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RETAIL INDUSTRY
By- Akshay kumar jain
Evolution of Retail Industry
• Barter system was known as the first form of retail.
• As time passed currency was exchanged with goods and
services.
• Hawkers carried out the 1st retailing in push carts.
• Followed by Kirana stores (Mom and Popup stores)
• Finally manufacturing era necessitated the small stores and
specialty store.
• It was seller market still then this point of time with limited
no. of brands available.
SWOT Analysis
STRENGTH :
 Purchasing Power
 Population Demographic
 Aspiring middle class
WEAKNESS :
 Political Uncertainty
 Poor Infrastructure
 poor supply chain management
OPPORTUNITIES :
 Digital strategy
 Customer Accessibility
 Changing the regulatory scenario
THREAT
 Availability of land and real estate
 Human capital
Government policies
• The retail industry in India is growing at a significant pace. He
there are several problems faced by the industry. The major
challenge for the organized sector include.
• Taxation laws that favour small retailers.
• Multi-point octroi collection.
• Foreign Equity does not go beyond 51 percent.
• Additions to the product categories to be sold under single
brand require fresh govt. approval.
Retail Industry In 2020
2008
• Average annual growth rate of retail sector by 3.8% .
2015
• Total retail sales across the globe will reach $20.795 trillion.
2016
• Total retail sales across the globe will reach $22.049 trillion
• Up 6.0% from the previous year.
2017
• The estimate sales will reach to $23. 445 trillion.
2020
• eMarketer estimates sales will top $27 trillion , even as annual
growth rates slow over the next few years.
Wal-Mart
• Wal-Mart was established in July 2, 1962.
• Founder of Wal-Mart is Sam Walton.
• Headquarters are situated in Bentonville, Arkansas, U. S.
• Number of locations are 11666.
• Key people - Greg Penner (Chairman).
Doug McMillon (President & CEO).
Wal –Mart SWOT Analysis
STRENGTH :
 Established Brand Name
 Financially strong
 Sharp growth during recent years
 Large customer base
WEAKNESSES
 Profit margin
 Weak HR record
 Weaker growth in e-commerce
OPPORTUNITIES :
 HR policies are major area where
improvements can be made
 Expansion into emerging Asian markets
 Strategic partnership with local trends in
emerging markets
THREATS :
 Stronger Dollar Internationally
resulting in lower profits for the
international division
 Increase competitor from rival brand
inside & outside U.S
FINANCIAL STATS
BASIS FY 2005(a/m in dollar) FY2015(a/m in dollar)
Net sales 285222 482229
Operating income 10267 14694
Dividend declared 0.52 1.96
Return on equity 22.5% 20.1%
Price to earning 21.3% 17%
Total shareholder return -1.8% 16.6%
Stock price High – 61.05
Low - 51.33
High -90.67
Low -72.27
Future Plans of Wal-Mart
• They are going to invest $300 million by 2020.
• They are going open 50 outlets in India.
• Planning to invest in e-commerce business.
• Major partnership and investment in technology.
• Focusing on key geographies of North America and China.
Store manager
• My Job Profile = Store Manager
• Skill Set Required = Excellent Decision Making, Leadership
Skill , Problem Solving, General Accounting Knowledge
• Responsibilities = Supervising All Employees , Meeting
Financial Goals, enforcing Regulation, Delegating Work,
Tracking Inventory ,Analyzing Sales Data.
• Challenges = Online Competition, Big Retailer Price, Employee
Turnover.
• Career Growth = Area Manager.

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RETAIL INDUSTRY

  • 2. Evolution of Retail Industry • Barter system was known as the first form of retail. • As time passed currency was exchanged with goods and services. • Hawkers carried out the 1st retailing in push carts. • Followed by Kirana stores (Mom and Popup stores) • Finally manufacturing era necessitated the small stores and specialty store. • It was seller market still then this point of time with limited no. of brands available.
  • 3. SWOT Analysis STRENGTH :  Purchasing Power  Population Demographic  Aspiring middle class WEAKNESS :  Political Uncertainty  Poor Infrastructure  poor supply chain management OPPORTUNITIES :  Digital strategy  Customer Accessibility  Changing the regulatory scenario THREAT  Availability of land and real estate  Human capital
  • 4. Government policies • The retail industry in India is growing at a significant pace. He there are several problems faced by the industry. The major challenge for the organized sector include. • Taxation laws that favour small retailers. • Multi-point octroi collection. • Foreign Equity does not go beyond 51 percent. • Additions to the product categories to be sold under single brand require fresh govt. approval.
  • 5. Retail Industry In 2020 2008 • Average annual growth rate of retail sector by 3.8% . 2015 • Total retail sales across the globe will reach $20.795 trillion. 2016 • Total retail sales across the globe will reach $22.049 trillion • Up 6.0% from the previous year. 2017 • The estimate sales will reach to $23. 445 trillion. 2020 • eMarketer estimates sales will top $27 trillion , even as annual growth rates slow over the next few years.
  • 6. Wal-Mart • Wal-Mart was established in July 2, 1962. • Founder of Wal-Mart is Sam Walton. • Headquarters are situated in Bentonville, Arkansas, U. S. • Number of locations are 11666. • Key people - Greg Penner (Chairman). Doug McMillon (President & CEO).
  • 7. Wal –Mart SWOT Analysis STRENGTH :  Established Brand Name  Financially strong  Sharp growth during recent years  Large customer base WEAKNESSES  Profit margin  Weak HR record  Weaker growth in e-commerce OPPORTUNITIES :  HR policies are major area where improvements can be made  Expansion into emerging Asian markets  Strategic partnership with local trends in emerging markets THREATS :  Stronger Dollar Internationally resulting in lower profits for the international division  Increase competitor from rival brand inside & outside U.S
  • 8. FINANCIAL STATS BASIS FY 2005(a/m in dollar) FY2015(a/m in dollar) Net sales 285222 482229 Operating income 10267 14694 Dividend declared 0.52 1.96 Return on equity 22.5% 20.1% Price to earning 21.3% 17% Total shareholder return -1.8% 16.6% Stock price High – 61.05 Low - 51.33 High -90.67 Low -72.27
  • 9. Future Plans of Wal-Mart • They are going to invest $300 million by 2020. • They are going open 50 outlets in India. • Planning to invest in e-commerce business. • Major partnership and investment in technology. • Focusing on key geographies of North America and China.
  • 10. Store manager • My Job Profile = Store Manager • Skill Set Required = Excellent Decision Making, Leadership Skill , Problem Solving, General Accounting Knowledge • Responsibilities = Supervising All Employees , Meeting Financial Goals, enforcing Regulation, Delegating Work, Tracking Inventory ,Analyzing Sales Data. • Challenges = Online Competition, Big Retailer Price, Employee Turnover. • Career Growth = Area Manager.