The Retail Industry

• Retail comes from the French word retailer which refers to "cutting off, clip and
divide” in terms of tailoring (1365).
• It first was recorded as a noun with the meaning of a "sale in small quantities" in
1433 (French).
• Retailing consists of the sale of goods or merchandise from a fixed location, such
as a department store or kiosk, or by post, in small or individual lots for direct
consumption by the purchaser.
• Retailing may include subordinated services, such as delivery.
• Purchasers may be individuals or businesses.
INTRODUCTION TO THE
INDUSTRY

ORGANISED UNORGANISED
 Distorted real-estate Market
 Poor infrastructure
 Inefficient upstream processes
 Lack of modern technology
 Inadequate funding
 Absence of skilled manpower
Customers can buy goods in a similar
purchase environment.
Good Infrastructure.
Efficient Supply Chain Processes
Use of Advanced Technology
Skilled Manpower.

Comparative Penetration of Organised Retail
for International Economies

•Retailing is a “technology-
intensive" industry.
•Successful organised retailers
today work closely with their
vendors.
•On an average a super market
stocks up to 5000 SKU's (Stock
keeping Units) against a few
hundreds stocked with an average
unorganised-retailer.
•Less Conversion level
•Customer Loyalty
•High Inventory and Stock Level
•Demand forecasting is not
proper.
STRENGTH:- WEAKNESS:-
SWOT ANALYSIS OF RETAIL
INDUSTRY:-

•HIGH POPULATION
•ORGANISED RETAIL IS ONLY
4%.
•Rural Retailing:-
-ITC’S “Chaupal Saga”.
- “Hariyali Bazar", started by DCM
- Sriram group.
•IF THE UNORGANISED RETAILERS
ARE PUT TOGETHER, THEY ARE
PARALLEL TO A LARGE
SUPERMARKET WITH LITTLE OR
NO OVER-HEADS, A HIGH DEGREE
OF FLEXIBILITY IN MERCHANDISE,
DISPLAY, PRICES AND TURNOVER.
•SHOPPING CULTURE HAS NOT
DEVELOPED IN INDIA AS YET.
EVEN NOW MALLS ARE JUST A
PLACE TO HANG AROUND,
LARGELY CONFINED TO WINDOW-
SHOPPING.
OPPORTUNITIES:- THREATS:-
SWOT ANALYSIS:-

The Global retail Industry is one of the largest industries
worldwide, increasingly being controlled by a handful of powerful
corporations based mainly in the U.S and Europe, namely, Wal-
Mart, Tesco, Carrefour and Metro.
These MNCs retailers have by and large have saturated in their
home countries and are looking for penetrating emerging markets
of India, China and Russia as they are minimally penetrated by
organised retail.
 Populations in developing markets will remain relatively young
and will increase share of retail spending.
GLOBAL SCENARIO

SOURCE:-
FORTUNE GLOBAL 500 ON CNN MONEY
FROM THE JULY 26, 2010 ISSUE
RANK COMPANY COUNTRY REVENUE(mn$) PROFITS(mn $)
1 WAL- MART USA 408,214 14,335
2 CARREFOUR FRANCE 121,452 454
3 METRO GERMANY 91,152 532
4 TESCO UK 90,234 3690
5 KROGER USA 76,733 70

SOURCE:- DATAMONITOR
Wal-Mart Stores Inc. (Wal-Mart or “the company”) was established in 1969.

•Wal-Mart offers a wide assortment of merchandise at every day low
prices (EDLP).
•Wal-Mart operates three business segments:Wal-Mart US, the
international segment, and Sam’s Club.
•The segment has retail operation in all the 50 states in the US.
•Wal-Mart operates 803 discount stores, each with an average store
size of 108,000 square feet, in 47 states.
•The company also operates 2,747 supercenters (average size of
185,000 square feet) in 48 US states and 158 neighborhood markets
(average sixe of 42,000 square feet) in 16 US states.
KEY FACTS:-

•Dry and wet grocery
•Beverages
•Frozen foods
•Flowers
•Health and beauty products
•Household products
•Pet supplies
•Fabrics and crafts
•Stationery and books
•Automotive accessories
•Hardware and paint
•Horticulture products
MAJOR PRODUCTS
AND SERVICES:-
• Sporting goods
• Apparel
• Shoes
• Jewelry
• Toys
• Home furnishings
• Housewares
• Major and minor home appliances
• Cameras
• Cellular phones
• Services:
• Photo processing services

•The company recorded revenues of $408,214 million during the
financial year ended January 2010 (FY2010), an increase of 0.9% over
2009.
• For FY2010, the US, the company's largest geographic market,
accounted for 75.3% of the total revenues.
•Wal-Mart generates revenues through three business divisions:Wal-
Mart US (63.8% of the total revenues during fiscal year 2010),
international (24.7%) and Sam’s Club (11.5%).
REVENUE
ANALYSIS:-

SWOT ANALYSIS:-

•Carrefour S.A. is a French international hypermarket chain.
•The first Carrefour store opened on June 3, 1957, in suburban Annecy
near a crossroads (carrefour in French). The group was created by
Marcel Fournier,Denis Defforey and Jacques Defforey and grew into a
chain from this first sales outlet.
• Headquartered in Levallois-Perret France.
CARREFOUR:-

•The present CEO is Lars Ollofsonand Chairman is Amaury De Seze.
•The revenue of Carrefour in 2009 was $121,452mn and profit was
$454mn.
•Carrefour is the largest hypermarket chain in the world in terms of
size, the second largest retail group in the world in terms of revenues.
•Carrefour is the leading hypermarket retailer in the world. The group
operates about 1,395 hypermarket stores across the world, of which
203 hypermarkets in France, 449 in European countries outside
France, 309 in Latin America, and 339 in Asia.
KEY FACTS:-

•Food
•General merchandise
•Clothing
•Household electrical goods
•Audio visual equipments
•Music
•Books
MAJOR PRODUCTS AND SERVICES:-
Services:
• Music download
• Flower and bicycle
delivery
• Dry cleaning
• Photo development
• Photocopying

•Metro AG is a diversified retail and wholesale and cash and carry
group based in Dusseldorf, Germany.
•It is the 3rd largest retailer in the world according to Deloitte and
Reuters.
•It was established in 1964 by Otto Beisheim.
METRO GROUP:-

•Eckhard Cordes is the present CEO and Chairman of the executive
board.
•Franz Haniel is the Chariman of the supervisory board and Olaf Koch
is the present CFO.
•It provides services like supermarket, hypermarket, consumer
electronics and appliances retail , departmental stores etc.
•Its revenue in 2009 was $91,152mn and profit was $532mn.
KEY FACTS:-

•Tesco is a leading food and grocery retailer.
•The company operates 4,331 stores in 14 countries worldwide.
• It operates in the UK, other European countries, the US and Asia.
•Its revenue in 2009 was $ 90,234mn .
•Its headquarter is in Hertfordshire, the UK.
TESCO:-

•The company operates in a single segment: retail. However, Tesco's
operations can be examined by the store formats that it operates: Express,
Metro, Superstore, Extra and Homeplus.
•The company has over 960 Express stores offering fresh food at
convenient locations. These stores sell a range of up to 7,000 products,
including fresh produce, wines and spirits and bakery products.
• The company has over 170 stores in town and city centre locations. It
offers a tailored range of food products, including ready-meals and
sandwiches. Tesco operates about 450 superstores at which it offers food
as well non-food products such as DVDs and books.
KEY FACTS:-

•The Kroger Co. is one of the leading grocery retail chains in the US
•It was founded in 1883 by Bernard Kroger.
•The company operates a chain of supermarkets and multi-department
stores under a number of banners including Kroger, Ralphs, Fred Meyer,
Food 4 Less, Fry's, King Soopers, Smith's, Dillons, QFC and City Market.
•In addition, Kroger operates 40 manufacturing plants in the US.
•The company is headquartered in Cincinnati, Ohio.
KROGER:-

•The company recorded revenues of $76,733 million during the
financial year ended January 2010 (FY2010), an increase of 0.8% over
2009.
•The net profit was $70 million in FY2010.
•Its present CEO and Chairman is David Dillon.
KEY FACTS:-

The Indian Retail Sector
Retail industry in India is divide into two sectors:
• Unorganised retail : 94%
• Organised retail: 6%

SOME FACTS:
The Indian Retail Sector
 Indian retail industry is $410 billion in july 2010. and currently it is growing at
13%.
 Retail is expected to grow to $535 billion in 2013, with 10% coming from organised
retail.
 Currently Oganised retail accouts for 5% of the total retail market.
 Oranised retail is expected to grow at a CAGR of 25-30% over the next few years.
 51% FDI (Foreign Direct investment ) is allowed in single brand retail and 100% in
wholesale retail.
 Rural market is projected to dominate the retail industry landscape in India by 2012
with total market share of above 50 per cent .

INDUSTRY EVOLUTION
Traditionally retailing in India can be traced to:-
• The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the
consumers
•Era of government support for rural retail: Indigenous franchise model of store chains run
by Khadi & Village Industries Commission 1980s experienced slow change as India began
to open up economy.
•Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim
first saw the emergence of retail chains.
•Later Titan successfully created an organized retailing concept and established a series of
showrooms for its premium watches.
THE INDIAN RETAIL SECTOR

 The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure
Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music
World in music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of shopping centers,
– mainly in urban areas, with facilities like car parking
– targeted to provide a complete destination experience for all segments of society
 Emergence of hyper and super markets trying to provide customer with 3 V’s – Value , Variety and
Volume Expanding target consumer segment: The Sachet revolution - example of reaching to the
bottom of the pyramid.
THE INDIAN RETAIL SECTOR

• AT Kearney has estimated India’s total retail market at US$ 202.6 billion which is
expected to grow at a compounded 30 per cent over the next five years.
• With the organised retail segment growing at the rate of 25-30 per cent per annum,
revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24
billion by 2010.
• The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent
over the next decade.
• Over next two years India will see several Indian retail businesses attaining a critical mass
as growth in the industry picks up momentum driven by two key factors:
• – Availability of quality real estate and mall management practices
• – Consumer preference for shopping in new environments
FUTURE DIRECTION: POSITIVES

• Wal-Mart : huge plans for India. Moving a senior official from its headquarters in
Bentonville,Arkansas, to head its market research and business development functions
pertaining to its retail plans in India.
• New York-based high-end fashion retailer Saks Fifth Avenue has tied up with realty
major DLF Properties to set up shop in a mall in New Delhi.
• Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi,
Ahmedabad, Lucknow and Bangalore in the next four months.
FUTURE DIRECTION: POSITIVES

• 68 million square feet of mall space is expected to be available by end of 2007,
which might lead to over-capacity of malls
•Lack of differentiation among the malls that are coming up. One option may be to
look at specialization.
• Poor inventory turns and stock availability measures - retailers clearly need to
augment their operations.
• Operations of retailers and suppliers are not integrated. Efficient replenishment
practices practiced in the Indian auto and auto-component industry can be leveraged
to implement efficient supply chain management techniques.
FUTURE DIRECTION: CONCERNS

•Supplier maturity, in terms of adherence to delivery schedules and delivering the
quantity ordered, is an issue.
•Sales tax laws - lead to retailers having state-level procurement and storage leads to
Indian retailers having higher inventories. VAT has helped alleviate this a bit.
•Increased adoption of IT and shrinkage management will be a critical area.
•Supply chain and customer relations followed by merchandising, facilities
management and vendor development are areas which have significant gaps and
proactive training is a key imperative for overcoming these.
FUTURE DIRECTION: CONCERNS

Strengths
› Technology : successful organized retailer today work closely with their vendors to
predict consumer demand, shorten lead time reduce inventory holding and ultimately
save cost
Weakness
› 1. Less Conversion level
› 2. Customer Loyalty
SWOT ANALYSIS

Opportunities
› Rural Retailing : India huge rural population has caught the eye of retailer looking for new
areas of growth
› Percolating down: expected to enter into tiers-II cities
› Organized retail :expected to grow by 20-25% p.a
Threats
› Unorganized Retailers : they are parallel to large supermarket with high degree of flexibility
in merchandise, prices and turnover
› Shopping Culture
SWOT ANALYSIS

Pantaloon Retail (India) Ltd.: key facts
 Head office: Knowledge House, Shyam Nagar, Off Jogeshwati East, Mumbai
400060, IND
 Telephone: 91 22 3084 1300
 Fax: 91 22 6644 2222
 Website: www.pantaloon.com
 Financial year-end: June
 Ticker: 523574
 Stock exchange: Bombay
Source: company website D A T A M O N I T O R
PANTALOON RETAIL (INDIA) LTD.

• Pantaloon primarily operates multiple retail formats in both the value and lifestyle
segments in India. It operates over 1000 stores across 71 cities in India, and occupies retail
space of about 12 million squarefeet.
• Pantaloon offers food products through retail formats such as Brew Bar, Cafe Bollywood,
Chamosa, Food Bazaar, and Sports Bar.
• Pantaloon offers fashion related products under banners such as aLL, Big Bazaar, Blue
Sky, Brand Factory, Celio, Central, Navaras, Pantaloons and Planet Sports.
• Central, the mall concept of Pantaloon, offer over 300 brands across categories such as
apparel,footwear and accessories for women, men, children and infants, and the product
ranges such as, music,books, coffee shops, food courts, super markets (food bazaar), fine
dining restaurants, pubs and discotheques.

• In the general merchandise category, Pantaloons operates retail formats such as Big
Bazaar, Big Bazaar Wholesale Club, Blue Sky, Brand Factory, Central, Navaras,
Pantaloon and Shoe Factory.
• The company operates specialty stores in the wellness and health retailing. It operates Star
& Sitara and Fit & Healthy. Pantaloon has presence in the books and music category
through 'Depot' which offers books, music CDs and cassettes, home videos, multimedia
(CD-ROMs) products and gift items.
• The retail store brands that offer products in the telecom and IT category are Gen M, One
Mobile, and M Port.

SHOPPERS STOP LTD.
BUSINESS OVERVIEW
First Citizen members base increased to over 17,08,000 and their contribution to sales is
73%.
Andheri Store was relaunched after renovation on 5th
June,2010.
31st
& 32nd
SS Department store opened at Bangalore Koramangala on 22nd
July, 2010 &
Bhopal on 27th
July, 2010 respectively.
13th
& 14th
MAC SIS Store opened at Amritsar and Andheri on 3rd
May, 2010 and 25th
July,
2010 respectively.
Four Clinique SIS Stores opened at Juhu, Rajouri, GVK-Hyderbad & Garuda Mall –
Bangalore.
HyperCity 32% stake acquired on 30th
June, 2010, which takes SSL Stake to 51% as on
June, 2010.
Hypercity has been awarded “CORPORATE ACHIEVEMENT TO RECOGNIZE
QUALITY & EXCELLENCE” –April 2010 by OMAC, France

Shopper's Stop Ltd.
Eureka Towers, 9th Floor,
B-Wing, Plot No 504,
Mind Space, Link Road,
Malad (W)
Mumbai - 400064
Phone Numbers:
Tel: (022) 4249 7000
Fax: (022) 2844 5060

•Established in 1998, Trent - one of the subsidiaries of Tata Group
•It operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket
with a large assortment of products at the lowest prices.
•In 2005, it acquired Landmark, India's largest book and music retailer. Trent has
more than 4 lakh sq. ft. space across the country. Westside registered a turnover of
Rs 3.58 mn in 2006.
•Tata’s has also formed a subsidiary named Infiniti retail which consists of Croma,
a consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of
September 2007.
•Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India
has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87
exclusive outlets.
•Their combined turnover is Rs 6.55 billion.
TATA GROUP

Contact
Trent House
G-block
Plot no C-60
Bandar Kurla Complex
Bandra (E)
Mumbai 400 051
India
Phone: +91 (22) 6700 9000
COMPANY ADDRESS:-P
Westside
Email: uma.talreja@trent-tata.com
Website: www.mywestside.com
Star Bazaar
Email: starhelp@trent-tata.com,
p.sekhar@trent-tata.com
Landmark
Email:
customercare@landmarkonthenet.com
Website: www.landmarkonthenet.com

Bharti Retail: key facts
Head office: Aravali Cresent, 1 Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi
110070,IND
Telephone: 91 11 4666 6100
Fax: 91 11 4166 6137
Website: www.bharti.com
Source: company website D A T A M O N I T O R
BHARTI RETAIL

• Bharti Retail is a wholly owned subsidiary of Bharti Enterprises Limited.
• The two main formats operated by Bharti Retail are Easyday neighborhood stores,
and Easyday Market compact hypermarkets.
• The first stores opened for business in 2008. As of November 2008, Bharti operated
around 12 neighborhood stores.
• Bharti also has a joint venture with Wal-Mart that offers wholesale cash-and-carry
and supply chain management functions.
• Its first cash-and-carry outlet, under the Best Price Modern Wholesale banner,
opened in Amritsar, in May 2009.
BHARTI RETAIL

Reliance Retail: key facts
Head office: Maker Chamber IV, Nariman Point, Mumbai 400 021, Maharashtra,IND
Telephone: 91 22 2278 5000
Fax: 91 22 2278 5185
Website: www.ril.com
Financial year-end: March
Ticker: 500325
Stock exchange: Bombay
Source: company website D A T A M O N I TOR
RELIANCE RETAIL

• Reliance Retail (RRL) operates 'value' formats that include neighborhood stores, all
under one roof supermarkets, mini-marts, and others which offer a range of products
for daily household usage.
• It also operates specialty formats offering consumer durables and information
technology, apparel and accessories, health, wellness and beauty, Apple products,
footwear, jewelry, books, music and entertainment, automotive products and
services and homeware, furniture, modular kitchens, and furnishings.
• RRL has more than 900 stores in 80 cities across 14 states in India.
RELIANCE RETAIL

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