RETAILING

REPORT
ON

Submitted to:
Submitted By:
Prof: Nandini Sawant
Sagar l Mavanuri

Roll no:27
 INDEX

S.NO. CONTENTS

1. Introduction

2. Retail Format

3. Merchandise

4. Store Layout

5. Store Exteriors and Interiors

6. Store Atmosphere

7. Store location and Site Evaluation

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 INTRODUCTION

Retailing is the interface between the producer and the individual consumer buying for
personal consumption. This excludes direct interface between the manufacturer and institutional
buyers such as the government and other bulk customers. A retailer is one who stocks the
producer’s goods and is involved in the act of selling it to the individual consumer, at a margin
of profit. As such, retailing is the last link that connects the individual consumer with the
manufacturing and distribution chain.
The retail industry in India is considered as one of the sunrise sectors in the economy. At
Kearney, the well-known international management consultancy, recently identified India as the
‘second most attractive retail destination’ globally from among thirty emergent markets. It has
made India the cause of a good deal of excitement of many foreign eyes. With a contribution of
14% to the national GDP and employing 7% of the total workforce (only agriculture employs
more) in the country, the retail industry is definitely one of the pillars of the Indian economy.

The Indian Scenario

Trade or retailing is the single largest component of the services sector in terms of
contribution to GDP. Its massive share of 14% is double the figure of the next largest broad

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economic activity in the sector. The retail industry is divided into organised and unorganised
sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is,
those who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised
retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example,
the local kirana shops, owner manned general stores, paan / beedi shops, convenience stores,
hand cart and pavement vendors, etc.

Unorganized retailing is by far the prevalent form of trade in India –constituting 98% of
total trade, while organised trade accounts only for the remaining 2%.
Efficiency enhancements and increase in the food retail sales activity would have a
cascading effect on employment and economic activity in the rural areas for the marginalized
workers. Thus, the corporate owned sector is expanding at a furious rate.

ABOUT MORE FOR YOU

Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion
Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd. expanded
its presence across the country under the brand "more." with 2 formats

1.Supermarket

more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the daily,
weekly and monthly shopping needs of consumers. The product offerings include a wide range
of fresh fruits & vegetables, groceries, personal care, home care, general merchandise & a basic
range of apparels. Currently, there are over 600 more. supermarkets across the country.

2.Hypermarket

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 more. MEGASTORE - is a one-stop shopping destination for the entire family. Besides a large
range of products across fruits & vegetables, groceries, FMCG products, more.MEGASTORE
also has a strong emphasis on general merchandise, apparels & CDIT.

Currently, nine hypermarkets operate under the brand more.MEGASTORE in Mysore,

Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, New Delhi, Hyderabad and Vashi.

Clubmore. - our loyalty program, currently has a strong membership base of over 1 million
members.

Aditya Birla Retail Limited. currently has an employee strength of over 11,000. Key functions
are headed by professionals with vast retail experience in India & globally.

Quality & Value through own labels:

Aditya Birla Retail Ltd provides customers a wide choice of products under its own labels. The
objective is to provide quality products at attractive price points to customers. Since quality of
the products is of prime importance, stringent quality norms have been set and are followed. All
manufacturing partners are the best in their class.

Own label Food Brands

more., Feasters, Kitchen's Promise, and Best of India

Home & Personal care brands

more., Enriche, 110%, Pestex, Paradise, and Germex

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.

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 STORE LAYOUT

The store layout should be planned in such a manner that customer finds enough space
for movement. The layout should be in such a systematic manner that customer can easily locate
products he/she wants to purchase. At More for you a very impressive layout has been put in
place where customer easily finds what he wants. The store’s size varied from 1,500 sq ft to
3,000 sq ft, and stocked fresh fruits and vegetables, staples, FMCG products and dairy products
(Exhibits 5-7). The stores stocked their own private label in staples and food under the " Aditya
birla group Select" label (Exhibit-8). Eventually the label would include other food categories
such as dairy products, jams and colas. The fresh model was engineered to clock a faster
turnover of inventory — Aditya birla group expected consumers to visit the store at least twice a
week for their top-up groceries. Each store would have an investment of approx $127,000 (Rs. 5
million) to$153,000 (Rs. 6 million). Industry sources expected more f to turn tor you his capital
over six times.

Tasks involved in Store Administration which can contribute towards achieving customer
delight:

1. Floor Maintenance: The premises of the store need to be maintained as per standards
decided upon by the management.

Floor cleanliness and merchandise arrangement play a very crucial role in creating an
image of store in the minds of the target customers. This is crucial when customer tries to
evaluate several stores and matches the pricing of products offered with the services
provided by the store.

Therefore when a customer tries to compare More for you with Fair Price store, Fair
Price fails terribly as More for you has specially emphasized on its services apart from
pricing strategy.

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TILL DAIRY NON-FOOD (Personal Care)

PERSONAL CARE PLASTIC WARES

HOME FURNISHING

MOBILES
FOOD & BEVERAGES PROCESSED FOODS

TILL

FOOD & BEVERAGES PROCESSED FOOD

PROCESSED FOOD

STAPLES
VEGETABLES STAPLES
FOOD

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PROCESSED

BEVERAGES/DAIRY FRUITS & VEGETABLES

 Custom
Service
EXIT

But More for you is using a combination which definitely making it lead is that it
is providing all services a convenience store can provide but at better price which is
leading to Customer Satisfaction and Delight.

At More for you very impressive initiative was taken to maintain its overall store
floor maintenance in the name of “Operation Shine” where days were systematically
assigned for a particular task and at end of it store performance was evaluated for each
store which lead to store maintained and cleaned which gave a very good signal to its
customers for its uncompromising take on floor maintenance.

2. Manpower Planning: The next most important thing that a customer looks after entering
the store is how Customer Care Associates (CCA) attend to them, how well a CCA and
other staff members at the front end are dressed, educated and competent enough to
respond to their queries.

Manpower Planning may include certain functions like:

a. Shift Planning: A roster is maintained at a More for you Store in which the store
manager plans and assigns optimum staff to each shift also considering weekdays and
weekends.

This is done basically on the basis of footfalls of customer at a particular time. Hence
providing for more staff during evening hours when footfalls are high.

The Store Manager also has to intelligently assign work to his staff members
according to footfalls as he can assign routine work to supervisor and CCAs at lean
hour of the day for work like stock take (Physical Inventory, Stock Indenting etc). He

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 has to push his staff towards attending customers at rush hours ask them to drive sales
through their efforts. This helps More for you to not only increase sales but gain
Customer Satisfaction and Delight.

b. In charge: For every task in the store a staff member is made incharge of that task so
that no confusion is there on the floor and in the store as a whole.

Various tasks like opening of store, indenting of F & V and milk, GRN, stock
correction etc. is assigned among supervisors shift wise.

CCAs are assigned bays and responsibility given to them regarding their bay
regarding maintenance of Planogram, FIFO, FEFO, proper stacking etc. By doing the
above the store can manage display efficiently and ensure the service of the store to
an optimal level.

MSRs are assigned to regularly make announcements of schemes offered by the store
as it is very crucial as communication helps consumer make decision and push sales.

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 STORE EXTERIORS AND INTERIORS

The explanation and diagram of store exteriors and interiors is given in the adjacent pages.

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ATMOSPHERICS

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 A very integral part of managing inventory at store level is display it correctly. The best
merchandise may remain unsold if it not displayed in a manner that is appealing and convenient
for the customer. A very simple example can be illustrated like if rice packets are put on high
bays it will become very inconvenient for which mostly female customer do the buying, hence
would negatively impact sales.

Display can be considered as a silent salesperson helping to self sell the products. Display is such
a critical part in serving customers as it helps avoid confusion and guides customer to make
prompt decision. Some of the key aspects of More for you’s atmospherics are as follows:

• Layout and ambience was Well lit, Neat, Bright and Easy to read Signage.

• Highly visible store promotion, re iterating value for money proposition.

• Store Façade- Bright, Striking and Primary Colors.

• Prompt security round the clock.

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 SCM AND THE IT SYSTEM BEING FOLLOWED BY THE ORGANISATION

Diagram and explanation are given in the adjacent pages. It is to be noted that the
organization uses the SAP Technology.
Some important processes followed by More for you in inventory management helping
them reach optimality in inventory levels and customer satisfaction are as follows:

1. Physical Verification of Stock: Under this process stocks are physically verified and
entered into the SAP. This activity is known as Stock Take.

Any variation with the book stock is recorded. This helps the store to control its
shrinkage if the SKUs are physically lesser than the book stock. Similarly excess stock if
any is also recorded.

The implication of these variations on planogram display is such that in case of Negative
variation i.e. Physical Stock < Book Stock then it leads to shortages of that SKU as Auto
Replenishment fails to function as inspite of stock in realty should have triggered the
Target Stock but will not as the system shows that there is more stock (Book Stock). This
causes great inconvenience to the customers like if a customer comes to purchase a
product of daily requirement like Spices and he is not getting it regularly due to such a
discrepancy he will definitely get unsatisfied and the store loses sale of that SKU due
shortage inspite of demand.

And in case of Positive variation i.e. Physical Stock > Book Stock it creates a different
kind of problem where excess stock is sent by the DC and it becomes difficult to manage
it as it have to remain scattered all over the floor waiting for the stocks on the bay to get
cleared. This also gives negative impression about the store as an ill managed store where
products are scattered and there is problem in free movement. This should also be
avoided.

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2. Proper recording of Dump and Shrinkage: To maintain proper MBQ it is very
important to regularly update dump and shrinkage. This has to be done apart from Stock
take which is done once a month or as and when asked by the management.

3. Push Indenting of Promo article for a particular scheme: During an offer on a product
a sudden spurt in demand can be seen which is quite temporary in nature. There it is not
advisable to change MBQ as it is more permanent in nature. In case of upward revision of
MBQ the product will be delivered in increased quantity even after removal of promo
offer. There a temporary increase in indenting is done called Push Indenting. Hence after
withdrawal of the scheme the product is delivered on the normal basis.

4. Revision of MBQ: There is also a process of revising MBQ in case there is a regular
increase in demand and the store is maintaining lower MBQ meaning regular shortages.
There an upward revision is done.

In case of slow moving goods which the store manger feels is a drag on store
performance and is just blocking space he can request for revising the MBQ to lower
levels or removing it from the shelf altogether. The product has to be sent back to DC.

5. DSD Indenting: Direct Store Delivery (DSD) Indenting is done for very fast moving
goods like beverages, highly perishable goods like ice-creams and also glass items which
highly fragile in nature.

On the part of consumer it helps him to receive products fresh in case of perishables
leading to maintainability of high quality standards.

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On part of management it reduces cost of holding such perishable and fragile products as
the store will receive from the vendor only products which are saleable and meet
standards.

STORE LOCATION AND SITE EVALUATION

More for you works explicitly on proximity to customers, provision of good quality of
products and excellent ambience. Some of the parameters which are considered under site
evaluation and store location are as follows:

• Demographics- Rise in the working population which is young, pay- packets

which are hefty, more nuclear families in urban areas, rise in the number of
women working, more disposable income and customer aspiration, western
influences and growth in expenditure for luxury items. All these are the factors for
the growth in Indian organized retail sector. In fact, India retail industry is the
fastest growing industry in India and it accounts for 10% of the country's GDP. In
2006, the retail industry in India amounted to US$ 200 billion and out of this the

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 organized retail sector in India amounted to US$ 6.4 billion. By 2010, the Indian
organized retail sector is expected to rise to US$ 23 billion.

• Proximity to supply sources- Aditya birla group started its retail operations of
more for you stores with following supply chain model. Procuring directly from
the farmers and operating with moderate margin but mass selling was key to more
for you operations for first few months. Whole Sale Trading (WST) Aditya birla
group formalized its second supply chain model to shift itself from grocery
retailer to grocery supplier by focusing and establishing itself in Mandi’s.

• Economic base: Today, Aditya birla group Retail’s 920 stores are spread across 20
formats in 80 cities and 14 States covering almost 4.5 million sq. ft. of consumer-facing
retail space. Its Hypermart encompasses a million sq ft as of now, and this year will see a
few more opening up. However, like other retailers are, Aditya birla group too, is
grappling with the slowdown which has impacted its plans. In the last one year, because
of the slowdown, say these sources, there have been some cut backs. While there have
been reports of cutting back of staff strength in ABG, industry sources say that of Aditya
birla group Retail 25,000 employees, around three to five per cent of managerial staff
were rendered surplus and were either redeployed or moved out Aditya birla group plans
to invest Rs 25000 crores in the next 4 years in their retail division and has plans to begin
retail stores in 784 cities across the country. Union Bank of India and FINO has enrolled
1,600 vegetable and fruit vendors who are regular suppliers to More for you. These
vendors will soon be issued biometric cards using which they can avail themselves of
small loans from the bank.

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• Competition- Spencer: Oldest Retailer in India
• 135 Stores in 27 Cities

• Plans to open 365 Stores in 365 days.

• Big Bazaar: 53 Stores and fast expanding.

• Bharti: Joint Venture with Walmart

Plans to begin operations next year.

• TATA Group: Has set up Star Bazaar and Westside all over
country.

• Store location and its availability: As already mentioned More for you is located keeping
in mind proximity to customers and suppliers both. There is smooth transport facility for
carrying goods and commodities. It is to be noted that vegetables and fruits from such
farms are collected through aditya birla group own logistics and brought to collection
Processing centers where quality check and other required processing is done.

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