This document provides an overview of retailing, including definitions and types of retailers. It discusses the evolution of retailing in India from traditional formats to modern formats. Some of the major challenges for retailers in India are high real estate costs, supply chain issues, and lack of infrastructure and skilled labor. However, there are also opportunities for management and entrepreneurship in the growing retail sector. The top retailers in India are discussed. Trends in the retail industry include the use of stores as marketing platforms, increased importance of packaging, price leadership strategies, brand acquisitions, and exploiting new technologies.

1. Unit- 1
INTRODUCTION

2. Retailing Meaning
• Retailing may be
understood as the final
step in the distribution of
merchandise, for
consumption by the end
consumers.
Retailing Definition
• According to Philip
Kotler “ retailing
includes all the activities
involved in selling goods
or services directly to
final consumers for
personal, Non business
use”.

3. Retailers attempt to
satisfy consumer
needs by having the
right merchandise,
at the right price, at
the right place,
when the consumer
wants it.

9. Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
PDS Outlets
Khadi Stores
Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian retail
Source of
Entertainment
Neighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency

10. Functions of Retailing
SORTING

11. ASSORMENT

12. BREAKING BULK

13. HOLDING INVENTORY

14. Extended Services and Other
Additional Services

15. Challenges for Retailing

20. Overview of Global Retailing
The Global Retail Industry
• Of the world’s 10 largest retail companies,
7 are from the US and 3 from Europe.
• Retailing is a primary driver of the global
economy.
• To maintain the highest level of
profitability, retailers are establishing a
presence in fertile foreign markets.

21. • Retail organizations now view their potential
market share to include worldwide
consumers, not just customers in their home
country.
• Wal-Mart Dominates as the World’s Biggest
Retailer and America's Biggest Grocer.

22. The Indian retail sector is highly fragmented
with more than 90 per cent of its business
being carried out by traditional family run
small stores.
This provides immense opportunity for
large scale retailers to set-up their
operations – a slew of organized retail
formats like departmental stores,
hypermarkets, supermarkets and specialty
stores are swiftly replacing the traditional
formats dramatically altering the retailing
landscape in India.

23. • India is the third-most attractive retail market
for global retailers among the 30 largest
emerging markets, according to US
consulting group AT Kearney’s report
published in June 2010

24. Retailer Base Type
Sales in
U.S.
$millions Region
Regional
Station
% of sales in
foreign country
1 Wal-Mart Stores, lnc USA Discount Store 163,532.00 N.America Global 13.90%
2 Carrefour Group FRA Hypermarkets 52,196.10 Europe Global 37.70%
3 The Kroger Co USA Supermarkets 45,352.00 N.America
Single
Country 0.00%
4 MetroAG GER Diversified 44,163.37 Europe Global 40.00%
5 The Home Depot, lnc USA Hardlines 38,434.00 N.America Global 3.70%
6 Albertson's, lnc USA Supermarkets 37,478.00 N.America
Single
Country 0.00%
7 ITM Entreprises SA FRA Supermarkets 36,762.45 Europe Regional 36.00%
8 Sears, Roebuck and Co USA Dept Store 36,728.00 N.America Regional 10.60%
9 Kmart Corporation USA Discount Store 35,925.00 N.America
Single
Country 0.00%
10 Target Corporation USA Discount Store 33,702.00 N.America
Single
Country 0.00%
World’s TOP 10 Retailers
Ten of the top 20, and 21 of the top 50 retail organizations in the world are
U.S. based companies

25. United States – Wal-Mart Stores
Cash and Carry/Warehouse Club,
Discount Department Store,
World's Largest Retailers by Country
Australia – Woolworths Ltd.
Convenience/Forecourt Store, Discount Department Store,
Electronics Specialty, Other Specialty, Supermarket
France - Carrefour
Cash and Carry/Warehouse Club,
Discount Department Store,
Hypermarket/Supercenter/Superstore,
Supermarket, convenience/forecourt store

26. World's Largest Retailers by Country
Germany - Metro AG
Apparel/Footwear Specialty, Cash &
Carry/Warehouse Club, Department Store,
Electronics, Specialty, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket
Russia – X5 Retail Group N.V.
Convenience/Forecourt Store, Discount Store,
Hypermarket/Supercenter/Superstore,
Supermarket
United Kingdom – Tesco
Convenience/Forecourt Store, Department Store,
Discount Department Store, Hypermarket/
Supercenter/Superstore, Supermarket

27. Retailers Types
• Department stores
• Specialty stores
• Convenience store
• Discount store
• Off-price retailer
• Super store

28. Manufacturer’s Perspective
The Four P’s of Marketing
Distribution
Retailers are part of the
distribution channel
Retailers are part of the
distribution channel
Product
Price
Promotion

29. Decision Variables for Retailers
Customer Service
Store Design
and Display
Merchandise
Assortment
Communication
Mix
Location
Pricing
Retail
Strategy

30. Retail Trends In India
• Retail is the new buzzword in India
• The Global Retail development Index has
ranked India First, among the top 30
emerging markets in the world
• It is believed that India has the potential to
deliver the faster growth over the next
50years

31. • While barter would be considered to be
oldest from of retail trade, since
independence , retail in india has evolved
to support the unique needs of country,
given its size and complexity
• Second largest sector after Agriculture.
Contributes about 10-11% of the GDP

32. Top Indian Retailers
1. Pantaloon Retail
•1st Hypermarket - Big Bazaar / Home solutions (Hometown, furniture
bazaar, collection-i), Consumer Electronics (e-zone), Shoes (shoe factory),
Books: music & gifts (Depot), Health & Beauty Care Services (Star,
Sitara and Health village in the pipeline), E-tailing (Futurbazaar.com),
Entertainment (Bowling co.)
•Recent Innovation - E-commerce’ hybrid format of ’small’ shops , 150 sq. ft.
fitted with 40 digital screens &home delivery
2. K Raheja Group
•India’s 1st Departmental Store-Shoppers Stop & 1st Retailer from India being
member of the Prestigious Intercontinental Group of Departmental Stores
(IGDS) Stores for Books (Crossword) , Home Solutions (Homes stop),
Mothercare - Concept Stocking Merchandise
•1st HYPER CITY in MUMBAI
•Future innovation - Airport Retailing
.

33. Top Indian Retailers
3. Tata Group
:
•Westside - Lifestyle Retail Chain
•Star India Bazaar - Hypermarket
•Landmark, India's largest book and music retailer
•Infiniti retail consisting of Croma (Consumer Electronics Chain)
•Also, owns Titan & Tanishq.
4. RPG Group
1st Entrants into Organised Food & Grocery Retail with Food world stores in
1996.
Launched Health & Glow (Pharmacy & Beauty Care) Outlets.
Now the alliance has dissolved and RPG has Spencer’s Hyper, Super,
Daily and Express formats and Music World stores across the country.
5. Landmark group 6. Piramal Group
7. Subhiksha 8. Bharti-Walmart
9. Reliance 10. AV Birla Group

34. Challenges & Opportunities in Retail
Industry
Industry Challenges
1. Low domestic competition- Because of
fragmented nature of industry
2. Lack of exposure to global best practices
• Low entry barriers for unorganized
retailing
• Moderate entry barriers for organized
retailing

35. 3. Wholesale system under-invested leading
to 20-40% wastage
4. Non level playing field issues – Wide
differences in treatment of small and large
retailers
Issues
1. Real Estate Costs
2. Supply Chain Inconsistency
3. Poor Infrastructure
4. Lack of Skilled Manpower

36. Opportunities in Retailing
1. Management Opportunities
• To cope with a highly competitive and
challenging environment retailers and
hiring and promotional people with a wide
range of skills and interest.
• Retail managers are often given
considerable responsibility early in their
careers.

37. • Retailers employ people with expertise and
interest in finance, accounting, human
resource management, logistics , and
computer systems, as well as marketing.
• Retail management is also financially
rewarding
• After completing a management trainee
program in retailing, managers can double
their starting salary in three to five years

38. 2. Entrepreneurial Opportunities
• Retailing also provides opportunities for
people who wish to start their own
business. Some of the World’s richest people
are retailing entrepreneurs
a. Kishore Biyani (CEO, Future Group)
• He noticed that one of his fashion conscious
friend wearing trousers made out of new
material called ‘stone wash’ fabric, which
look fashionable, simply because it was so
different.

39. • This gave him an idea and he started selling
stonewash fabric to small shops in Mumbai.
It was big success and he made his first
profit.
• He ventured to redefine the retailing
business in India with launch of Pantaloons,
Big Bazaar and many more retail formats

40. b. Jeff Bezos ( Amazon.com)
• It is an American international electronic
commerce company with headquarters in
Seattle, Washington, United States. It is the
world's largest online retailer.
• Amazon.com started as an online bookstore,
but soon diversified, selling DVDs, VHSs,
CDs, video and MP3 downloads/streaming,
software, video games, electronics, apparel,
furniture, food, toys, and jewelry.

41. c. Donald Fisher ( The Gap)
• He was an American businessman and
philonthropist ( Charity Donor).
• He co-founded The Gap clothing stores
with his wife Doris F. Fisher.
• The Gap stores were unique in offering
every size and style of Levis’s arranged by
size for convenience .

42. Retail Trends in India
1. Evolution of Stores as major marketing
medium
• Millions of dollars have been spend by
Procter & Gamble, Kroger and dozens of
other major retailers to invest in project
called PRISM(Pioneering Research for In-
Store Metric) to study customer preferences
and behaviour to various brands by
tracking down all purchases in the store
using infrared sensors

43. 2. Increasing importance of packaging
• It’s been proven that the design of he
package is one of the top 3 reasons people
buy something, just behind the price and
primary need the product fulfills.
• The packaging design and positioning of its
visual example of the importance of
packaging

44. 3. Low Price leader on key items and taking
a higher margin on other items
• Strategies of companies like Wal-Mart of
being the low price leader on key items and
taking a higher margin on other items will
force every retailers that choose not to
compete on price.

45. 4. Selling Off of brands
• Cycle of major companies selling off brands
they deem no longer worthy of their focus.
The end results is that it will create
significant opportunities for same smaller
companies to pick up some brands

46. 5. Exploiting Key New Technologies
• Whether in the area of stock control,
supply chain efficiency or in CRM many
retailers are queuing up to utilize the latest
technologies to innovate
• Wal-Mart is the Owner of the World’s
largest customer –buying patterns at the
store level, manage inventory and identify
merchandising opportunities.