AN OVERVIEW
 FUNDAMENTALS……….
HISTORY….
Retail derives from French word ‘RETAILLIER’ means to cut of a piece
or to break bulk.
(WHAT IS RETAIL)…??????????????????……………
It is an activity through which product or service can be accessed to the
end user for the personal and non-business use.
Type…………………
Organized and Unorganized
CATAGORY……………..
C2C(CUNSUMER TO CONSUMER)
B2B(BUSINESS TO BUSINESS)
FACTORY
WAREHOUSE
DEALER/DISTRIBUTOR
RETAIL SPACE
END-USER(CONSUME)
EMERGENCE &
EVULOTION
A.
ERA & THOUGHTS

1930(POST & PRE)

PRODUCTION

SCIENTIFIC
MANAGEMENT,ADMINISTRATIVE,OPERATIONAL
MANAGEMENT

1950…………

SALES ERA

HUMAN RELATION APPROACH,SOCIAL
SYSTE,DECESION THEORY,MANAGEMENT
SCIENCE,HUMAN BEHAVIOR,SYSTEM APPROACH

1970………

MARKETING ERA

CONTINGENCY APPROACH,CUSTOMER
RELETIONSHIP APPROACH,ETHICAL APPROACH
etc
GLOBAL SCENARIO
ESTIMATION
WORLD MARKET $7TRILLION
ORGANISED RETAIL
80% SHARE IN USA
70% WESTERN EUROP
50% MALAYASIA
40% BRASIL
35% PHILLIPNES
25% INDONESIA
10% CHINA
3% INDIA
 EVOLUTION & FORMATs
 TRADITIONAL
Itinerant Salesman,Haats,Moles,Mandis
ESTABLISHED FORMATs
Kirana,Depertment Stores,Multi brand
showrooms,PDS,Co-operatives,Pan/beedi shops
EMERGING FORMATs
Exclusive outlets,Hypermarkets,Internal
retail,Malls,Multiplexes,Rural Oriented formats,Fast
food outlets,Service galleries
 Indian Retail industry is divided into UNORGANISED and
ORGANISED format.Organised retailing refer to trading
activities undertaken by licensed retailer that is those
who are register for Sales tax, Income tax etc.This includes
the corporate backed Hypermarkets, retail chain, and also
private based large retail business. On the other hand
unorganized retails are traditional based retailing such as
KIRANA,GROCESSARIES,PAN-BIDI,PDS,PAVEMENT
VENDORS etc………..
 ORGANISED RETAIL…….. 3%-4% OF TOTAL RETAIL
UNORGANISED
…….. 97% OF TOTAL RETAIL
NUMBE OF OYTLET ………. 12 MILLION
 CONTRIBUTION TO GDP…. 33-35%(INDIA),20%(USA)

TRADE
EMPLOYMENT
%
SHOP(Million)
ORGANISED
SECTOR (%)
INDIA
180-394
7
12
2-3
CHINA
360
12
2.7
20
USA
3800
12-16
15.3
80
 FOOD & GROCERY
 APPERALS
 GEMS & JEWLLARY
 PHARMACUTICAL
 CONSUMER DURABLE
 BOOKS & ACCESSORIES
 AUTOMOBILE
EXCLUSIVE/MONO/COCA
MULTI-BRAND OUTLET
CONVERGENCE OUTLET
EITHER OWNED OR
FRANCHIED
FOCUSE ON PERTICULAR
PRODUCTS /SERVICE
CATAGORY
MORE ON
CONVERGENCE OR
CONSUMER DURABLE
PRODUCTS
COMPLET RANGE OF
SELLING & CERTIFIED
MORE LIBERTY OF
CHOICE FROM A VARIED
RANCE OF
PRODUCTS/SERVICE
ONE STOP OF
CUSTOMERS ,MANY
PRODUCTS OF
DIFFERENT BRANDS ON
DISPLAY
 Large retail establishment with an extensive
assortment in variety and range of goods, organized
into separate departments. All departments are
housed under the same roof to facilitate buying,
customer service, merchandise, and control.
A discount store is a type of department
store, which sells products at prices lower than those asked by
traditional retail outlets. Most discount department stores offer
a wide assortment of goods; others specialize in such
merchandise as jewelry, electronic equipment, or electrical
appliances. Discount stores are not variety stores, which sell
goods at a single price-point or multiples thereof (£1, $2, etc.).
Discount stores differ from variety stores in that they sell many
name-brand products, and because of the wide price range of
the items offered. Following a number of retail establishments
in the U.S. began to pursue a high-volume, low-profit-margin
strategy designed to attract price-conscious consumers
 A typical speciality store gives attention to a particular
category and provides high level of service to the
customers. A pet store that specializes in selling dog
food would be regarded as a specialty store. However,
branded stores also come under this format. For
example if a customer visits a Reebok or Gap store
then they find just Reebok and Gap products in the
respective stores.
 General store- a rural store that supplies the main
needs for the local community
 provides variety and huge volumes of exclusive
merchandise at low margins. The operating cost is
comparatively less than other retail formats.
*Supermarket: is a self service store consisting mainly
of grocery and limited products on non food items.
They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarkets can be anywhere between
20,000-40,000 square feet. Example: SPAR™
supermarket.
 Hypermarket is superstore which combines a supermarket





(Supermarket is a self-service store, which offers a wide variety of
food and household merchandise, organized into departments)
and a Department store.
It carries a wide range of products under one roof, including full
range of Groceries and General merchandise ( Dry goods,
apparel and accessories, furniture and home furnishings, small
wares, hardware, and food).
A typical Hypermarket has 35,000 square feet of Retail space
(selling space).
Business model focus is on High volume and low profit.
Carrefour opened their first hypermarket in 1963 at SainteGeneviève-des-Bois, France
Oshawa Group opened their first store in 1973 near Montreal,
NA
 A departmental store is one where the products are sorted and
organized for shelf display. It is easy to find a product in such stores, as
the products are organized in broad categories and sub-categories.
For example, you can easily find soaps in a departmental store by
looking for the toiletries section.
A supermarket, on the other hand, covers a broad variety of products.
They may or may not be organized as carefully as a departmental store,
as the products may range from groceries to automobiles. The displays
are usually more point-of-sale centered, which means products are
usually placed on the basis of demand.
For example, you may find magazines placed prominently in a shelf as
you walk in, by the side of a popular brand of perfumes and another
shelf of chewing gums.
 STRENGTH………………..
 Manpower,Population,Diversed Demography,Higher % of young
generation as a viable prospective consumers
 Weakness

Political consensus,Govt stringent rule to curb FDI in
organized retail sector, Stringent labor law, Lack of
infrastructure, cost of supply chain management, Yet to have
industry status to create barrier for borrowers etc
 OPPORTUNITY

Least competitive & Saturated, Good talent pool, Quality
raw materials at cheap cost, Employment generation potentiality
etc
 THREAT

Emergence of China, Phasing out of time, Opportunity lost
is the gain to competitors etc
 Potential to grow as a WORLD BEST RETAIL
ECONOMY by 2024
 Expected to see as a investment generator of $30billion
in 4-5 years to catapulting modern retail to a
whopping $175-200 billion by 2016
 Expected to touch the share to 20% by 2018
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9.
BUYING & MERCHANDISING
INTREGRATED MARKETING
STORE OPERATION
SALES
FINANCE
HUMAN RESOURCE
TECHNOLOGY & E-COMMERCE
VISUAL MERCHANDISING
SUPPLY CHAIN MANAGEMENT & LOGISTIC