This document discusses technology in retailing and its importance. It explains how the retail business was an early adapter of information technology and how the internet has allowed retailers to reach customers at home. It also discusses how retailers now use technologies like electronic data interchange, radio frequency identification, and database management systems to increase efficiency, analyze customer data, track inventory, and enhance business processes. The document also covers e-tailing/online retailing and green retailing practices that are better for the environment.

1. Dr. Parveen Nagpal
Technology in Retailing
E-tailing
Green Retailing

2. Dr. Parveen Nagpal
Technology in Retailing
The retail business has been an early adapter of information
technology (IT).
The spread of the internet has opened up a number of
opportunities for using IT innovatively to extend the reach of the
retailer into the home of their customers.
With the increasing globalization of retailing, both in terms of
their points-of-sale and their points-of-supply; the information
technology (IT) spend in the retail sector has increased
significantly. IT plays an increasingly important role in the
management of complex retail operations.

3. Dr. Parveen Nagpal
Technology in Retailing
Today, retailers need to transform their IT capabilities for multiple
reasons, including:
• To increase the company’s ability to respond to the evolving
marketplace through enhanced speed and flexibility.
• To collect and analyze customer data while enhancing
differentiation.
• To work effectively; retailers need one system working across
stores (or even across national borders) to make sure the most
effective use of stock and improve business processes.

4. Dr. Parveen Nagpal
Significance of Technology in Retail
• Customer Data
• Transparency and Tracking
• Fewer Stock outs
• Point of Sale - Customers can check out from wherever they
are in the store through handheld computers, scanners, and
printers
• Tailored Assortments
• Higher Return on Investment (ROI)
• Payment Card Industry (PCI) Security Compliance: to mitigate
payment security risks.
• Global Data Synchronization - Use of real-time data to watch
inventory levels across the supply chain.

5. Dr. Parveen Nagpal
Use of Technologies in Retailing
❖ Electronic Data Interchange (EDI)
EDI is the computer-to-computer exchange of business documents
in a standardized format. It is defined as the exchange of business
information, through standard interfaces, by using computers.
EDI helps in exchanging the information from retailers to suppliers
computers and facilitate orders, delivery notices, specifications,
invoices, sales returns and even concerned sales data to the
suppliers.
Since EDI is defined as the exchange of electronic documents
between organizations, the EDI acronym has also been sometimes
interpreted as Electronic Document Interchange.

6. Dr. Parveen Nagpal
Use of Technologies in Retailing
Advantages of EDI
• Saves time, as the transmission of data can be immediate
• Helps for just-in-time (JIT) ordering, reduction of lead time in
supply, speeding up stock turns around and encouraging the
mutual partnerships among retailers and suppliers.
• Reduces the costs involved in paper handling, filing, storage
and mailing.
• Serves as a tool for strengthening the relationship between the
retailer and the supplier.
• Large retailers believe in the power of electronic
communication with their supply chain partners.

7. Dr. Parveen Nagpal
Use of Technologies in Retailing
❖ Radio Frequency Identification (RFID)
RFID is fast transforming the way business is being conducted and
monitored across the supply chain.
In 1948, it was invented by Harry Stockman.
However, the lack of infrastructure kept RFID quiet until the late
1990's.
Market for RFID picked up due to the entry of retail giant, Wal-
Mart.
Several retailers like Wal-Mart, Metro, etc. have made it
mandatory for their suppliers to tag shipments and goods coming
into distribution centers and stores with RFID tags, within a fixed
time frame

8. Dr. Parveen Nagpal
Use of Technologies in Retailing
RFID can be described as a wireless bar code which provides
wireless communication between objects and readers.
RFID is a technology that allows an object or person to be
identified at a distance by means of radio waves.
RFID devices or tags are attached to containers, shipping cartons,
or even behind labels on individual items. They then transmit data
about the object in which they are embedded.
It has the ability to identify and track products and equipment in
real time, without contact.
RFID can decrease warehouse, distribution, and inventory costs;
increase margins; and provide better in-stock positions.

9. Dr. Parveen Nagpal
Use of Technologies in Retailing
Benefits of RFID
• Reduced Warehouse and Distribution Costs
• Reduced Point-of-Sale Labour Costs
• Inventory Savings
• Elimination of Counterfeit Merchandise
• Reduced Theft:
• Reduced Out-of-Stock Conditions

10. Dr. Parveen Nagpal
Use of Technologies in Retailing
Obstacles in Adopting RFID
• Cost of RFID tags is very high
• Generates more data than can be efficiently processed,
retailers find it difficult to justify implementation costs.
• Some vendors claim that instead of saving labour, RFID tagging
actually increases it. Bar codes are printed on cases at the
factory, but because most manufacturers have yet to adopt
RFID, those tags have to be put on by hand at the warehouse.
• Consumers may feel that once the tags are on individual items,
they could be used to track individual buyers this is an invasion
of privacy.

11. Dr. Parveen Nagpal
Use of Technologies in Retailing
Data Base Management System
A simple purchase at any retail store can enable the store to
gather a vast amount of information about its customers and
products.
The use of systems to organize, retrieve, search and manage that
data is termed as Database Management.
Data can be with respect to products, customers, vendors and
suppliers, or a combination of all of them.
The elements of Database Management are Data Warehousing
and Data Mining.

12. Dr. Parveen Nagpal
Use of Technologies in Retailing
Example - A customer who buys a pair of cotton trousers of brand
A from a large department store chain in Mumbai. The customer is
also a member of the loyalty programme run by this chain and
visits the store frequently.
By swiping the loyalty card at the time of purchase, an entire
information system starts functioning. The store's computer sends
information to the company's central computer, which usually
hosts the data warehouse. From this data warehouse, the
organization is able to retrieve data that will give important
information about the purchase made, the total number of
purchases made, the colour, size and demographic data of the
customer.

13. Dr. Parveen Nagpal
E-tailing
E-tailing is the sale of goods and services through the internet.
Electronic retailing, or e-tailing, can include business-to-business
(B2B), Business-to-Consumer (B2C), Consumer-to-consumer (C2C),
sales of products and services, through subscriptions to website
content, or through advertising.
E-tailing is a subset of e-commerce.
The emergence of electronic retailing (e-tailing) has been the key
driver of change in retail scenario.
The increase in the number of internet users not only in the
developed markets but also globally, has placed new demands on
retailers.

14. Dr. Parveen Nagpal
Advantages of E-tailing
• Efficiency
• Wider Reach
• Easy Access to Market
• Helps Understand Consumer Behaviour
• Convenience
• Reduced Overheads
• Widen Market/Export
• Customer Intelligence

15. Dr. Parveen Nagpal
Limitations of E-tailing
• No Physical Shopping Experience
• Privacy Issues
• Unfamiliarity
• Security and Fraud
• Legal Issues
• Customer Trust
• Costs:
✓ Website Costs
✓ Infrastructure Costs
✓ Advertising Costs

16. Dr. Parveen Nagpal
Green Retailing
Retail sector is also realizing the importance of following eco-
friendly practices.
There are two major factors that lead to considering eco-friendly
practices on part of retailers:
1. Consumers are increasingly becoming aware of eco-friendly
goods and practices. They are ready to spend more on 'green'
and organic products. Some retailers see this as an
opportunity to expand their offerings.
2. Retailers realize that building an eco-friendly brand would
differentiate their offerings from those of competitors in the
crowded market.

17. Dr. Parveen Nagpal
Green Retailing
Green Retailing is an approach towards managing a retail business
that takes advantage of environmentally friendly processes.
It is a part of the larger obligation of business - Corporate Social
Responsibility that describes the voluntary actions taken by a
company to address the ethical, social, and environmental impacts
of its business operations.
Initially retailers would intend to 'go green' by simply offering eco-
friendly and organic products in stores.
But now the focus is on adopting green practices in store
operations and also along the supply chain.
Retailers are looking to create a positive impression on the
consumer's mind about their brand.

18. Dr. Parveen Nagpal
Importance of Green Retailing
• Optimal usage of infrastructure would lead to reduced
operational costs.
• Reuse of materials and reduced wastage would lead to
substantial cost savings.
• Investment in technology would save time and resources spent
on operations.
• Enhance store image and help in branding the company as eco-
friendly.
• With government increasingly enforcing environmental
protection, green practices would ensure compliances and also
tax benefits in future

19. Dr. Parveen Nagpal
Challenges in Green Retailing
It is not easy to convert conventional stores to eco-friendly stores.
Building an eco-friendly brand also does not happen over a period
of time.
Large investment is required for installing renewable options.
It takes time and effort for the in-store staff to be conscious of
wastage reduction and recycling options.
Successful implementation of green practices requires a holistic
approach and collaboration of all the stakeholders along the
supply chain.

20. Dr. Parveen Nagpal
Eco-friendly Practices by Retailers
• Encourage existing vendors to ship products in less
elaborate packaging and consider switching to
suppliers that are less wasteful.
• Make bags and receipts optional.
• Reuse packing material and cardboard boxes.
• Print double sided whenever possible.
• Use renewable sources of energy.
• Reduce paper transactions by adopting technology
for billing, vendor payments etc.

21. Dr. Parveen Nagpal
Eco-friendly Practices by Retailers
• Use rechargeable batteries.
• Switch to products made closer to the retail store to
reduce the environmental costs of transportation.
• Reduce wastage of paper, electricity, water etc. in
stores.
• Purchase energy efficient equipment inside stores.
• Use eco-friendly cleaning materials.
• Recycle paper, plastic, metals etc.

22. Dr. Parveen Nagpal
References
1. Michael Levy & Barton A Weitz, “Retailing Management”, 8th
Edition, Tata Mc Graw Hill.
2. Swapna Pradhan, “Retailing Management – Text and Cases”,
5th Edition, Tata Mc Graw Hill.
3. Nagpal, Sharma “Retail Management”, TYBMS, Sheth
Publishers
4. Nagpal, Sharma “Retail Management”, M. Com, Vipul
Prakashan.
5. Nagpal, Sharma, Kukreja - Sales And Distribution
Management, TYBMS, Sheth Publishers.

23. THANK YOU
www.linkedin.com/in/dr-parveen-kaur-nagpal-82965b15