RETAIL

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E INTEREîTING FACTî
Ú Total annual sales through retailing in us 3.3 trillion.
Ú 


  
   

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Ú Four of the 30 largest businesses in the U.î are
retailers
Ú In 1997, wal-mart͛s $119 billion in sales surpassed
the gross domestic product of finland for the same
year
 Types of retail(Basically)

Ú rganized retail Ú Unorganized retail





 
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ajor Types of
Retail îtores
Ú General-
erchandise Retailers
A retail establishment that offers a
variety of product lines
Department stores
Ú Large retail organizations characterized by
wide product mixes and organized
into separate departments to facilitate
marketing efforts and internal
management
Discount stores
Ú îelf-service, general merchandise stores
offering brand name and private brand
products at low prices

ajor Types of Retail îtores (cont͛d)
Ú General-
erchandise Retailers (cont͛d)
îupermarkets
Ú Large, self-service stores
that carry a complete line
of food products, along
with some nonfood
products
îuperstores
Ú Giant retail outlets that carry food and nonfood
products found in supermarkets, as well as most
routinely purchased consumer products

ajor Types of Retail îtores (cont͛d)
Ú General-
erchandise Retailers
(cont͛d)
Hypermarkets
Ú îtores that combine supermarket and
discount shopping in one location
Warehouse clubs
Ú Large-scale, members-only establishments
that combine features of cash-and-carry
wholesaling with discount retailing

ajor Types of Retail îtores (cont͛d)
Ú General-
erchandise Retailers (cont͛d)
Warehouse showrooms
Ú Retail facilities in large, low-cost buildings with large on-
premise inventories and minimal services
Catalog showrooms
Ú A form of warehouse showroom where consumers can
shop from a catalog and products are stored out of
buyers͛ reach

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ifflin

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Company. All rights reserved.
 Franchising
Ú Franchising
An arrangement in which a supplier (franchiser)
grants a dealer (franchisee) the right to sell
products in exchange for some type of
consideration
Ú Franchiser furnishes equipment,
buildings, management know-how,
and marketing assistance.
Ú Franchisee supplies labor and
capital and operates the business
by the provisions of the franchise
agreement.

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ifflin

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Company. All rights reserved.

ajor Types of Retail Franchises
Ú
anufacturer Authorization
Product producer licenses retailers to sell its brand name
product(s)
Ú Distributor Authorization
Product producer licenses distributors to sell its brand
name product to retailers
Ú Producer Authorization
Franchiser supplies brand names, production techniques,
or other services to franchisee while maintaining
development and control of marketing strategies

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ifflin

17 | 13
Company. All rights reserved.
Copyright © Houghton
ifflin
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Company. All rights reserved.

ajor Types of Retail îtores (cont͛d)
Ú îpecialty Retailers
Traditional specialty retailers
Ú Also called ͞limited-line͟ and ͞single-line͟ retailers
Ú Carry a narrow product mix with deep product lines
(e.g., pet supplies)
Ú Have higher costs and higher margins
Ú Provide more product selection (first-line brands),
product expertise, and high levels of personal service

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ifflin

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Company. All rights reserved.
Pantaloon͛s
ulti-Format Approach to the
Indian Retail
arket
Ú Hypermarket Ú îupermarket Ú
all Ú îpecialty îtore

nline Retailing
 ther Types of Nonstore Retailing
Ú Direct îelling
The marketing of products to ultimate consumers through
face-to-face sales presentations at home or in the
workplace
Ú Party plans: hosting groups to view a product demonstration and
encouraging participants to purchase the products
Benefits
Ú Personal attention to customer
Ú Convenience of time and place of presentation
Limitations
Ú High costs make it the most expensive form of selling
Ú Negative consumer view of direct selling

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ifflin

17 | 17
Company. All rights reserved.
 ther Types of Nonstore Retailing
(cont͛d)
Ú Automatic Vending
The use of machines to dispense products
Can include items such as candy, chewing gum,
soft drinks, cigarettes, newspapers, and coffee
Ú Advantages: small amount of
space needed and no sales
personnel
Ú Disadvantages: high costs of
equipment and frequent servicing

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ifflin

17 | 18
Company. All rights reserved.
 The Retailing
ix
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Chapter 13 Version 6e 19
 Product ffering

The mix of products offered to

the consumer by the retailer;
also called the product
assortment or merchandise
mix{

Chapter 13 Version 6e 20
 Retail Promotion îtrategy A

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Chapter 13 Version 6e 21
 Presentation of the Retail îtore A

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Chapter 13 

Version 6e -
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 The Proper Location A

Ú Large, long-term commitment of

resources
Ú Location will affect future growth
Ú Local environment may change
over time

Chapter 13 Version 6e 23
 Location A

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Chapter 13 Version 6e 24
 Price A

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o îtore Image
o verall Perception the
Consumer has of the
îtore͛s Environment
o îpace Productivity
o How effectively the
retailer uses its space
to generate sales (and
profits)
6


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Retail Identity
îpace Allocation Layout
Graphics P î
Circulation
îignage


 
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Exterior Design Fixture îelection

Ambiance Lighting
erchandise Presentation
Visual
erchandising
 Retaining in india
Ú Retailing in india is emerging as of of the
lagest industries . Expected to grow from
us$350 billion to us$ 427 billion by 2010
Ú India has been rank as the most
attractive market for global retailers
Ú $20 billion Reliance Industries Ltd,
India's largest private sector player,
Ú The Top Five Company Investment
Wal-
art - Bharti Yet to announce
Reliance -$ 5.5 billion
Aditya Birla Group- $ 3.3 bN
Pantaloon- $ 1 billion
Tatas- $ 89 million
India Total Retail
arket îize, (UîD Bn)

450
400
350
300
250
200
150
100
50
0
1998 2000 2002 2004 2006 2008 2010
 Urban Population as % of Total
Population
35%

30%

25%

20%
Column2
15% Column1
îeries 1
10%

5%

0%
1940 1950 1960 1970 1980 1990 2000 2010
Projected Job Gains (2000 ʹ 2010)
Unorganized Retail: îector-wise Break-
up

F D & GR CERIEî

CL THINGî & TEXTILE

C NîU
ER DURABLE

JEWELLERY & WATCHEî

H
E DÉC R &
FURNIîHING
BEAUTI CARE
 îector-wise CAGR Growth: rganized
Retail
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%