Retail Management - Session I

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RETAIL

MANAGEMENT

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Definition

Retailing a set of business activities thatadds value to the products and servicessold to consumers for their personal or

family use. (Michael Levy, Barton Weitz.

Aretaileris a business that sells products

and/or services to consumers for personalor family use.

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Initial Period Weekly haats.

Emergence of Local baniya shops known as

Kirana Shops

Organized Retail - Multichain Outlets

Post liberalization era - New Retail Formats,Modern techniques, exclusive retail outlets, etc.

Indian Retail Scenario

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Classification of Retail Stores

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Store based Retailing Non Store Retailing

Form of Ownership Independent Retailer

Chain Retailer Franchise Leased Departments Consumer Co-operatives

Merchandise offered Convenience Stores Supermarkets Hypermarkets Speciality Stores Off price retailers Factory outlets Catalogue showrooms


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Examples of Retail formats

Convenience Stores HP, Speedmart, In & Out.

Supermarkets Food Bazar, Tesco, Foodworld,Foodland, Nilgiris.

Hypermarkets Wal mart, Big Bazar, etc.

Speciality Stores Crossword, Planet M, Music world.

Factory Outlets Reebok Factory outlets, Levis FactoryOutlet, Wrangler Factory Outlet.

Category Killers Toys R Us has 10000 toy items in a

store, as compared to 3000 in a department Store. TheLoft, in Mumbai a 15000 sq ft store catering to footwearalone. Nallis in Chennai.

Department Stores Marks & Spencer, Shoppers Stop,

Globus, West side, Lifestyle. 5


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Non Store Retailing

Direct Selling Mail Order Telemarketing Automatic Vending


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Products are also termed as Merchandise.

Product

The different products that the store offers istermed as the merchandise mix.

A merchandise line consists of a group ofproduct that is closely related because

they are intended for the same end use,are sold to the same customer group or fallwithin the same price range.

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For example, if we consider the menswearsection at a department store, the merchandiseline would comprise of formal wear, casual wearaccessories etc.

The breadth also called assortment refers to thenumber of merchandise brands in themerchandise line. If the merchandise line is

menswear, an example of breadth of the formalwear shirts would be the number of brands ofshirts that the store stocks.

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The depth of the merchandise refers to theaverage number of Stock keeping units withineach brand of the merchandise line. Stockkeeping units, or SKUs they as they arecommonly referred to, are the individual productsthat the store carries, defined by brand, size,color, price, style and pattern.

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Pricing Policy depends largely on thecustomer profile that is the target audience forits range of products.

Price

Also depends on the availability of itssubstitutes or whether the product offering

is unique.

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For a very long time location was consideredto be the most important element of the retailmarketing mix.

Place

With the advances in technology and theadvent of television shopping and theInternet many retailers are now going for aclick and mortar approach.

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The advertising budget, the sales promotions,publicity and PR plays an important role inRetailing.

Promotion

Retailers emphasis should be indeveloping a communication strategy in

line with target market and the productsthat they stock in store.

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The manner in which the merchandise ispresented at the store level is very important.

Presentation

Store layout, ambience and visual

merchandising.

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Support Services, credit policies, productreturns policies, etc need to be very clear.

Customer Service

RM, Data warehousing and customer

relations management.

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Pantaloon Retail India (PRIL) plans to invest US$77.88 million this fiscal to add up to existing 2.4million sq ft retail space. PRIL intends to set up155 Big Bazaar stores by 2014, raising its total

network to 275 stores.

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THANK YOU

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Documents

Retail Management - Session I