Retail Management

Prof. Rakhi Thakur

Retailing : Introduction

Click to edit Master subtitle style Introduction

Learning Objectives
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Defining retail The functions of a retailer The significance of retail as an industry The new role of the retailer The global retail scenario Key issues facing global retailers Retail as a career Retail Mix

What Is Retail?
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Retail derived from the French word retailer, which means to break bulk Retailing- last stage in the movement of goods and services to the consumer Retail consists of- all activities involved in the marketing of goods and services directly to the consumers for their personal, family

What is a Retailer ?
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A Retailer is a business that sells products and/or services to consumers for personal or family use.

Functions Of A Retailer
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Breaking Bulk -Buy it in quantities customers want Holding Inventory -Buy it at a convenient place when you want it Providing Assortment -Buy other products at the same time Offering Services -See it before you buy, get credit, layaway

Retail Supply chain

Feedback

The Changing Retail Landscape

Retailers are no longer dependent on the manufacturers to sell what is available and have emerged as the new leaders in the marketing channel

The Global Retail Market

Key challenges Emergence of new markets Empowered consumer Technology enabled efficiencies Rise of the E-age

Key Players In The World Of Retail

1 32 44 55 62 80 94 104 114 129

Wal-Mart Stores Carrefour Home Depot Tesco Metro Kroger Costco Wholesale Royal Ahold Sears Holdings Walgreen

351,139 99,014.7 90,837.0 79,978.8 75,131 66,111.2 60,151.2 56,944.9 53,012 47,409

11,284 2,846.2 5,761 3,544.9 1,324.9 1,114.9 1,103.2 1,127.9 1,490 1,750

Most Active Emerging Retail Markets

Rank

Country

Proportion of respondents that are actively looking in each market or first opened there in 2007
27% 24% 22% 19% 13% 12% 11% 10% 8% 6%

1 2 3 4 5 6 7 8 9 10

India Ukraine Russia Malaysia Turkey South Africa Thailand China Mexico Indonesia

Retail Environment
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Key role of technology Agility in response and integration within the organisation Competitive and cost advantages in retailers lines of business In the light of environmental changes, retailers to rethink their competitive strategies Internet as a powerful channel of distribution Mobile commerce- a reality Lifestyle retailing

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Ten Trends In Global Retailing

8. 9. 10.

Social responsibility Global consumer growth shifts away from the US Commoditisation run amok The rise of long tail retailing The fight to plant the flag in India Retail investment in services Emerging market investment in developed retailers Multi-channel integration Focus on customer experience Retailers as world-class marketers

Retail As A Career
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Buying & Merchandising Marketing Store Operations Sales Finance Human Resources Technology & e-commerce Visual Merchandising Supply Chain Management & Logistics

14

The Concept Of Organised Retail

Unorganised sector- units whose activity is not regulated by any statute or legal provision, and/or those which do not maintain regular accounts Unorganised form of retail - those forms of trade which sell an assortment of products and services ranging from fruits and vegetables to shoe repair Organised form of retail- typically a multi-outlet chain of stores or distribution centres run by professional

Organized Retail

Sources: The retailer, Ernst & Young, January 2009; Working Paper No 222, Impact of Organized Retailing on the Unorganized Sector, ICRIER; Pantaloon Retail India Ltd, 2008-09 annual results analyst presentation, September 26, 2009MARKET

Store Classification Chart

Store-Based Retail Classification

Product Based
General Merchandise Food Retail Services Retail Food Service Retail

Price Based
Factory Outlets Single Price Outlets Close-out Outlets Category Killer

Ownership Based
Corporate Retail Franchisee Retail Independent Retail Co-operative Retail

Service Based
Full Service Limited Service Self Service Vending

Retail Mix
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Retail Mix - Westside

Retail Mix - Westside

Retail Mix - Westside

Retail Mix - Westside

Retail Mix - Westside

Retail Mix - Westside

Class Exercise
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Pickup retail stores around you and discuss the Retail Mix for the store Sahkari Bhandar Bombay Store Hypercity Croma Fab India