Retail Management

Module 1
Retailing.....?
 Retailing
Retailing encompasses the business
activities involved in selling goods and
services to consumers for their personal,
family, or household use. It includes every
sale to the final consumer—ranging from
cars to apparel to meals at restaurants to
movie tickets. Retailing is the last stage in
the distribution process from supplier to
consumer.
Retailing
“A set of business activities carried on to
accomplishing the exchange of goods and
services for purposes of personal, family, or
household use, whether performed in a store or
by some form of non-selling.”
Evolution of Retailing
Department
Mom and Pops: stores arrive:
Cha-Ching: 1883
1700s–1800s. Mid 1800s –
Early 1900s

Credit takes a Shopping malls: Big Box is in:

hold: 1920s 1950s 1960s

Retail slows
Ecommerce Social media
while ecommerce
looms on the opportunities:
grows: Modern
horizon: 1990s 2007
day
Mom and Pops:
1700s–1800s
• Many of these stores were drug stores
or general stores selling everything
from groceries and fabrics to toys and
tools

• Dominated by family owned stores

• Personalization and a fun boutique

experience
 Department stores arrive: Mid 1800s
– Early 1900s
▪ What people bought,
▪ How they furnished their homes,
and
▪ What luxuries they felt they needed.
▪ Agriculture— which had previously
been the dominant business — was
replaced by manufacturing and
industry
▪ Oil,steel, textile, and food
production in factories brought new
jobs and new standards of living
Cha-Ching: 1883
The first cash register was invented by James Ritty in
1883

Customer checkout

Computerized cash registers that can keep track of

inventory
Credit takes a hold:
1920s
In the 1920s, credit cards or “charge
cards” began to take hold

The first bank-run credit card was

started by Bank of America in 1958

Credit cards are also now much more

likely to carry debt as consumers use
them to make up for budget shortfalls
 Shopping malls: 1950s
▪ Thefirst shopping mall was technically an
outdoor shopping plaza that opened in
1922 in Kansas City
▪ the
first indoor shopping mall that
mirrored how we think of malls today was
opened in 1956 in Edina, Minnesota
▪ Thegrowth of these shopping centers was
correlated with the growth of automobiles
▪ By
1960, there were more than 4,500
malls accounting for 14% of all retail sales
Big Box is in: 1960s
• In 1962 the first Walmart opened its
doors in Rogers
• At these big box stores, customers
could find the consumer goods they
needed, and at much lower prices
• Other big box retailers are having to
get creative to open new stores,
revolutionize current stores
 Ecommerce looms on the horizon:
1990s
• Arguably one of the biggest flashpoints in
retail history is the dawn of widespread
internet shopping
• Amazon was established in 1995 as a
simple online bookseller
• Clearly, over the past three decades people
have jumped onto the ecommerce
bandwagon
• Ecommerce provides convenience and
efficiency to the shopping experience
Social media opportunities: 2007
• Facebook, the most successful social media platform ever,
has over 60 million active business pages on it
• Twitter provides a way for businesses to talk directly to
customers
• Social media opportunities have been both an opportunity
for retail brands to capitalize on and a new challenge for
them to conquer
• In 2011, Facebook rolled out sponsored stories as a form
of early advertising
Retail sales are growing
slowly as a whole

Retail slows
The growth of sales in while
physical stores in 2018 ecommerce
was merely 3.7% grows:
Modern day
Meanwhile, ecommerce
sales saw a 15% jump
Retail in India

96% of pre covid sale on Sept 2021

Rising demand from consumers

Increasing purchasing power

Retail in India
Collaboration
Innovation in
with
financing
investors

Easy credit to
customers
Retail in India
Foreign
FDIs flow of
players into
$3.61 Billian
India

Increasing
FDIs in Indian
ventures
 51% FDI in multi-
brand retail
Retail in 100 percent in
India single brand retail
Regulatory
compliance portal
Organized Vs Unorganized retailing
Unorganized
Retail Sector
The unorganized retail sector
basically includes the local
kiranas, hand cart, the vendors
on the pavement etc. This sector
constitutes about 98% of the
total retail trade. But Foreign
Direct Investment in the retail
sector is expected to shrink the
employment in the unorganized
sector and expand that in the
organized one.
Organised Retail
Sector
In the organised sector trading is
undertaken by the licensed retailers who
have registered themselves to sales as
well as income tax. The organised retail
sector have in their ambit, corporate
backed hypermarkets and retail chains.
The private large business enterprises
are also included under the organised
retail category.
Organized Vs Unorganized
retailing
Features of Retailing
Retailing is essentially an economic activity

It includes sales of goods as well as services

It involves earning profits through customer satisfaction and retention.

It aims at increasing the number of customers.

It is very dynamic by nature.

It is customer oriented.

It involves lesser quantity in terms of the goods sold.

It involves personal touch with the customer.

It is the last link in the distribution channel.

It attracts customers by using various methods such as discounts, vouchers, lucky draw schemes, coupons, etc.

It includes the customers who buy the articles for non-business purposes.
Functions of Retailing

Sorting Breaking Bulk Holding Stock

Transport and
Additional Channel of
Advertising
Services Communication
Functions

providing
information
Types of Retail Stores

STORE RETAIL NON STORE RETAIL

Types of Stores: Store Retail
Department Stores

Super Markets

Hypermarkets

Specialty Stores

Malls

Convenience Stores

Chain Stores or Multiple Shops

Factory Outlets

Discount Houses

Street vendors
Department Stores
Department stores are large stores
which sell different types of
products under one roof in different
departments. Each department has
an individual specialization of
merchandise. Each store is handled
separately in accounting,
management, and location.
Features of Department Stores

Merchandises are arranged in different

departments in the same store.

Department stores are integrated stores which

perform operations.

department stores are distinguished by the

nature of goods sold by them, not by the variety
of goods sold by them like drug and variety store.
Department stores are designed horizontally in
order to provide different merchandises under the
same roof.
Super Markets
Supermarkets are self-service stores that sell a wide
range of food as well as non-food products.
supermarkets have at least four basic departments
such as self-service grocery, dairy produce, meat, and
household department.
Features of Supermarket
• Goods are displayed in bulk.
• Supermarkets are located in nearby housing areas so
that people have easy access.
• These stores offer a wide range of products, low prices,
nationally advertised brands, and also convenient
parking.
• It follows the “cash and carry” policy.
• Minimum customers service is provided in these stores as
these stores work on the basis of self- service.

This Photo by Unknown author is licensed under CC BY-ND.

Super-Market Hyper-Market

• A supermarket refers to a huge • A hypermarket can be described

retailing self-service shopping unit, as a mega retail outlet, which is a
which sells an extensive range of combination of departmental
consumer goods at a significantly store and supermarket.
low margin.

• Large shopping outlets • Comparatively larger

• Offered at market prices • Offered at discounted prices
• Very Attractive • Not very much attractive

• Used during festivals and special • Not Used

occasions.
• To encourage savings
• To make a profit • 40,000 to 1,00,000 sq. feet
• 800 to 5,000 sq. feet
Specialty stores are small in size and they generally offer
limited products categories but provides a high level of
service. The specialty stores can be a drug store, DIY
stores, Category Killers, etc.
Category killers
High quality service
Niche market
Malls
A mall is shopping complex
which has a large number of
shops offering various goods
and services in one and the
same building. In other words,
a shopping mall is huge multi-
storied building that contains
a number of stores or shops
offering a huge variety of
goods and services.
Features of Mall
Mini Market

Wide Range

Central Location

Services

Ownership

Advertising
Convenience Store
A convenience store is a small retail business which
stocks everyday items which the average person uses.
It may range from snack foods to toiletries to tobacco
products.
Forms of Convenience
Store
• Kiosk

• Mini Convenience Store

• Limited Selection Convenience Store

• Traditional Convenience Store

• Expanded Convenience Store

• Hyper Convenience Store

Features of
Convenience Store
• They are a natural destination retail location

• It provides an economic boost to the

community

• It doesn’t cost much to start a convenience

store

• Convenience stores are not bound by local

pricing needs
Chain Stores or Multiple Shops

A multiple shop system consists of a

number of branch shops owned by a
single business firm. This is an
attempt on the part of the
manufacturers or the wholesalers to
establish a direct link with the
consumers by avoiding middlemen.
Features: Chain Stores or Multiple
Shops

SPECIALIZED “CASH AND DIRECT CONTACT

CARRY” WITH THE
CONSUMERS

CENTRALISED HORIZONTALLY SIMPLE AND

CONTROL INTEGRATED SIMILAR LAYOUTS
Benefits: Chain Stores
or Multiple Shops

Economies of large scale

Elimination of middlemen

No bad debts

Convenience in shopping
Factory outlet

Factory outlet, also known as a factory shop, is a

store where manufacturers sell their products
directly to the public at a heavily discounted price.
A factory outlet center is a manufacturer-owned
store selling that firm's stock directly to the
public.
Factory outlet
Discount store
Retailers adopt different methods to
attract customers. Because of this
reason, different formats of retail
stores were introduced, such as
warehouse stores, department stores,
dollar stores, discount stores,
boutiques, and specialty stores.
Discount stores are a category of retail
stores where retailers sell merchandise
at discounted prices.
Discount store

✓Sells a variety of products

✓Low or no customer service
✓Lower prices
✓Huge size
Kiosk
A kiosk is a small, stand-alone booth typically placed
in high-traffic areas for business purposes. It typically
provides information and applications on education,
commerce, entertainment, and a variety of other
topics. Kiosks are popular due to the number of
advantages they provide.
 Self-Service Kiosks

Information Kiosks

Types Of Internet Kiosks

Kiosk
Wayfinding Kiosks

Advertisement Standing Displays,

Totems and Digital Mupis
Self-Service Kiosks
Self-Service Kiosks as the name suggests are mainly used for providing a service such as taking payment
from customers, print certified documents, issue licenses/ID cards, or perform a booking or a reservation.

• Healthcare Government

• Corporate

• Industrial

• Banking

• Retail and showrooms

• Universities

• Schools

• Events
Information Kiosks
Information Kiosks on the other hand, are used to
provide information to the users of the system.
Information will be clear and concise, detailed where
necessary with no need to reply on an advisor.
Internet kiosks
Internet kiosks are predominantly found in public
waiting areas such as airports, train stations, libraries,
museums to name a few. They are used to either provide
free or paid internet service at that location. Such a system
will allow the owner to track all payments received, be
notified when there is an error on the machine.
Wayfinding
kiosks
Wayfinding kiosks as the name
suggests are kiosks providing a
service to help people establish where
they are exactly within a location, and
what is nearby and how to get there.
Each kiosk is geo-fenced and is
aware of its current location and all
the locations around it.
Advertisement
Standing Displays
Advertisement standing displays,
standing Totems, standing Kiosks
or Digital Mupis all have the same
function and that is they have the
characteristics of being striking in look,
and being a standing kiosk unit that can
be seen by passers from a distance.
Non-store retailing
Non-store retailing is a form of retailing in
which a firm sells its products without a
physical retail store/space. The firm sells
its products via online platforms and
delivers the product to customer’s
doorstep.
Direct selling

Telemarketing

Online retailing
Non-store
retailing
Automatic vending

Direct marketing

Electronics retailing
Direct Selling
• Direct selling allows a firm to interact
directly with a customer.

• A customer can have a better

demonstration of the related product.

• It reduces overhead costs for a

business.
 Telemarketing

Telemarketing is still a common practice in stockbrokers;

they often approach their potential clients through
telephones, etc. Moreover, bankers often sell their
promotional offers, credit/debit cards, etc., via
telemarketing.
Online Retailing
Amazon.com Inc is the finest example of online retailing. The company
has really revolutionized the non-store retailing business. Amazon
operates in almost every part of the world. The best thing about
Amazon is it caters to almost every single category of customers.
Automatic Vending
For instance, beverage companies such a coca-
cola, Pepsi, Nescafe, etc., install their vending
machines at public places such as stadiums,
banks, roads, or even private offices. In fact,
pizza sellers are now selling their products via
vending machines.
Direct
Marketing
As of now, email marketing
has become one of the most
effective sources of direct
marketing. Companies offer
regular email subscriptions
mostly free of cost. Potential
customers are regularly
updated about the latest
offerings from the companies.