Retail Management
Books
1) Retail Management – A Strategic approach by
Barry Berman & Joel R. Evans
2) Retail management by Swapna Pradhan
3) Retail management by Gibson Vedamani
4) Changing Gears : Retailing in India
- ET Knowledge series
5) Images Yearbook – Business of Fashion retail
Retail Management
Retailing Introduction
Retailing Strategy
Managing Merchandise
Store Management
Retail Communication
Future of Retailing
What is retail?
Retail – derived from the French word
“retaillier”, which means to break bulk.
Retailing is the last stage in the movement of
goods and services to the consumer.
Retail therefore consists of all activities involved
in the marketing of goods and services directly
to the consumers for their personal, family or
household use.
What is 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. It may be
defined as the first point of customer
contact.
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Retailing
The ultimate goal of retailing is to bring
together supply and demand; to provide
consumers with a selection of goods and
services that satisfy their needs profitably.
It can be the final stage of any economic
activity.
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The Marketing – Retail Equation
Manufacturer Manufacturer Manufacturer
Wholesaler
Retailer
Retailer
Feedback
Consumer Consumer Consumer
Marketing-Retail Equation
It is defined as a process by which an
individual or groups obtain what they
need and want through creating, offering
and exchanging products and services of
value with others.
Every retailer needs marketing.
Value Added by Retailers
Providing Assortment - Enables customer
to choose from a wide selection of
brands, designs, sizes, colors, and prices in
one location.
Breaking Bulk - Buy in large quantities
then offer to consumer in smaller
quantities.
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Value Added by Retailers
Holding Inventory - Keep inventory so
that products will be available when
consumers want them.
Offering Services - Provide services that
make it easier to buy and use products.
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Scope and purpose of Retailing
Understand customer values
Create a retail offer that satisfies these
values
Communicate these values to the target
audience
Create a retail format and experience
that delivers these values
Manage the process to ensure
maximisation of customer value
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Functions of a Retailer
Form utility
Time utility
Place utility
Ownership utility
Retailer’s role in Distribution channel
Manufacturer
Wholesaler
Retailer
Final Consumer
The Changing Retail Landscape
Proximity to the customer
The Rise of consumerism
Introduction of the Private Label
Technology
Key Drivers
Consumer Pull
Rising incomes
Explosion of media
Change in consumer behavior
Consumerism cycle
The Rural market: Waking up
Supply chain establishment
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Key Drivers
Entry of Corporate sector
Expansion of family owned businesses
New Entrepreneurs
Reducing Brand dominance
Foreign retailers seeking entry
Technological impact
Economic Significance
Fortune 500 has about 50 retail organizations
figured on its list.
Number one Company on this list is world
largest retailer, Wal-Mart.
It contributes not only to GDP but also
employs a large number of people.
The Global Retail Market
Year $ billion % growth
2009 (E) 12,104.0 4.70 %
2008 ( E) 11,561.5 4.80 %
2007 ( E) 11,029.1 5.10 %
2006 ( E) 10,496.3 5.20 %
2005 (E) 9,981.1 5.10 %
2004 9,498.5 5.5 %
2003 9,005.4 4.50 %
2002 8,620.1 3%
2001 8,366.0 2.7 %
2000 8,144.2 --
Source: Global Retailing, Datamonitor, May 2005
Key players in the world of retail
Fortune Fortune Corporation Revenues $ % Change in
Rank 2004 Rank 2003 mn Revenues
1 1 Wal-Mart Stores 287,989 9.50
22 22 Carrefour 90,381.7 13.3
34 34 Home Depot 73,094 12.8
42 41 Metro 70,159.3 15.7
49 37 Royal Ahold 64,675.6 1.9
54 60 Tesco 62,458.7 21.1
67 56 Kroger 56,434.4 3.7
82 71 Target 49,934 3.7
86 88 Costco Wholesale 48,107 13.1
105 111 Albertson’s 40,052 13
Source: Fortune, July 25,2005
Share of retailing in Total Empl. In select
countries
Country Share of retail in total
empl
India 6–7%
China 6%
Poland 12 %
Brazil 15 %
U.S.A. 11.7 %
Korea 18 %
U.K 11 %
Malaysia 7%
Source: FDI In Retail Sector in India, ICRIER publication
The World’s Biggest Employers
Global Rank Retailer # of Employees
1 Wal - Mart 1,700,000
314 McDonald’s 438,000
22 Carrefour 430,000
82 Target 292,000
67 Kroger 289,000
34 Home Depot 273,000
132 Sears Roebuck 247,000
54 Tesco 242,980
105 Albertsons 241,000
42 Metro 208,616
Source: Fortune, July 25, 2005
The Special Characteristics of Retailing
Small average sale Impulse purchases
Retailer’s Strategy
Popularity of stores
Benefits of Retailing
Benefits to Customers
◦ Breaking bulk
◦ Providing assortment
◦ Holding inventory
◦ Providing after sales services
◦ Providing information
Benefits of Retailing
Benefits to Manufactures and Wholesalers
◦ Channel in delivering their products / services
◦ Retailer function as Sensory organs (feedback)
◦ Retailers also share some of the risks of the
manufacturer
Physical obsolescence
Technological obsolescence
Fashion obsolescence
Benefits of Retailing
Benefits to the economy
◦ Per capita retail sales is increasing at the rate of 20%
every year
Decision Variables for Retailers
The Size of Retail in India
The Break up of the Consumption
Expenditures
2% 5%
4% Food
4%
Clothing & footwear
9% Trans port
Rent
53% Recreation
12%
Medical Care
Furniture
11% Others
The Organized Retailing Pie
Food & grocery
3% 4% 11% Clothing & textile
3%
7%
Consumer durables
7%
Footwear
8%
39% Furniture &
furnishings
9%
Catering services
9%
Jewellery & Watches
Books, music & gifts
Evolution of Retailing
Factors behind the Change in Indian Retailing
Industry
◦ Economic growth
◦ Urbanization
◦ Consumerism
◦ Brand profusion
◦ Availability of real estate
Challenges facing Global Retailers
The emergence of new markets
The empowered consumer
Technology enabled efficiencies
The rise of the e-age
Retail as a career
Buying & Merchandising
Marketing
Store Operations
Sales
Finance
Human Resources
Technology & e-commerce
Visual Merchandising
Supply Chain Management & Logistics
Acc. To Sam Walton
For my whole retail career, I have stuck to one guiding
principle…give your customers what they want, and
customers want everything: a wide assortment of good
quality merchandise; the lowest possible prices;
guaranteed satisfaction with what you buy; friendly,
knowledgeable service; convenient hours; free parking; a
pleasant shopping experience.
You love it when you visit a store that somehow
exceeds your expectations, and you hate it when a
store inconveniences you, or gives you a hard time, or
just pretends you’re invisible.”
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Issues in Retailing
How can we best serve our customers
while earning a fair profit?
How can we stand out in a highly
competitive environment where
consumers have too many choices?
How can we grow our business, while
retaining a core of loyal customers?
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Exercise
Visit site
http://www.asiaretailcongress.com/ARC'10-
11/Awards_Winners_2011.html
Awards Winners 2011, 2010, 2009, 2008, 2007,
2006, 2005 and 2004.
Pick up the key discussion points from the post
conference report.
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Exercise
Visit the site,
http://www.retailangle.com/newslisting.asp
?Cat3ID=2
Pick up one news, national or
international and give presentation in the
class.You should also include your
viewpoint on that topic.
5 mins
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