

Any business that directs its making efforts

towards satisfying the final consumer based

upon the organisation of selling goods and

services as a means of distribution.

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The importance of retail industry

1. Large and growing contribution to national economiesand foreign exchange.

2. Economic activity is growing and visible.

3. Large source of employment.

4. Retailers as gatekeepers influence buyer behaviour.

5. Retailers are diversifying in different fields including

service sector.

6. Retail organisations are expanding into international

markets

7. Size of large retail operations allow for supply chain

control.

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Functions of Retailers

Exclusive distribution

Intensive distribution

Selective distribution

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Special Characteristics

Small average sale

Impulse purchase

Popularity of stores

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Evolution of retail markets

Supermarkets

The multiples

The Independents

The Co-operatives

Mail order

Variety stores

Department Stores

Consumer preference for retail stores

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Retail Management Strategy

1. Define the nature of business

2. 2. Customer segment and market segment

define.

3. Define the long-run and short-run objectives

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Retail Management activities

1. Selecting best location

2. Sourcing and Buying

3. Merchandising4. Promotion

5. Store management

6. Operational efficiency

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Ronald Gists margin-Turnover

Matrix

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Relationship Management

The customer base

Customer service

Customer satisfaction Loyalty programmes and defection rate

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Retail Organisation Structure

Ownership

Store based Retail Strategy mix

Non-store based Retail strategy mix and non-traditional retailing

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Ownership

Independently owned

Chain owned- multiple outlets

Franchise operated Leased departments (in a store)

Vertical marketing system (owned by

manufacturer or wholesaler) Consumer co-operatives

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Store Based Retail Strategy Mix

Convenience store

Supermarkets

Food based super store

Combination stores

Limited line stores

Specialty stores

Variety stores

Department store

Full-discount stores

Off price chain

Factory outlet

Membership store

Flea market

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Non-store based Retail Mix and

Non-traditional retailing

Direct marketing

Vending machines

On-line marketing using websites E-Commerce

E-tailing

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Geographic retail location decisions

1. Market area: primary trading zone, secondary

zone, fringe or tertiary zone.

2. Concentric zone

3. Sector

4. Multiple nuclei

The spatial distribution of retail activities

i. Central place theoryii. Bid rent theory

iii. The principle of minimum difference.

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Types of Retail development

Solitary store

Non-planned shopping area

site Planned shopping area site

Retail park

Shopping Mall

Two types of retailing in

location decision

Destination retailing Retail Location Techniques

Factors in the location

decision

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Main types of store layout

1. Maze

2. Grid Layout

3. Free form

4. Specialty

5. Ceiling height

6. Lighting

7. Perceptions of cleanliness

8. Perception of space

9. Mood

10. Colour

11. Music

12. Heat

13. Smell

14. Merchandise mix

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Future of retailing & growth

Improved customer understanding

More emphasis placed upon brand, image and

positioning

Possible area of change

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The end