The document provides an introduction to the retail industry. It defines retailing as activities involved in selling goods or services to the final consumer for personal use. It discusses the evolution of retail from early barter systems and traditional formats like village markets to modern formats including convenience stores, supermarkets, shopping malls, and non-store formats like e-commerce. It also covers retail operations, formats based on ownership and strategy, key performance indicators for retail operations, and considerations for different customer segments.

2. Introduction to Retail
Adarsh Institute of Management and Information Technology
December 2019

3. What is Retailing ?

4. Breaking Bulk
Selling to End Consumer ( Customer ) ?
Is it only Goods ?
Holding Inventory
Giving CX
Convenience

5. “Retailing includes all the activities involved in selling goods or services to the final consumes, for personal, non-business use. “
- Philip Kotler

7. Business Channels

8. Retail Supply Chain
Supplier Manufacturer Logistics Retail

9. Retail Formats

10. The Evolution of Retail

11. The Barter System
Barter System

12. Classification of Retail Format
Retail
Format
Ownership
Operation
Strategy
Independent
Co-operative
Corporate Chains
Franchise
Store Based
Non - Store Based
Product Retail
Service Retail
Location
Based

13. Location Based
High Street Convenience
Destination

14. Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
Hawkers
Janata Bazaar
Khadi Stores
Other Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government/ NGO
Supported
Historic/Rural
Reach
Modern Formats/
International
Source of getting basic
needs & Entertainment
Neighborhood
Stores/Convenience Availability/ Low Costs / Distribution Shopping
Experience/Efficiency
Traditional operation
system.
Producers
themselves or
family/friends as
traders
Single man run, with no
authority to staff .
Owners & relatives with a
few sales helper.
Personal relationship with
customers.
Bureaucratic set-up
Employed by Govt. – lack of
knowledge/ skill
Employed for a lifetime by
Govt.
Lack of service orientation
Lack of technology in
operation
Only 2% of the industry organized. Still
98% has potential
Professional run with operational
standardization.
Various retail formats operational with
growing competition
Retail emerging as a career oriented
industry
Employment of young, enthusiastic
educated staff
‘Customer Service’ the focus
Technology oriented
Barter System
Exchange of goods or
services
Evolution of Indian Market

15. Retail Format – Ownership
Co-Operative
Independent
Corporate
Chains
Franchise
Small/ big single owner retailers
Eg – Neighbourhood kirana store
Formed by group of people with a cause
Eg - Amul
Large corporate houses
Eg. – Madura Garments
Contractual agreement between franchise & franchisor to conduct
business
Eg –Turtle Stores

16. Retail Format – Operations Strategy
• The format is dependent on operations strategy of the company in terms of :
Size & location of the store
Merchandise mix
Positioning & pricing
Brick & Mortar or Click & mortar strategy
Target Audience
Services offered

17. Traditional Retail Formats
Village Retail Mom & Pop/
Kirana Store
Hawkers

18. Store Based - Modern Formats
Convenience Store
Hypermarkets
Supermarkets
Exclusive Brand Outlet
Boutique
Multi Brand OutletMalls
Departmental
Store

19. Modern Formats – Non-Store Based
E-Tailing Tele shoppe Catalogue
Direct Marketing

20. Indian Retail Industry – A snapshot

21. Where is Retail headed?
DOTHE
EVOLUTION!
!!
Mom
and Pop
EBO
LFR
E-
Commerce
What is the next big
thing?

23. Silo ed Approach

25. Business Channels

26. Seamless

27. Retail Eco space

28. The Retail Mix

29. What do we mean by Retail Mix
Combination of factors -To satisfy customer needs - Influence their purchase
decision

30. Merchandise
Location
Communication
Price
Presentation
Service
People

31. Retail Operations

32. Retail Operations involves managing the day-to-day functions of retail
establishments .
Retail Operations professionals manage retail establishments on a daily basis,
and are responsible for maximizing store profits – For the regions and for the
geographies

33. Component Of Retail Ops
• STORE OPS
• BD
• LOCATION
• CAT / SUB CAT
• PLANNING
• MIS
• LOGISTICS ?

34. Components of Store Ops
• ADMIN
• VM
• IT
• HR
• SECURITY
• MERCHANDISING
• MAINT.
• POS/CHECK OUT
• INV.
•SALES

35. Important Aspects of store operations
• CUSTOMER SERVICE
• Leads to Loyalty
• ON SHELF AVAILABILITY
• Revenue
• IN STORE PROCESSES
• Reduce Costs
• STAFF PLANNING
• STAFF MOTIVATION

36. Check List/s

37. Store Manager Role
• Responsibilities of a store manager may include:
• Human Resources, specifically: recruiting, hiring, training and
development, performance management, payroll, and schedule
workplace scheduling
• Store business operations, including managing profit and loss, facility
management, safety and security, loss prevention (also called shrink),
and banking
• Product management, including ordering, receiving, price changes,
handling damaged products, and returns
• Team Development, facilitating staff learning and development
• Problem solving, handling unusual circumstances

38. Customer Entry
• Approach
• Parking
• Valet
• Greeting
• Store Directory
• VM
• Signages
• Baggage Counter
• Walk In
• Entries

39. Merchandise
• Section Hygiene
• VM
• Product
• Ease of Selection

40. POS / CHECK OUT
• BILLING
• Discount
• Cash / Card
• Tender
• Checkpoint

41. Operations
• Contact initiated by an employee increases
likelihood a shopper will buy something
• The most important factor in determining a
shopper’s opinion of the service he receives is
waiting time
• Adding sound, light and color to the register area
can ease customers from the anxiety of the financial
transaction

42. Customer Segments
• When shopping, men:
• Move faster, spend less time looking
• Look at price tags less often and can be more easily upgraded to a
more expensive item
• Get a thrill from the experience of paying
• Hate asking for directions

43. Customer Segments
• When shopping, women:
• Spend more money when shopping with other women
• Are more demanding of the shopping environment
• Older shoppers:
• Must have easy to read signs
• See a lot more black, white and red, and a lot less of other colors
• Need brightly lit stores

44. Customer Segments
• Children
• If stores are not child friendly, parents will be deterred to enter
• Make merchandise reachable
• Childproof the store
• Be able to divert the attention of a restless child
• Design a good area for children
• Generation X
• Are attracted to the specialty-store environment if the merchandise is
up-to-date

45. KPI
For Retail Operations

46. RETAIL KPI
• Sales/Square Feet
• Sales/Employee
• Inv. Shrinkage/sales
• AverageTransaction (sales/# of transactions)
• Items PerTicket (total items sold/total transactions)
• Conversion Rate (total transactions/total traffic)
• Total Sales
• Sales compared to last year (or any other period)
• Wage Cost
• Average Sale per Customer/Transaction

47. RETAIL KPI
Sales per Hour (for store or associate) – selling hours / labor hours only:
• Sales Per Hour
• Average Sale
• InventoryTurn
• Average Gross Margin
• Customers per day/week
• Items per customer

48. RETAIL KPI
• Sales compared to last year (or any other period):
• Sales per Square Foot:
• Wage Cost:
• Average Sale per Customer/Transaction:
• Units per Customer/Transaction:
• Conversion rate:
• Sales per Hour (for store or associate) – selling hours only:
• Sales per Hour (for store or associate) – total labor hours:
• Time Spent in the Store

49. Further Scope
Merchandising
Private Label
Vs Multi Labels
Store
Designing
Visual
Merchandising
E Commerce

50. Thank You.