Retailing

What is retail? Retail comes from the French word retaillier, which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). sale of goods or commodities in small quantities directly to consumers

Who are retailers?

A company or organization that purchases products from individuals or companies with the intent to resell those goods and services to ultimate or final consumers.

Indian retail.

Who were the pioneers in organized retail in India? Companies like Bombay Dyeing, Raymond and Grasim from the textiles sector were the first ones from the corporate world to step into the retailing by opening their own outlets. Titan's is another successful story of a corporate creating a great retailing concept, by establishing a series of elegant watch showrooms across the country. What is the contribution of retail to employment? Retailing is presently the largest employer after agriculture.

Cont..

What is the size of organized retail in India? Organized retailing in India is estimated to reach an astounding Rs 1,00,000 Crore by 2010.

Introduction to retailing

Retailing includes all activities involved in selling goods or services directly to final consumers for personal, nonbusiness use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's home).

There are basically 3 types of retailers:

Store retailer Non Store retailer Retail Organization

From the assortment point of view, Store retailers are of 5 types:

Specialty Store: Departmental Store Super market Convenience Store Discount Store

Specialty Store

Are small stores which specialize in a specific range of merchandise and related items.

Departmental Store

A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. A large retail store offering a variety of merchandise and services and organized in separate departments

Super market

supermarket, is a self-service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore.

What is the difference between supermarket and departmental store?

A department store generally sells nonfood items (clothes, linens, household goods, electronics, etc.) Some large department stores also have a section of the store that sells groceries, like a supermarket does. These large stores are generally referred to as "superstores".

Convenience Store

A convenience store is a small store or shop that sells items such as candy, ice-cream, soft drinks, lottery tickets, newspapers and magazines, along with a selection of processed food and perhaps some groceries

Discount Store

A discount store is a type of department store, which sell products at prices lower than those asked by department stores and other traditional retail outlets.

Hypermarket

hypermarket is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise.

From customers service point of view:

Self-service retailing: Many customers are willing to carry out their own locate compare- select process to save money. Self-selection retailing: Customers find their own goods, although they can ask for assistance. Limited service retailing: These retailers carry more shopping goods, and customers need more information and assistance. The stores also offer services such as credit & merchandise-return privileges. Full service retailing: Salespeople are ready to assist in every phase of the locate compare- select process.

Identify

Harrods, London: Hyper city Spencers Subhiksha Janata Bazaar Reliance Footprint BP in & out

Major non-store retailer types:

Direct Selling: It deals with door-todoor or at home sale parties i.e. it involves one-to one or one-to-many selling. Example: Eureka Forbes, Amway. Online selling Automatic Vending:

Retail Organization

Mainly falls into 4 major categories Corporate chains Pantaloons, Westside Retail Co-operative Amul, Samavaika, Khadi Gram Yudog Consumer Co-operative Apna Bazar Franchise Organization, Caf Coffee day.

A Typical Channel of Distribution

Manufacturer Retailer

Wholesaler

Final Consumer

The Retailers Role in the Sorting Process (link to Mkt. Mix)

Special Characteristics Affecting Retailers

Small Average Sale Retailers Strategy
Impulse Purchase

Popularity of Stores