This presentation is designed for people who sell or market to retailers. It is also suitable for those who are new in a retail business such as management trainees, IT and finance teams.

1. Understanding Basic Of
Retail
Research

2. Objective
This presentation is designed to build awareness
and an overview of the retailing, concepts and
processes.

3. Key Topics
1. What is Retailing
2. Evolution of Indian
Retail
3. Retail Mix
4. Type Of Retailers
5. Non Store Retailing
1. Retail Functions
2. Business Process
3. Merchandising
4. Store Operations

4. What is Retailing

5. The Beginnings
From the earliest times, people have spent their days
providing for their most basic needs.
The earliest form of retailing was trading.
FFoooodd SShheelltteerr CCllootthhiinngg
5

6. Retailers Are Everywhere
Your
computer
Your
toothbrush
Your
clothing
Your
breakfast
Your
transportation
to school
Your
textbooks and
school
supplies
Your
CDs
Your
television
programs
Your
bed
Goods and Services Available Through Retailing
6

7. Evolution of Indian Retail
Weekly Markets
Village Fairs
Melas
Convenience Stores
Mom and Pop/Kiranas
PDS Outlets
Khadi Stores
Cooperatives
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Traditional/Pervasive
Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Source of
Entertainment
Neighborhood
Stores/Convenien
ce
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency

8. Retailing
According to Philip Kotler “retailing includes all the activities
involved in selling goods or Services directly to final
consumers for personal , Non business use”.
“Every sale of Goods and Services to final consumer” – Food
products, apparel, movie tickets; services from hair cutting
to e-ticketing.
A retailer is a business that sells
products and/or services to consumers
for personal or family use.

9. Manufacturer’s Perspective
The Four P’s of Marketing
Retailers are part of the
distribution channel
Distribution
Retailers are part of the
distribution channel
Product
Price
Promotion

10. Retailer Role in a
Distribution Channel
Distribution Channel PPT 1-4
Retailers are the final business in a distribution channel that
links Manufactures to Consumer

11. What Retailers Do
Retailers
Buy
Merchandise
Determine
Selling Price
Store
Goods
Purchased
Advertise and
Promote
Products
Hire and
Manage
Employees
Display
Merchandise
Manage
Risk
Provide
Customer
Service
Service
Products
Sell Goods or
Services

12. How Retailers Add Value
 Breaking Bulk
-Buy it in quantities customers want
 Holding Inventory
-Buy it at a convenient place when you
want it
 Providing Assortment Of product &
services
-Buy other products at the same time
 Offering Services
-See it before you buy, get credit etc.

13. Examples of Retailers
Retailers:
Sears, Holiday Inn, McDonalds, Amazon.com, Jiffy Lube, AMC
Theaters, American Eagle Outfitter, FAO Schwartz, Kroger-US
Department Stores: Shopper Stop, Lifestyle, Pantaloons
Hypermarkets: Big Bazaar, Spencer, Easy Day,Auchan
Specialty stores : Nike, Levis, Toys 'R' Us,
Retailers and wholesalers that sell to other business as
well as consumers:
Office Depot, The Home Depot, United Airlines, Bank of
America, Sams Clubs

14. Top 10 Retailers- 2014
Top 10 Rank Company Headquarters / U.S.
Headquarters
Worldwide Retail Sales
(000) 2013 Stores
1 Wal-Mart Bentonville, Ark. $473,979,000 4,779
2 Kroger Cincinnati, Ohio $93,598,000 3,519
3 Costco Issaquah, Wash. $105,100,000 447
4 Target Minneapolis $72,596,000 1,793
5 The Home Depot Atlanta $78,812,000 1,965
6 Walgreen Deerfield, Ill. $70,096,000 7,998
7 CVS Caremark Woonsocket, R.I. $66,682,000 7,621
8 Lowe's Mooresville, N.C. $53,417,000 1,717
9 Amazon.com Seattle $77,551,000 N/A
10 Safeway Pleasanton, Calif. $42,982,000 1,335
Retail sales in millions of US dollars

15. Retailing Mix
The retailing mix includes the
activities related to managing the store
and the merchandise in the store,
which includes retail pricing, store
location, retail communication, and
merchandise.

16. Decision Variables for
Retailers-
Retail Mix
Customer Service
Store Design
and Display
Merchandise
Assortment
Retail
Strategy
Pricing Location
Communication
Mix

17. Wal-Mart’s Retail Mix
Customer
Service
Location
Retail Strategy
Merchandise
Assortment
Communication Pricing
Mix
Store Design
And Display

18. Wal-Mart’s Retail Mix
Free-standing Stores
Location Strategy
Customer
Service
Merchandise
Assortment
Store Display
And Design
Communication
Pricing
Mix

19. Wal-Mart’s Retail Mix
Customer
Service
Location
Pricing
Store Design
and Display
Communication
Mix
Large Number
of Categories
Few Items
in Each Category
Assortment Strategy

20. Wal-Mart’s Retail Mix
Location
Customer
Service Merchandise
Communication
Mix
Store Design
and Display
Assortment
Low, EDLP
Pricing Strategy

21. Wal-Mart’s Retail Mix
Communication Mix
Customer
Service
TV and Newspaper
Insert Ads
Location
Pricing
Store Design
and Display
Merchandise
Assortment

22. Wal-Mart’s Retail Mix
Store Design and Display
Basic, Special
Displays
for Products
Customer
Service Location
Merchandise
Assortments
Communication
Pricing
Mix

23. Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise
Assortment
Pricing
Communication
Mix
Store Design
and Display

25. Classification of Retailers
OOwwnneerrsshhiipp
LLeevveell ooff SSeerrvviiccee
PPrroodduucctt AAssssoorrttmmeenntt
PPrriiccee

26. Classification of Ownership
Independent
Retailers
Independent
Retailers
CChhaaiinn SSttoorreess
FFrraanncchhiisseess
Owned by a single person or
partnership and not part of
a larger retail institution
Owned by a single person or
partnership and not part of
a larger retail institution
Owned and operated as a
Owned and operated as a
group by a single
group by a single
organization
organization
The right to operate a
The right to operate a
business
business
or to sell a product
or to sell a product

27. CLASSIFICATION
BY LEVEL OF SERVICE
Self Service Full Service
Discount stores
Exclusive stores
Factory outlets
Warehouse clubs

28. CLASSIFICATION BY
LEVEL OF SERVICE
 Self-service retailers:
 Serve customers who are willing to perform their own
“locate-compare-select” process to save money.
 Wal-Mart, Supermarkets
 Limited-service retailers:
 Provide more sales assistance, as they carry more shopping
goods, about which customers need more information.
 Sears, Sasa, JC Penney
 Full-service retailers:
 Usually carry more specialty goods for which customers
need or want assistance or advice.
 Assist customers in every phase of the shopping process,
resulting in higher costs that are passed on to the customer
as higher prices.
 Department stores, Specialty stores

29. CLASSIFICATION BY PRODUCT
OFFERING
The mix of products offered
to the consumer by the
retailer; also called the
product assortment
Classification based on
BREADTH and DEPTH of
product lines.

30. Breadth versus Depth of
Product Lines

31. CLASSIFICATION BY PRODUCT OFFERING
 Specialty stores:
Carry narrow product lines, with deep
assortments within the product lines (e.g.,
Radio Shack).
 Department stores:
Offer a wide variety of product lines of
clothing, home furnishings, household
goods (e.g., Macy’s).
 Supermarkets:
Usually carry a relatively large variety of
low cost, low-margin groceries and
consumables (e.g., Kroger, Safeway).

32. CLASSIFICATION BY PRODUCT
OFFERING
11 - 32
 Convenience stores:
Carry a limited line of high turnover
convenience goods (e.g., Circle K, 7-
Eleven).
 Superstores:
Much larger than regular supermarkets,
superstores offer a large of assortment
of routinely purchased food goods,
nonfood items, and services (e.g., Wal-
Mart Supercenter; Best Buy)
Category killers are really giant
specialty stores that carry a very deep
assortment of a particular line with
knowledgeable staff.

33. CLASSIFICATION BY
PRICE
11 - 33
 Discount stores:
 Sell standard merchandise at lower prices and
margins, in return for higher volume.
 Off-price retailers:
 Buy merchandise at less-than-regular wholesale
prices which are sold at less than retail. Goods
include overruns, irregulars, and leftovers.
 Includes independent off-price retailers, factory
outlets and warehouse / wholesale clubs.
 Factory outlets are
producer-operated stores.
Warehouse clubs are large,
warehouse-like facilities with
few frills and offer ultra-low
prices.

34. Retail Formats

35. Retail Formats
Formats Description Key categories
retailed
Typical size
Sq.ft.
Example
HHyyppeerr mmaarrkkeettss
A large superstore,
combining a supermarket
and departmental store,
offering full lines of grocery
and general merchandise all
under one roof
Food, groceries, apparel,
furnishings, consumer
durables
15,000-100,000 Big Bazaar, Hypercity, Spencer,
Star India Bazaar, Vishal
Megamart
Super
markets
A large self service outlet
offering food and household
goods
Food, groceries, medicines 3,000-15,000 FoodWorld, Trinethra, Subshiksha,
Food baazar
Departmental
stores
A large self service outlet
offering a variety of
merchandise
Apparel, Jewellery, watches,
fashion accessories, footwear,
furniture, furnishings
10,000-50,000 Shopper’s Stop, Lifestyle,
Pantaloon, Westside
Category
killers
Large speciality stores
focussed on one or a few
categories of merchandise,
offering a wide selection at
low prices
Electronics, office supplies,
apparel 20,000-100,000 Best Buy – Circuit City, Staples
Convenience
stores
Small size, easily accessible
stores offering a quick
shopping, fast check out
experience and extended
working hours
Food, groceries, medicines 500-2,000 In&Out, Trinethra, Subhiksha,
traditional stores

36. Retail Format
Formats Description Typical size
Sq.ft. Example
Single brand
outlets
Retail outlet offering products of
a single brand
Apparel, footwear, tyres, food
services, furniture
•1,000-5,000 Nike, Adidas, Colourplus,
McDonalds, Gautier, Gucci, TBZ
Multibrand
speciality
stores
Retail outlet offering multiple
branded products belonging
to a single category class
Footwear, apparel, electronics,
books
•1,000-20,000 Planet Sports, Planet Fashion,
Crosswords
Warehouse
clubs
Warehouse style large stores,
offering goods in bulk at
discount prices to members
Food, groceries •100,000 + Metro cash and carry, Costco,
Sam’s Club
Key categories
retailed

37. Retail Channel

38. Characteristics of Store Retailers
 Physical stores with planned store layouts and
display areas/fixtures for products.
 Product pricing is displayed on product tag and/or
shelves and or signage's/posters.
 Checkout or POS counters for billing and payment of
products.
 Returns or exchanges handled separately for better
service.
 Products supplied to the store either through
retailers warehouse/DC or direct vendor . Hence,
major inventory holding is in Warehouse/DC.
 Existing store retailers are Walmart, Tesco,
Zara, Big bazaar, Shoppers Stop …..

39. Fashion & General Merchandise
Retailers

40. Department store
Example :Debenhams, Shoppers stop , Westside

41. Discount store
Example : Big Bazaar , Wal-Mart

42. Specialty store

43. Category specialists
Example : Toys R Us,

44. Grocery or Food retailers

45. Supermarkets
Example : Food world , Heritage

46. Supermarkets

47. “Big-box” retailers

48. Hypermarkets
Example : Hypermarket , Big bazar , More Hyper, Walmart

49. Warehouse clubs

50. Convenience stores

51. Non Store Retailers

52. Non-store retailing
 Non-store retailing includes selling to
final consumers through:
 Direct mail
 Catalogs
 Telephone
 Internet
 TV shopping
 Home and office parties
 Door-to-door sales
 Vending machines
11 - 52

53. Characteristics of non-store
retailing

54. Characteristics of online
retailers
• Virtual store fronts on the world wide web
• Maintains little or no inventory
• Customer orders received through email
• Direct ordering from vendors to fulfill customer
orders
• Fulfillment through one of the following models:
 Closest brick-and-mortar store
 Centralized distribution centre
 Tie-ups with other retailers
Exist as pure-play online retailers such as Amazon, or as brick-and-
click stores such as Tesco

55. Online retailers

56. Top E-Tailers by Sales
Volume
America's Top Ten Retail Businesses
Rank Company Web Sales Volume
(in billions)
1 Amazon.com Inc. $24.5
2 Staples Inc. $9.8
3 Dell Inc. $4.5
4 Apple Inc. $4.2
5 Office Depot Inc. $4.1
6 Walmart.com $3.5
7 OfficeMax Inc. $2.7
8 Sears Holdings Corp. $2.7
9 CDW Corp. $2.4
10 Best Buy Co. $2.4
LO4

57. BROAD RETAIL
FUNCTIONS

58. Retail Enterprise Structure

60. Functions of a Retail
Enterprise
HR
Buying &
Merchandising
Logistics
Store
Operations
Retail
strategy
Financ
e
IT Systems
Purchase, Vendor
Purchase, Vendor
(Sourcing),
Inventory
(Sourcing),
Inventory
Core function
IInnvveennttoorryy
Promotions,
Inventory,
Customer,
Logistics
Promotions,
Inventory,
Customer,
Logistics
Support function
Support function
LLoossss pprreevveennttiioonn

61. Merchandising

62. Store Operational Blueprint
Store operation is about executing the strategies and policies of the retail business
at the store level on a day to day baCsriesa.ted By Amit Garg
62

63. Store Operation Structure & Users
 Store Associates
 Cashier
 Floor Manager
 Department Manager
 Store Managers
 District Managers
 Regional Managers
 VP/GM Operations
 Head Operations
 Ops Trainers
 Store HR & Admin
 Store Planners
 Store Visual
Merchandiser
 Store Loss Preventions
 Project Manager
 Store Analysts
 Store Auditors
63

64. Operation Functions
 Pre Store Opening
 Store Opening & Closing
 Store Readiness
 Store Merchandise Handling
 Store Administration
 Store Staffing & Scheduling
 Store Security
 Loss Preventions & Shrinkage
 Cash Management
 Customer Service
 Store Audit
 Store SOP
 Annual Business Plan
 Store Budget & Financial
64
More Detailed Stores Operation Research in other Presentations

65. THANKS
65
Research from Amit Garg