Retail means to Sell Put on the market for sale
Definition Retailing include the business activities involved in selling goods and services to consumers for their personal, family household use. It includes every sale to the final consumer. (Cars to Apparels – offering a restaurant – theater ticket booking and all that you can imagine of).
Retailers Sorting / Cataloging Process What Do Malls do
Special Characteristic of Retail Small Average Sale People donot make shopping list ( its unplanned) Candy, cosmetic Snacks are sold as impulse goods When placed at high visibility traffic areas Impulse (urge) Purchase Popularity of Store
Issues in Retailing • How can we best serve our customers while earning a fair profit? • How can we stand out in a highly competitive environment • where consumers have too many choices? • How can we grow our business, while retaining a core of loyal customers?
Consumers have too many choices? Suppose you are a consumer & want to buy apparels
Department Store La Samaritaine , France, Paris
An apparel store Full-service retailers A Chennai based retail having partnership and associate network in Singapore, Australia, Western Europe and North America.
Discount stores Online catalog shopping
To stand in contemporary worldWhat a retailer needs to decide. • What type of store? • What kind of retailer? • Where will it be located? • What will you sell? • How big a store do you need?
Types of Retail The Malls: These are the largest form of retail formats. They provide an ideal shopping experience by providing a mix of all kinds of products and services, Along with Food and Entertainment under one roof. Examples Sahara Mall, TDI(Taneja Developers & Infrastructure Ltd) Mall in Delhi, Iscon Mall
Department stores Is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line Sell apparel, furniture, appliances, home furnishings, cosmetics, jewellery, paint, hardware, electronics, and sporting goods. They may also sell food and services such as optical, photography, pharmacy They are the ultimate one-stop shop. Example: Reliance Mart, D-Mart, Shoppers Stop
Specialty Stores: The retail chains, which deal in specific categories and provide deep assortment (Collection) ExampleRPG's Music World, Crossword, Karnavati Pagrakha
Discount stores: These are the stores or factory outlets that provide discount on the MRP items. They focus on Mass selling and reaching economies of scale Or selling the stock left after the season is over. Example: Future Group's Brand Factory , Factory outlet, Arvind Brands' Megamart, Provogue's Promart, Subhiksha, MARSHALLS
Hypermarkets/ Supermarkets: These are generally large self-service outlets, offering a variety of categories with deep assortments. (all those consumed frequently) The supermarket typically comprises meat, fresh produce, dairy, and baked goods departments along with shelf space reserved for canned packaged goods As well as for various nonfood items such as household cleaners, pharmacy products, and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), household cleaning products, medicine, clothes, • Example: Big Bazaar, Spencer’s retail, Reliance Mart
Lifestyle stores: All that adds one lifestyle & Living Example: Wills Lifestyle stores, which initially offered only sportswear, has expanded its basket to include the premium consumer with formal wear, evening wear and a designer accessories. Pantaloons, Lifestyle International (P) Ltd is part of the Landmark Group, Circle P, D-Mart (dolphin-mart) Exclusif
Convenience stores: They are comparatively smaller stores located near residential areas. They are open for an extended period of the day and have a limited variety of stock. Prices are slightly higher due to the convenience given to the customers. Example: Kirana Stores, 6/10
E-tailers: These are retailers that provide online facility of buying and selling products and services via Internet. They provide a picture and description of the product. A lot of such retailers are booming in the industry, as this method provides convenience and a wide variety for customer. But it does not provide a feel of the product and is sometimes not authentic. Examples are Amazon.com, Ebay.com, sifymall, virtual pune.com
Vending: This kind of retailing is making spreads into the industry. Smaller products such as beverages, snacks are some the items that can be bought through vending machines. At present, it is not very common in India.
Distance Retailing Rather than visiting a store to make a purchase, a customer may order products from a remote location. This may be done by mail, telephone, internet/email or other digital device such as interactive television • UC Santa Cruz Online Grocery grocery.ucsc.edu Fill online form and retailer calls you back to confirm the order
Chains Having more than 3 of any one type of store If a Store is successful, this will often encourage the owner or owners to attempt to repeat the success and open a similar store elsewhere. Example: Honest, CCD, Chavda, Mochi, subway, Mc-D
Party and Event Retailing This is usually a form of franchising where the retailer invites people from the locality to a common location. The event or the party will be a mix of socializing and retailing Most commonly, the retailer will be a franchisee to a wider organization. Often the franchisor will supply samples and a small selection of goods to the franchisee so that their potential Customers at the event can try the products out. Example: Sphinx Adonis “Eventwala Retail Store’
Street Market The tradition of selling from market stalls goes back to the haatswhere people got together to sell their wares Street markets, or open-air markets, are common around the world and are particularly popular in temperate or warm climates. Example: Tibetian Warm Cloth, Law garden Traditional, PaladiChappal bazaars, Chaupatis.
Van Retailing • Warehouse Club These stores often require that customers purchase a membership to the store that entitles them to shop there. They offer minimum service and usually require the customer to take home their purchases. Example: Costco, Sam’s Club by Wal-mart, Bj's Wholesale Club( US & Ohio)
What type of retail theory? • Low gain with high volume and huge selection. • Example: Wal-Mart • Higher gain with lower volume but with full selection. • Example: a department store. • High gain with low volume and smaller selection. • Example: a Lifestyle store.
Where it will be located • Strip malls Strip mall (also called a shopping plaza or mini-mall) is an open area shopping center where the stores are arranged in a row, with a sidewalk in front. Strip malls are typically developed as a unit and have large parking lots in front. They face major traffic arterials And tend to be self-contained with few pedestrian connections to surrounding neighborhoods
Conti… • Freestanding (separate) • A room in your home (Brand factory) • Internet web site • Flea Market (s)A flea market or swap meet is a type of bazaar where inexpensive or secondhand goods are sold or bartered • Home shopping parties • Catalogs
Questions to ask the vendor • What is the cancel date? • What is your FOB point? • Who pays for freight? • What are your terms? • Who is your factor? • What is your opening order? • What is your size run & how do they come packed?
Buying ground rules • You are the buyer, don’t let anyone sell you. • Don’t buy price. • Use your own order sheets. That seems you are working on your terms and not the vendors. • Ask for a discount. • Set reminders for your placed orders • Plan your orders and try not to cancel them.
Retailer – Supplier Relationship • Exclusive Distribution (one or few) • Tata Motors distributor of Fiat • Intensive Distribution (as many as possible) • P&G Rely on intensive one • Selective Distribution (moderate retailers) • Luxury goods Like Brut Perfumes found only in Lifestyle shops
Work on 4 of the 5 senses Retail is all about the visual. • The over-all store presentation • The Displays & Fixtures • The Lighting • The Signage • The Music • The Store’s smell
Foremost Merchandising Tips Must hire a visual merchandiser or a store planner • to lay out your store. • to assess your traffic flow • determine the most effective use of your floor space. Merchandiser Will help retailer to decide: • What to move where • How much time each individual should spend at one place • Rack Placement • Tagging • Ceiling Heights decision etc.
Introduction • In 1961 Store realized the need of less expensive, quick and convenient format • 1962 First Target store in US • With a Tag of “Pay Less + Expect more at Target” • Ranked 10th among the largest US Retailer
Its Strategy – Key to success • Growth-oriented objectives In 2002 alone it opened about 110 new stores • Appeal to a prime market Firm is strong seller to middle income having 20 % higher income that of typical Wal-Mart shopper.
Distinctive company image It positions with Less + Expect more it’s a true discount department store with everyday low price But is perceived as an “Upscale Discounter” • Focused Target never lost its sight of discount store niche “Value always wins” Replaced People from buying $18 GAP t-shirts by it $8 cool T-shirts
Strong customer service If an item is out stock Target will offer • a substitute item of the same • or greater value at the same discount • or give a rain check for the original item (A promise that an unaccepted offer will be renewed in the future. ) • Multiple points of contact Extensive adds + stores in 47 states + toll free telephone service( 7 * 17 hrs)
Employee relations Celebrates success Brings out best in teams and individuals Internal Career Growth plans and training by each team leader Regular performance feed back • Community involvement Target believes in giving back Targets popular program is school fundraising “You can support your school just by shopping with target guest card” (1 % to any of the eligible school of your choice)
The Great Mall Of China • A France based retail organization since 1995 • Second largest retailer in the world • One of the first foreign company to get in to Chinese retail industry • Brought a Retail Revolution in the country • They are doing Mass retailing much more successful than iconic Wal-mart (revenue twice.
What Carrefour is doing right Instead of only grabbing and building They are selling in a Chinese way to Chinese people. ( Pull your own sea food from tanks, take from the bins of fresh produce) Company is more like a Shanghai outdoor market than a Paris indoor market
What all it did • Leveraged on its international experience • And thereby brought few of its best practices in the Chinese market • Adopted decentralized management • It sold private label products • Designed the store according to the Chinese customers convinience • Procured majority of the product locally (for freshness)