RETAIL MANAGMENT

RETAILING
Final activities and steps
needed to place a product or services elsewhere into the hands of the consumer Retail is any business activity that directs its marketing efforts towards satisfying the consumer based upon the organization of selling goods and services as a means of distribution

Retailing characteristics
Direct interaction with
customers Lower average amount of transaction Point of purchase display and promotion Location is a critical factor in retail business Social interaction

Functions of retailing

Breaking Bulk Providing Assortment Holding inventory Providing value added services. Providing information

Significance of retailing
Support for community Retail sales - The global economy is
witnessing a slowdown, the Indian economy is set to grow at 7.5% p.a. Total retail sales in India is estimated to grow at a CAGR of 10% to $680bn by the end of 2011 Employment -About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the unorganized retail sector

Global retailers
Wal-mart U.S Home Depot U.S Kmart U.S Kroger U.S JC Penney U.S Metro Germany Tesco U.K Carrefour France 7-11 - Japan

Structure of retailing and distribution channels around the world

U.S. system - density of large retail firms with floor space of 20,000 Sq.Ft - They operate their own warehouses, eliminating the need for wholesalers. Japan system - small firms and a large independent wholesale industry. - merchandise pass through 3 distributors between manufacturer and retailer - more labour force being employed in distribution

Europe system - falls between US and Japan system - North Europe follows U.S system - South Europe market is highly fragmented across all sectors. - Central Europe market is characterized by many small and family owned retailers.

Why the distribution differences exist?

Social and political objectives - In Japan, law regulates the locations and openings of stores of over 5000 Sq.ft - reduce unemployment by protecting small retailers. - In Europe, strict Zoning laws to preserve green spaces and town centers. - In France, law regulates the locations and openings of stores of over 3000 Sq.ft Geography - Density of population in US is much lower than in Europe or Japan - Europe and Japan have less low-cost real estate available for building large stores.

Market Size - US retail market is larger than that of Japan or any single European country. - In Europe, Distribution centers and retail chains are operate within a single country - US firms serve broader customer base than Europe market which are not able to achieve the economies of scale.

Challenges facing global retailers

Emergence of new markets Empowered consumer- demography shifts Technology enabled Efficiencies E-tailing Price competition

Store VP

Opportunities in Retailing

Divisional MM

Regional Manager

Asst Merchandise manager

Store Manager

Buyer

Co Store Manager

Asst Buyer

Asst Store Manager

Trg prog

Merchandise Planner

graduate

Retail Management decision process

1. Understanding the market a)Macro envt PEST b)Micro envt i) Competitors a) Intra type competition between same type of retailers b) Inter type competition between retailers that sell similar merchandise using different formats. ( discount and dept store) Scrambled retailing merchandise not typically associated with store type ii) Customers change in demography and life style

2. Retail strategy ( Retail Mix) a) location decision b) Merchandise assortments c) Buying Merchandise d) Price mix e) Communication Mix f) Store design and Display g) Customer service