Retail strategy of Central (future group)

8/18/2019 Retail strategy of Central (future group)

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Submitted to :Mr. Sachin Bhatnagar



Location Strategies for Retail Business sho!!ing center

#he im!ortance of the location decision is due to the follo$ing factors. Locatiofactor because it%•&n'ol'es large ca!ital in'estment%

•A(ects trans!ortation costs%•A(ects human resources cost.Location is a major re'enue factor in retail business because it•A(ects the amount of customer tra)c•A(ects the 'olume of business

The terms ‘location’ and ‘site’ are often used interchangeably but there is a disbetween the two. ‘Location’ is a broader concept, which denotes the store and from where a majority of its customers originate, while a site refers to the spec

part of the building where a store is located. Location and site characteristics sin a positive and synergistic way with a store’s merchandising, operations and service characteristics. or e!ample, a designer men’s store located in an up mcentre or a mall near posh residential colonies, housed in an attractive building

par"ing facilities.



Levels of Location Decisions and its Determining FactorsA retailer has to ta*e the location decision% basing on three as!ects:•$election of a city •$election of an area or type of location within a city •%dentication of a specic site

1. Selection of a City •Si+e of the city,s trading area: A city,s trading area is the geogra!hic region

customers come to the city for sho!!ing.

•Po!ulation gro$th in the trading area: #he larger the !o!ulation of the tradingreater the !otential of the city as a sho!!ing location. A high gro$th and !otrading area can also increase the retail !otential.

• #otal !urchasing !o$er and its distribution: #he retail !otential of a city also

!urchasing !o$er of the customers and its distribution net$or*s in its trading• #otal retail trade !otential for di(erent lines of trade: A city may become s!ecertain lines of trade and attract customers from other cities. -Moradabad haim!ortant retail location for brass$are !roducts $hile Mysore isfamous for sil* saris.

•/umber% si+e and 0uality of com!etition: #he retailer also considers the num0uality of com!etition before selecting a city.•De'elo!ment cost: #he cost of land% rental 'alue and other related cost.



2. Selection of an Area or Type of Location within a City

•1ustomer attraction !o$er of a sho!!ing district or a !articular store: Major scentres li*e 1handni 1ho$* in Delhi% 1olaba in Mumbai and 1ommercial Streetattract customers from far o(% $hile small sho!!ing centers located in coloniecustomers from immediate neighborhood

•2uantitati'e and 0ualitati'e nature of com!etiti'e stores: Retailers $ould li*e!roduct lines carried by other stores% number of stores in the area% etc. beforearea.

•A'ailability of access routes: #he area or sho!!ing centre should !ro'ide easy

•/ature of +oning regulations: #he retailer should also consider the +oning regcity.

•Direction of s!read of the city: #he retailer should consider the direction in $hde'elo!ing $hile selection the location.



• #he choice of a s!eci3c site is !articularly im!ortant. &n central and secondarcentre% nonanchor stores de!end on customers coming to the mar*et and thegenerated by anchor stores. #he large stores in turn de!end on attracting custe4isting 5o$ of tra)c. 6here sales de!end on nearby settlements% selecting t

is e'en more im!ortant than !ic*ing the s!eci3c site.

• #he sho!!ing center building is !re!lanned as a merchandising unit for inter!tenants. &ts site is deliberately selected by the de'elo!er for easy access to !ufrom a trade area. &t has onsite !ar*ing as a common feature of the layout. #h!ar*ing s!ace is directly related to the retail area.

Some other important features of a shopping centers

•1ustomers li*e the sho!!ing center7s con'enience. #hey dri'e in% !ar*% $al* tdestination in relati'e safety and s!eed. Some sho!!ing centers also !ro'ide $!rotection and most !ro'ide an atmos!here created for sho!!ing comfort. 8orthe sho!!ing center has great a!!eal.

. Selection of a Speci!c Site



•A !articular sho!!ing center de!ends on the mar*et and management. A smacenter may need only one children7s shoe store% for e4am!le% $hile a regional ce4!ect enough business for se'eral.

• #he management as!ect is sim!le to state: De'elo!ers and o$ners of sho!!in

for successful retailers.



STORE LOCATION

• The mall is known as Patna Central and is

located at Frazer Road, Patna.

• Located in the heart of the city, Central

believes its customers should not travel long

distances to reach them. nstead, they must be

!resent in !o!ular customer destinations.

•t has a ground floor with additional " floors

catering to the various needs of the customers.•Central also !rovides with central s#uare, a

dedicated s!ace for !roduct launches, events,

dis!lays, e$citing shows and e$hibition.



%valuation criteria for a location

• &ize of trade area.

• 'ccu!ancy cost of location.

• Pedestrian and vehicular traffic.

• Restrictions !laced on store by !ro!erty managers.

• Convenience for customers.



#he &m!ortance of Store Location

- Store location is most often the 3rstconsideration in a store choice.

- 9a'ing a good location increases chancesof de'elo!ing a strong sustainablecom!etiti'e ad'antage.

- Location decisions can be ris*y and shouldbe $ellthought out.



Sho!!ing Malls

• A grou! of retail and other commercial establishments that is !lan

de'elo!ed% o$ned and managed as a single !ro!erty.• sually de'elo!er and sho!!ing mall management carefully selec

retailers that are com!lementary to !ro'ide consumers $ith one ste4!erience $ith $ell balanced assortment of merchandise.

• Maintains the common facilities ; !ar*ing% security% lighting% outdfor the centre and s!ecial e'ents to attract consumers

•

Stores $ithin the centre !ay a negotiated annual fee based on si+emaintenance costs.

• &t may !lace restrictions on o!erating hours% signage and ty!e of stored.

• &t has one or t$o major retailers *no$n as Anchors. Anchors are $de'elo!er because they attract a signi3cant no. of consumers anda!!ealing to consumers and other retailers.



"all managers try to ma#e malls more of an en$oya%le e&perience in an e'ort to #eep peoplong as possi%le

- 1ommon areas

- 8amily lounges

- Great food

- Playgrounds

- <ntertainment

<nhancing the Mall <4!erien



Advantages

- (ide variety of stores

-

(ide assortment of merchandise- &ho!!ing and entertainment

- )o inclement weather

- *niform hours of o!eration

- +ttracts many sho!!ers

Disadvantages

- 'ccu!ancy costs are generally hig

- all control over business o!erati

- Com!etition can be intense.

Sho!!ing Malls



Store Location 1ustomer Selec

• A critical factor ho$ consumers select a !articular sho!!ing location de!esho!!ing situation.

• 1on'enience sho!!ing.

• 1om!arison sho!!ing.

• S!ecialty sho!!ing.



1on'enience sho!!ing

• &ndi(erent to$ards: Retailer% brand and !rice

• <.g. 1o(ee during $or* brea*

• Don,t s!end time in brand e'aluation

• Retailers ; locate stores close to customers% o(er easy !ar*ing% access and l

• Located in the neighborhood



1om!arison sho!!ing

• 9a'e a general idea about the !roduct"ser'ice they $ant% but no strong !rebrand %retailer or a model.

• See* info% s!end e(ort %ta*e time in ma*ing a !urchase decision.

• 1om!eting sho!s !resent close to each other to increase consumer tra)c

• <.g. 8urniture% a!!liances %a!!arel.



S!ecialty sho!!ing

1onsumers *no$ $hat they $ant and don,t acce!t a substitute.

• Brand% retailer loyal and !ay a !remium "s!end e4tra e(ort

• <.g. designer !erfumes% clothing.

• 6ill tra'el e4tra to obtain that item.

• #hus location not im!ortant for retailers selling uni0ue merchandise.



Retail Mi4 Strategies

( )*s + )*s of"ar#eting

• Product• Price•

Promotion• Place• Peo!le• Process• Physical <n'ironment



Line M</,S 6<AR

• 8ormal

• Semiformal

• 1asual

6=M</,S 6<AR

• 1asual

• 8ormal

• <thnic

>&D,S 6<AR

• 1asual

• <thnic

6=M</,S A11<SS=R&<S

•

8oot$ear• 6rist 6atches

• Perfume

• <ye$ear

• Bags

• ?e$ellery

•

1osmetics

=#9<RS

• >itchen and 9ome A!!liances

• Bed sheets and 8urnishing

• #oys and Games

Product

Brands in each 1ategory



"en*s wear ,formal- sem

• #urtle

• 1B

• 8lying machine

• Bare denim

• 6rangler

• @an heusen

• .S.Polo assn

• &ndigo nation

• Manchester

• Arro$

• Louis !hili!!e

• Shatranj

• ?ohn miller

• Scullers

•

•

•

•

•

•

•

•

•

•

•

•

•

Brands in each 1ategory



•@eromoda

• =nly

• 6ills lifestyle

• Latin 0uarters

• =4ygen

• Allen Solly

•

S Polo Assn• 1B

• Bossini

• Arro$ ladies

• And

• 6ills 1lassic

•

@an 9eusen•

/omen*s /ear ,Formal- Casual- 0thnic



nner wear

• ?oc*ey

• <namour

• Amante

• @alentine

• S$eet dreams• B$itch

• #rim!h

• 9anes

Active we

• 1on'erse

• All star

• 1ham!ion

•

1lassic !olo• /i*e

• S*etchers

• Puma

• 8ila

ids wear

• Ru(

• R&G

• Bare *ids

• Sculler

• Disney

• Gini and jony

• 1B

• Lee coo!er

junior

• <lle *ids



)e

• Police

• Ga!

• #ommy

• Guess

• /ina ric• <scada

• Bulgari

• 1arolin

• <li+abe

• 9ugo b

• ?aguar

• Lacoste

• Da'id b

• Britney

• <d hard

• 8errari

• A++aro

• &nch C

• 1lar*s

• #resmonde

• Red ta!e

• Global ste!

• Rocia

• Allen solly

Footwear



0yewear

•

Ray ban• 8rench connection

• Scott

• S!rint

• #itan

• Pro'ogue

•

&mage• =!ium

• #immy 9il3ger

• /

• >e

• 8a

• #o

• #i

•

G• 8o

• As

• 1a

• D

• 1a

3ewellery

• Pretty $omen

• Sarah

• Sia

• Ea'eri !earls

• &'ory tag

Cosmetics

• Loreal

• Maybellene

• Re'lon

• 8aces

• 1olor bar

• La*me

• Lotus

• 1hamber



4ags

• 8iorella

• Baggit

• Lino !error

• Modaac

• La'ie

• 1artlon

• @&P

• 8astrac*

• S*ybags

• 1a!resse

• Allen solly

• Blue and blues

• 9olic

• 9igh design

•

Delsey !aris• American tourister

• <misent Germany

Toys

• Ba

• 9o

• 8u

• Ba

• 8is

• Dis

• Ba

• Ra



itchen wear

• 1orelle

• Ser'e $ell

•

9elu4e• Lao!ala

• 8ac*el man

• @oltas

• 6hirl!ool

• Panasonic

• LG

• Samsung

• <lectrolu4

• Phili!s

• Bajaj

• Mor!hy

• Richards

4edsheets andfurnishing

• S!aces

•

Portico• #angerine

• Li'ing assence

• Bombay dyeing

5ome Applianc



After Sales Ser'ic

8ree e4change $ithin F days the date of !urchase

• Bill

• /ote at <ntry

• 1redit /ote

• Purchase



Strategies

Advertised 6eference )ricing•

1ommunicated to the consumer as being the Hnormal, or mocharged or undiscounted !rice

• Pro'ide an e4ternal reference against $hich an o(er !rice can be jud

• <4am!le: ?ac* I ?ones Denim is at Rs.J%C" no$ at Rs.F%C" only

4ait )ricing• &n'ol'es inciting consumers by $ay of o(ering

• Aims to ma*e consumers buy more e4!ensi'as there are 'ery fe$ items a'ailable at !rice.

Pricing





7ift 8ouchers• A'ailable in 'arious denominations

• 1an be redeemed $ithin the gi'en !eriod

Curre• /o • /e$

Adve• Billboard

• /e$s!• #e4t m

Loyalty Cards• 1PL: 1entral,s Loyalty Programme

• Rs. K J !oints



• &t is *no$n as a mall in Patna

)atna central

• &t is located at Fra:er road% Pa

• &t has a ground 5oor $ith add

catering to the 'arious ncustomers

• Area: 'ery cro$ded and amids

• Aim: #ry to bring sho!!ing a

rela4ing e4!erience for their sh• Being a city hub% !ro'ides the

cater to the needs of the emer

!ro'iding a $ide range of !

'arious brands.

Place



Peo!le 0mployees

• Ade0uate number of em!loyees

• 6ell educated and $ell beha'edsta(

•

Good *no$ledge about thea'ailable !roduct range across thebrands

"anagement• Store Manager

• Assistant Store Manager• De!artment Managers

• 9R Manager• @M Manager

Culture• 9ealthy $or*ing culture• <(ecti'e 1ustomer

interactions• 1ustomer =riented

attitude

Customer Service• Arri'al is ac*no$ledged

• Sta( a'ailable for hel! at eyes• 1ross sell to 'alue to customer e4!e



7ift Central• @alue added ser'ice $hich has

become a reason of smile for thecustomers.

•

&t is not a'ailable all the time atPatna 1entral.

Process

4eauty Central• &t !ro'ides free ma*eo'er facility• 9el!s to sa'e time I money• #he e(ort is made to ma*e the

ambience more comfortable andcheerful

/i;Fi Centra• Gi'es the facility to access

internet connecti'ity to the• #he $i3 $or*s near 1SD a

Flower Central• &t includes greeting customers $ith 5o$ers• #he ser'ice is not functional right no$• na'ailability of 'endors

6adio Cent• &t is added for th

entertainment• 1ontrolled by 1SD• #iming: .F AM to .F• &t includes : Announcement-!aging

Music !layed in Mall



nternal• @isual communication% lighting% colour scheme%

fragrance% music

• sed to stimulate customer,s !erce!tual andemotional res!onses

• &n5uences their buying beha'iour

• @ariety of 34tures

• Blend of culture $ith lu4ury feel

Physical <n'ironment

0&ternal•

Grand and attrabuilding

• 8ree S!ace around tbuilding

• Par*ing Area

Store 9peration



• <)ciencies% and therefore !ro3tability

• 1onsistency and reliability in !roduction and ser'ice

• 8e$er errors in all areas

• A $ay to resol'e con5icts bet$een !artners

• A healthy and safe en'ironment

• Protection of em!loyers in areas of !otential liability and !ersonnel m

• A roadma! for ho$ to resol'e issuesand the remo'al of emotion from

troubleshooting allo$ing needed focus on sol'ing the !roblem

• A 3rst line of defense in any ins!ection% $hether it be by a regulatory

!artner

or !otential !artner% a client% or a 3rm conducting due diligence for a

!urchase

• @alue added to your business should you e'er $ish to sell it.

Store 9peration

Store 9pening



• Manager res!onsible for daily store o!ening"closing to be of the ran* of an asde!artment or abo'e.

• Store Manager and store o!erations manager should be !resent for a store oand closing at least once a $ee*.

•

Designated managers is res!onsible for collecting the *eys of the store from manager res!onsible for o!ening"closing for the !re'ious !rescribed !eriod% oday of such !re'ious !eriod. Details to be recorded in the *ey mo'ement reg

• =nce all the shutters are o!ened the authori+ed !erson should ensure that th*eys are returned to the *eyboard.

• 1ustomer entry !oint should be o!ened at the time of business hours.

• Designated manager res!onsible for o!ening the store should tally the !re'io

closing chec*list against his"her o!ening chec*list.

• #he security su!er'isor should ensure that all security sta( is !resent at theires!ecti'e duties that is toilets% trialrooms etc.

• #he sta( from o'er the counter sections should remo'e the seals from the coo!en their dra$ers and ensure that the merchandise is $ell dis!layed.

• #he security at the baggage counter should chec* for any unclaimed baggag

end of the day.

Store Closing



• #he manager scheduled by the store manager is the only !erson authori+ed tstore.

• 1losing of the store shall start from the to! 5oor of the mall to the bottom 5ooor as !lanned by the store manager.

• During store closing% the closing team should loc* and !ut bro$n !a!er seals on all doors"$indo$s.

• All seal should bear the signature of the closing manager $ith the date.

• &f the designated o!ening manager notices that% any of the seals has been tamimmediate in'estigation should ta*e !lace after informing the store manager.

• During closing it should be ensured that all lights A1,s% fans or any in5ammabare !ut o( and $ater ta!s are closed.

• All trolleys should be arranged inside the store before store closing. #he trollecounted and the record of the same should be maintained in the trolley regist

• #he security at the baggage counter should chec* for any unclaimed baggageof the day and should hand o'er to the security manager for de!ositing the sa1SD the ne4t morning.

• 1losing manager should ensure that the security guards are in !lace after theclosed.

g

<ight /or#



• All the night $or* !ermits should be authori+ed by the storemanager"o!erations manager before J !m of the same day.

• Material declaration !ass record the e0ui!ment7s"material"!ersonalta*en in the mall. #he security guard should sign o( after stri*ing thcolumns.

• /obody can lea'e the mall once the mall is sealed. Men and materilea'e in !resence of the o!ening manager.

• #he material declaration should be signed by a di(erent security gu

the night $or*men lea'e.

g

&tore 1etails

Store Details



&tore 1etails&tore 1etails

S o e e a sLocation of store Fra:er road

Store Manager Suraj Shah

/o. of em!loyees J -F ; Brand<m!loyees

; 1entral <m!loyeesSi+e of the store la*h S0"ft

A'erage footfall " $ee*days1on'ersion

F " A!!ro4

A'erage footfall " $ee*ends1on'ersion

N " A!!ro4

A'erage 8ootfall during <=SS in$ee*days

A'erage 8ootfall during <=SS in6ee*ends

O " A!!ro4 C

* " A!!ro4 C

A'erage Monthly sale for months.

A'era e Monthl sale durin <=SS

; crores

; .O crores

<ntrance of the Store Baggage 1ounter of the



Ground 5oor of theStore

Bags and Sunglass



8irst 8loor of theStore

6omen,s 6estern



Second 8loor of theStore

outh 6ear Section



#hird 8loor of theStore

Men,s 8ormal% 1asual% AccSection



8ourth 8loor of theStore

1ustomer Ser'icDes*



>ey 9ighlights of the Store





• Average Customer Spend=

• Sale for the day ; 2>--(?@

• <o of converted customers >?2

• Therefore ACS ; 1@2B

ey )erformance ndicators

Source : An*ur 1ho!ra -Mar*eting 9ead 1entral

) f di



• Sales and 7ross "argin=

• Sales for 3anuary 21 ; >.@ croresB

• 7ross "argin ; -E-(-B , ( G including n ;

4rands H other

• 6ent ; ?E--B

• 7ross )ro!t ; 2-EE-(-B

• This pro!t is e&cluding all the e&penditure of the st

ey )erformance ndicators

References



References

• 8uture Grou!. -J% March F. Retail Businesses: 1entral. Retrie'ed fGrou!.

6ebsite: htt!:""$$$.futuregrou!.in"businesses"centralretail.html • 8uture Lifestyle. -% ?une. About s. Retrie'ed from 8uture Lifestyle. 6ebsite: htt!:""$$$.futurelifestyle.in"aboutus.html

• 8uture Lifestyle. -J% August . Business Brands: 8ashion Brands8uture Lifestyle.

6ebsite: htt!:""$$$.futurelifestyle.in"brandsbusiness.htmlQfashion

• 8uture Lifestyle. -C% =ctober. Business ='er'ie$: 8ashion Retail.8uture Lifestyle.

6ebsite: htt!:""$$$.futurelifestyle.in"businesso'er'ie$.htmlQfash

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Retail strategy of Central (future group)