Indian Retail Industry: An Overview

The amazing development of the retail industry in India is a testimony to the domestic energy
consumption in the country. With 1.3 billion inhabitants, we are the second largest market in
the world for all under the sun. Liberalization, after surpassing the so-called 'Hindu rate of
development’ till 1990, expanded the country's frontiers virtually.
Despite ups and downs, the country continued a constant development trajectory in the years
following, and in a period when India had been the fastest developing country in the world
for the last year or so, a stable and proactive administration has dominated the Centre.
India's growing urbanization has boosting growth, as have major changes in procedures and
reforms. While the urban and rural parts of the nation continue to grow at various rates, a
retail revolution has ignited the general growth in buying power and growing expectations of
the large medium-sized population of the country.
A retail revolution was initiated in India by an increasing midclass, now representing about a
half of the population, and by a young population of more than 58 per cent between 15 and
54 years and a median age between 29, combined with increased prosperity and the
corresponding increase in aspiratory consumption.
No wonder the dynamics of this sector have led to a boom in global retail entry, a hunters of
private equity funds, and a phenomenon of e-commerce, leading to the arrival of global retail
giants with many brands and a spread of home-grown and fast-growing companies, in the
clothing, customer-duration products and electronics sectors. [ CITATION Del20 \l 1033 ]

Pandemic & Retail Industry

Indian retail is undergoing a tremendous shift with the present pandemic. Retail represents
10% of GDP and about 8% of jobs and is one of the most significant companies. The
pandemic has significantly changed the purchasing habits, with safety being the key factor
that replaces the price range and convenience.
During the lockdown, hypermarkets saw fewer footfalls, and a lack of demand was observed
in most categories, including apparel, accessories, and durables. The major stakeholders have
their own difficulties with another nature: enormous demand increases are being addressed,
liquidity guaranteed, retail operations adapted to meet safety needs and controls, the health of
employees monitored, and staff shortages dealt with.

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Outlook of the Industry – The Future
As physical marketplaces are progressively opened, entertainment, shopping, restaurants, and
other services are projected to increase in need in the future, especially in view of the
commencement of the festival season.
People would be attracted to physical shops because they had so long lacked the touch of
realism. This would make shopping more experiential.
Consumers may choose to buy e-commerce rather than physical companies. Hence, retailers
should be able to adapt to mutually beneficial conditions and create strategic alliances. The
focus should be on turning present companies into supply-oriented companies while retaining
the highest degree of security.
They are working more with suppliers of direct-to-home services and logistical services, and
this trend is anticipated to continue.

New Reality
With all the changes going on around us, the notion of traders and consumer companies
improvising or rethinking their business models to address those changes would be a clever
one.
During that time, a new meaning has been considered in scanning and companies must
synchronize their objectives and regularly engage their consumers to establish trust and
loyalty.
Retailers and consumer products companies must constantly be ready, given current
circumstances, to adjust and manage their business strategy. By combining market
opportunities with effective reactions, the company may build and improve its market
position.
Overall, retailers across the world, particularly those in brick-and-mortar businesses, will
have to learn from one another to get back on their feet. While no one knows for sure what
the global business impact of this crisis is going to be, one thing is certain: innovation and
flexibility will be crucial. [ CITATION KPM20 \l 1033 ]
Leading players in the organized Retail
1. Pantaloon Retail
2. K Raheja Group
3. Tata Group
4. RPG Group
5. Bharati- Walmart
6. Reliance
7. Metro
8. Vivek’s Ltd

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Literature Review

Role, Scope, and Challenges of Hr in Retail Sector, by Prof. Dr.Jyoti H.Lahoti, SMT.
LRT College of Commerce, Akola.
Human resources play a significant role in an organization's success. HRM is critical to the
attainment of organizational goals. In India, the retail sector has played a pivotal role,
contributing significantly to the country's economy. In this document, we understood the
study of the role and scope of human resources in the retail industry and challenges HR
managers faced while implementing HR management practices in organized retail stores. The
challenges faced by the HR department included the high turnover rate, absenteeism and the
execution of innovative practices in the retail stores. Therefore, it was found that the HRM
practice of retail stores is still in the early stage of development. Staff facilities and
appropriate performance appraisal measures will always encourage staff to do their best.
Consequently, retail stores must determine and implement appropriate human resource
practices to retain and develop workforce as a development asset.

Review of human resource management in retail industry, Manjunath Koliwad,

Research Scholar, SSSUTMS, SEHORE, MP
Manjunath Koliwad, analysed that organized retail, which accounts for roughly 17% of the
market, is growing at a rate of 20% each year. The advent of huge retail shops and shopping
malls fueled this trend. Another factor for the rise of organised retail, according to research, is
the expansion of the middle class, which now numbers over 300 million people and is
growing at a rate of nearly 2% each year. Human resource management is gradually
ascending the value chain and establishing itself as an important stakeholder in the industry.
Because of the fast-paced nature of the retail industry, having a pool of talent on hand is
essential for survival. HR, which has traditionally been viewed as a support function in retail,
must step up and take on a more strategic role as a result of the need for focused talent
acquisition, development, and retention initiatives. As well as HR's strategic integration with
the business.

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Human Resource management in organized retail sector

 Recruitment: Campus recruitment or recruitment through recruiters and consultants

is done depending on the size of the number of openings or whether it's a new shop.
Advertisements in the local newspapers are placed in the shop floor sales criteria.
 Selection: Group discussions and interviews are used to make decisions. Some
merchants are required to take an admission exam, which is followed by a group
discussion and a personal interview.
 Performance Appraisal: It is one of the most contentious human resource systems.
No one in any business is ever satisfied with the system since it exposes an
employee's unpleasant truth. Because it is subjective and varies from person to
person, it is fundamentally conflict-based.
 Training and Development: India's retail business has finally come into its own, and
it is booming. Because organised retail is rapidly expanding, finding qualified human
resources for the industry is a major problem. The talent pool is limited, and the
arrival of large retailers into the market has created a tremendous need for qualified
and competent individuals in this industry. As a result, several retailers have
established Learning and Development departments within their businesses.
 Compensation: Compensation is a monetary payment made to an employee for
services performed to the company. Compensation is a motivation for employees at
all levels and can be direct or indirect.
 Rewards, Incentives and Recognition: Every store is searching for new methods to
keep their staff motivated and decrease turnover. Within the sector, introducing
awards, incentives, and employee recognition is growing increasingly popular. In
their stores, retailers such as PRIL have introduced the PERK (Performance
Enhancement Reward Kit) and the star performance of the month. They are used to
recognise and reward individual, team, and corporate achievement.
 Employee Discipline: It's a managerial tool for addressing poor employee behaviour.

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HR Challenges in Organised Retail sector
 Lack of skilled manpower: The organised retailing sector is a big manpower-
intensive enterprise that hires a significant number of people. However, experienced
retail experts are in short supply. This is due to the fact that retail has never been a
well-known profession in India, and there were few retail professional courses
available just a few years ago.
 Stress in working culture: Employees in the retail business are required to work
long hours, which can lead to tiredness and a loss of enthusiasm. Furthermore, part-
time and casual jobs offer less job security, variable shifts, limitless working hours,
lower pay and benefits, and bad working conditions, all of which contribute to stress
and workplace issues.
 Lack of formal education in Retail Management: There is a need for skilled and
talented personnel to manage day-to-day operations and respond to a wide range of
client needs. Because there are few official vocational schools in India where students
may be taught, most retailers in India rely on in-house training or local institutes to
meet their training needs.
 Work Attiration: According to a recent survey, there appears to be a significant
degree of attrition in the retail industry, which is over 40%.
 Threat of Poaching: Employee poaching is rampant in the retail business, both
organised and uncontrolled. Because skilled personnel is in short supply in this
business, luring rivals' staff away by giving them more wages is a relatively simple
alternative.

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Illustrations
1. Cromā
Company Introduction
Croma was the first big format specialized retail shop in India to cater to all multi-brand
digital devices and home electrical needs when it opened in 2006. Croma has virtually
become synonymous with all electronics requirements in the ten years since its start, thanks
to its tech-savvy personnel, product selection, Staged presence, and willingness to serve
consumers.
Croma delivers on its promise of a ‘Brighter Every Day' for its consumers by providing a
world-class shopping experience both in-store and online at www.croma.com, as well as a
seamless ‘omni-channel' shopping experience that allows customers to enjoy the best of both
the online and offline worlds.
Croma guarantees that a Brighter Tomorrow begins now for each client with over 6000 items
across 200 brands and 150+ shops throughout 40+ major cities in India. Croma guarantees
that clients get "More for their Money" every time.
Croma started its own label products in 2008 with the goal of delighting consumers
throughout the process. Croma stands for - Life, More Beautiful; the promise is founded not
only on the beauty of the products themselves, but also on the value they provide to the lives
of their customers. The range is ideal for people who want a high-quality product with a lot of
features.
Under the brand name ‘Croma,' Infiniti Retail is one of India's largest Consumer Durables
and Electronics (CDE) retailers. [ CITATION cro \l 1033 ]
About TATA Group
Sir Jamsetji Tata created the Tata Group, a multinational conglomerate, in 1868. The
company, which has its headquarters in Mumbai, is divided into 30 major business sectors
and ten verticals. Tata Group is dedicated to serve with the purpose "to improve the quality of
life of the communities we serve globally, via long-term stakeholder value generation based
on Leadership with Trust," with activities in over 100 countries across six continents. The
Tata Group has not only founded but also funded many institutes for research, education, and
cultural enrichment, demonstrating its commitment to its goal. [ CITATION tat \l 1033 ]

Vision
Croma's vision is to be India's number one retailer of electronics and durable goods, with
high-quality items and on-time delivery (for larger products e.g. Washing machine,
Refrigerator etc.). Croma should use a world-class system to please all of our employees and
the general public. [ CITATION cro \l 1033 ]

Mission

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Croma's mission is to provide exceptional customer satisfaction by focusing on innovation,
quality, productivity, and human resource development while aiming for perfection with
pride in our values and confidence in our approach.
“The overall Mission of Croma is to be the first choice of customers” [ CITATION cro \l
1033 ]

Corporate Social Responsibility

Croma’s Corporate Social Responsibility objectives stem from its focus on ‘Leadership with
Trust’ and its mission to promote responsible consumption. The Corporate Social
responsibility policy integrates social and environmental commitment with retail best
practices.
Under the framework of this policy, Croma’s CSR focus shall be on social and environmental
issues. The areas pursued under this policy may be in addition to those specified under
Schedule VII of the Companies Act. A time-to-time presentation on the initiatives pursued
under CSR shall be made to the CSR Committee and the Board for their approval.
Source: CSR- Infiniti Retail

Recruitment and selection

For his or her recruiting procedure, Croma looks at both internal and external sources.
Croma posts job openings on their own website, freshersworld.com, indeed.co.in,
naukri.com, and LinkedIn, with job descriptions including job titles, qualifications, and
experience. For various jobs and positions inside the corporation, their selection procedure
differs. In general, telephone interview, written exam (aptitude), discussion, technical
interview, and personal interview may be included in the selection process. All open positions
within the business are posted internally, and applicants are evaluated by a panel of senior
members and an HR manager. [ CITATION cro \l 1033 ]

Training and Development

If necessary, the firm may provide formal training for its Associates, which may be some of
the following:
 Board members' duties and responsibilities, with the goal of fostering collaboration
among them.
 The company's mission, goal, and strategic direction, as well as its fundamental
values, ethics, and corporate governance procedures
 Knowledge of financial issues, the management team, and company processes
 Stakeholder meetings, company site visits, and discussions with senior and middle
management.
The firm may, as needed, assist Associates in keeping their skills and expertise current, as
well as improving their acquaintance with the firm and its operations. The firm shall
fund/arrange for training on any topics that affect the whole Board of Directors. [ CITATION
cro \l 1033 ]

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Performance Appraisal
Prior to the appraisals, employees are recognized. Appraisals are given after the associate and
superior have discussed it. The assessment forms are straightforward in terms of capturing an
associate's real performance. 360-degree evaluations have also lately been adopted to ensure
objectivity and fairness. Appraisals might help you reinforce your values. Associates are no
longer just compensated for the number of years they have worked for the firm, but rather for
the value they have added. The increments were not made automatically. Career pathways
were chosen and documented. Croma ensures fairness and transparency within the process.

Compensation
Croma has a well-organized system of professional advancement, increments, and cash
incentives. The implementation of a flexible HRIS has been completed. Ramco e-solutions
may be a full-fledged HRIS, with capabilities ranging from career planning through
increments and salary processing. The team was given the task of developing a scientific
structure that was both transparent and fair. Individual aspirations and goals are aligned with
the company aim of profit maximization through outstanding customer service through the
monetary strategy. Supported ratings offered by Croma workers’ pay on average about Rs
5.82 lakhs per annum for a senior executive and Rs 1.84 lakhs per annum for a sales
executive, respectively. Employee perks include variable compensation, incentive bonuses
for meeting targets, employee discounts, a large number of vacation days, sick days, and paid
vacation days. Employees are happy with the management's and remuneration policy's
openness. [ CITATION Gla \l 1033 ]

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 2. Pantaloon Retail Limited
Company Introduction
Pantaloon Retail India Ltd. (PRIL)is a division of Aditya Birla Fashion and Retail Ltd.
Pantaloon, a retailer was consolidated on 12th October of the year 1987 settled in Mumbai and
operates all over India. the organization works through principally the ‘Lifestyle and Value'
designs through different conveyance components and lines of business some of them being
style, food, general product, home recreation and diversion monetary administrations
correspondences and health. Pantaloons is India's #1 Fast Fashion; it has 331 style objections
spread across 155+ towns and urban areas in the country. It is present across 25,000 multi-
brand outlets across India. The organization additionally works its items online by the web-
based interface named futurebazaar.com.
In an advanced retail climate, Pantaloons has arisen as a solid brand in the style industry in
recent many years and is making style open across the length and expansiveness of the
country.

Awards and recognition

 On 2nd April 2007, a Future Group venture Pantaloon Ltd., was named as “Emerging
Market of the Year 2007”
 In 2009, Pantaloon Retail carry the year as Images Fashion Awards
 In 2006, Best Managed Company in India of the year (Mid Capitalization)
 In the Hewitt Best Employers 2010 study, Pantaloons was Best Employers in India
(Rank fourteenth)
 In 2012, won Image Retail Award for the Best Retail Destination, Best Value Retail
Store and Best Grocery and Food Store.
 In 2018, Pantaloons Winter Window Display received VM&RD Retail Design
Awards

Vision
To enthusiastically fulfil Indian buyer needs in design, style and worth, throughout all
wearing events in Dress and Accessories, through strong brands and an outstanding buyer
experience, with a clear justification for delivering better value than all our competitors.

Mission
We shall be efficient, cost-conscious, and committed to quality in whatever we do.

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Corporate Social Responsibility
Connecting with underserved networks is in the DNA of every Aditya Birla Group company.
They believe in the trusteeship concept. This entails going above and beyond corporate
interests, grappling with the "personal happiness" issues that underserved networks face, and
attempting to make a significant difference in their lives.
Infrastructure improvement, education, sustainable living, health care, and embracing social
issues are some of the centre regions that have emerged because of this. The Aditya Birla
Centre for Community Initiative and Rural Development oversees all their local projects and
programmes. The exercises are being carried out in compliance with Schedule VII of the
Company Act of 2013.

Recruitment and Selection

It is a process of sourcing, screening, shortlisting, and choosing the right contender for the
necessary empty positions. Source: ISMT Nepal
Pantaloons produces opening in the consultancies, newspaper ad and on its own website for
walk in interview with Job Specification and Job Description. Presently the organization
chooses or waitlists the feasible profiles and afterward begins the enrolment. Then the
meetings are directed according to these people individually viz. senior supervisor, division
head, HR, zonal administrator. Generally, the process consists of series of Interview, Group
Discussion, Written Aptitude Test, Psychometric Test (for higher level role) then at the end
Final Formal Interview is conducted. And for normal selection, candidates apply through
website and give interview and are selected accordingly.

Training and Development

Empowering workers to obtain new or progressed abilities, information, and view focuses, by
giving learning and training, and place where such ideas can be applied. Pantaloon also
provides their employees to opt educational course through ‘Seekho’ scheme which helps
them to develop their skills. Effective training method which Pantaloon uses according to
various levels are-
 For Junior Level executive- Experiential Action Learning
 For Middle Level Executive- On the Job Training
 For Higher Level Executive- Problem Bases Training
Time to time training is given according to the needs of the organisation.

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Performance Appraisal
Every employee’s performance is reviewed at the point when representatives work in an
association they might want to be valued and perceived and get benefits for the work they are
doing. Every single representative’s execution is assessed on different time periods and
compensations as Best Worker, Star Entertainer or with some vouchers, etc.
The type of Appraisal system includes-
 Rating Scale- This appraisal system is used to indicate employees’ level of degree of
achievement or performance in performance management system. Rating Scale
system is generally used because it provides quantitative appraisals which are
moderately simple to manage and administer employees on different aspects.
 Balance Score Card- The goal of a balancing scorecard is to connect an organization's
work activities with its strategy and vision, increase communication, and track
company success against strategic goals.

Compensation
 Monetary and non-monetary both type of rewards is given to employees
Monetary- Vouchers and gifts (Employees of Future Group will be eligible for a
discount)
Non-monetary- Awards and certificates.
 Employee and his family get free medical services and female employee can have
maternity leave of 84 days.
 Pantaloons provides travel alternatives and reimbursements so that employees can
travel safely and comfortably.
 It provides flexible working hours and employees can avail 7 days advance all type of
leave which gets adjusted in employees leave balance.
 They get promotion 2 times in a year- They get salary after their performance
appraisal.

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 3. BIG BAZAAR
Recruitment:
Employees are recruited for top management via private consultancies. They are frequently
appointed as managers of departments. Walk-ins are one of the main sources Big Bazaar's
recruitments. Workers normally go to the HR department for employment vacancies.
Employee referrals are also a major source of staff selection. Applicants who have made
references to their previous company are first interviewed and opinions are expressed on their
performance and behavior in the job by their previous employer. If their previous employer
gives them a favourable evaluation, they will be selected. Youth bring fresh insights and
excitement. Big Bazaar therefore visits several of the well-known educational institutions to
employ some of the most talented and promising graduates. [ CITATION Big \l 1033 ]

Selection:
The applicants are interviewed by an HR person for entry level jobs. Some basic inquiries are
asked regarding their studies, prior work, recognised languages, etc. This is done to measure
the ability of the candidate and other abilities to communicate freely. The applicants are
requested to answer a few questions for higher and high-level work that essentially examine
their accuracy, analytical ability, stress management, mind, etc. This is done because
managers are always in stress and still have to keep their heads cool to make vital decisions.
[ CITATION Big \l 1033 ]

Salary and Wages

Attractive compensation packages adequately compensate the workforce.
 An employee's remuneration covers basic salaries. HRA, PF, ESI, Medical etc.
Special benefits.
 At Diwali time, an annual bonus is offered.
 Medical treatment for employees and their dependents in approved hospitals with
whom the company has tie ups. If the amount paid by the employee will be
reimbursed if the hospital is no longer recognised.
 In addition to all of these employees, a so-called employee discount card (EDC) is
issued to allow them to purchase any Big Bazaar goods at a 20-30% special discount.
[ CITATION Gla \l 1033 ]

Performance Appraisal
Every year in April, the HR department performs a performance evaluation of all workers. To
assess performance, Big Bazaar uses a rating system. Employees at Big Bazaar are given
stars and are rewarded based on their performance.
Incentives will be given in their compensation based on their performance. Furthermore, if an
employee achieves or exceeds the target given to along with their team members will be
provided with attractive cash and other incentives.

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Training and Development
Big-Bazaar has a separate training section called Future Learning & Development Limited
for all of its workers (FLDL). They give training for staff for a total of 20 days each year
throughout various time periods, depending on the necessity. 'Gurukul,' a FLDL subsidiary,
provides training to all employees on a variety of skills such as teamwork, dedication,
enhancing customer service, and so on, in order to make them more knowledgeable and
productive.

Employee Retention
Through care and respect, the organisation strives to develop a sense of well-being among
our employees. Employee mentoring and grievance management programmes are among the
structured techniques they use. Employees who have demonstrated remarkable talent,
sincerity, and dedication are honoured on Pantaloon Day, an annual celebration. They've also
developed a 'Prerna' employee suggestion programme, in which employees can submit their
ideas. Every quarter, a prize known as the "Golden Cap" is given to the best recommendation
received by zone and format.

Conclusion
The retail industry in India is expanding rapidly. There is also an increasing contribution
from organized retail to the country's total retail. The changes in policy have been the driving
reasons and many more international and private companies have been placed on the market.
The profession of human resources management plays a significant part in the success of
every market or organization.
The procedures in the retail industry have also expanded significantly. Human resource
administration is of major importance and encompasses procedures like recruiting, selection,
training and development, remuneration, performance evaluation etc. In particular, organized
retailing. To be more competitive this HRM practices is going to require greater attention on
the increasing market size and as this sector continuing to employ more and more individuals
in the organized retail business.
“If you take care of your people, the business takes care of itself”.

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References

Big Bazaar. (n.d.). Retrieved from https://vdocument.in/big-bazaar-hr-policies

croma. (n.d.). Retrieved from https://www.croma.com
Deloitte. (2020). Retail FDI in India.
DR.KHILLARE S.K., M. V. (March 2016). 4(3).
Glassdoor. (n.d.). Retrieved from https://www.glassdoor.co.in
KPMG. (2020). The new retail reality.
tata. (n.d.). Retrieved from https://www.tata.com

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