Retailing involves adding value to products and services sold to consumers for personal use. It includes all activities related to selling goods or services to final consumers. Retailing provides assortments of products and services in convenient locations while breaking bulk and managing inventory. In India, retailing is evolving from traditional formats like markets to established formats like department stores and emerging formats like hypermarkets and malls. There are various types of retail formats classified by ownership, merchandise offered, and whether they are store-based, non-store based, or service-based.

1. RETAILING
• Retailing is the set of business activities that
adds value to the product and services sold to
consumers.
• It include all the activities involved in selling
goods or services to the final consumer for
personal ,non-business use.

2. Concepts
• Variety(Breadth of merchandise): It is the
number of merchandise category a retailer
offers.
• Assortment (Depth of merchandise): It is the
number of different item in a merchandise
category.
• Stock keeping unit(SKU)is the each different
item of the merchandise.

3. Functions
• Providing an assortment of product and
services.
• Breaking Bulk
• Holding Inventory
• Providing Services
• Convenient location

4. Economic significance of retailing
• Effective distribution channel(Vertical
Integration)
• Developing innovative products
• Support for community
• Social Responsibility

5. The retail management decision
process
• The world of Retailing :
 Introduction
 Types of retailers
 Multichannel Retailing
 Customer buying behavior
• Retailing Strategy:
 Retail marketing strategy
 Financial strategy
 Retail location
 Site location
 Organization structure and HRM
 Information system and supply chain management

6. The retail management decision
process
• Merchandise Management:
 Managing merchandise assortment
 Merchandise planning system
 Buying merchandise
 Pricing
 Retail communication mix
 Store Management:
 Managing the store
 Store layout design and visual merchandising
 Customer service

7. Evolution of retails
• Traditional Formats:
• Haats
• Mandis
• Established Formats:
• Kirana shops:
• Convenience stores
• Department stores
• Company showrooms
• Cooperative stores
• Pan/ beedi shops

8. Evolution of retails in India
• Emerging Formats:
• Exclusive retail outlets
• Hypermarket
• Speciality malls
• Multiplexes
• Fast food outlets
• Service galleries

9. Classification of retail format
(Types of retails )
• Store based retailing:
• Non-store based retailing
• Service retailing

10. Classification of Retail formats
• Store based Retailing:
• 1)Form of ownership:
• Independent retailer
• Chain retailer
• Franchise
• Leased Department
• Consumer cooperatives

11. Store Based Retailing
• 2)Merchandise offered:
• Convenience store
• Supermarkets
• Hypermarkets
• Speciality Stores
• Departmental stores
• Off price retailers
• Factory Outlets
• Catalogue showrooms
• Category killers
• Warehouse clubs

12. Convenience store
• The product range covers the basic
requirements in food and grocery.
• The store size ranges from3000-8000 sq.ft.

13. Super markets
• Large , low cost, low margin ,high volume, self
service operations designed to meet the need
for food groceries and other non food items.
• It ranges from400 sqm to 2500 sqm ,selling at
least 70% of food items.

14. Hyper market
• It is the combination of supermarket and a
department store selling wide range of food
and non food items.
• Sales area between 5,000 and 15,000 sq m .
• Discounted price.
• A destination offer.
• At least 35% of selling space devoted to non
grocery product is termed as a hyper market.

15. Specialty Store
• A store specializing in a particular type of
merchandise.
• It would operate in an area under 8,000 sq feet .
• Narrow product line , with deep assortments in
the product line.
• Clearly defined target market.
• Eg:Chamosa,Viveks

16. Department store
• It varies from20,000 to 40,000 sq ft and stock
anywhere between 50,000 to 1,00,000 SKU’s
• They have separate departments on several
floors.
• They depend on food ,clothing and home
related items for at least 10% but less than
70% of their sales.

17. Non-store retailing
• Direct selling
• Mail order
• Telemarketing
• E-tailing
• Information kiosks
• Automated vending
• The cash and carry

18. Service retailing
• Banks
• Car Rentals
• Video Rentals
• Airlines
• Education
• Health care

19. Features of service retailing
• Intangibility
• Simultaneous production and consumption
• Perishability
• Inconsistency

20. Drivers of retail change in India
• Socio economic factor
• Changing Income profiles
• The age factor
• The changing role of women
• The changing consumption basket
• Increase credit friendliness
• Geographical dispersion of market potential

21. FDI policy
• 51 per cent foreign investment in single brand
Retail with prior Government permission.
• Single-brand retailers such as Nike, Damro,
Louis Vuitton, can operate now on their own.

22. FDI is allowed through any of the
following methods:
• Hi-Tech items
• Social sector items
• Medical and diagnostic items
• Item sourced from Indian small sector with
technology provided by foreign collaborator
• Two-year Test marketing

23. FDI
• 100% FDI is allowed on specific approval basis
In case of trading companies in India for carrying
out any of the following:
1)Export Trading
2)Bulk imports
3)Cash and carry
4)Sales substantially to group companies.

24. FDI
• Franchising
• Joint Ventures
• Manufacturing facility
• Distribution offices
• Wholesale trading

25. FDI
• Franchise agreements • Most widely used
entry route by multinational retailers
• Cash and Carry wholesale trading
• • 100% FDI is allowed in wholesale trading
which involves building of a large distribution
infrastructure to assist local Manufacturers
• • Metro AG of Germany

26. FDI
• Strategic licensing agreements
• • Foreign company enters into a licensing
agreement with a domestic retailer

27. Porters five forces with respect to
Indian retail sector
• Threats of new entrants
• Threats of substitutes
• Bargaining power of suppliers
• Bargaining power of buyers
• Intensity of rivalry

28. Indian retail market
• Highly fragmented
• Low entry barriers
• Absence of economies of scale
• High transportation cost
• Diverse market need
• High cost of real estate
• Lack of adequate infrastructure