PRINCIPLES OF RETAILING

ASSIGNMENT
SUBMITTED TO : DR. TANUJ MATHUR

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH LUCKNOW

SUBMITTED BY :

MBA (Gen) II Sem.

RICHA CHAURASIA
A7001918032

Saurabh Gupta
A7001918033

Sarim Faraz
A7001918010
 Departmental store

A departmental store is a retail establishment which specializes in selling a wide range

of products without a single predominant merchandise line. Department stores usually sell
products including apparel, furniture, appliances, electronics, and additionally select other
lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment,
jewellery, toys, and sporting goods.

In our country, departmental stores have emerged as a major and prominently-recognized

organized retailing channel, especially for Indian and international fashion brands, targeted at
the upper middle and higher income segments. Apparel is the most important product
category sold by these retailers in India, accounting for nearly two-thirds of their sales. The
major players in this segment in India include Shoppers' Stop, Lifestyle, Pantaloons,
Westside, and Globus.
 Pantaloons

Inventory Management Technique:

Pantaloons uses the LIFO(Last in, first out) method.

Last in, first out (LIFO) is a method used to account for inventory, where the most recently produced
items are recorded as sold first.
The reason being that in case of clothing , the clothes that comes in the store in the last are the first to
be sold out. The older ones are usually kept for the sale.

Warehouse:
The warehouse of Pantaloons is located in West Bengal.

Assortment of goods:
The latest stock is being kept in the middle of the store. The place in the starting of the store is
reserved for the old stock which is kept for sale.
The reason for the older stock to be kept in the starting of the store is that the people while window
shopping might have a look at the sale and get attracted. The footfall will increase and the people will
later have a look at the latest stock. Once you have foot falls in your store, the sales will increase

Area:

Spread over two floors in an area of approx. 15,000 sq.ft. in total.

 Discount stores

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling
in bulk reaching economies of scale or excess stock left over at the season. The product category can
range from a variety of perishable/ non perishable goodsDiscount stores are often able to drop
their prices due to efficient distribution methods. Discount store is a department store which
offers its items at a lower price than many other retail stores. Furthermore, many of these
discount stores could also be categorized as big-box stores, as they grow to include more and
more products, sometimes even including a large grocery section.
 Big Bazar

Big Bazaar is an Indian retail store that is a chain of hypermarkets, discount department stores, and
grocery stores. It sells variety of merchandise at affordable rates; the prices which it claims are lowest
in the city. Usually, the items are clubbed together for offers to customers and it also offers weekend
as well as monthly discounts.

Inventory Management Technique:

Big Bazar uses the FIFO technique

“First-in, first-out” is an important principle of inventory management. It means your oldest

stock (first-in) gets sold first (first-out). This is especially important for perishable products.
Big Bazar also uses this technique for non-perishable goods. If the same boxes are always
sitting at the back, they’re more likely to get worn out. Plus, packaging design and features
often change over time. The company don’t want to end up with something obsolete that they
can’t sell.

Warehouse:
In order to manage a FIFO system the company have an organized warehouse. The warehouse of Big
Bazar (Singapore Mall, Lucknow) is at Chinhat.

Assortment of goods:
The products are kept according to the customer flow

1. Apparels

2. Processed food

3. Packed foods

4. Vegetables and FMCGs (The BASIC need)

The apparels are kept at the front. The reason is that the customers don’t emphasis on the clothing
because their basic motive of visiting the Big Bazar store is to shop for household needs and that to
groceries.

FMCG are kept at the last of the store so that the customer moves throughout the store and this
usually provokes a need for either clothing or packed food.
Area:

20000-21000 sq. ft.

 Speciality Store

A small retail outlet that focuses on selling a particular product range and associated items.
Most specialty store business operators will maintain considerable depth in the type of
product that they specialize in selling, usually at premium prices, in addition to providing
higher service quality and expert guidance to shoppers.
 AL-BAIK

ALBAIK is a unit of Feaston Private Limited, is a well-established and popular hospitality

brand operating a chain of multi-cuisine family restaurants which offer great taste with
great service to food connoisseurs in India.

Inventor Management Technique:

Albaik uses the JIT (Just-in-time) method.

Just-in-Time (JIT) method used ordered according to sales. The benefits of this method
include reducing risk, expenses and waste.

On the other hand, this can also adversely affect f8ulfillment times and product availability.

Assortment of goods:

Menu Specialties: ALBAIK has professional chefs & specialized machines for creating
specialties like Browned Chicken.

Growth Opportunity: Food & Beverage (F&B) is a rapidly growing and profitable industry,
hence the market is ripe and the opportunity is right to enter this business.

Attractive Returns: ALBAIK restaurant franchise is a moderate investment business offering

attractive returns.

Area:

1500-5000 sq. ft.