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Global Powers of Retailing 2006 , Deloitte and Stores Magazine, Annual The list of the biggest retailers in the world is dominated by the grocers: Wal-Mart (USA); Carrefour (France); The Home Depot (USA); METRO Group (Germany); Tesco (UK); Kroger (USA); Costco (USA); Target Corp (USA); Koninklijke Ahold (Netherlands); Aldi GmbH & Co (Germany).
The state of retailing is dependent on consumer confidence and key
economic factors, so retail practices vary between countries.
In the USA, for example, one third of all sales are through franchised stores
In Sweden, 20% of retail sales are through co-operatives .
Countries with the most developed online markets include the UK, the USA, Scandinavian countries, Germany, France and Japan.
Format Description Example Super Markets Is one that is departmentalized into self-service stores and offers a range of food household articles situated in a convenient area, pref. near residential localities. Focuses on price positioning with products at lower prices Nilgiris was the first supermarket in Bangalore. Others are Apna Bazaar, Foodworld, Subhiksha Department Store represents a retail outlet that stocks a variety of merchandise ranging from apparel, tolietries, cosmetics, toys, jewellery, furniture, etc. Shoppers Stop, Pantaloon, Westside, Lifestyle Hypermarket represents a supermarket that has the features of both a supermarket and a department store and is mainly located in the outskirts of major towns and cities Big Bazaar of Pantaloon Retail, Star India Bazaar of Trent, HyperCity of K.Raheja, Choupal Sagar – India’s first rural hypermarket Convenience Store stores that are open 24x7 & stock most essential and FMCG such as food items, personal care, etc. Mostly located at fuel stations or areas where they may not be other stores offering day-to-day items My Mart, In & Out
Format Description Example Speciality Store are the ones that sell specific merchandise with focus on a single category Planet M, Crossword, Kids Kemp Kiosks/ Food Counter Retail outlet structures which are open on all sides and mostly engage in selling consumer goods like edible snacks, newspapers, etc. They are mostly located at high streets, malls, multiplexes Corn Man, Brownie Cottage, Shiv Sagar, Kailash Parbat Discount Store a type of department store selling products at prices lower than that in other retail outlet and appealing to the middle-class segment in India The Loot, My Dollar Store, Max Retail
Retailers must develop marketing strategies based on overall goals and strategic plans
Retailing goals might include more traffic, high sales of a specific item, a more upscale image or heightened public awareness of the retail operation.
The key tasks in strategic retailing are defining & selecting a target market and developing the retailing mix to successfully meet the needs of the chosen target market The Target Market Retail Marketing Mix Retailing Strategy
Wal-Mart Stores, Inc. is an American public corporation, currently one of the world's largest corporations (by revenues) and ‘the most admired retailer’ according to the 2007 Fortune 500
It was founded by Sam Walton in 1962
It is the largest private employer in the world (1.9 million) and the world's 4 th largest utility or commercial employer, only trailing the People's Liberation Army of China, the National Health Service of the United Kingdom and the Indian Railways.
If Wal-Mart were a country, it would be the 20th largest in the world If Wal-Mart were a city, it would be the fifth largest in America
Insight " The secret of successful retailing is to give your customers what they want. And really, if you think about it from the point of view of the customer, you want everything: a wide assortment of good quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience’’ -Sam Walton, founder, Wal-Mart Inc.
Nearly 6,500 (2700 internationally & 3800 in the US) stores and wholesale clubs across 13 countries
More than 1.9 million Wal-Mart associates , serving 100 million customers a day.
Retail formats * Supercenters * Food and drugs * General merchandise stores * Bodegas (small markets) *Cash and carry stores * Membership warehouse clubs *Apparel stores *Soft discount stores * Restaurants. Country Retail Units Mexico 919 Puerto Rico 54 Canada 290 Argentina 15 Brazil 298 China 184 United Kingdom 337 Japan 392 Costa Rica 140 El Salvador 63 Guatemala 137 Honduras 44 Nicaragua 40
Wal-Mart generated more than $312.4 billion in global revenue in the fiscal year ended January 31, 2006, establishing a new record and an increase of 9.5 percent operating at a profit of 3.5%
Global Marketing Strategy PRICE When it comes to marketing strategies, Wal-Mart sticks to its knitting. The basis of the discounting philosophy is that by cutting price, sales can be boosted to a point where the earning is more because of the increased volume of merchandise sold. Every Day Low Price Rollback Special Buy By unwaveringly maintaining its policy throughout its history, the retailer imparts a consistent message to consumers "low prices save you money.“ PLACE – SUPPLIER MANAGEMENT Supplier base of nearly 3,000 suppliers. Deliberately ensured it did not become too dependent on any one supplier No single vendor constituted more than 4 percent of its overall purchase volume.
Global Marketing Strategy PLACE – DISTRIBUTION SYSTEM “ Saturation” distribution strategy Satellite network system PROMOTION - ADVERTISING The ads project homey images and use real associates and customers (not actors) to relate all the reasons why it's nice to shop at Wal-Mart.