• Save
Session 1   store formats and location planning
Upcoming SlideShare
Loading in...5
×
 

Session 1 store formats and location planning

on

  • 1,307 views

This talks about the various store formats and how location planning for a new store is done

This talks about the various store formats and how location planning for a new store is done

Statistics

Views

Total Views
1,307
Views on SlideShare
1,306
Embed Views
1

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 1

http://retaildodo.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Session 1   store formats and location planning Session 1 store formats and location planning Presentation Transcript

  • Arindam Palarindam.bit@gmail.com © Arindam Pal
  •  What is Retail? ◦ Sales of Goods/ Merchandise for personal or household consumption ◦ Either from a fixed location such as a department store or Kiosk or from fixed location and related subordinated services What is Organized Retail? ◦ Trading activities undertaken by licensed large retail chains ◦ It contributes to roughly 4% of total retailing in India © Arindam Pal
  • MANUFACTURING DISTRIBUTION CENTER RETAIL OUTLET CARRIER CARRIER © Arindam Pal
  • Although a bit outdated, this gives a good picture of how Consumption Spending contribute to the GDP of IndiaPantaloon Retail Annual Report 07-08 © Arindam Pal
  • A good representation of howthe Consumption Spending isdivided into the various buckets. © Arindam Pal
  • Organized Retail Food and Grocery Jewellery & Business in Modern Trade is Catering Watches Books, Music Services 7% 7% and Gifts 3% under-indexed Furniture & Mobile Handsets when compared Furnishings 3% Others to overall Retail 8% 4% Pool Footwear 9%ConsumerDurables 9% Clothing and Good & Textile Grocery 39% 11% ICICI white paper © Arindam Pal
  •  Wider Assortment Fresh Products Assured Quality Better Pricing Convenience – under one roof Shopping Experience ◦ Ambience ◦ Self Service ◦ Family Time © Arindam Pal
  •  Additional Consumer Touch Point ◦ Additional opportunity to understand their consumers Range Visibility ◦ Display of entire range of products ◦ Space available for hire to display range Branding/New Product or Category Introduction ◦ Enable consumers to experience the brand or new product Sampling ◦ Ensure that consumers are exposed to their product and try it out Premiumization ◦ Move consumers towards premium brands, hence ensuring higher profits for manufacturers © Arindam Pal
  •  Accurate collection of Taxes ◦ Organized retail eliminates the issue with ‘Sales without bill’ ◦ Will increase collection of Taxes Increased Employment ◦ Retail is the largest employer for many of the Developed Economies ◦ Has significant employment potential Business for Local Players/ Entrepreneurs ◦ Organized retail can get additional business for local players, SMEs, home and cottage industries Controlling Inflation ◦ By direct sourcing of goods, Organized Retail can help control infration © Arindam Pal
  • © Arindam Pal
  • © Arindam Pal
  •  By Channel ◦ Brick and Mortar Store – Reliance Retail, More ◦ Online E-commerce – Flipkart, Jabong By Ownership ◦ Corporate – Spencer’s, Pantaloons, Big Bazaar ◦ Cooperatives – CO-OP in Europe ◦ Franchisee – Vishal Megamart ◦ Independent – Dorabjee’s in Pune By Assortment ◦ Wide Categories Covered - Hypermarkets ◦ Limited Line Retailing - Specialty Stores, Single Brand Outlets By Amount of Customer Service ◦ Self Service ◦ Limited Service ◦ Full Service © Arindam Pal
  • Retail Formats can be classified based on thefollowing parameters Size Location Assortment Ambience Pricing Hours of Operation Min Quantity of purchase © Arindam Pal
  •  500 – 2000 sft in size Usually located in societies, under  Size apartments, right in the middle of residential  Location areas  Assortment Limited Assortment  Ambience Less focus on ambience  Pricing Competitive pricing  Hours of Operation  Quantity of purchase Long hours of operation Meant for smaller quantities of purchase In & Out, Spencers Daily, Arambag, 9 – 11 © Arindam Pal
  •  2000 – 20000 sft in size Central location, wider catchment  Size Extensive assortment of Foods, Grocery,  Location Health and Beauty  Assortment Some representation of General Merchandise  Ambience Ambience is better than Convenience Stores  Pricing Discount pricing in core segments, extensive  Hours of Operation promotions  Quantity of purchase Normal hours of operation Meant for Pantry loading of Foods, Grocery and Health n Beauty (weeks purchase/ bi weekly purchase) Food Bazaar, Reliance Super, Easy Day © Arindam Pal
  •  Greater than 20000 sft in size Located in Major Hubs  Size Extensive assortment of Foods, Grocery,  Location Health and Beauty, General Merchandise  Assortment Some representation of Apparels and  Ambience Consumer Durables, Books, Accessories  Pricing Ambience depends on positioning  Hours of Operation Extensive promotions, combi packs,  Quantity of purchase discounts on larger packs Normal hours of operation Meant for Monthly Purchase Big Bazaar, Spencers Hyper, Reliance Mart, Spar, Hypercity, Total © Arindam Pal
  •  Greater than 20000 sft in size Located in Major Hubs  Size Extensive assortment of Apparels,  Location Accessories, Home Needs, Health and Beauty  Assortment Products  Ambience Some representation of Books, Consumer  Pricing Durables  Hours of Operation Great focus on ambience, lighting, visual  Quantity of purchase merchandise Intermittent promotions Normal hours of operation Destination store for target categories Shoppers Stop, Westside, Globus, Lifestyle © Arindam Pal
  •  Less than 5000 sft in size Located in Major Hubs, Malls  Size Extensive assortment of Single Product Line,  Location Best assortment in that product line  Assortment Good on ambience, lighting, visual  Ambience merchandise  Pricing Intermittent promotions  Hours of Operation  Quantity of purchase Normal hours of operation Destination store for target categories Little Shop, Proline Fitness, Mom & Me, Steel Junction © Arindam Pal
  •  Typically greater than 1 lac sft in size Located in places where rentals are low  Size Extensive assortment of Foods, Grocery,  Location Health and Beauty, General Merchandise  Assortment Good range of Apparels, Accessories,  Ambience Perishable Products, Liquor, Home Needs.  Pricing Low on ambience  Hours of Operation  Quantity of purchase Strong on pricing in bulk purchases Normal hours of operation Quantity Limitation is there, meant for Retailers not Customers Walmart, Metro, Carrefour © Arindam Pal
  • Experience says the convenience format isstruggling in India Rentals are high because of its location Cost / sft is highest for convenience stores Consumers expect prices to match hyper market rates MRP regime in India – retailers cannot charge for theconvenience ◦ In matured markets, since there is no MRP regime, retailers can charge mark up for the convenience that they are providing. In India, it is not possible, the max you can sell at is MRP. © Arindam Pal
  •  Location – Location - Location ◦ Retail is all about choosing the right location Types of Retail Locations ◦ Freestanding Location ◦ In the Business District ◦ In the Shopping Centre / Mall © Arindam Pal
  •  It is very important to evaluate the market potential before setting up a store There are various techniques that are available for market evaluation Range ◦ Maximum distance a consumer is willing to travel for a particular product or service Threshold ◦ Minimum amount of consumer demand that is necessary for a product or service to be viable © Arindam Pal
  • Range and Threshold are some considerations while doingMarket Evaluation © Arindam Pal
  •  Herfindahl Herschman Index (HHI) ◦ Addition of squares of market shares of competitors ◦ HHI increases when  Number of players in the market are low  Disparity between the size of players ◦ HHI > 1800 – Concentrated ◦ HHI between 1000-1800 – Moderately Concentrated ◦ HHI < 100 – Not concentrated © Arindam Pal
  •  Index of Retail Saturation ◦ IRS = H * RE / RF  H – Number of Households in the area  RE – annual retail expenditure per household  RF – total square footage of retail available in the area ◦ Higher the IRS, the higher the chances of success for a new entrant © Arindam Pal
  •  Reilly’s Law of Retail Gravitation ◦ (Ba/Bb) = (Pa/Pb)*(Db/Da)2 ◦ Gives the ratio of sales between two alternatives © Arindam Pal
  •  Determination of Market Potential ◦ Demographic Profile ◦ House Hold analysis ◦ Competition ◦ Catchment area analysis  Core Catchment  Secondary Catchment  Tertiary Catchment © Arindam Pal
  •  Identification of a site for locating a store would be based on the following parameters ◦ Footfalls of the neighborhood ◦ Accessibility ◦ Market Saturation ◦ Competition ◦ Available Amenities ◦ Intended Product Mix ◦ Concentration of stores with same Product Mix  Studies have shown that when many stores are available with similar product line at the same location, it tends to become the destination market © Arindam Pal
  • Thank You