1. RETAIL MANAGEMENT UNIT -II

2. Customer orientation - The retailer determines the attributes & needs of its customers & endeavors (take action) to satisfy these needs. Coordinated effort - The retailers integrates all plans & activities to maximize efficiency. Value-driven - The retailer offers good value to the customers, whether it be upscale (expensive) or discount i.e., “appropriate pricing” for goods & customer service. Goal oriented - The retailer sets goal & uses its strategy to attain them. The Retailing Concept Customer orientation Coordinated effort Value- driven Goal orientation Retailing concept Retail Strategy

3. Classification of Retail Institutions Ownership Store-based retail strategy mix Nonstore-based retail strategy mix & nontraditional retailing Independent Chain Franchise Leased department Vertical marketing system Consumer cooperative Independent Chain Franchise Leased department Vertical marketing system Consumer cooperative Convenience store Conventional supermarket Food-based supermarket Combination store Box (limited line) store Warehouse store Specialty store Variety store Traditional department store Full-line department store Off-price chain Factory outlet Membership club Flea (louse) market Convenience store Conventional supermarket Food-based supermarket Combination store Box (limited line) store Warehouse store Specialty store Variety store Traditional department store Full-line department store Off-price chain Factory outlet Membership club Flea (louse) market Direct marketing Direct selling Vending machine World wide web (WWW) Direct marketing Direct selling Vending machine World wide web (WWW)

4. RETAIL FORMAT Retail is usually classified by type of products as follows: Food products Food products Hard goods or durable goods (“hardline retailers”) - appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time. Hard goods or durable goods (“hardline retailers”) - appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time. Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them. Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them. Services – banking, insurance, transportation, communication, IT & ITES, etc,. those are also marketed like products across the retail counters. Services – banking, insurance, transportation, communication, IT & ITES, etc,. those are also marketed like products across the retail counters.

5. Unorganized Retail “Unorganized retailing” is defined as an outlet run locally by the owner or caretaker of a shop that lacks technical and accounting standardization. The supply chain and sourcing are also done locally to meet local needs.

6. Organised Retail Defined as those companies engaged in retailing which have a network of retail outlets, compared to the stand alone format characterized by the traditional sector, and those who adopt professional management for day to day operations. Defined as those companies engaged in retailing which have a network of retail outlets, compared to the stand alone format characterized by the traditional sector, and those who adopt professional management for day to day operations.

7. In-Store Retailing Non-Store Retailing Franchising 1. Department Stores 1. Direct Selling 2. Super Markets 2. Telemarketing 3. Discount Houses 3. Online Retailing 4. Chain Stores or 4. Automatic vending 5. Multiple Shops 5. Direct Marketing.

8. Department Stores Department stores are very large stores offering a huge assortment of “soft” and “hard” goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Thus a department store is a retailing business unit that handles a wide variety of shopping and specialty goods and is organized into separate departments for purposes of sales promotion, accounting control and store operation. Recent trends are to add departments for automotive, recreational and sports equipment, as well a services such as insurance, travel advice and income-tax preparation. Department stores are distinctive in that they usually are oriented towards service. They are usually shopping centers.

9. Super Markets It is a self-service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). It is a self-service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket. These are large, self-service stores that carry a broad and complete line of food and non-food products. They have central check out facilities. Example: SPAR supermarket. These are large, self-service stores that carry a broad and complete line of food and non-food products. They have central check out facilities. Kotler defines supermarket as ‘a departmentalised retail establishment having four basic departments viz. self-service grocery, meat, produce and diary plus other household departments, and doing a maximum business. It may be entirely owner operated or have some of the departments leased on a concession basis’. Kotler defines supermarket as ‘a departmentalised retail establishment having four basic departments viz. self-service grocery, meat, produce and diary plus other household departments, and doing a maximum business. It may be entirely owner operated or have some of the departments leased on a concession basis’.

10. Discount Houses Discount stores tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. These are large stores, freely open to the public and advertising widely. They are self-service and general merchandising stores. They carry a wide assortment of products of well known brands, appliances, house wares, home furnishings, sporting goods, clothing, toy and automotive services. They complete on low price basis and operate on a relatively low mark-up and a minimum number of customer service. They range from small open showroom to catalogue type order offices to full line limited service, and promotional stores. They buy their merchandise stocks both from wholesale distributors and directly from manufacturers.

11. Chain Stores or Multiple Shops A chain store system consists of four or more stores which carry the same kind of merchandise are centrally owned and managed and usually are supplied from one or more central warehouses.A chain store system consists of four or more stores which carry the same kind of merchandise are centrally owned and managed and usually are supplied from one or more central warehouses. A chain store is one of the retail units in chain store system. Chains have been interpreted as a group of two or more reasonably similar stores in the same kind or field of business under one ownership and management, merchandised wholly or largely from central merchandising head quarters and supplied from the manufacturer or orders placed by the central buyers.

12. 1.Warehouse stores- warehouses that offer low-cost, often high quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; 2. Variety stores- these offer extremely low-cost goods, with limited selection; 3.Demographic Stores- retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). 4.Mom-And-Pop Stores - is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

13. 5. Specialty stores- A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. 6. General store- a rural store that supplies the main needs for the local community; 7. Convenience stores- is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday;

14. Hypermarkets- provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. 9. Malls -has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. 10. Category killers or Category Specialist -By supplying wide assortment in a single category for lower prices a retailer can “kill” that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.

15. Non-Store Retailing A large majority - about - 80% - of retail transactions are made in stores. However, a growing volume of sales is taking place away from stores. Retailing activities resulting in transactions that occur away from a physical store are called non-store retailing. It is estimated that non-store sales account for almost 20% of total retail trade.

16. DIRECT SELLING In the context of retailing, direct selling is defined as personal contact between a sales person and a consumer away from a retail store. In the context of retailing, direct selling is defined as personal contact between a sales person and a consumer away from a retail store. This type of retailing has also been called in home selling. This type of retailing has also been called in home selling.