Retail Management Retail Management Overview Retail Sectors Retail challenges and theories

1. Table of
Contents
Retailing Overview
01
Retailing Sectors
02
Retail Challenges &
Theories
03
Understanding
Retail Consumers
04

2. RETAILING

3. Retail
Retail is the end
or final stage of
any economic
activity

4. The Word retail has
been derived from the
french word ‘re-tailler’
which means, ‘to cut off,
trim or divide’.

5. RETAILING
❖ Retailing is buying and selling
both goods and consumer
services.
❖ It can also be defined as the
timely delivery of goods and
services demanded by
consumers at prices that are
competitive and affordable.
❖ Retailing is a set of business
activities that adds value to
the products and services sad
to consumers for their
personal or family use.

6. Retailer
• Retailer may be defined as
a dealer or a trader who
sells godos?services in
small quantities to
consumers for personal or
family use.
• Is any business
Enterprise whose sale
volumen comes primarily
from retailing

7. RETAIL MANAGEMENT
▪ Retail Management is a process of promoting
greater sales and customer satisfaction by gaining
a better understanding of the consumers of goods
and services produced by a company.
▪ It includes all the steps required to bring the
customers into the store and fulfill their buying
needs.
▪ It is an art as it requires a number of management
tolos for a complete end user satisfaction.

8. Retail Sectors

9. ▪ Department Store
▪ Specialty Store
▪ Discount/Mass Merchandisers
▪ Warehouse/Wholesale clubs
▪ Factory Outlet
Retail Sectors

10. Retail Sectors
Department Stores
Department stores are large retail establishments that are
made up of a number of sections, or departments. A specific
group of products is available in each department, each of
which specializes in selling a particular grouping of products.

11. Retail Sectors
Specialty Stores
Specialty stores are the retail establishments that specialize in the
selling of a single type or specific range of merchandise and related
items. These establishments typically concentrate their efforts on selling
a single type or very limited range of merchandise.

12. Retail Sectors
Discount/Mass Merchandisers
Discount stores are stores that typically sell a broad range of products
at lower prices than other retail establishments. However, they generally
also offer lower levels of service than higher-priced retailers. These
stores tend to offer a wide array of products and services, but they
compete mainly on price.

13. Retail Sectors
Warehouse/Wholesale clubs
A warehouse club is an off-price retail store that sells a general line of
merchandise at low prices. These stores have a no-frills setting that
resembles a warehouse, and they usually require a membership in order
for customers to shop at the store and get the reduced members prices.
That’s why they are called warehouse clubs

14. Retail Sectors
Factory Outlet
A factory outlet is a premises in which a manufacturer offers goods
for sale direct to the public. Such outlets are often cheaper than retail
stores because retail costs are not included.
Factory outlets are owned and operated by manufacturers and normally
carry the manufacturers' surplus, discontinued, or irregular goods.

15. RETAIL CHALLENGES &
THEORIES

16. Retail Challenges
Today consumers are choosing multichannel buying experiences
and expect that to be a seamless experience. To attract customer
loyalty, retailers need to provide an experience that stands out
from others. Learn the challenges faced by the retail sector today.
Consumers today have changed the way they interact with
businesses.

17. Legal and security Ethical issues
Technological Non-store retailing
etc
Retail Challenges
Write your subtitle here

18. Organized
retailing in major
cities began as an
experiment, expanding
business organizations
and establishing stores
in unorganized sectors.
Legal and
Secuirity
Retail industry
expansion poses
challenges and losses
for a significant
portion of society's
reliant population.
Ethical Issue
Retail management system requires
technology advancements for
modern amenities and challenges in
supply chain, affecting suppliers,
employees, and end users.
Techonologic
Retail locations face
increased workload
and disorganized
supply distribution
network due to
Non-Retailing
Store
B
Retail Challenges

19. Retail Theories
Retail growth has been boosted by new enterprises and
innovative strategies. Various theoretical viewpoints can be
used to analyze retail growth, as diverse market
circumstances and socio-economic situations contribute to
its intolerability.

20. The
Theories
are;
Wheel of Retailing
Retail Accordion Theory
Theory of Natural Selection
Retail life cycle

21. The theory by Malcolm P. McNair explains how
retailing has evolved structurally over time. Retail
businesses seek to expand their clientele through
modernization, product additions, and service
introductions. As the market expands and prices
increase, they shift to catering to affluent
clients, transitioning from low-income to affluent
customers.
1.Wheel of Retailing:

22. The accordion hypothesis suggests that
general stores transform into specialty
shops before returning to their original
form. Hollander's idea, inspired by the
orchestra, suggests closed accordions for
specialty products or open accordions for
general stores.
2.Retail Accordion Theory:

23. Retail establishments adapt to changing
environments, with merchants who
effectively adapt to technology, economics,
demographics, politics, and law more likely
to expand and succeed. This theory is
superior to the Wheel of Retailing, but
lacks consumer preferences, expectations,
and wishes.
3.Theory of Natural Selection:

24. Retail businesses undergo various stages of
innovation, development, maturity, and decline,
similar to products and brands. In the invention
stage, organizations have few rivals. In the
accelerated growth phase, firms experience rapid
sales growth, competition, and leadership to maintain
stability. To survive, organizations must adopt a
unique strategy at each stage of their life cycle.
4.Retail Life Cycle:

25. Understanding retail consumers involves comprehending
their shopping habits and understanding who purchases
Understanding Retail
Consumer

26. Understanding retail
consumers involves
understanding their shopping
habits, purchasing patterns,
and reactions to sales
promotions. This includes
understanding who, when, and
how purchases are made.
Understanding Retail
Consumer

27. Customer’s Buying Behavior Patterns
Place of Purchase
Product Purchased
Time and Frequency of Purchase
Method of Purchase
Response to Sales Promotion
Methods

28. Customers divide their place of
purchase. Even if all the products they
want are available at a shop, they
prefer to visit various shops and
compare them in terms of prices. When
the customers have a choice of which
shop to buy from, their loyalty does
not remain permanent to a single shop.
Place of Purchase

29. Availability/Shortage of product Perishability of product
Storage requirements Purchasing power of oneself
Product Purchased
It pertains to what items and how many units of items the customer
purchases. The customer purchases a product depending upon the
following −
Requirement/Choice of product

30. Weather
Season
Location of customer
1
2
3
Time and Frequency of Purchase
Retailers need to keep their working time tuned with customer’s
availability. The time of purchase is influenced by −

31. Method of Purchase
It is the way a customer purchases. It involves
factors such as −
● Is the customer purchasing alone or is accompanied
by someone?
● How does the customer pay: by cash or by credit?
● What is the mode of travel for the customer?

32. Factors Influencing Retail Consumer
Understanding consumer behavior is critical for a retail business in order to create
and develop effective marketing strategies and employ four Ps of marketing mix
(Product, Price, Place, and Promotion) to generate high revenue in the long run.
● Market Conditions/Recession
● Cultural Background
● Social Status
● Income Levels
● Personal Elements
● Psychological Elements

33. Factors Influencing Retail Consumer
● Market Conditions/Recession
In a well-performing market, customers don’t mind spending
on comfort and luxuries. In contrast, during an economic
crisis they tend to prioritize their requirements from basic
needs to luxuries, in that order and focus only on what is
absolutely essential to survive

34. Factors Influencing Retail Consumer
● Cultural Background
Every child (a would-be-customer) acquires a personality,
thought process, and attitude while growing up by learning,
observing, and forming opinions, likes, and dislikes from its
surrounding. Buying behavior differs in people depending on
the various cultures they are brought up in and different
demographics they come from.

35. Factors Influencing Retail Consumer
● Social Status
Social status is nothing but a position of the customer in the society. Generally,
people form groups while interacting with each other for the satisfaction of their
social needs.
These groups have prominent effects on the buying behavior. When customers
buy with family members or friends, the chances are more that their choice is
altered or biased under peer pressure for the purpose of trying something new.
Dominating people in the family can alter the choice or decision making of a
submissive customer.

36. Factors Influencing Retail Consumer
● Income Levels
Consumers with high income has high self-respect and expects everything best
when it comes to buying products or availing services. Consumers of this class
don’t generally think twice on cost if he is buying a good quality product.
On the other hand, low-income group consumers would prefer a low-cost
substitute of the same product. For example, a professional earning handsome pay
package would not hesitate to buy an iPhone6 but a taxi driver in India would buy
a low-cost mobile.

37. Factors Influencing Retail Consumer
● Personal Elements
Gender − Men and women differ in their perspective, objective, and habits while deciding what to buy
and actually buying it.
Age − People belonging to different ages or stages of life cycles make different purchase decisions
Occupation − The occupational status changes the requirement of the products or services. For
example, a person working as a small-scale farmer may not require a high-priced electronic gadget
but an IT professional would need it.
Lifestyle − Customers of different lifestyles choose different products within the same culture.
Nature − Customers with high personal awareness, confidence, adaptability, and dominance are too
choosy and take time while selecting a product but are quick in making a buying decision.

38. Factors Influencing Retail Consumer
● Psychological Elements
Motivation − Customers often make purchase decisions by particular motives such as natural
force of hunger, thirst, need of safety, to name a few.
Perception − Customers form different perceptions about various products or services of the
same category after using it. Hence perceptions of customer leads to biased buying decisions.
Learning − Customers learn about new products or services in the market from various
resources such as peers, advertisements, and Internet. Hence, learning largely affects their
buying decisions. For example, today’s IT-age customer finds out the difference between two
products’ specifications, costs, durability, expected life, looks, etc., and then decides which one
to buy.
Beliefs and Attitudes − Beliefs and attitudes are important drivers of customer’s buying
decision.

39. Thank You!