INTRODUCTION TO RETAIL

The past century has been witness to many changes

occurring in our changes occurring in our everyday world
industrial growth has made a significant impact on our lives
as consumer. One such industry which has made a
phenomenal impact on our daily lives in retail. This
industry touches our lives as end consumer, by providing us
with the products or services that we need.

What is retail?
The word retail is, in fact, derived from the French word
retailer, which means to cut off a piece or to break bulk. A
retailer may be defined as a dealer or trader who sells good
in small quantities or one who repeats or relates

HISTORY OF GROTH
After 2nd world war retail industry started to grow in U.S.A.
Retail is the largest privat industry in the world with total
sales $6.6 trillon.
INDIA :-
In India retail is the second larjest sector after
agriculture.at provide employement to 8 % of the total.
Work force of the country.
The total retail business is estimetad to be $180 billion
of which only 2% is contributed by the organized sector .
In 80’s there was coming up of these retil outlets and super
market came but it was not so affected but due to
liberalization in 1995 the sactor started it’s groth and
occupy the market shar in India,

PRIVATE CONSUNPTION
EXPENDITURE

Rec.Edu & Culture

Cloth & Footwear
Med. & Health
Mis. Good & serv.
Rent Fuel & Powar
Trance & Comman % Of total pvt. Consum ption
Food bev. & Tobacco
0 20 40 60
% OF TOTAL PVT.
CONSUMPTION
TOTQL TUREN OVER=400000
CRORE IN Yr 2000

UNOR
GANIZ
ED ORGANIZED
5%
UNORGANIZE
ORGA D
NIZED
95%

TOTAL TUREN OVER =800000

CRORE IN Yr 2005

, 20%
ORGANIZED

UNORGANIZE
, 80% D
 7

6
Retail
5 Fin. Serv.
Engg
4
Chemicals
3 Pkg
Elec & tel
2
Automob.
1

SIZE OF MARKET
The economic times inteliganci group has estimated that
the size of the organize retail industry in India in 2001-2
was about Rs 16000 crore retail business in India
contribute 10 to 11 % of the G.D.P.
India has the largest retail density in the world 12 million
retail outlet for a population of over a 1000 million,thought
as much as 96 % of these are smaller then 500 sq.ft. these
mean that in India ,the par capita retailing space is about 2
sq.ft.

India rank 5th among the 30 emerging retailmarket in

devlopig.countries,with nearly 25000000 sq ft.of organized
retail space coming up by the year 2005 . going by this
statistic the market for retail poperty devolepment appears
to be booming.

Weakness of Player
•Retail not being recognized as an industry in india:-
The lack of recognition as an industry hampers the
availability of finance to the existing and new
players.This affects growth and expansion plans
•The high cost of real estate:-real estate price in
some cities in india are amongst the highest in the
world.The lease or rent of the property is one of the
major areas of expenditure,high lease rentals eat into
the profitablity of a project.
•lack of adequate infrastructure:-poor roads the lack
of a cold chain infrastructure,etc.hamper the
development of food and fresh grocery retail in
india.The exiting supermarkets and food retailers
have to invest a substantial amout of money and time
in building a cold chain network.
•Multiple and complex taxation system:-The sales tax
rates very from state to state.while organised players
have to face amultiple point control and tax
system,there is considerable expensive to transfer
good from one store to another.
•Foreign direct investment:-The fact that foreign direct
investment(FDI)is not permitted in pure retailing is
seen as one of the prime reasons for the slow groth of
retail in india.A global retailer can enter india only by
way of a franchise with an indian partner or through
technological alliances.
•Purchasing power of money:--As the indian
population mostly consist of middle class families and
low wages worker they dont want to go in the super
market or retail market.
MAJOR PLAYER:-
One of the largest privat sector pure retail chain,in the
country is”margin free” a kerala-based groceries and
discount store which has astaggering 214 outlets
within the state. Says t.k.

Major Players A few reatailers have ventured into this area ,

and the main ones among them are foodword which is a
part of the RPG group and Subhiksha , which is Chennai-
based . according to ORG marg estimates , Subhiksha sells
10.1 % of the top100 brands sold in food/grocery and 7.8 %
of the OTC brands in Chennai . Subhiksha has yet to
expand its operations to the country .
This sector also features the largest discount retail chain
dealing in groceries, which operates only in one state –
karala.this retail chain is margin free ,which oprates only in
karala . apart from bata and Kodak it is the largest plyer in
the indian retail sector today .
The fast food and restaurant business has seen a lot of
action over the past few years .A large number of
international fast food retailers have started operations in
India . Prominent among them are McDonald’s Domino’s
Pizza Hut and subway . Afew in indin retailers like Barisat
Qwiky’s and Café Coffee day are also making their mark in
this fiels.

Retail Snapshort 1.6 : The unsung Heroes of Indian

Retail

Only of the largest private sector pure retail chains,(in

terms of the number of outlets) in the country is “ Margin
Free,” a kerala –based groceries and discount store which
has a staggering 214 outlest within the state.Says T.K.
Salim ,founder of the store .”Every month we are opening
upto 12stores and the number till today ,has actually gone
up to 239 and our overall turnover is Rs 600 crore.”