An Introduction to Retailing
RETAIL
MANAGEMENT
Retailing
Retailing encompasses the business a
ctivities involved in selling goods and s
ervices to consumers for their personal
, family, or household use. It includes e
very sale to the final consumer.
1-2
Types of Retailers
•
•
•
•
•
•
•
•
1-3
Convenience Stores
Chains of Stores
Franchise stores
Speciality stores
Departmental stores
Supermarket
Hyper market
Shopping Mall
• Shopping Plaza
• Discount stores
• Factory outlets
1-4
Convenience stores
• Located close to residential areas to enable
target customers have easy accessibility an
select convenient merchandise such as bev
erages,snack grocery etc.
1-5
Chain of Stores
• A single retailer establishes a chain of Store
s with its exclusive store design, synergistic
merchandise planning, promotion and servic
e strategy and so on.
• Example : Raymond chain of Stores,Khazan
a jewellery.
1-6
Franchise
• Retail stores owned and operated by individ
uals on behalf of, and licensed by a big sup
porting organisation.
• Example: Pizza Hut,Baskin Robbins,Mc Don
alds.
1-7
Speciality Stores
• Retail shops displaying merchandise having
specialized merchandise and offerings to cu
stomers.
• Park Avenue from Raymond is a men's spec
iality store.
1-8
Departmental Stores
• A store having several departments such as
clothing, personal care and cosmetics,book
and stationaries, electronic all under a singl
e roof.
• These are owned by large or national chains
.
• It functions as a strategic business unit own
ed by large chains.
1-9
Supermarket
• A store offering groceries ,limited non food it
ems such as health and beauty related item
s and general merchandise.
• Ex-Nilgiris,More etc.
1-10
Hyper Market
• Hyper market are large in size,carry grocery
, hardware, appliance and other general mer
chandise ,with self service facilities, usuallyi
n warehouse type structure with large parkin
g facilities.
• Big Bazaar(Pantaloon Retail India)
• Spencer's
1-11
Shopping Mall
• Right mix of shopping, food courts , entertai
nment and parking facilities can be seen.
• Forum centres,Sigma mall are examples
1-12
Shopping plaza
• It is a configuration of many tenants using 1
000 sq ft or so for putting up stores within a
building.
• Fountain plaza,Modi arcade plaza
1-13
Discount stores
• Discount stores retail a broad variety of mer
chandise,offer limited service at low prices.
• Example-Dollar
1-14
Factory outlets
• Factory stores are owned and operated by
manufacturer who sell discounted merchand
ise or factory orders at low prices.
• Bata factory outlets,Peter England factory o
utlets.
1-15
The Philosophy
Retailers can best address these quest
ions by fully understanding and applyin
g the basic principles of retailing, as w
ell as the elements in a well-structured,
systematic, and focused retail strategy.
1-16
An Ideal Candidate for Retaili
ng Career
Be a people person
Be flexible
Be decisive
Have analytical skills
Have stamina
1-17
A Typical Channel of Distribution
Manufacturer
Retailer
Wholesaler
1-18
Final
Consumer
Multi-Channel Retailing
A retailer sells to consumers through
multiple retail formats
Web sites
Physical stores
1-19
Relationship Management Amon
g Retailers and Suppliers
• Disagreements may occur:
control over channel
profit allocation
number of competing retailers
product displays
promotional support
payment terms
operating flexibility
1-20
Distribution Types
• Exclusive: suppliers make agreements with
one or few retailers that designate the latter
as the only ones in a specified geographic a
rea to carry certain brands or products
• Intensive: suppliers sell through as many re
tailers as possible
• Selective: suppliers sell through a moderate
number of retailers
1-21
Issues in Retailing
How can we best serve our customers while
earning a fair profit?
How can we stand out in a highly competitiv
e environment where consumers have too
many choices?
How can we grow our business, while retain
ing a core of loyal customers?
1-22
Thank you
1-23
1-24
• 1 Physical Location
• This includes the market, where buyers and
the sellers converge. Usually this is done in
town squares, sidewalks or
• designated streets and may involve the con
struction of temporary structures (market sta
lls).
1-25
Shop
• It is also called store trading. In the 1920s th
e first supermarket opened in the United Sta
tes, heralding in a new era of Retail : self-se
rvice. Around the same time the first shoppi
ng mall was constructed which incorporated
elementsfrom both the arcade and the depa
rtment store.
1-26
• Customer services will vary from retailer to r
etailer.Some of the services expected by cu
stomer include convenient and long store ti
mings,parking facilities, attentive sales pers
onnel etc..Some retailers may offer free ho
me delivery services etc.
1-27
• Virtual Retail
• A third form of retail is virtual retail, where pr
oducts are ordered via mail, telephone or on
line without having been
• examined physically but instead in a catalog
ue, on television or on a website. Sometime
s this kind of retailing
• replicates existing retail types such as onlin
e shops or virtual marketplaces such as Am
azon.
1-28
1-29
Four elements of retail mix us
ed to classify retailers
• Type of merchandise sold-- It could be char
acterized as furniture and home furnishings,
food and beverage and vegetables,clothes a
nd clothing accessories, restaurant and bar,
fashion, jewellery stores,luggage and leathe
r goods.
1-30
• Variety and assortment merchandise sold at
outlet- refers to number of merchandise cate
gories a retail offers.While assortment is the
number of different items in a merchandise i
s referred to as stock keeping units(SKU)
1-31
• Customer services will vary from retailer to r
etailer.
• Some of the services expected by customer
include convenient and long store timings, p
arking facilities, attentive sales personnel et
c.
• Some retailers offer free home delivery and
gift wrapping services.
1-32