1. RETAILING
• Retailing is the set of business activities that
adds value to the product and services sold to
consumers.
• It include all the activities involved in selling
goods or services to the final consumer for
personal ,non-business use.

2. Concepts
• Variety(Breadth of merchandise): It is the
number of merchandise category a retailer
offers.
• Assortment (Depth of merchandise): It is the
number of different item in a merchandise
category.
• Stock keeping unit(SKU)is the each different
item of the merchandise.

3. Functions
• Providing an assortment of product and
services.
• Breaking Bulk
• Holding Inventory
• Providing Services
• Convenient location

4. Economic significance of retailing
• Effective distribution channel(Vertical
Integration)
• Developing innovative products
• Support for community
• Social Responsibility

5. The retail management decision
process
• The world of Retailing :
 Introduction
 Types of retailers
 Multichannel Retailing
 Customer buying behavior
• Retailing Strategy:
 Retail marketing strategy
 Financial strategy
 Retail location
 Site location
 Organization structure and HRM
 Information system and supply chain management

6. The retail management decision
process
• Merchandise Management:
 Managing merchandise assortment
 Merchandise planning system
 Buying merchandise
 Pricing
 Retail communication mix
 Store Management:
 Managing the store
 Store layout design and visual merchandising
 Customer service

7. Evolution of retails
• Traditional Formats:
• Haats
• Mandis
• Established Formats:
• Kirana shops:
• Convenience stores
• Department stores
• Company showrooms
• Cooperative stores
• Pan/ beedi shops

8. Evolution of retails in India
• Emerging Formats:
• Exclusive retail outlets
• Hypermarket
• Speciality malls
• Multiplexes
• Fast food outlets
• Service galleries

9. Classification of retail format
(Types of retails )
• Store based retailing:
• Non-store based retailing
• Service retailing

10. Classification of Retail formats
• Store based Retailing:
• 1)Form of ownership:
• Independent retailer
• Chain retailer
• Franchise
• Leased Department
• Consumer cooperatives

11. Store Based Retailing
• 2)Merchandise offered:
• Convenience store
• Supermarkets
• Hypermarkets
• Speciality Stores
• Departmental stores
• Off price retailers
• Factory Outlets
• Catalogue showrooms
• Category killers
• Warehouse clubs

12. Convenience store
• The product range covers the basic
requirements in food and grocery.
• The store size ranges from3000-8000 sq.ft.

13. Super markets
• Large , low cost, low margin ,high volume, self
service operations designed to meet the need
for food groceries and other non food items.
• It ranges from400 sqm to 2500 sqm ,selling at
least 70% of food items.

14. Hyper market
• It is the combination of supermarket and a
department store selling wide range of food
and non food items.
• Sales area between 5,000 and 15,000 sq m .
• Discounted price.
• A destination offer.
• At least 35% of selling space devoted to non
grocery product is termed as a hyper market.

15. Specialty Store
• A store specializing in a particular type of
merchandise.
• It would operate in an area under 8,000 sq feet .
• Narrow product line , with deep assortments in
the product line.
• Clearly defined target market.
• Eg:Chamosa,Viveks

16. Department store
• It varies from20,000 to 40,000 sq ft and stock
anywhere between 50,000 to 1,00,000 SKU’s
• They have separate departments on several
floors.
• They depend on food ,clothing and home
related items for at least 10% but less than
70% of their sales.

17. Non-store retailing
• Direct selling
• Mail order
• Telemarketing
• E-tailing
• Information kiosks
• Automated vending
• The cash and carry

18. Service retailing
• Banks
• Car Rentals
• Video Rentals
• Airlines
• Education
• Health care

19. Features of service retailing
• Intangibility
• Simultaneous production and consumption
• Perishability
• Inconsistency

20. Drivers of retail change in India
• Socio economic factor
• Changing Income profiles
• The age factor
• The changing role of women
• The changing consumption basket
• Increase credit friendliness
• Geographical dispersion of market potential

21. FDI policy
• 51 per cent foreign investment in single brand
Retail with prior Government permission.
• Single-brand retailers such as Nike, Damro,
Louis Vuitton, can operate now on their own.

22. FDI is allowed through any of the
following methods:
• Hi-Tech items
• Social sector items
• Medical and diagnostic items
• Item sourced from Indian small sector with
technology provided by foreign collaborator
• Two-year Test marketing

23. FDI
• 100% FDI is allowed on specific approval basis
In case of trading companies in India for carrying
out any of the following:
1)Export Trading
2)Bulk imports
3)Cash and carry
4)Sales substantially to group companies.

24. FDI
• Franchising
• Joint Ventures
• Manufacturing facility
• Distribution offices
• Wholesale trading

25. FDI
• Franchise agreements • Most widely used
entry route by multinational retailers
• Cash and Carry wholesale trading
• • 100% FDI is allowed in wholesale trading
which involves building of a large distribution
infrastructure to assist local Manufacturers
• • Metro AG of Germany

26. FDI
• Strategic licensing agreements
• • Foreign company enters into a licensing
agreement with a domestic retailer

27. Porters five forces with respect to
Indian retail sector
• Threats of new entrants
• Threats of substitutes
• Bargaining power of suppliers
• Bargaining power of buyers
• Intensity of rivalry

28. Indian retail market
• Highly fragmented
• Low entry barriers
• Absence of economies of scale
• High transportation cost
• Diverse market need
• High cost of real estate
• Lack of adequate infrastructure