Inception dated back to times where stores were found in village fares, melas etc. Emergence of Kirana stores and mom & pop stores. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumars, Raymonds, etc. Titan, Foodworld in FMCG, Planet M & Music World in music, Crossword in books.
3 SUCCESSIVE WAVES: First wave in the early to mid 1990s( South America) Second wave –mid to late 1990s( Mexico, Central America, South-East Asia, South Central Europe). Third wave- late 1990s & early 2000( China, India, Russia, some parts of Africa and continues.
Family-owned Mom & Pop stores. Traditional retail chains like Nilgiri & Akbarallys . Public Distribution System(PDS). High streets like Linking Road & Fashion Street in Mumbai. Bombay Dyeing, Shopper’s shop, Pantaloon Retail India Ltd(PRIL). FDI in single brand retailers( Tommy Hilfiger, Louis Vuitton) and cash & carry formats( Tesco, Wal-Mart, Metro).
Department stores Discount stores Supermarket Warehouse stores Specialty stores Malls Retailers Dollar stores
No specific rules& regulations but certain lawsare their: Shop and Establishment Act Standards of Weights and Measures Act Provisions of the Contract Labour (Regulations and Abolition) Act The Income Tax Act Customs Act The Companies Act
The present value of the Indian retail market is estimated to be around Rs. 12,00,000 crore. The annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7,43,900 crore is the largest of the different types of retail industries present in India. Around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.
Country Retail Sectors share in GDP (in %) India 10 % USA 10% China 8% Brazil 6%
Global economic slowdown Competition from the unorganised sector Retail sector has no recognition as an industry High real-estate costs Lack of basic infrastructure Supply-chain inefficiencies Challenges with respect to human resources Margin Pressure Fraud in retail Challenges with Infrastructure and Logistics
S.NO. COUNTRY REVENUE(IN COMPANY NAME BILLIONS)1. Walmart U.S. $4042. Carrefour FRANCE $1223. Metro AG GERMANY $914. Tesco U..K $90.435. Schwarz Unternehmens Treuhank GERMANY $77.22 KG6. The Kroger co. U.S. $76.737. Costco Wholesale Corp. U.S. $71.428. Aldi Einkrup Gmbh& Co. GERMANY $67.709. The Home Depot U.S. $66.1710. Target U.S. $65.35
Consumer debt levels are declining, but still remain high compared to historic norms. Surveys show that consumers are focused on paying down debts. High health care costs in America continue to be a major challenge to consumers, thus reducing discretionary spending. A continuation of depressed conditions in the housing market means low home equities and limits the ability of consumers to sell or borrow against their houses.
A high level of home mortgage foreclosures continues in the U.S., with more than 8% of all residential mortgages in delinquency or foreclosure as of mid 2011. Persistently high unemployment levels and difficult environment for job seekers reduces retail spending. Low consumer confidence reduces spending.
Consumers will continue to be more conservative. Decline in sales growth is increasingly apparent. Led to tightening of credit markets.
The Infrastructure of retail sector will evolve radically. The shopping malls are increasing at fast pace in metros. The growth of organized retail sector is anticipated to be heavier than the growth of GDP. People’s lifestyle, rising income level and encouraging conventions of demography are proving favorable. More access to credit facilities.
With Arrival of transnational companies, indian retail industry will undergo a transformation. No one single format can be assumed as there is a huge difference in cultures regionally. The most encouraging format now would be the hypermarts. The hypermart format would be further encouraged with the entry of the TNCs
SHOPPERS’ STOP :Chandru Lachmandas Raheja PANTALOON: Kishore Biyani RPG GROUP: Rama Prasad Goenka CROSSWORD :R. Sriram and Ms K. Anita GLOBUS: Vinay Nadkarni LIFESTYLE: Y.C. Deveshwar