INTRODUCTION

TO
RETAILING

Compiled by

KRITHIKA G.K
Asst. Professor – FMS
NIFT, Bangalore
 Retail

The word retail is derived from the French

word “retaillier”, meaning to cut a piece off
or to break bulk.
 Distribution Channel

Manufacturer
Manufacturer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
 Retailer

“A Retailer is the final business in a distribution

channel that links manufacturers with consumers.”
 Functions of Retailers

1. Product & Service Assortments

2. Breaking Bulk
3. Holding Inventory
4. Providing Services

...creating utility in form, time, place & ownership

…..so retailing is a set of business activities that adds
value to the products & services sold to consumers
for their personal or family use.
Organization of the Distribution
Channel

Vertical Integration – means that a firm performs

more than one level of activity in the channel.

Eg. Being wholesaling & retailing

 Evolution of Retail in India

∗ Barter System

∗ Unique needs, due to size & complexity

∗ Special feature - Haats, Melas & Mandis

krithikagk@gmail.com
 Established Formats Emerging Formats

Traditional Formats •Kirana Shops •Exclusive Retail Stores

•Convenience / •Hyper Markets
•Itinerant Salesman Departmental Stores •Internal Retail
•Haats •Company / Multi-brand •Malls/Speciality malls
•Melas Showrooms •Multiplexes
•Mandis, etc. •PDS/Fair Price Shops •Rural Oriented Formats
•Co-operative Stores •Fast Food Outlets
•Pan/Beedi Shops •Service Galleries
•Etc.

krithikagk@gmail.com Source: Retailing Management, Swapna Pradhan, Retail in India. Pp.23

 Retail in India

Source:http://rajeshthambala.blogspot.in/2013/02/indian-retail-industry-2012-2013.html 25/11/2013;
 Retail in India
∗ Accounts for 14 to 15 percent of India’s GDP.
∗ India's retail market is expected to grow at 7% over
the next 10 years, reaching a size of US$ 850 billion by
2020. (AT Kearney 2011)
∗ India has highest number of outlets per person (7 per
thousand)
∗ Indian retail space per capita at 2 sqft. (0.19 m2)/
person is lowest in the world
∗ Indian retail density of 6 percent is highest in the
world.
∗ PWC estimates the multi-brand retail market to grow
to $220 billion by 2020.[
 Retailing Challenges in India

∗ Over 90% of trade is conducted through independent local

stores.
∗ Geographically dispersed population
∗ Distinct customer preferences – need for localisation
∗ Small ticket sizes
∗ Complex distribution network
∗ Little use of IT systems
∗ Limitations of mass media and
∗ Existence of counterfeit goods
 Key Players in India
∗ 1) Pantaloon Retail Ltd, a Future group venture:
∗ Over 12 mn sq. ft. of retail space spread over 1,000
∗ stores, across 71 cities in India.
∗ 2) Shoppers Stop Ltd: Over 1.82 mn sq. ft. of retail space
spread over 35 stores, in 15 cities.
∗ 3) Spencer’s Retail, RPG Enterprises: Retail footage of over
1.1 mn sq. ft. with approx 250 stores, across 66 cities.
∗ 4) Lifestyle Retail, Landmark group venture: Has
approximately 15 lifestyle stores and 8 Home centres.
 Global Retailers

∗ Deloitte Touche Tohmatsu (“Deloitte”), in

conjunction with STORES Magazine

∗ 15th annual Global Powers of Retailing Report

identified 250 largest retailers around the world
based on publicly available data for fiscal June
2010.

∗ http://www.stores.org/2011/Top-250-List
Environment Factors effecting Retail

∗ Macro Environment:

∗ Socio-cultural
∗ Ethical Standards
∗ Legal / Public Policy

∗ Micro Environment:

∗ Competition – (Intratype/Scrambled/Intertype)
∗ Customers – (changing demographics, needs, lifestyle
trendsetc.)
 Retail Strategy

∗ Focus resources – achieve objectives

∗ Target market

∗ Nature of Merchandise & Services

∗ Build long-term advantages over competitors

∗ Strategic decision making

∗ Implementation of retail strategy (retail mix)

Relationships between the Retailer
and Suppliers

∗ Intensive Distribution

∗ Selective Distribution

∗ Exclusive Distribution
 The Rise of the Retailer

∗ Proximity to the Customer

∗ Rise of Consumerism

∗ Introduction of Private labels

∗ Technology
 Changing Face of Retailing

∗ Role of the Internet

∗ Adaptability to “Cyber Retailing” - size,
product/service - competitive pricing & penetration
 Challenges faced by Retailers
∗ Emergence of new markets

∗ Empowered Customer

∗ Improved Technology and Information Systems

 Careers in Retail

∗ Buying & Merchandising

∗ Marketing
∗ Store Operations
∗ Sales
∗ Finance
∗ HR
∗ Technology
∗ E-Commerce
∗ Visual Merchandising
∗ SCM & Logistics
Thank You