21 Sep, 2017

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Retailing includes all the activities involved in
selling goods or services to the final consumers
for personal, non business use

It is responsible for matching individual demands of

the consumer with supplies of all the
manufacturers.

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 Sales man Consumer
Cashier Shopper/Customer
Shopkeeper
Merchandiser etc.

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The various processes which help the customers to
procure the desired merchandise from the retail
stores for their end use refer to retail management.

Retail management includes all the steps required to

bring the customers into the store and fulfill their
buying needs.

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Retail management saves time and ensures the
customers easily locate their desired merchandise
and return home satisfied.

An effective management avoids unnecessary chaos

at the store.

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 Established Emerging
Traditional formats Formats
Formats Kirana shops Exclusive retail outlets
Melas Convenience/ Hypermarket
department stores/ Internal retail
Mandis etc. fair price shops Malls / Specialty Malls
Pan shops etc. Fast food outlets

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 Social

Legal Economical

Political Technological

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 Social
how consumers, households and communities behave and
their beliefs. For instance, changes in attitude towards health, or
a greater number of pensioners in a population.

Legal
the way in which legislation in society affects the business.
E.g. changes in employment laws on working hours.

Economic
how the economy affects a business in terms of taxation,
government spending, general demand, interest rates, exchange
rates and European and global economic factors.

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 Political
how changes in government policy might affect the business
e.g. a decision to subsidies' building new houses in an area could
be good for a local brickworks.

Technological
how the rapid pace of change in production process and
product innovation affect an organization.

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 How can we best serve our customer while
earning a fair profit?
How can we stand out in a highly competitive
environment where customers have so many
choices?
How can we grow our business while retailing a
core of loyal customers?

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 Nonstore-based
Ownership Store-based retail retail strategy mix
& nontraditional
retailing

Independent Convenience store

Chain
Franchise
Leased department
Vertical marketing system
Consumer cooperative
Conventional supermarket Direct marketing
Food-based supermarket Direct selling
Combination store Vending machine
Warehouse store World wide web (WWW)
Specialty store
Variety store
Traditional department store
Full-line department store
Off-price chain
Factory outlet
Membership club
Flea (louse) market

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Ownership format serves a marketplace niche
Independent retailers capitalize on a very small targeted customer
base & please shoppers in a friendly, folksy (simple) way. Word-of
mouth communication is important. These retailers should not try
to serve too many customer & enter into price wars.
Chain retailers benefit from widely known image, economies of
scales (i.e. cost advantages that a business obtains due to
expansion), & mass promotion possibilities. They should maintain
their image chain wide & not be inflexible in adapting changes in
the marketplace.
Franchisors have strong geographic coverage & motivation of the
franchisees as owner-operators. They should not get bogged down
in policy disputes with franchisees or charge excessive royalty
fees. 12
Ownership format serves a marketplace niche
Leased departments enable store operators & outside parties to
join forces & enhance the shopping experience, while sharing
expertise & expenses. They should not hurt the image of the store
or place too much pressure on the lessee to bring in store traffic.
A vertically integrated channel gives a firm greater control over
sources of supply, but it should not provide consumers with too
little choice of products or too few outlets.
Cooperatives provide members with price savings. They should
not expect too much involvement by members or add facilities
that raise costs too much.

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