The document provides a comprehensive overview of retail management, covering the roles and functions of retailers in the distribution channel, various retail formats in India and globally, and the evolving landscape of retail due to technological advancements and changing consumer behavior. It discusses job prospects in the retail sector, skills required, and different types of retailers like supermarkets, hypermarkets, and specialty stores, along with challenges and opportunities, especially in rural areas. The text emphasizes the importance of marketing decisions and career paths within retail, highlighting key trends and future directions in the industry.

1. 1
Retail Management

2. Introduction to Retailing
• The Role of Retailer - Retailing (Definition), Role of Retailer in distribution
channel, functions performed by Retailer (Assortment of Products, Braking
the bulk, Holding inventory, Providing services). Reasons for studying
retailing.
• Indian Retail Market – Market share of Organized Vs unorganized, key
sectors in Indian Retail Industry. Drivers of Retail change in India
• The global Retail Market Scenario, challengers faced by Retailers worldwide
• Career in Retail
• Self-Learning Topic - The A.T. Kearney Global Retail Development Index for
the current year

3. Which is most profitable chain?

5. Retailing
• All activities involved in selling goods or services directly to final
consumers for their personal, non-business use
• A person or company who sells goods to the public in a shop
• Retailing can take place in stores and non-store environments
14.5

11. Classification
• Amount of service offered
• Depth of products lines
• Relative prices charged
• How they are organized

12. Amount of service offered
• Self-service retailers
• Limited-service retailers
• Full-service retailers

13. Depth of Products lines
• Specialty stores
• Department stores
• Supermarkets
• Convenience stores
• Discount stores
• Off-price retailers
• Superstores

14. Supermarkets
• These are self service food stores offering wet and dry groceries and with a limited
range of non-food items, such as health and beauty aids and general merchandize.
• They keep 5000-10000 SKUs and they cater to monthly, daily and weekly shopping
needs of consumers
• 85% food and grocery
• 8000-20,000 sq feet
• Self service, impulse buying
• Eg: D-mart, Reliance fresh, Safeway(US), Kroger(US) ,Tesco(UK)

15. Characteristics of Supermarket
• It is a large store with enough moving space & parking ground.
• Located in the main shopping area.
• Deals in good items & household items.
• Similar goods are kept together in separate department.
• Self-service is the basis.

16. Relative prices charged
• Discount stores
• Off-price retailers:
• Independents
• Factory outlets
• Warehouse clubs

17. How they are organized
• Retail organizations:
• Corporate chains
• Retailer cooperatives
• Franchise organizations
• Merchandising conglomerates

21. Franchise
• Contractual association between two businesses, having three
characteristics:
• The franchiser owns a trade or service mark, and licenses it for use for
royalties
• Franchisees must pay to be part of the system
• Franchisers provide a packaged marketing and operations system

22. Retailer Marketing Decisions
• Target markets chosen will affect all other decisions
• Markets chosen and positioning need to be clear
• Cannot hope to be “something for everyone”
• Product variables:
• Assortment
• Services mix
• Atmospherics
• Price decision:
• Markups and volume are inversely related

24. Retailer Marketing Decisions (continued)
• Promotion: retailers will use all five tools to promote themselves
• Advertising, personal selling, sales promotion, public relations, and direct
marketing
• Place decision:
• Location is critical to attract the target market
• Central business districts
• Shopping centres
• Regional
• Neighbourhood
• Power centres

25. Retail In India

29. Reasons for the growth of retailing are:
• Emergence of nuclear families
• Growing trend of double-income households
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items
• Large working population
• Developing country
• Rural opportunities
• Exposure to so many channels
• Well travelled customers
• Technology
• Enhanced consumerism

31. Future of Retailing
• Wheel of retailing concept:
• New types of retailers begin as low-margin, low-price, and low-status
operations, but
• Evolve into higher-priced, higher-service operations,
• Eventually becoming like the conventional retailers they replaced
• Other trends:
• Growth of non-store retailing
• Retailer convergence
• Rise of megaretailers
• Importance of technology
• Global expansion
• Retail stores as communities

32. • Non store retailing?
• Online Retailing?
• Service Retailing?
• Rural Retailing?

33. Non store retailing
• Direct Selling
• Mail Order Business
• Tele Marketing
• Automated vending Machines
• Retailing Kiosks-kaya skin care, coffee day express

34. E-Retailers

35. Service Retailing
• Tailoring
• Saloon /Beauty Parlors
• Laundry
• Travels
• Educational institutions
• Banks
• Automobile maintenance

36. Service retailing
• Childcare centers
• Movie theatres
• Real estates
• Healthcare/Fitness centers
• Financial services
• Telephone services/Couriers
• Tax /Law consultants
• Insurance

38. • https://www.youtube.com/watch?v=L9W5jvASCJs
• https://www.youtube.com/watch?v=IMPbKVb8y8s

39. Retail as a Career
• Buying and Merchandising
• Marketing
• Store Operations
• Sales
• Finance
• Human Resources
• Technology and e-commerce
• Visual Merchandising
• Supply Chain Management and
Logistics

40. Job prospects in Retail Sector are
• Customer Sales Associate: It is the entry-level post of retail business
• Department Manager / Floor Manager/ Category Manager - These are
some of the posts one could handle in the store
• Store Manager: Store managers sometimes called General Manager or
Store Director, are responsible for managing an individual store and its
day-to-day functioning. The store manager oversees the employees of
the store and he himself may report to a District or Area manager or
the store’s owner

41. Job prospects in Retail Sector are
• Retail Operation Manager: It is the duty of a retail manager to plan
and coordinate the operations of the outlet. This involves the layout
of merchandise, monitoring the retail orders and stock, analyzing the
supply etc.
• Retail Buyers and Merchandisers: They are the persons who select
and buy the goods for the retail shop. They should understand the
needs of the customer, should be aware of the trends in the market,
and should possess great enthusiasm and energy.

43. Job prospects in Retail Sector are:
• Visual Merchandisers: These people give the brand a face, so they
hold one of the very important positions in the industry. Being a part
of the concept and design one could also be a technical designer,
product developer and store planner.
• Manager Back-end Operations
• Logistics and Warehouse Managers
• Retail Communication Manager/Retail Marketing Executives
• Manager Private label Brands

46. Skill Set Required
• Passionate
• Hard Working
• Lot of physical strength ( standing 8 to 10 hours )
• Basic calculations % deals etc
• Fair understanding of customers psychology
• Observation skills
• Project management skills
• Apart from Product knowledge, Communication, analytical skills

47. 08/20/2024
Bottlenecks
• A long way to meet international standards
• Lack of efficient supply-chain management
• Lack of required retail space
• No fixed consumption pattern
• Shortage of trained manpower and high attrition
• Lack of proper infrastructure , technology and distribution channels

48. Rural Retail
• https://www.youtube.com/watch?v=wL8NTuxmr7g

49. • Deprived people and deprived markets
• Lack of communication facilities
• Transport / Warehousing / Cold chain (Electricity)
• Many languages and dialects
• Dispersed markets
• Low per capita Income
• Low levels of literacy
• Prevalence of spurious brands and
• Seasonal demand

50. https://www.kearney.com/global-retail-development-index

51. Thanks

52. • Departmental stores:
•
• It is a large retail store organized into a number of departments ,offering a broad variety and depth of
merchandise
• Product mix is largely non food like apparel , accessories,books , music , footwear .,books , music , footwear .
• 20000--40000 sq. ft.
• Target customers are not price conscious
• Ambience / VM plays important role.
• National brands as well private labels
• Merchandise return policy and loyalty programs

53. • Anchors in a shopping mall
• They help in attracting high traffic
• 30% conversion rates
• Atleast 50 employees
• 50,000—1,00,000 SKU
• Eg: Shopper Stop , Pantaloon , Lifestyle ,Westside , Globus
• Marks and Spencers(london) , J C Penny (US)(international players)

54. SOME FACTS
• The first department stores “Bon Marche”
• was set up in 1852 in Paris
• Success of Bon Marche ledto other department stores coming up in
Europe and America

55. Department stores

56. • Hypermarket :
• The word “hypermarket” is derived from the French word ‘hypermarche’, which is a
combination of a supermarket & a department store.
•
• Description: Larger than a supermarket, sometimes with a warehouse appearance, generally
located in quieter parts of the city.
• Value preposition: Low prices, vast choice available including services such as cafeterias.
• They offer a large basket of products, ranging from grocery, fresh and processed food, beauty and
household products, clothing and appliances, etc.

57. • A wide range of products including food & non-food products.
• eg: big bazzar, Star Bazaar, hypercity, vishal megamart(indias first hypermarket)
wal mart(US), , Tesco(UK),Carrefour (French) etc
• Contd….

58. • Also termed as supercenters
• A store with 80000--2,20000 sqft.
• One stop shopping
• The first hypermarket that as developed was Carrefour in France, in
1963

59. Hypermarkets

60. • Specialty stores
• A store specializing in a particular type of merchandise or single product of
durable goods (i.e., Home furniture, household goods, consumer
electronics/domestic appliances).
•
• Typical examples of such retail format are: footwear stores, music stores,
electronic and household stores, gift stores and even focused apparel chain or
brand stores.
• (MBOs), exclusive brand outlets (EBOs),

61. • These are characterized by a narrow product line with deep
assortments in that product line.
• They concentrate on apparel, jewellery, fabrics sporting goods etc..
• They have a clearly defined target market & their success lies in
serving their needs.
• E.g: Proline fitness station & Gautier furniture ,Planet M, crossword,
music world

62. • Such business model is characterized by highlevel of customer service
or product information
• 8000 sq.ft.
• Reliance footprints ,,Reliance digital, Reliance wellness , Proline
fitness centre ,Croma , Health and Glow ,crossword
• Walgreen (US) Ikea (swedish)international retailers)

63. Speciality store

64. Cash and carry
• These are large B2B focused retail formats, buying and selling in bulk
for various commodities.
• At present, due to legal constraints, in most states they are not able to
sell fresh produce or liquor.
• Cash-and-carry (C&C) stores are large (more than 75,000 sq. ft.), carry
several thousand stock-keeping units (SKUs) and generally have bulk
buying requirements.
• In India an example of this is Metro, the Germany-based C&C

65. • Off price retailers:
• The merchandise is sold at less than retail prices. They buy manufacturer’s seconds, overruns & off season at a deep
discount. The merchandise may be in odd sizes, unpopular colours or with minor defects.
• These stores may be manufacturer owned or departmental store.
• These outlets are usually seen by the parent company as a means of increasing the business.
• The factory outlets in case is owned by manufacturer, then it will stock only company merchandise.
• This format largely depends on volume sales to make money.
• Eg: Factory outlets of levi, factory outlets of future group

66. Category Killers
• A specialty retailer who offers a very large selection in the chosen
product category selection and economical prices.
• Focus on one product category, they stock deep and dominate the
product category
• 20,000-1,20,00sqfeet
• Eg: nalli sarees, The loft (footwear store in mumbai), Toys Kemp
(bangalore)
• Toys R Us, (international retailers)
• Staples (office supplies)

67. Category killer

68. • Catalogue Showrooms:
• They usually specialize in hard goods such as house ware, jewellery etc.
• A customer walks into the retail showroom & goes through the catalogue of
the products that he would like to purchase.
• Some stores require the customer to write out the product code number &
hand it over to the clerk who arranges for the product from warehouse for
inspection & purchase.

69. Big- box retail models:
• Discount department stores- Ranging from 80,000sq.ft. to 130,000sq.ft. .They offer a wide variety
of merchandise including automotive parts & services etc.
• : The loot (multiband discount store)
• Category killers-Ranging from 20,000sq.ft. to 120,000sq.ft. They are specialty retailer who offers a
very large selection in the chosen product category & economical prices. They focus only on one
category. E.g: Toy’s R Us
• Warehouse clubs- Ranging from 104,000sq.ft. to 170,000sq.ft. offer a variety of goods in bulk, at
wholesale prices. They provide a limited number of product items. E.g: Costco Wholesale, Sam’s
Club.

70. Mall
• The largest form of organized retailing today. Located mainly in metro cities.
Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and
entertainment, all under a common roof
• Central, Huma mall, Iskon mall, Mall of India, Ansal Plaza, Centre Plaza mall,
Sahara mall

71. On the basis of brand availability
• EBO-deals with single brand.eg- samsonite
• MBO-stock brands of different categories such as mobile store,
cosmetic brands

72. Direct selling Automated vending

73. Mail order Telemarketing Internet
Marketing

74. Major non-store retailer types:
•
• Direct Selling: It deals with door-to-door or at home sale parties i.e. it involves one-to-one or one-to-many selling.
• Example > Eureka Forbes, Mary Kay Cosmetics.
• Automatic Vending: Example ATM
• Buying services: Is a store less retailer serving a specific clientele-usually employees of large organizations-who are entitled to buy from a
list of retailers who have agreed to give them discounts in return in membership.
• Example: Amazon.com
Direct marketing: It involves direct response marketing. The different forms of direct marketing are: Direct mail, catalog marketing,
telemarketing, television direct response marketing and electronic shopping.Example: Dell Computers

75. NON-STORE RETAILING
DIRECT MARKETING:
Is a form of retailing in which a customer is first exposed to goods
or service through a non personal medium such as direct mail,
newspaper, broadcast or television and then orders are placed by
mail, phone or computer.
There are three forms:
1. Mail order retailing/ catalogue retailing.
2. Television retailing.
3. E- tailing

76. International retiling
• When you think of International Retailers which are the names that
come to one’s mind ????

77. • Wal-Mart, Gucci, Ralph Lauren, Mango, GAP etc.

78. International Grocery Retailers
• The Companies namely Wal-Mart, Carrefour, Metro, Tesco and Ahold
etc are the leading international grocery retailers who have multi
country presence.
• Carrefour : French retailer . The eighth-largest retailer in the world by
revenue, it operates a chain of hypermarkets, groceries stores and
convenience stores and comprises of 12,225 stores in over 30
countries

79. • Walmart Inc. is an American multinational retail corporation that
operates a chain of hypermarkets, discount department stores, and
grocery stores from the United States, headquartered in Bentonville,
Arkansas. 10,500 stores and clubs under 46 banners in 24 countries
and eCommerce websites
• Save money. Live better
• Sam Walton

80. • With globalisation and with several countries opening their markets
to FDI in retail, these Organizations are moving into other parts of the
world and into emerging markets.
• There is yet another group of International retailers like IKEA, Lego,
Toys ‘R’Us etc who have chosen to focus and specialize in a particular
segment like furniture etc.

81. International Fashion Retailing
• Names like Ralph Lauren, Gucci, Zara, Hugo Boss, JC Penny, Benetton,
Jimmy Choo, Swarovski, Dolce & Gabbana etc belong to the second
category of International Fashion Retailers.
• Originally these Companies catered to domestic markets in the
countries of their origin

82. • Tesco is a British multinational groceries and general merchandise
retailer headquartered in England.
• Target Corporation is an American big box department store chain

83. International Market Entry Strategies
• Direct Investment
• Joint Ventures
• Strategic Alliances
• Franchising

84. How Markets Differ from Country to Country
• Consumer tastes and preferences
• Consumer buying habits
• Market size and growth potential
• Distribution channels
• Driving forces
• Competitive pressures