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RETAIL MANAGEMENT - I
Unit Structure :
1.0 Objectives
1.1 Introduction
1.2 Retailing
1.3 Summary
1.4 Exercise

1.0 OBJECTIVES
 Introduce students with the basic concepts of retail management and
the latest developments in retail industry in the Indian context
 Develop knowledge of contemporary retail management issues at the
strategic level
 Establish an academic relationship to the above through the
application of retailing theory and research

1.1 INTRODUCTION
The final step in the marketing distribution chain is retailing. The French
verb "retailer," from which the English word "retail" has been derived,
implies "to cut a piece" or "to break bulk." It includes every step of the
product and service sales process. Retailing is the second-largest industry
in the world and is one with intense competition. Its capacity to give
customers more freedom of choice, accessibility to a wide range of goods,
and access to numerous services is what accounts for its appeal. The
typical size of a retail store varies significantly between nations, mostly
dependent on the degree of economic development of that nation.
Retail management refers to the many procedures that enable customers to
purchase the necessary goods from retail establishments for their intended
uses. All the steps necessary to attract customers to the store and meet
their shopping demands are included in retail management. Retail
management guarantees that clients have a pleasant shopping experience
and that they leave the store smiling. Simply put, retail management
makes it easier for people to shop.
One-sixth of the labour force is employed by the largest private industry in
the world, retail, which accounts for 8% of the GDP. The retail commerce
is anticipated to be worth 7 trillion US dollars. The retail industry has seen
a significant transformation recently, and many nations have only thrived
because of retailing. As far as India is concerned, it contributes 14% of our
GDP and is the second largest industry in terms of the number of people it
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Retail Management employs, behind agriculture. India is currently ranked second among
Asian nations and the fifth most desirable retail destination worldwide,
according to a poll. It is listed as the seventh most alluring retail location
globally.

1.2 RETAILING
MEANING AND DEFINITION
It is most typical way of conducting business It entails selling goods in
modest quantities to customers directly from a fixed location (a retail
store). These customers could be business or private buyers. Retailers buy
products or items directly from manufacturers in bulk before reselling it in
smaller amounts. Shops may be found on neighborhood streets, colony
streets, community centers, or contemporary shopping centers.
According to Kotler: ´Retailing includes all the activities involved in
selling goods or services to the final consumers for personal, non-business
uses.
Selling goods and services to low-level consumers for their usage is
known as retailing. It focuses on putting finished products into the hands
of clients who are willing to pay for the enjoyment of eating, wearing, or
using certain product items. Distribution of goods and services is the focus
of retailing because retailers are crucial to the path that products take from
a manufacturer, grower, or service provider to the consumer.
“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.” – American
Marketing Association
The term 'retailing' has a wider context and includes several transactions
which are several stages removed from sale to the ultimate consumer.
Subordinate services like delivery may be offered as part of retailing.
Buyers could be either people or companies. In the world of business, a
retailer buys vast quantities of commodities or products directly from
producers or importers or indirectly through a wholesaler before selling
smaller quantities to the final consumer. Shops and stores are common
names for retail spaces. The final link in the supply chain is the retailer.
Retailing is viewed by manufacturing marketers as an essential component
of their overall distribution strategy.
1.2.1 CHARACTERISTICS OF RETAILING :
In the context of emerging markets, retailers are essential participants. To
serve India's expanding middle class, big brands are racing to enter the
desired retail formats. Retailers perform numerous responsibilities such
supplying assortments, sorting, breaking the bulk, rendering services,
bearing risk, serving as a conduit of communication, transportation,
advertising and holding inventory. They make a substantial contribution to
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boosting the worth of the product and ensuring client satisfaction. The Retail
duties of a retailer are listed below. Management - I

1. Sale to Final Consumer

The fact that retailing involves selling goods or services to end users is its
most crucial feature. An advertising approach or a person or entity that
uses or consumes something can both be considered end consumers. It
implies that the subject consumes something. They don't buy it, sell it, and
then give it to someone else. The ultimate consumer is what we refer to as.

2. Various Channels
The downstream process, which addresses the issue of "How do we get
our product to the consumer," includes distribution networks. As opposed
to this, the upstream procedure, also referred to as the supply chain,
provides an answer to the query "Who are our suppliers?" A distribution
channel is the route that all products and services must take to reach their
target customers. On the other hand, it also specifies the payment route
that customers take to pay the original provider.

3. Small Order Size

Minimum order requirements are very sensible from the supplier's
perspective because they help them sell their inventory more quickly,
generate more money, and weed out customers who are just looking for a
deal. The wholesalers' cost of inventory is used to determine the minimum
order amounts, which helps them maintain a profit while also boosting
free cash flow. Even though wholesalers might not favor this approach,
there are times when they are left with little options since manufacturers
have minimum order requirements.

4. Large Number of Orders

The retailer caters to many orders dealing with its local business, this even
generates lots of employment and bridge the gap between producer to
consumer.

5. Keeps a large assortment of Goods

In retailing, an assortment strategy refers to the quantity and variety of
goods that are available for consumer purchase in stores. This strategic
technique, often known as a "product selection strategy," is used by
merchants to control and boost sales. There are two main parts to the
strategy:
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Retail Management  The breadth of products a store offers or the number of varieties it
carries (e.g. how many sizes or flavours of the same product).
 how many various types of things a store carries, or the breadth
(width) of its product diversity.
1.2.2 SCOPE OF RETAILING :
Retailing, from the standpoint of the retailer, can include anything that the
retailer wishes to sell. It could be either goods or services. Mobile phones,
computers, electronics, ready-made garments, textiles and clothing,
jewelry, books, paintings, medicines, stationery, and watches are examples
of such items, as are services such as catering, hospitality, and hospitals.
Employees perspective – Retail has created a plethora of job
opportunities. Small-scale retailers required a small number of employees
to assist them in their operations. The retailers hired these people to work
as salespeople, cleaners, cashiers, and so on. However, with the expansion
of operations and the growth of retailing, the industry has undergone
significant change.

1. Purchase Department
All purchases for the company must be made through the procurement
department. This includes choosing the goods to sell to customers, their
price range, choosing the supplier from whom purchases are to be made,
etc. This department involves a significant amount of work, a great deal of
travel, and a great deal of paperwork. The staff members of this
department should be well-spoken and knowledgeable about both the
industry and the vendors. They need to be capable of making prompt
decisions.

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2. Finance Department Retail
Management - I
Every organisation depends on its finances to function. The finance
department handles tasks including creating and assembling financial
records, allocating funds to various departments, managing funds, setting
up funds, controlling cash flow, overseeing banks and investments,
selecting how much credit to grant, etc. The finance department may
occasionally additionally perform a retail audit.
3. Marketing and Sales
The marketing division handles a variety of tasks, including public
relations, advertising, and sales promotion. When it comes to contacting
the clients, these activities are crucial. The marketing division oversees
carrying out in-depth market research and determining customer needs.
The individuals needed in the marketing department should be well-
versed, possess the necessary product expertise, and be capable of
persuading customers to purchase the products. They should be able to
comprehend the needs of the customer and respond accordingly.
4. Stores
The stores department is responsible for storing the goods. The store’s
manager should ensure that at every time the inventory is maintained at
proper levels so that there is no shortage of goods. At the same time the
department should ensure that too much inventory may cause problems of
storage, obsolescence, wear and tear, etc. So, the store’s manager must
always keep an up-to-date record of the inventory and ensure
uninterrupted supply of materials.

5. Human Resources
The hiring, choosing, training, on boarding, and other aspects of personnel
management fall under the purview of the human resources department. A
human-centered industry is human resources. The individuals needed in
this department must possess the knowledge necessary to comprehend the
needs of those working for the company and to prevent productive
personnel from quitting.
6. Technology in retailing
India's retail sector is at a mature stage and uses information technology
with great confidence. The sector makes use of technology like Electronic
Data Interchange (EDI), which allows for the electronic transmission of
information via computers. The methods used to collect client information
and store it for later use include database management, data warehousing,
and data mining. In customer relationship management, data mining is
helpful. For supply chain management, radio frequency identification
systems (RFID) are utilized. E-tailing is a retailing idea that is constantly
expanding. It also covers the use of the internet for product sales.

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Retail Management 7. Supply Chain Management
Supply chain management refers to controlling the flow of goods,
services, and data throughout the supply chain. Profitability of the
company is increased by proper resource management. Systems for
managing the supply chain are used. Thus, there are numerous places in
which retailing can give individuals jobs. As a result, it may be said that
retailing has a very broad scope. Depending on one's abilities, finances,
etc., one can either start their own business or enter the industry as an
employee.
1.2.3 IMPORTANCE OF RETAILING
Retail marketing's significance for today's producers cannot be
emphasized. In order to expose businesses to a big audience and distribute
items extensively, retail outlets are crucial. Retailers can interact with
customers in-store (the ultimate consumers of your products).Retailers
have a history of selling products to customers. He has a thorough
awareness of his clients' likes and dislikes due to his regular interactions
with them. He sells goods in a variety of sizes and forms and keeps
inventory on hand to satisfy customer requests.

1. Sales to Ultimate Customer

In a retail transaction, the goods and services are distributed to
ultimate or final purchasers. The items are not resold after this sale.
The products and services offered here can be utilized for a variety of
purposes, including commercial, domestic, and residential ones. The
manufacturer will consequently interact with his customers through
the store and find out what they think.

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2. A Convenient form of Selling Retail
Management - I
Reselling things that have been disassembled into their constituent
elements is referred to as "retail." The merchant buys the goods in
bulk from the producer or middleman, and the majority is divided into
smaller quantities and sold to clients in accordance with their
requirements. To accomplish this, the shop will repackage products in
various quantities and varieties, making it simpler for customers to
choose and transport them.
3. Convenient Place and Location
Shops for retailers are frequently situated in places that are simpler for
clients to get to. A retail establishment can come in a variety of shapes
and sizes, including a coffee shop, a tiny store, or a multiplex.
Whenever they want, consumers may buy and sell products via
mobile apps and the internet.
Additionally, internet shopping is becoming into a contemporary
trend because of developments in technology and delivery methods.
As a result, an increasing number of companies are shifting their
activities online, making it possible for customers to access and buy
products from the comfort of their homes.

4. Affects Lifestyle
The retail industry is crucial to today's culture. To live comfortably,
people rely largely on retail establishments. Previously, the trading
mechanism was used to make goods and services available. Today,
however, the buying and selling of goods has taken the role of trade,
making retail establishments a necessary component of society.

5. Contribution to the Economy

A significant portion of the Gross Domestic Product (GDP) in many
nations comes from the retail sector. Its contribution has grown
considerably in recent years and is still expanding quickly. An
important economic force that can support long-term growth is
retailing.
6. Dominates Supply Chain
In a supply chain, products and services move from a store or a
distributor to the ultimate consumers. The location of retail
establishments becomes even more crucial when there are numerous
consumers dispersed across the globe. Retailers act as a middleman
between producers and final consumers.
7. Inter disciplinary
Retailing has evolved with the help of economics, geography,
management, economics, and marketing. A store's financial
management is aided by economics. Choosing the ideal location for a
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Retail Management shop requires a solid grasp of geography. Proper management is
essential for managing your staff and merchandise, and it's equally
important for helping you break into the market.
8. Provides Maximum Employment
The sector that today employs the most people is retail. One in nine
people are reportedly employed in the retail industry. Additionally,
two-thirds of the retail workforce is made up of women, and more
than half of all retail employees work part-time, allowing them the
flexibility to meet any employer's demands.

9. Vital Area for Study

Retailing is getting more and more attention because of its popularity.
The study of retail is distinct from that of management and marketing.
Studies have been conducted and specialists have been enlisted to
help this industry prosper. Additionally, academic publications that
concentrate on retailing are available anywhere in the world.

10. Offers Scope for Development

A great opportunity to enter global markets is provided by retail. To
increase the number of individuals who purchase their goods, a
retailer who wants to diversify their market by selling their goods
abroad creates stores there.

1.2.4 RETAIL FORMATS :

A retailer or retail store is a business enterprise whose primary source of
selling comes from retailing. Retailing includes all the activities involved
in selling of goods or services directly to final consumer for personal, non-
business use – Philip Kotler.
A retail establishment is a firm that sells products directly to end users for
non-commercial purposes. Usually, the products are jacked up in price.
There are various kinds of retail establishments that serve various client
demographics and make use of various sales strategies.

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 Retail
Management - I

1. Specialty Store
Specialty shops have a deep selection of a very small number of
product categories. They provide a wide range of options in the
collection they carry for models, sizes, styles, colours, and other
crucial characteristics.
2. Departmental Store
A department store is a sizable retail establishment that carries many
different product lines. For the goals of purchasing, promoting,
providing services, and maintaining control, it is divided into distinct
divisions and offers a large selection in each line. It is sometimes
referred to as a department store for mass merchandise, such as
military canteens.

3. Super Market
A supermarket is made to meet all demands for groceries, laundry
detergent, and housekeeping supplies. Its size is rather enormous. Its
business model is one of cheap cost, low margin, big volume, and self-
service.
4. Convenience Store
Near a residential area is a convenience shop. It is compact, long
hours are spent keeping it open. Convenience items are available for
purchase in a few different lines. The costs are marginally greater.

5. Discount Store
Standard goods are sold at cheaper prices in discount stores. Higher
sales volumes make up for lower profit margins and boost total
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Retail Management profitability. Discount shopping has expanded into specialty retailers
including sporting goods, electronics, and bookstores.
6. Off-price Retailer
as the name implies, offer significant savings on the goods they sell.
Low prices, high volume, and high turnover serve as the basis for
competition among discount retailers. Wal-Mart is among the best
instances of this kind of retail setting, as evidenced by their
catchphrase, "Save money."
An off-price store sells leftover products, overruns, and irregulars that
they have purchased from producers or other retailers at a discount.
Three different sorts of discount stores exist.
a. Factory Outlets- Manufacturers are the owners and operators of
these. They sell excess, irregular, or discontinued products from
the producer. such as dinnerware, shoes, designer clothing, etc.
b. Independent Off-price Retailer- Entrepreneurs or departments of
larger retail businesses own and operate independent off-price
retailers.
c. Warehouse Clubs- Wholesale clubs are another name for these.
They only stock a small range of name-brand household goods,
apparel, and other stuff.

7. Hyper Market
They have been originated from France. Hypermarkets combine
specialty shops with shops carrying a small selection of products on
one floor. The range of products goes beyond everyday purchases. It
consists of things like furniture, big and small appliances, clothing,
etc.
The other elements of the hyper markets are bulk display and minimal
handling by store staff. Customers who are ready to move bulky
furniture and appliances out of the store are given a discount.

8. Catalogue Showroom
In the showroom, customers place orders for products from a
catalogue. Then they travel to a store's merchandise pickup location to
pick up these items.
9. E-Commerce Store
E-commerce stores are online shops that let customers make
purchases at any time and from any location. The customer places the
order online, and the products are delivered to the address they
provide.

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10. Dollar Stores Retail
Management - I
Discount stores include places like dollar stores. They charge pitiful
prices for the things. The sole distinction is that their costs are set.
1.2.5THEORIES OF RETAIL CHANGE
Like any other business, retail has benefited from the introduction of new
firms and creative strategies. Since no single theory is accepted by
everyone, several theoretical viewpoints can be used to examine retail
development. Varied market conditions and different socio-economic
situations in the market are the main causes of this intolerability. The
Theories are

1. Wheel of Retailing
This theory discusses how retailing has changed structurally. Malcolm
P. McNair, a professor, put out the notion. This hypothesis explains
how retail establishments transform over the course of their existence.
It highlights four phases

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Retail Management Phase 1: To draw customers and establish a clientele, a new business with
a questionable reputation price its goods and services competitively.
Phase 2: As the business expands, it upgrades its facilities and starts
progressively raising pricing.
Phase 3: At this point, the business has established a solid name and starts
to provide greater diversity while maintaining higher profit margins and
even more expensive services.
Phase 4: A new competitor with the same traits as phase 1 joins the
market (i.e. low-costs and low-margin). As a result, for the present
company to remain competitive, it must lower its prices to prior levels.
The 'wheel of retailing' is now thought to have been finished by the
corporation.
When new retail establishments begin operations, they do so as low status,
low price, and low margin enterprises. Retail businesses seek to grow their
clientele when they experience success. They start modernizing their
storefronts, adding goods, and introducing new services. To cover the
additional costs, prices are raised along with margins. New retailers enter
the market to fill the void left by existing retailers that advance to the next
stage of their life cycles because of their success.
When a store reaches the end of its life cycle, a new format appears. When
the retail business first opened, it catered to low-income and price-
conscious customers. However, as the market expanded and prices and
margins increased, it transitioned to catering to affluent clients.
The idea has drawn criticism since it does not support all the changes that
occur in the retail industry, and in the current environment, not all
enterprises enter the market at a low price point.

2. Retail Accordion Theory

According to this perception, general stores transform into specialty
shops before returning to their original general store form. Hollander
used the orchestra as the inspiration for the analogy "accordion."
He proposed that players use closed accordions to depict a small
variety of merchandise focusing on specialty products or open
accordions to represent general stores. A different name for this idea
was the general-specific-general theory. The cyclical theories of the
retail revolution are known as the wheel of retailing and the accordion
hypothesis.

3. Theory of Natural Selection

This theory proposes that retail establishments adapt as their milieu
changes. The retailers who successfully adjust to the changes in
technology, economics, demographics, politics, and the law are more
likely to expand and succeed.

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 This theory is thought to be superior to the Wheel of Retailing Retail
because it also discusses macro environmental factors. However, this Management - I
theory has the disadvantage of not considering customer preferences,
expectations, and desires.
4. Retail Life Cycle
Retail businesses go through distinct stages of innovation, fast
development, maturity, and decline, just like products and brands. The
retail life cycle is the term used to describe this. Any organisation is
young and has few rivals when it is in the invention stage.
They strive to give the end users a unique advantage. Organizations
aim to expand quickly at this point, and management is trying out new
ideas because the concepts are still new. The stage may persist for a
few years, and profits will be modest. Online commerce in our nation
is still in its infancy when we talk about it.
In the phase of accelerated growth, firms experience a sharp rise in
sales, the emergence of competitors, and the use of leadership and
presence as a tool for positioning stability. Because there would be a
lot of competition, the investment level will be high. Up to eight years
may be at this level. This level includes hypermarkets and dollar
stores. The growth rate begins to slow down in the maturity stage as
competition increases and newer types of retailing start to emerge. At
this point, businesses should begin rethinking their strategies and
positioning themselves to survive the market. In this level are
supermarkets and cooperative businesses. The falling phase, which
marks the end of the retail life cycle, is when businesses start to lose
their competitive advantage. Overhead costs start to climb as
profitability continues to deteriorate. Thus, for an organisation to
survive in the market, it must adopt a distinct strategy at each stage of
its life cycle.
1.2.6 RETAIL ENVIRONMENT :
A deep recession, a spike in interest rates, and new risks like the oil
crisis are all brought on by the overall marketing environment, and
businesses find their markets crumbling as a result. The marketing
landscape has undergone several abrupt changes recently, prompting
Ducker to Toffler refers to it as the Age of Discontinuity and calls it a
period of Present Shock. Retail marketers must constantly keep an eye
on the evolving scene. They must employ their judgment and market
research to keep tabs on the environment's change. Retailers can build
early warning systems. will have the ability to quickly change
marketing tactics to address new difficulties the chances offered by the
surroundings. The external players and forces that impact a retailer's
capacity to establish and preserve fruitful business connections and
interactions with its target customers make up the retail marketing
environment.

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Retail Management

1. Internal Environment
The term "internal environment" refers to the values, people, activities,
and situations that exist within a company and have the potential to
affect decisions made by the company, particularly how its human
resources behave. All individuals who are directly or indirectly
connected to the organisation, such as the owner, shareholders,
managing director, board of directors, employees, etc., are referred to
as members in this context.
2. External Environment
The elements that have an impact on a company's operations are
referred to as the external environment. Business environmental
elements including competitive, economic, social, ethical, political,
and global factors are included in the external business environment.
These variables are the primary determinants of how stockholder and
company owner business choices are made. For instance, if the
government changes the laws governing the quantity and kind of
imported goods, the importation tax may rise, which would have a
significant impact on the viability of many enterprises. Its devided into
two parts Micro and Macro

A. Micro Environment
The main objective of all retailers is to profitably service and fulfil the
needs of their designated target markets. The retailer collaborates with
a group of suppliers and a group of middlemen to reach its target
customers in order to complete this objective. The chain of suppliers,
middlemen, and customers makes up the retailer's primary marketing
strategy. We'll now examine the factors that come into play after the
retail environment.

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a. Suppliers - Suppliers are companies and individuals who provide the Retail
resources the shop needs. For instance, a retail store needs to buy a Management - I
variety of products from numerous vendors in order to offer them as
soon as clients inquire about them. The marketing strategies employed
by the retailer may be significantly impacted by changes in the
"suppliers'" environment. Retail managers must monitor changes in
the prices of their essential commodities. The availability of supplies
worries them just as much. Lack of supplies and other circumstances
might make it difficult to execute on commitments, which can result
in lost sales in the near term and long-term harm to client loyalty.

b. Intermediatories - Companies known as intermediaries help retail

stores market, sell, and distribute their products to end users. Large
corporations may employ agents to locate merchants in various South
Indian cities, and these agents may receive commissions based on the
stores' success. The agents don't acquire the goods; instead, they give
retailers orders on what to buy and eventually sell to consumers.
Physical distribution companies help the retailer stock and transport
goods from their starting points to their final destinations.Before
moving items to their next location, warehousing companies store and
safeguard them. Every store must choose how much storage space to
provide for various goods as well as how much storage space to build
for itself.

c. Customer - A retailer establishes connections with suppliers and

middlemen to effectively provide the right goods and services to his
target market. Individuals and households that purchase goods and
services for personal use may be its target market.

d. Competitor - Rarely does a store work alone to service a certain

customer market. Similar attempts are made by others to match his
efforts in developing an effective marketing system to serve the
market. Numerous competitors surround and influence the retailer's
marketing system.To acquire and keep consumer loyalty, it is
necessary to watch and outmanoeuvre these rival businesses. Now it
is possible to summarise a fundamental finding concerning the
challenge of effectively competing. Four fundamental considerations,
or the "Four CS of market positioning," are necessary for a retailer to
bear in mind

B. Macro Environment

a. Demographic Environment - Population is the first environmental

fact that matters to merchants since consumers make up markets. The
population's size, geographic distribution, density, mobility patterns,
age distribution, and social, racial, and religious composition are all of
great importance to retailers. Demographic structure rarely remains
constant for very long, and shifts in its makeup frequently put a
marketing firm's location to the test. Additionally, these modifications

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Retail Management affect consumer behaviour, which will directly affect the retailer's
revenue.

b. Political/ Legal Environment

Political and legislative issues have a significant impact on retail
marketing decisions. Various organisations and people in society are
influenced and restrained by the laws, governmental bodies, and
pressure groups that make up this environment. Over time, the amount
of legislation affecting the retail industry has continuously risen.
c. Socio-Cultural Environment
People's core views, values, and social conventions are shaped by the
society in which they are raised. People who reside in various regions
of the nation may hold various cultural values, which must be
examined by retail businesspeople or firms. This will enable them to
adjust their strategy to better meet customer needs. Retail marketers
are particularly interested in forecasting cultural changes because it
helps them identify emerging marketing possibilities and risks. In this
regard, a number of companies, like ORG, MARG, etc., provide
social and cultural projections. Marketers of foods, exercise
equipment, and other goods will, for instance, seek to address this
trend with pertinent items and messaging appeals.

d. Economic Environment
Both people and their purchasing power are present in retail markets.
A person's overall purchasing power depends on their current income,
pricing, savings, and access to credit. Major societal and economic
trends should be known to marketers. A firm's business strategies may
be negatively impacted by changes in the economy. The common
themes of shortages, rising costs, and up-and-down business cycles
are likely to muddle economic analysts' predictions as they look out
over the coming ten years. These alterations in the economic climate
present new difficulties and dangers for marketers. Effective
marketing programmes and tactics will determine how well these
obstacles may be turned into opportunities.
No economy, whether it is a free economy or a controlled economy, is
free from the tendency to fluctuate between boom and depression. In
any case, changes in the economy have an impact on marketing since
they alter consumer spending. Retail marketing companies are
vulnerable to the economy both directly and indirectly through the
market. For instance, when the economy is doing well, all input costs
rise, which influences the price of the final product and, in turn, the
sales. Through modifications in consumer behaviour, the effect on
consumers also affects marketing. This has an undirective effect.

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e. Technological Environment Retail
Management - I
Technology is the factor influencing people's lives most
dramatically.Technology advancements are a significant factor that
have two effects on retail marketing. First of all, they are completely
unpredictable, and secondly, limitations imposed by internal and
external resources frequently prohibit the adoption of new
technologies. At the same time, it's important to keep in mind that
technology advancement both opens up new opportunities and puts
particular businesses at risk.

1.3 SUMMARY
It is essentially the marketing idea of a company-wide, customer-centered
approach to creating and carrying out a plan. It lays forth the rules that all
merchants must abide by, regardless of their size, channel design, or mode
of sale.
Although the retailing concept is straightforward to embrace, many
retailers fail to adhere to it because they overlook one or more of the
aforementioned elements. For the retailer to be successful, there needs to
be a good balance between all the components of this concept. The
retailing notion, while significant, is constrained by the fact that it does not
take into account the firm's internal resources or the level of competition
in the outside world.The customer may choose not to use that particular
outlet if some aspects of the shopping experience are poor. As a result, a
store must make sure that every aspect of the experience aims to meet
customer expectations. For different sorts of stores, this experience means
different things. For example, for a high-end apparel retailer, it can
suggest the presence of plush interiors and air conditioning, but a bargain
store needs to have enough inventory.

1.4 EXERCISE
Q.1. Fill in the blanks
a. The word Retail is derived from the------ word. (Latin, French,
English, German)
b. Retailer is the person who sells the goods in a…………… (Large
Quantities, Small Quantities, Both a&b, None of These)
c. In retailing there is direct relationship with ……….. (Profitability,
Sales Growth, Return on Investoment, All of these)
d. Retailing Creates ……………… (time utility, place utility, ownership
utility, All of these)
e. ……….. activities are performed by the retailers (assortment of
offerings, holding stock, extending services, all of these)

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Retail Management Q.2. State True or False
a. The Atmosphere of retailing refers to the ambience. Music,Color,
Scent in a store.
b. E-retailing refers to selling using internet.
c. Retailing is marketing function which sells products to final
consumers.
d. Super markets are small retailers
e. Shopping malls sells limited variety of products
(Answer-1. True, 2. True, 3.True, 4. False, 5. False)
Q.3. Match the following

A B

1. Retail word a. Organised retailing

2. Retail life cycle b. Unorganised retailing

3. Department stores c. To break bulk

4. Kiryana stores near you d. Phases of retail business

5. Convenienece to customer e. Role of retailer

Answers: 1- c, 2-d, 3-a, 4-b, 5-e

Q.4. Write shortnotes
a. Retailing
b. Legal Environment
c. Competitive Environment
d. Technologicval Environment
e. Economic Environment

Q.5. Explain the following

a. Define retailing and explain the features of Retailing.
b. Explain the importance of Retailing
c. Write a brief note on Business environment
d. Explain the Scope of Retailing
e. Write a brief note on Retail formats

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Bibliography Retail
Management - I
1. Fernie, J. and Sparks, L., 2009. Logistics and Retail Management:
Emerging Issues and New Challenges in the Retail Supply Chain. 3rd
ed. Chartered Institute of Logistics and Transport.

2. Fernie, J., Fernie, S. and Moore, C., 2004. Principles of retailing. 1st
ed. Amsterdam: Elsevier Butterworth-Heinemann.

3. Findlay, A. and Sparks, L., 2002. Retailing. 1st ed. London:

Routledge.

4. Ghemawat, P., 2006. Zara: Fast Fashion. Harvard Business School,

pp.15-35.

5. Hagel, J., Brown, J., Samoylora, T. and Kuasooriya, D., 2014. The
hero’s journey through the landscape of the future. [online] DU Press.
Available at: <https://dupress.deloitte.com/dup-us-
en/topics/operations/heros-journey-landscape-future.html> [Accessed
21 April 2017].

6. Hollander, S., 1960. The Wheel of Retailing. Journal of Marketing,

[online] 25(1), p.37

7. Isabelle, D., 2017. Zara’s business model and competitive advantages.

[online] Diane A. Isabelle

8. Jhamb, 2013. Case study Zara. [online] Slideshare.net

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