Contents:1 Introduction

Meaning of Retail Role of Retailers
2 Global Retailing 3 Indian Retail Industry

Evolution of Retail Industry Retail Formats in India Retail Sector in India
4 Role of Information Technology in Retail 5 Strategies in Retail 6 Shortcomings in Current Retail Sector 7 Future Outlook Reference 8 Reference

Meaning of RetailRetail consists of sale of goods or merchandise from a fixed location, such as a department store or by post, in small or individuals lots for direct consumption by the purchaser. In commerce a retailer buys goods or products in large quantity from manufacturer or importer, either directly or through a wholesaler and then sells smaller quantity to the end user. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. It is an Industry which is heavily dependent on consumer spending. Role of RetailersRetailers have played a vital role worldwide in increasing productivity across a wide range of consumer goods and services. The impact can be best felt in countries like USA, UK, Mexico, and Thailand and more recently in China. Economies of countries like Singapore, Hong Kong and Malaysia are also heavily boosted by the Retail Industry. It is a changing Industry and old traditional ways of doing business has lost relevance nowadays. Retailers are continuously challenging themselves to find out ways and means of identifying customers need. They are busy in finding out new strategies to have a better understanding of consumer demand.

The top 200 Retailers alone contribute for 30% of worldwide demand. Retail sales are generally driven by people’s ability (disposable income) and willingness (consumer confidence) to buy goods and services. Retail turnover in the European Union is around Euros 2000 billion and the average growth in this sector seems to be following an upward trend. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 200506. Positive forces at work in Retail consumer markets today include high rates of personal expenditures, low interest rates, low unemployment and very low inflation. Top Retailers of the World

Rank Country Name of Format of origin Company
1. US Wal-mart Discount, Warehouse, Supermarket, Hypermarket Convenience , Discount, Supermarket, Hypermarket

Country of Operation
Germany, China, Mexico, US, Argentina, UK, Brazil Malaysia, Japan, Italy, UAE, Brazil, France, Turkey, Oman, Poland, Spain, Singapore, Thailand, Chez Republic, Germany, Mexico





Netherlands Royal Ahold

Cash&Carry, Discount, Supermarket, Hypermarket , Drug, Convenience

Argentina, Brazil, Chile, Latvia, Poland, Peru, Denmark, Slovakia, Malaysia, Indonesia, Spain, US, Portugal, Thailand Canada, US, Puerto Rico, Mexico US



Home Depot

DIY, Specialty Convenience , Discount, Supermarket, Hypermarket






Metro AG

Austria, India, UK, Department, Denmark, Spain, DIY, Netherlands, Superstore, Germany, Poland, Hypermarket Portugal, Turkey, , Specialty Russia, Japan, China, Hungary


Evolution of Retail Industry India's retail has transformed and with a threeyear compounded annual growth rate of 46.64 per cent, retail sector is the fastest growing sector in the Indian economy. Traditional markets are transforming themselves in new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and near metro cities, introducing the Indian consumer to a new shopping experience. The Indian Retail growth can be attributed to the several factors including    

Demographic Dynamics Double Incomes Plastic Revolution Urbanization Rural Retail

Retail Formats in India: Current & Emerging The Indian retail market is characterized by various several co-existing types and format. These are1. The road side hawkers and the mobile retailers. 2. The Kirana stores - Open format more organized outlets - Small to Medium retail outlets Within modern trade, we have:

Department Stores (Life style, Pantaloon) 2. Supermarkets (Food Bazaar) 3. Discounters (Subhiksha, Apna Bazaar) 4. Branded Stores 5. Convenience Stores (Petrol pumps outlets) 6. Malls (Central) 7. Specialty Stores

Retail Sector in INDIA Number of Person Employed Estimated Number of new jobs in next 2 years Space occupied by Traditional Retailers Space occupied by Emerging Retailers Opening of Malls in 2007 New Malls under construction Space occupied by Malls New investment by 2011 21 million 02 million 100-500sq feet 35mn sq feet 114 361 117mn sq feet 30 billion

Information Technology has become a key business driver in today’s business. Retailers are also trying to reap in the benefits of the technology. Thus technology has become a critical and competitive tool for surviving in the business. Retailers are using software systems to manage and plan their inventory, to reduce the procurement costs, electronic ordering, electronic fund transfer, email communication and for many other things.

A business firm can not travel in an unplanned way. To encounter the business challenges in a highly competitive environment and to find out a sustainable growth road map Retailers need to realize the importance of strategic planning. Strategic planning can be viewed as a stream of decisions and activities which lead to Effective business strategies which help the organization to fulfill its objectives. Margin and Turnover are the two important parameters of Retail Industry and the Retail operations can be classified into four groups: High margin and high turnover. (a convenience food store) 2. Low margin and high turnover. (a discount store) 3. High margin and low turnover. (an up market specialty store) 4. Low margin and low turnover. (a dying business)

 Limited availability of land for retail  Restrictive labour laws  Multiple tax layer  Slow performance of chain stores  Demographic changes  Restriction on shop opening time  Lack of infrastructure  Large domestic market

The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and secondrung cities alike introducing the Indian consumer to a shopping experience like never before. The sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. Organized retail is on all time high in India.

Sign up to vote on this title
UsefulNot useful