Comparative study on Retail stores

and Grocery shops in Coimbatore.

Introduction
 Retail Sector is the most booming sector in the Indian economy. Some of
the biggest players of the world are going to enter into the
industry soon. It is on the threshold of a big revolution after the
IT sector.
 The sector contributes 10% of the GDP, and is estimated to show 20%
annual growth rate by the end of the decade. The current growth rate
is estimated to be 8.5%.
 CRISIL report says that the retail market is most fragmented in the
world and only 2% of the entire retailing business is in the
organized sector. There are about 300 new malls, 1500 supermarkets and
325 departmental stores being built in the cities very soon.
 Retail is clearly the sector that is poised to show the highest growth
in the next five years. The sector is set for a revolution, as both
the present players and new entrants are gearing up to explore the
market. This sector contributes 10% of India's GDP and the current
growth rate is 8.5%.

Current Scenario Of
Retail Sector
 A glimpse of the International Retail

 One of the world's largest industries exceeding US$

9 trillion.

 47 global fortune companies & 25 of Asia's top 200
companies are retailers.

 Dominated by developed countries.

 US, EU & Japan constitute 80% of world retail
sales..

 Biggest player in India is Pantaloon Retail
India Limited .  
 Percentage of Organized
Retail 


USA - 85%


Taiwan - 81%


Malaysia - 55%


Thailand - 40%


Brazil - 36%


Indonesia - 30%


Poland - 20%


China - 20%


India-3%
Estimates and
Predictions 
 the industry is estimated to be more than US$ 400
billion by a study of McKinsey.
 The Economist Intelligence Unit (EIU) estimates the
retail market in India to increase to US$608.9
billion in 2009 from US$394 billion in2005.
 A KPMG report says that the organized retail would
grow at a higher rate than GDP in the next five
years.
 the retail sector would generate employment for
more than 2.5 million people by the year 2010,
says an analysis by Ma Foi Management
Consultants Ltd. 
Benefits of FDI in Retail
Sector
 Higher competition would lead to higher quality in
products and services.
 Better lifestyle as better products would be
introduced.
 Exports would increase due to greater sourcing of
major players.
 Investment in whole supply chain would increase.
 Technology would be upgraded in terms of logistics,
production, and distribution channels.
 The markets of the sector would flourish and
develop.
 Employment would increase and skills & manpower
will develop.
 A strong retailing sector would promote tourism.
 Economies of scale would help lower consumer prices
and increase the purchasing power of the
consumer.
 In the long term it will be beneficial in the up-
gradation of agriculture and small scale &
medium scale industries.
Retail Landscape Of
India
 Modern retail development in India is focused on the
following cities :
West
 Mumbai
 Pune
 Ahmedabad
North
 Delhi and the National Capital Region
South
 Chennai
 Bangalore
 Hyderabad
 Coimbatore
East
 Kolkata 
Reasons for the fast Growth of
Retail Companies in India:
 The Growth of Retail Companies in India is
facilitated by certain factors like -
 Existing Indian middle classes with an increased
purchasing power.
 Rise of upcoming business sectors like the IT and
engineering firms.
 Change in the taste and attitude of the Indians
 Effect of globalization.
 Heavy influx of FDI in the retail sectors in India

GROWTH OF RETAIL COMPANIES IN
INDIA
 Growth of Retail Companies in India exhibits the boom
in the retail industry in India over the years.
 Growth of Retail Companies in India is still not yet in a
matured stage with great potentials within this sector
still to be explored.
 The Growth of Retail Companies in India is most
pronounced in the metro cities of India, however the
smaller towns are also not lagging behind in this.

Leading Indian
Retailers 
 Big Bazaar, Crossword, Ebony Retail Holdings
Ltd., Food Bazaar, GlobusStores Pvt. Ltd.,
Food World Ltd., Pantaloon Retail India
Ltd., Shoppers Stop, Subhiksha, Titan
Industries, Trent andReliance Retail Ltd,
New enterants like Wal-Mart Stores,
Carrefour, Tesco, Boots Group, etc.
 BIG BAZAR (FUTURE GROUP)

 Intro


 Pantaloon Retail is the flagship enterprise of the Future Group.

Pantaloon Retail (India) Limited has spread across various
businesses and cities in India. Pantaloon owns multiple
retail formats and is able to cater to a large section of the
society. The company has over 140 stores across 32 cities in
India and 14000 employees. Big Bazaar, a hypermarket chain,
was introduced in the year 2001, with an Indian touch of
convenience and hygiene. Food Bazaar, food and grocery chain,
and Central Mall located at various Metros are other
Company Profile
 Big Bazaar is not just another hypermarket. It caters to
every need of your family. Where Big Bazaar scores
over other stores is its value for money proposition
for the Indian customers.
 At Big Bazaar, you will definitely get the best products at
the best prices - that’s what we guarantee. With the
ever increasing array of private labels, it has opened
the doors into the world of fashion and general
merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at
prices that will surprise you. And this is just the
beginning. Big
 Big Bazaar in India
 Product Ranges
Big Bazaar
Exclusive Presence In
Coimbatore
 Strategies Followed By Big Bazaar

 Media advertising

 Big bazaar(BB) frequently gives ads in daily news
papers about its latest product arrivals and
discount offers so that people can know the
services available with big bazaar.


  Outdoor Advertising


 Issuing special offer notices in crowded public places

helps customers stay in touch with new facilities and
offers so that
 Placing banners and holdings in crowded places to
spread its presence in Coimbatore city and to convey
available product varieties to customers………..



  Pricing
 BB has its own pricing scheme for every product they
sell. This pricing strategy is totally different from that
of those other retail biggies and grocery stores.

  Attractive discounts
 BB frequently comes up with attractive discount
offers. During peak hours they will announce sudden discount
offerings with particular product with short time limit

 ‘All-Under-A roof’ Retail Approach


 BB follows ‘All Under One Roof’ strategy for selling

various products. Normally BB outlets hold all kind of
customer durable products so that whoever enters the
outlet get all his/her product needs get satisfied
 Entertainment & Food zones inside the
outlet
 A new innovative idea of BB. Introducing food &
gaming zones inside the outlet so that customers feel
free to purchase and get relaxed even while shopping.
Challenges faced by Big
Retail Companies
 Entry of competitors: The ease of entry for competitors to
enter the market and to start competing and the barriers
to entry that may exist.
 Threat of substitutes: The ease with which a product or a
service can be substituted, especially made cheaper.
 Bargaining Power of Buyers : The position of the buyers,
and the possibility of their being able to work together
to gain efficiencies in buying.
 Bargaining Power of Suppliers: The position of the
sellers. Do many suppliers exist or is there an existence
of only a few suppliers?
 Rivalry among the existing players : The level of
competition between the existing players, the size and the
strength of the players in the industry.


 Shortage of quality real estate and infrastructure
 Opposition to Foreign Direct Investment from small
traders
 Very high stamp duties on transfer of property
 Shortage of retail space in central and downtown
locations
 Land-use conversion is time consuming and becoming
complex
 Rigid building laws makes procurement of retail space
difficult
 Non residents are not allowed to own property except
they are of Indian origin
 Prohibition of Foreign investment in real estate
business
 Customs duties are levied on import of goods in India

Grocery shops (kirana
shops)
 Grocery shops are spread over entire Coimbatore city.
Even in small streets we can locate them. These shops
are called as kirana shops (a name given for grocery
items in local term).
 They are grant players in grocery items market. Even
though large retail biggies have set up their presence
in Coimbatore they managed their business growth
and sales. We shall compare retail biggies and these
kirana stores.

Business setup
§Petty shops were seen more in India.
§Normally Petty shop does not need higher capital to startup a
business.
§We can shift this petty shop at any time to any where.
§Petty shops earn more profit as compare to big retail shops.
§
Customer preference
§Mostly middle and lower class people will prefer Petty shops.
§They satisfy the wants and needs of their customer.
§As Petty shops were seen a center of the environment,
customers can buy their wanted products easily. So they could
save time too.

§
§
§
Debt purchases
§Kirana stores allow customers to buy product on debt which
cannot be done in retail biggies also low cost sales is possible
with grocery shops.
§
Quick Reachability
§As kirana stores are available all over the city easy access is
possible while retail stores are situated is any particular place
where huge customer availability can be obtained which is also
a big hurlde for people who stay in far away places from these
retail biggies.

§
§
§
OPERATIONS OF KIRANA STORES

Here price of the product is fixed by the owners of the Kirana shops
They purchase goods from Retailers. But Retailer purchase different type of
goods from different type of Agencies

§(for e.g)For purchasing of agriculture product like vegetables directly

from
Farmers. (to get quality items in low price).
§Masal products is purchased from masala producers(e.g) sakthi masala.
§Note books is purchased from note book stores in whole sale
§Grocery items are purchased from particular agencies who provide such
goods.

§
Methods of selling goods

§In a manufacturing company price of the products were fixed by themselves

by calculating all of the expenses which were spent for the particular product.
§Retailer purchase goods from manufacturing company by keeping some
discount. Retailers sale the product to petty shop owners by keeping some
percentage of discount.
§Finally petty shop owners sale product to their customer by fixing their own
price or by keeping MRP price.
§In petty shop business runs in rotation. Some of retail owner ask petty shop
owner to settle their money as whole, but in some condition petty shoppers
keep retail money for a week and they settle it at the end of the week by full
settlement.
Challenges faced by Petty shop owners
Petty shop owners say that they may find loss but it never be
too much as compare to departmental stores because
departmental store will purchase good in large volumes but it
is sold only in less unit but they may find more profit. It will be
less as compare to dept store but they may never find any
difference in their business.
Many of the customer will like to buy product in big
departmental stores in starting stage but when the shop goes
old day by day purchasing power of the customer will be
reduced. So automatically the prefer petty shop for purchasing
goods.


§
 Conclusion
 Retail Biggies (big Bazar ,More Shoppee etc.) has
established them selves well in Indian Market
scenario with large customer base from all classes
of economy and still growing.
 Kirana stores which are in strong presence in economy
have deep rooted their presence in India as a whole.
Both are rivals for each other. Only the share of
pie in overall Indian consumer market varies but
both plays on same customer and product segments.
 Above findings clearly shows that both Retail Biggies
and Kirana Shops have their own market where they
are leaders and will grow and will continue to
survive in the economy .
