AJK… :p 4. Explain emergence of organization of retailing?

Introduction- Retailing as a concept is not new in India. In fact, it Dates back to the period of hard-core traditional formats of retailing that prevailed in the form of Haats, Shandis, Painth, Weekly Bazaar and the famous kirana or Baniya ki Dukan.[5]It is only during recent past that Indian retail sector is witnessing a Process of Change and is poised to undergo dynamic Transformation. RPG group forays into organized retailing with new and improved formats. India is now developing into a retail power where both organized and unorganized retail sector compete with each other. Presently the Indian retail business employs nearly 21 million People, which is around 7% of total employment. The Evolution of Indian Retail Industry-For Indian retailing things started to change slowly in the 1980s.Textiles sector like Bombay Dyeing, Raymond's, S Kumar's and Grasim was the first to see the emergence of retail chains. Later on, Titan maker of premium watches, successfully created on organized retailing concept in India by establishing a series of Elegant Showrooms. Although, the co-operative stores like Super Bazar, Kendriya Bhandar and CSD were already established by that time. For long, these remained the only organized retailers, but the later half of the 1990s saw a fresh wave of entrants in the retailing business. This time around it was not the manufacturer looking for an alternative sales channel. These were pure retailers with no serious plans of getting into manufacturing. These entrants were in various fields like-Food World, Subhiksha and Nilgiris in food and FMCG;Planet M and Music World in music; Crossword and Fountainhead in Books. The Traditional Retail Formats- Indian retail sector is pre-dominantly controlled by traditional and un organized formats of retailing. These formats have emerged and developed with the growth of population in the country in rural and semi urban areas, the haats/weakly bazaars exist since long time. The traditional "kirana "or "Baniya ki Dukan" still enjoy the leadership and
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The last decade have witnessed dynamism in Indian retail sectors. convenient stores and even up-market specialty stores are no longer a dream. It is largely due to rising Income. increase purchasing power credit facilities. store atmosphere and inventory management etc. Retailing has emerged as one of the most important sector of Indian economy since 1990s. supermarket. merchandise o offering. We have seen the mushrooming growth and proliferation of these formats of retailing in various metro cities of India Page 2 .A large number of retail model retail formats have come in force offering a wide spectrum of merchandise and services.AJK… :p commanding position in retail trade. A large number of these stores are family business involving more than one generation. In smaller towns and urban areas we may see the power of small family run independent 'mom and pop' store offering a wide range of merchandise mix. Organized formats of retailing. increased consumer awareness etc. Various urban areas have been the center of attraction wit emergence of different kinds of organized retail formats gaining momentum.Although the share of organized retailing is mere 3% of the total retail till 2004. Discount stores. The professional orientation and incorporation of various technologyenabled software has offered these retailers better customer relationship management. Various new and improved formats of Retailing like departmental stores. changing patter of consumer behavior. hypermarket. These store formats are traditional and do not enjoy professionalism.and it has expected to be 9% till 2010. These retailers have developed a rapport and goodwill among customers and popularly known as" Dukan Wala bhaiya " Mostly these stores are managed by family members and in some cases even involve the services of one-two hired workers which depend upon the turnover.

Ruby Baskin Sagar ratna. Woodland. Pizza. Pantaloons. Lee Cooper . This concept is now being used to introduce Page 3 . Dominos. Shoprite Food WMD. Lacoste Durables Sony.Most malls gives floor space out to individual shops on lease. Haldiram.Nirulas. Swatch. Rameshwar's Subway. Samsung. Philips. hut Pizza-Corner. Titan. Nike. India's largest shopping arcade Spencer Plaza (600. Kumar. Esprit. Nokia. Apparel sporting goods & Benetton. Videocon.000-sq-ft) in Chennai is an example. Raymond's. Action Marks& Shoes. Tanishq. Reebok.  Branded Stores – Exclusive showrooms run by premium brands have been the catalyst in pushing up the Indian retail scenario. Wimpy. Onida. Barista. BPL. LG. Robbins TGIF. MTR. Life Style Spencer. Cartier Retailing Formats in India Some of the prevalent relating formats in India include Malls . Subhikha holdings Luxury LVMH. Shopper Stop. Café Coffee Day. Liberty. In malls like these. Grocery Metro Cash&Carry. DTC Bulgari. the combined brand pull of all outlets is used to create a pull for the mall. Electrolux. and these are enticed by the economies resulting from the sharing of cost. Tuesday. Nilgirinanz. Singer. S.AJK… :p Category wise major retailers: Category Food Beverages International Retailers Indian Retailers & MC –Donald. Levis.

Of secondary interest to many retail operations are office space and storage requirements. sports stadiums. enclosed malls. adequate parking for customers. for example K Raheja's Shoppers Stop. since most inventory is on the sales floor. That's why they focus on sales floor space. downtown shopping districts.  Departmental Stores – Departmental stores are expected to take over the apparel business from exclusive brand showrooms.  5. retailers have one overall goal: to sell merchandise.AJK… :p organized retailing to the second rung towns. [4] You will also find retail space in airports and other transportation facilities. or mixed-use facilities. and an overall image that draws in customers. and temporary or special-event venues. When it comes to business. Importance of location decision  Involves large capital investment  Affects transportation costs  Affects human resource cost  Affects the amount of customer traffic  Affects the volume of business Types of retail location  Planned shopping centers Regional shopping centers or malls Page 4 . strip shopping centers. Madure Garments has started setting up exclusive outlets in cities like Trichy and Thanjavur. Explain retail location and layout plan? Definition: A space you lease for the selling of goods to consumers is called as retail location Retail space comes in a variety of shapes and sizes and may be located in free-standing buildings. hotel lobbies. Specialty Stores – These types of stores generally concern on a specific area of market as chain such as Kids Kemp and Mumbai based book retailer Crossword has gain popularity in their segments.

When the customer enters the store. so that they move through the entire store. The Page 5 . the layout of the store is the manner in which merchandise or products have been arranged in a retail store. Simply put. A layout is like a plan for the store. he is adjusting to the new environment and very rarely does buying occur right there. The entrance are of the store is often referred to as the ‘decompression zone’ or the ‘transition zone’. An ideal layout strokes the balance between the merchandise to be displayed and productivity. Sales staff greeting the customers with a pleasant `May I assist you?' may more often be met with a prompt `No' as a reply. Merchandise placed right near the entrance is usually lost on the customer entering the store. Areas within the store need to be demarcated as prime selling areas. destination areas and seasonal or special merchandise areas.AJK… :p Neighborhood /community shopping center Specialized markets Periodic markets  Free standing stores Neighborhood stores Highways stores  Unplanned business districts /centers Downtown or central business district Secondary business district Neighborhood business district Suburban business district Layout Plan The last element which is integral to the internal look of the store is the store layout. he is making a transition to a new environment. the flow of the traffic through the store can be directed. By balancing the destination areas the impulse buying areas. This is the area near the entrance to the store. At this point. It is meant to aid movement and flow of customers. It helps the movement of the customer within the store. impulse merchandise areas.

AJK… :p retailer needs to understand it at this point. Retailers use this zone to sell deeply discounted merchandise. Many stores also start displaying selling seasonal products before the main section of the store. The layout of the store would vary across retailers. he would on most occasions. turn right. * Freeform Grid layout The grid layout is the one most commonly used in supermarkets and discount stores. It allows for movement within the area and uses space effectively. store layouts may be classified into: * Grid * Race track and. This allows customers to adjust to the environment. The cash counter is the place where the retailer has a captive audience in the customer and it is here that most of the impulse sales are made . the other merchandise is displayed parallel manner. the high demand merchandise may be placed at the rear end of the store. Mumbai. Page 6 . Typically. In some cases. umbrellas. While one area of display is along the walls of the store. why should retailer stock merchandise in this part of the store what can he do with the transition zone? Since retail space is premium. a preferred layout in many retail stores that adopt self-service. It is therefore. sells seasonal merchandise like raincoats. divas and artificial flowers in area before the main entrance to the shop. the customer is still taking in the environment of the shop. The question that then arises is. Once the customer has passed this decompression zone. The cash wrap or billing counters are usually placed to the left and high impulse merchandise placed near these counters. He needs to be given to adjust to the new environment before trying to sell him products. offer the customer a coupon. so that the customers will move through there and the merchandise before they reach the required merchandise. it needs to be utilized. or simply sell products like flowers. or put up a power display. The Amarsons store in Bandra . a basket. torans. he may have a predefined list of items to buy or may just have come there to browse around.

AJK… :p Race Track layout The race track layout is also called the loop layout. As the name suggests. This layout is popularly found in department stores. Page 7 . Secondary aisles within each section may link individual merchandise sections within the departments. with a major aisle running through the store. display is in the form of a racetrack or a loop. The asile provides access to various shop-in-shops or departments within the store.

AJK… :p Freeform layout In a free form. is type of a layout may not allow for maximum utilization of the retail space available. merchandise is arranged in an asymmetrical manner. The tasks to be performed and the processes are usually defined in a store operations manual.While there is no standardized principle as to what needs to be a layout for a particular type of store. Popular form ostentation of merchandise is termed as the boutique layout. This document lists the tasks that need to be carried out at the store level and states the responsibility and the time period in which these tasks need to be performed. The entire store may bear Explain store management in retailing In order to ensure a smooth flow of operations at the store level. with each area focusing on a particular theme. it is necessary that the management defines processes and has the people and the resources to implement them. wherein the sales floor is segregated in terms of various areas. It allows free movement and is often used in department stores to encourage people to browse and shop. A well-prepared operations manual or blue print is the starting point of efficient store operations. Page 8 . a retailer may choose the same on the basis of the target customer that he chooses to serve the general image and look that he wishes to create for the store.

which can be used for payments. administration is also responsible for utilizing the store personnel effectively.AJK… :p 1. Page 9 . 2. Managing inventory and display Responsibilities with respect to merchandise at the store level involve receiving and inwarding the goods. like the cleanliness of the store premises. An integral part of managing inventory at the store level is displaying it correctly. is cash or by credit card. Store administration Store administration deals with various aspects. It is also necessary to specify with whom the responsibility of opening and closing the store lines. the duration of the hours for business need to be determined. Some stores also have a co-branded card. etc. Time keeping for the store staff is important. The most common method for receiving payments for goods sold In India. The best merchandise may lie unsold if it is not displayed in a manner that is appealing and convenient for the customer 3. maintenance of the store façade and the display windows. Once the merchandise is received at the store. style and size have to be checked with the document accompanying the goods to detect any discrepancies. While most of the large retail stores would accept either of the above forms of payment. Store administration and management of the premises Management of the premises Managing the operations of a retail store. Managing Receipts Managing receipts involves defining the manner in which the retailers is going to receive payment for the sales. starts by determining how the tasks pertaining to the premises are to be performed. a small local retail stores may accept only cash payments. Firstly. Other modes of receiving payment are by way of cheque or a debit card. the quantity and other details like colour. It is also necessary to keep track of holidays and the shifts that the staff may be required to work.

Customer service does not have to begin & end at the customer service counter in the retail store. working the existing staff in shifts. Managing promotions. Customer service The customer service policy to be adopted by the retailer is decided upon by the top management. Display of merchandise ad point of purchase material has to be managed at the store level. events. Page 10 . to promote certain products or services. running a short training programme on the features of the promotion. & has to be a top down approach. Each person on the floor of the retail store can ensure that the customer who comes in contact with him or her is comfortable and has a pleasant shopping experience. a retail store may have a tie up with a local partner. In order to enable the success of an event or a promotion.AJK… :p 4. the hours and the specialty of the merchandise. alliances and partnerships Events and promotions are very much a part of the retail marketing scene. it is necessary that the store where the action is to take place be geared for the same. This may require hiring of additional staff. This is some thing which has to be imbibed in them. 5. Managing alliances and partnerships with local partners is also an important part of store operations. Many a times. the features of the promotion. This is actually put into practice by every person working within the retail store. This has to be managed at a store level.