Retail Management

What is Retail?
Foodworld FabMall Big Bazaar Shoppers Stop Akbarallys Nilgirs 49-99

What is Retail?
Any business that directs its making efforts towards satisfying the final consumer based upon the organisation of selling goods and services as a means of distribution.

The importance of retail industry

1. Large and growing contribution to national economies and foreign exchange. 2. Economic activity is growing and visible. 3. Large source of employment. 4. Retailers as gatekeepers influence buyer behaviour. 5. Retailers are diversifying in different fields including service sector. 6. Retail organisations are expanding into international markets 7. Size of large retail operations allow for supply chain control.

Functions of Retailers
Exclusive distribution Intensive distribution Selective distribution

Special Characteristics
Small average sale Impulse purchase Popularity of stores

Evolution of retail markets

Supermarkets The multiples The Independents The Co-operatives Mail order Variety stores Department Stores Consumer preference for retail stores

Retail Management Strategy

1. Define the nature of business 2. 2. Customer segment and market segment define. 3. Define the long-run and short-run objectives

Retail Management activities

1. 2. 3. 4. 5. 6. Selecting best location Sourcing and Buying Merchandising Promotion Store management Operational efficiency

Ronald Gists margin-Turnover Matrix

Relationship Management
The customer base Customer service Customer satisfaction Loyalty programmes and defection rate

Retail Organisation Structure

Ownership Store based Retail Strategy mix Non-store based Retail strategy mix and nontraditional retailing

Ownership
Independently owned Chain owned- multiple outlets Franchise operated Leased departments (in a store) Vertical marketing system (owned by manufacturer or wholesaler) Consumer co-operatives

Store Based Retail Strategy Mix

Convenience store Supermarkets Food based super store Combination stores Limited line stores Specialty stores Variety stores Department store Full-discount stores Off price chain Factory outlet Membership store Flea market

Non-store based Retail Mix and Non-traditional retailing

Direct marketing Vending machines On-line marketing using websites E-Commerce E-tailing

Geographic retail location decisions

1. Market area: primary trading zone, secondary zone, fringe or tertiary zone. 2. Concentric zone 3. Sector 4. Multiple nuclei The spatial distribution of retail activities i. Central place theory ii. Bid rent theory iii. The principle of minimum difference.

Types of Retail development

Solitary store Non-planned shopping area site Planned shopping area site Retail park Shopping Mall Two types of retailing in location decision Destination retailing Retail Location Techniques Factors in the location decision

Main types of store layout

1. 2. 3. 4. 5. 6. 7. Maze Grid Layout Free form Specialty Ceiling height Lighting Perceptions of cleanliness 8. Perception of space 9. Mood 10. Colour 11. Music 12. Heat 13. Smell 14. Merchandise mix

Future of retailing & growth

Improved customer understanding More emphasis placed upon brand, image and positioning Possible area of change

The end