TABLE OF CONTENTS

1. Industry Overview 2. Organized Retail Sector 3. Origin of retail 4. Indian Retail Industry 5. Retailing Formats in India 6. Specialty stores 7. Major Industry Players 8. The growth Drivers 9. Swot of the Market 10. Challenges 11. Location Planning 12. Competitor Analysis 13. Future Outlook 14. Merger and Acquisition 15. Technology in retail 16. Government initiatives and regulation 17. Research methodology 18. Research analysis 19. Conclusion 20. Consumer survey questionnaire 21. References 05 10 13 18 23 25 33 44 51 55 58 65 68 70 75 79 83 86 89 90 94

Industry Overview

Industry analysis of the Indian retail sector:
Modern retailing has entered India in form of malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats mostly due to the convenience factor i.e. near to their house. This organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and even the labour class is also in the working process timely promotional campaigns. The modern retail formats are encouraging development of wellestablished and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years

labour and capital.List of retailers that have come with new formats: Retailer Shoppers’ Stop Crossword Piramyd Pantaloon Subhiksha Globus Current Format Department Store Large Bookstore Departmental Store Own brand store Supermarket Department Store New Formats Quasi-mall Corner shop Quasi-mall. Looking at the vast opportunity in this sector. big players like Reliance has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. several small towns like Nagpur. The organized retailing has helped in promoting several niche categories such as packaged fruit juices. These store are not affected by the modern format of retailing. hair creams. shower gels. In order to keep pace with the modern formats. Apart from metro cities. home delivery etc. Aurangabad. They also provide services like credit. phone service. fabric bleaches. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because . Kolhapur and Amravati has seen the expansion of modern retails. Nasik. Ahmedabad. Food retail Hypermarket considering moving to self service Small fashion stores Traditionally. kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. as it required minimum investment in terms of land. the kirana retailing has been one of the easiest ways to generate self-employment. depilatory products and convenience and health foods. which are generally not found in the local kirana stores. Sholapur.

many small cities like Nagpur have a student population. restructuring the tax regime. fewer power cuts and lower levels of attrition. lower real estate costs. retailers need to adjust their product mix for smaller cities. However. . it is necessary that steps are taken for rewriting laws. In order for the market to grow in modern retail. as they tend to be more conservative than the metros. accessing and developing new skills and investing significantly in India.

India is rated as the most attractive retail markets Country Risk Country 25% Market Attractiveness 25% Market Saturation 30% Time Pressure 20% Rank India Russia China Turkey Thailand Malaysia Egypt Brazil India’s Rank 62 52 68 51 64 70 51 52 24th 34 58 40 56 41 49 35 56 14th 91 71 53 66 59 58 85 57 1st 80 92 90 65 71 40 30 20 7th 1st 2nd 4th 9 12 18 25 29 1st .

Socio demographic factors will lead to faster growth of Organized retail in India: 100% 80% 60% 40% 20% 0% 9% 19% 25% 9% 19% 24% 10% 20% 24% 11% 22% 26% 12% 23% 27% 47% 47% 45% 42% 39% 1991 0-19 Yrs 1996 20-34 Yrs 2001 35-54 Yrs 2006 55+ Yrs 2010E .

ORGANIZED RETAIL .

"If you want to be an international player in retail. helped it rise to No. measuring political risk. the more urgency for retailers to enter the market. . foreign multiple-brand retailers. The study based its results on four variables: 'country risk'. a co-author of the study and partner in A. 'market saturation'. Russia. Kearney. which ranks the top 30 emerging countries for retail development and focuses on mass-merchant and food retailers. population. encompassing retail sales per capita. While India and Russia have held the top two spots since 2007. which sell diverse brands under one roof. 'market attractiveness'. are limited to cash-and-carry and franchise or license operations. according to the study. and 'time pressure'.T. which is working with India's Bharti Enterprises to set up a joint venture for a cash-and-carry business.Emerging Retail Markets: India. Kearney's consumer and retail practice." said Laura Gurski. together with retailers moving into second-tier cities. infrastructure and regulations. according to the 2007 Global Retail Development Index from management consultant firm A. these are the markets that demonstrate the characteristics (where) you can be successful. 3 from its No. India has already attracted the attention of global retailers like Wal-Mart Stores Inc. China and Vietnam top the list of the most attractive emerging markets for retailers' investment in 2010. debt and credit ratings.. The higher the ranking. 5 spot last year. China's booming consumer spending. In India.T.

While China remains very attractive. Dubai has . there will be little opportunity for market domination in the main cities. the market is becoming increasingly saturate as and United Arab Emirates No." the report said. 18. India has attracted "the low end and the high end because of the breadth of the consumer segments that are available. a principal in AT Kearney's Consumer Industries and Retail Practice and leader of the GRDI study. "Once India's window closes for grocery retailers."India's window of opportunity continues to be wide for retail investment and development. India was given the top ranking in management consulting company AT Kearney's 2006 Global Retail Development Index (GRDI)." said Fadi Farra. maintaining its 2005 position in an annual study of retail investment attractiveness among 30 emerging markets. When variables stay constant. China was ranked fifth in this year's tally. "The Indian retail market is gradually but surely opening up. with Saudi Arabia ranking No. Gurski said. do-it-yourself. Much to the surprise of market observers." The country's growing population of young urban professionals with disposable incomes and the nouveau riche has also made India attractive for luxury retailers. while China's market becomes increasingly saturated. Middle Eastern countries are also represented on the list." said Gurski. declining one more place since 2005. apparel and electronics retailers usually enter emerging markets some two years after international grocers establish themselves. 10 India has emerged as the world's most attractive destination for mass merchant and food retailing. Gap Inc announced last week it had struck a deal with two franchisees to open Gap stores in Saudi Arabia starting at the end of this year.

the study found. Russia slipped to second place behind India last year and remained there in 2010 too. International retailers rush to establish a presence and build market share. or those that have been slow to gain a foothold there. "If the markets are saturated. they're looking to make profits in the second-tier cities. According to the study. Despite its focus on luxury. the study reveals. Dubai is "just beginning to be populated by the bread-and-butter retailers of the United States and the Western world. ability to spend and willingness to embrace new formats may be different than in larger urban areas. Powering Asia's charge are Vietnam. which has risen five places to third place." said Farra. are now looking at less developed markets in second-tier cities. But she cautioned that a separate strategy is needed for the smaller markets since consumer tastes. . Knowing when to enter emerging retail markets is the key to success. After topping the ranking for two consecutive years in 2008 and 2009." she said. Gurski said." Gurski said. and countries like Thailand. Asia with a large 40 per cent of the top 20 markets has surpassed Eastern Europe as the 'dominant region for global retail expansion.' "The learning is that timing is the most important source of competitive advantage for global and regional retailers in the globalization race. Retailers that have already established a presence in major Chinese cities like Shanghai and Beijing. South Korea and Malaysia.capitalized on consumer desire for a more Western lifestyle and has established itself as a retail mecca. all of which are in the top 15.

Origin of Retail Sector .

These early efforts to swap goods developed into more formal gatherings. Thus early credit terms would have been developed. he would occasionally find himself with a surplus of goods. General Store: This division continues to this day with some shops specializing in specific areas. reflecting their origins as outlets for producers (such as Pacific Concord of Hong Kong). known as General Store (such as Casey's in the Midwest of the U. the general store has increasingly taken on . Producers were interested in selling goods that they had produced. over time. he may have allowed others to owe him goods. the peddlers and producers. and others providing a broad mix. Once the needs of his family and local community were met. Although specialist shops are still with us.A. When a producer who had a surplus could not find another producer with suitable products to swap. Thus markets were formed. This would have led to symbolic representations of such debts in the form of valuable items (such as gemstones or beads).). They would purchase any goods that they thought they could sell for a profit.Early Trade: When man started to cultivate and harvest the land. Peddlers tended to be opportunistic in their choice of stock and customer. he would attempt to trade his goods for different goods produced elsewhere. HOW RETAIL DEVELOPED: Peddlers and Producers: The Retail Trade is rooted in two groups.S. and eventually money.

The Birth of Distance Retailing: Defined as sales of goods between two distant parties where the deliverer has no direct interest in the transaction. the earliest instances of distance retailing probably coincided with the first regular delivery or postal services. Merchants would also have begun to appear.e. This combined with the advent of SelfService has lead to the Supermarket. markets would become permanent fixtures i. Such services would have started in earnest once man had learned how to ride a camel. regular markets appeared. Customers have found this to be more convenient than having to visit many shops . the start of the Retail Trade. Over time. Others in their newly adopted community enjoyed these goods and demand grew. new settlers discovered goods in their new surroundings that they . shops.specialist products. purchasing these goods and selling them for a profit. or Superstore. The First Shop: Eventually. some missed foodstuffs and other goods that were only available in their birthplace. horse etc. When individuals or groups left their community and settled elsewhere. They arranged for some of these goods to be sent to them. both producers and merchants would regularly take their goods to one selling place in the centre of the community. Thus. Early Markets: Over time.thus the term "Convenience Store" has also been applied to these shops. They would travel from village to village. These shops along with the logistics required to get the goods to them were. so has their size. As the popularity of general stores has grown. producers would have seen value in deliberately over-producing in order to profit from selling these goods. Similarly.

it made sense to obtain extra stock and open up another shop. Although advantageous in many respects. Although such trading routes expanded mainly through the growth of traveling salesmen and then wholesalers. this removed the mobility that a peddler or traveling merchant may still have enjoyed. and once again. This soon turned into a regular trade. founded by Clarence Saunders in Tennessee in the U. the first documented self-service store.dispatched back to their birthplace. As well as garnering goods from whichever locality they found themselves in. A second reason that distance selling increased was through war. Its thought that this process would have started in china over 2200 years ago with a chain of shops owned by a trader called Lo Kass. demand grew. they laid down communication lines stretching from their home base to the front. As armies marched through territories. . Origins of Retail It is likely that. For some shopkeepers. most probably operated by another family member. This was soon followed a year later by the Piggly Wiggly® selfservice store. Thus the retail chain would have started.S. they would have also taken advantage of the lines of communication to order goods from home. The First Self-Service Store: This all changed in 1915 when Albert Gerrard opened the Groceteria in Los Angeles. there were still instances where individuals purchased goods at long distance for their own use. as markets became more permanent fixtures they evolved into shops. This would recover business from peddlers and create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers.

as some chains grew. The shopkeeper would only need to tot up the final bill at the end of the process and transfer the goods from the basket to the customer and receive payment. There was. From Family Business to Formal Structure: Although retail chains would have been mostly run by families. chains . even more definite limiting factor was the distance the furthest shop would have been from the original shop. When this happened towards the end of the 19th century.Growth: This new type of shopping was more efficient and many customers preferred it. collecting their shopping in a basket that was supplied. Although personal service stores remain to this day. therefore. Efficiency These entrepreneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. The greater the distance. but there has been a steady rise in the global amount of self-service stores ever since. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Other countries were slow to take up the idea. Another. The groceries were stacked on shelves allowing customers to walk around and browse. this new concept started a rapid growth of self-service stores in the United States. the more time and effort would have been needed to effectively manage outpost shops and to service them with goods. That was the case until transport and communications became faster and more reliable. they would have needed to employ people from outside of their family. a natural barrier to expansion.

.became much bigger and more widespread. leading to the retail chain that we see today. Many of these businesses became more structured and formalized.

Indian Retail Industry .

International style shopping centers have started dotting the skyline of cities and smaller towns. The Indian retail sector is currently sporting a brand new look and together with a 46. shopping plazas.UNORGANISED RETAIL SECTOR: Today.64 per cent three-year Compounded Annual Growth Rate (CAGR). A changeover is taking place from the conventional retail sector to organized retailing. The sole purpose of all this is retaining the brand loyalty of customers. By 2010. Indian retail is currently a US$ 245 billion market and is anticipated to extend to almost US$ 385 billion mark by the next five years. retailing doesn’t involve just dealing or marketing from shops. supermarkets and brand label stores. the Indian retailing sector is anticipated to become an Rs12. acquainting the Indian customer to a unique shopping experience. the likes of superstores. But the unorganized segment still dominates and leads the industry. which makes up . The share of organized retailing is supposed to jump to about 10 per cent from the existing three per cent. average and modest grocery stores and the chemist shops. According to the latest report India Retail Sector Analysis (2006ñ07)I by RNCOS.5 trillion market. it includes analyzing the market in an effort to provide reasonable prices together with an array of options and experience to customers. the total retail market is primarily focused in rural regions. The unorganized retail sector includes the big. The retail industry in India is split up into the unorganized and organized retail segments. The anticipated staggering growth in organized retailing provides an opportunity to expand the market for both established and new players. Conventional marketplaces are paving way for new shopping malls.

In fact. Organized retailing refers to trading activities undertaken by licensed retailers who are registered for sales tax and income tax. is vastly underserved and has grown by 10 per cent on an average over the past five years. even though its centre of attention is focused around a core group of 100.000 villages.55 per cent or US$ 165 billion of the overall retail market as opposed to urban segment. Though India has more than five million retail outlets. Driving global brands into India is the greatly improved investment climate due to the recent relaxation of direct ownership restrictions on foreign retailers. The message for retailers on India is clear – move now or forego prime locations and market positions that will soon become saturated.000 villages that makes up 50 per cent of the rural population. India represents the most compelling international investment opportunity for mass merchant and food retailers looking to expand overseas. they are greatly unorganized. The country's retail market totals $330 billion. the organized sector is only 25 per cent and the rest is unorganized. according to management consulting firm AT Kearney's 2009 Global Retail Development Index (GRDI). The retail industry is divided into organized and unorganized sectors. Global retailers that missed opportunities to capture first-mover advantage in China will make up for it in India. which represents 45 per cent or US$ 135 billion of the gross retail market. India is rated as the fifth largest emerging retail market and is seen as a potential goldmine. These include corporate backed hypermarket and retail . 96 per cent of the retail outlets are smaller in area than the standard norms. There is no supply chain management perspective. out of the entire retail sector in India. The rural market is spread over 627. an annual study of retail investment attractiveness among 30 emerging markets.

Taxation policies also push you to automate and the push is even harder for those looking to expand beyond their single store existence. This is possible because of the far more efficient distribution system. handcarts and pavements and is by far the prevalent form of trade in India. “It would surely help the unorganized sector to get into technologies like bar-coding. which will make their operations more . as well as the back-end warehouse requirements. The efficiency of organized sector in retailing is manifested in some of the newer supermarkets in urban/metropolitan India – the produce is cleaner. which organized retail chains are employing. Thus one can see that allowing FDI in retailing is beneficial to all the stakeholders involved The Big Bazaars and Spencer’s. Though the interest is more with retailers who register good sales and volumes. even if at a model scale. which will also benefit the economy as a whole. the huge unorganized retail sector is finally beginning to see the merit of logging on. Software available to the retailers is ShawMan’s RetailMagiK. interest levels are surely raising fast. well packed and often cheaper than the local shopkeeper. a number of new jobs will be created. far better paid than the underage labor working in the local shops. Though it’s early days yet to measure it penetration in the unorganized retail industry. “It’s good to at least answer their questions. throwing up exportable surpluses. Secondly. fresher. There are other benefits too. which takes care of the front-end store needs. the benefits to the producer and consumer through better prices and lesser wastage. of transforming the unorganized retail sector into an organized sector. by cutting the layers of middlemen involved. Unorganized retailing is the traditional low-cost shops. Firstly.chains and so on.

so the cheap systems are more than welcome. One can even deploy a computer and start with financial accounting programmers like Microsoft Excel. there are cheaper quick-fix solutions available too. The product is a simple to use. And solutions providers like Microsoft. batch control and quick information search. However. The screen design and the functionality are designed in such a way that the user need not press too many keys to get things done. Most of the time these solutions are developed by local firms. “They are not even bothered about upgrading. . To begin with.” he says. They avoid the high-end technology. generally the mom-and-pop stores like to go for technology. business development manager. According to Oberoi of Polaris. For small players with just one store. and consider these as frills. Polaris and Shawman are now working on developing smart tools for the retail enthusiasts. who at times compete with the big names in the industry. Some other features are a user-defined billing screen and discount with control mechanism from the head-office.000. delivery order management. the investment on retail solutions go really low.000 to Rs 25. as then one need to scale it up and take care of inventory and supply chain management.000. FoxPro and Tally. which will get their work done at a reasonable cost.efficient. At the lowend however. Shawman Software.” says Khushroo Bagwadia. These solutions might not work for the mid-sized retailers with five stores. among others. Small retailers seem next in line and vendors are also warming up to the opportunity. smart inexpensive solutions are the need of the hour. anywhere between Rs 10. most retailers look at decent entry-level solutions starting at Rs 25.

Vedamani suggests India is on the right track. appliances. comparison between most of the brands available brands is possible Large stores having a wide variety of products. etc. the technology has advanced in phases. One stop shop catering to Supermarkets Extremely large self-service retail outlets varied consumer needs Stores offering discounts on the retail price Discount through selling high volumes and reaping Low Prices Stores economies of scale Larger than a supermarket.Comparing the case with China. location and Convenience stores Small self-service formats located in crowded Convenient urban areas. given brand. and so is the case in India. . “In China. sometimes with a Low Hyper. extended operating hours. Here. varied/ consumer needs. certified product quality Greater choice to the Specialty Stores Focus on a specific consumer need. Format Description Exclusive showrooms either owned or The Value Proposition Complete range available for a Branded Stores franchised out by a manufacturer. generally located in available quieter parts of the city including such as cafeterias. carry consumer. toys. vast choice services warehouse appearance. house wares. furniture. Department Stores organized into different departments such as One stop shop catering to clothing.mart prices. we find the organized sector to be 20-23% of the total industry.

each other. Formats adopted by the Retail Players in INDIA. . all under one roof.Enclosure having different formats of in-store Variety of shops available to Shopping Malls retailers.

Apna Bazaar). Margin Free. Others Specialty Electronics Store Hypermarket (TBA) Store Hypermarket (Star India Bazaar) Store Hypermarket (TBA) Store stop) Supermarket .Retailer RPG Retail Piramal's Original formats Later Formats Supermarket (Foodworld) Hypermarket (Spencer's)Specialty Store (Health and Glow) Department Store Discount Store (TruMart) (Piramyd Megastore) Small (Shoppe) format outlets Supermarket(FoodBAZAR) Store Hypermarket (Big Bazaar) Mall (Central) Pantaloon Retail Department (Pantaloon) Department (shopper's K Raheja Group Specialty (Crossword) Department Tata/ Trent (Westside) Department Landmark Group (Lifestyle) Discount Store (Subhiksha. Supermarket (Nilgiri's).

Retailing formats in India

1.

Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, Pantaloon.

2.

Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

3.

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 goods.

4.

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc 5. Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.

6.

Hypermarts/Supermarkets:\

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

7.

Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

8.

MBO’s :

Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items.SPECIALITY STORES Food retail : Food dominates the shopping basket in India. the branded food industry is homing in on converting Indian consumers to branded food. which forms 44 per cent of the entire FMCG sales. .1 billion Indian foods industry. The US$ 6. is growing at 9 per cent and has set the growth agenda for modern trade formats.

is already a US$ 16.  Disney launched exclusive chains which stock character-based stationery. airtime and accessories -.7 billion business. the consumer electronics and appliance market is worth US$ 5.  Swiss kidswear brand Milou is collaborating with Tirupur-based Sreeja Hosieries.  International brand Zapp tied up with Raymond to foray into kids' apparel.  Sahara One Television has also signed a Memorandum of Understanding to source content from Spacetoon Media Group. the Versace of kids is coming to India.The mobile revolution: The retail market for mobile phones -. retailers are busy bonding--and branding:  Monalisa.  Turner International India Pvt Ltd. Kids retail: When it comes to Indian children.handset. In comparison.6 billion.  Global lifestyle brand Nautica is bringing Nautica Kids. will launch Cartoon Network Townsville and Planet POGO--two theme parks designed around its channels--in the National Capital Region. with a growth rate that is half of the mobile market. . Middle East's largest kids' entertainment brand for animation and live action content.  Pantaloon's joint venture with Gini & Jony will set up a retail chain to market kids' apparel. growing at over 20 per cent per year.

. the branded segment comprises US$ 701. stationary. tailored clothing. Punjab. while companies enjoy an average gross margin of about 10 per cent. aqua culture. outerwear. footwear. Industry experts say kids' retailing will touch annual growth of 30-35 per cent. Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing Committee (APMC) act this year. watches. 14 states. Toys. TV channels… the segment is growing rapidly at 10 per cent per annum. including Maharashtra. theme parks. which allows farmers to sell their produce directly to buyers offering them the best price.Leading the kids' retail revolution is the apparel business. which accounts for almost 80 per cent of the revenue. Agricultural retail: Agriculture across India is heralding the country's second Green Revolution. sportswear. floriculture. '02. cultivation of vegetables. development of seeds. with kids' clothing in India following international fashion trends. Margins are in the range of 20-25 per cent (for dealers and distributors). fragrance. mushroom under cultivated conditions and services related to agro and allied sectors are open to 100 per cent FDI through the automatic route. Agricultural sectors such as horticulture. pisciculture. eyewear.7 million of the total kids' apparel market-size of over US$ 3 billion. along the lines of the Model APMC Act. According to research firm KSA Technopak. animal husbandry.

foods-in-demand. With a US$ 5. PepsiCo--with agriculture exports worth US$ 40 million--also introduced farmers to high-yielding basmati rice. mangoes. agri retail and manufacturing. West Bengal and Maharashtra. to hire tractors and to pay their workers. It is also likely to press for the liberalisation of sectors like financial & legal services and retail. The largest-ever 150-member British business delegation in India committed investments in the areas of food processing. ITC built internet kiosks in rural villages so farmers can access latest information on weather.000 to lease land for vegetables. . current market prices. potatoes.6 billion. Besides a five-year program with the Punjab government to provide several hundred farmers with four million sweet-orange trees for its Tropicana juices by 2008. will annually pay farmers over US$ 30.For its e-Choupal scheme. multi-year investment in agriculture and retail. and barley for its Frito-Lay snacks. chilies. planning to become India's first large-scale exporter of produce. FieldFresh. International retailers : The Australian government's National Food Industry Strategy and Austrade initiated a test marketing food retail in India wherein 12 major Australian food producers have tied up with Indiabased distributor AB Mauri to sell their products directly at retail outlets. improved efficiency and new markets can benefit a large number of people. With 77 per cent of India's population relying on agriculture for a living. peanuts. Reliance Retail will establish links with farms on several thousand acres in Punjab. Export potential and a rapidly growing domestic demand for reliable produce from new supermarket chains is driving change. etc.

Super Markets can further be classified in to mini supermarkets typically 1. catering to varied shopper needs are termed as Supermarkets.US-based home delivery and logistics company.000 sq ft. a subsidiary of Patel Integrated Logistics. Specialised Transportation Inc. Tesco is sure to try again.000 sq ft and large supermarkets ranging from of 3. These are located in or near residential high streets. having a strong focus on food & grocery and personal sales. will enter the Indian market through a strategic alliance with Patel Retail. Wal-Mart has announced its plans for India in partnership with Bharti. These stores today contribute to 30% of all food & grocery organized retail sales. Among other big international players. and Carrefour too might finally find the right partner.500 sq ft to 5. . Supermarkets: Large self service outlets.000 sq ft to 2.

This is what everybody means when they say organized food retailing.Starbucks recently expressed their interest in entering India through the franchise route. and the very successful McDonald’s. Subway. they are undergoing rapid expansion. Kumar Starbucks recently expressed their interest in entering Indian company Like Tommy Hilfiger and Wal-Mart. in the next 3 years. McDonald’s has major expansion plans lined up. Hypermarket: . like their AmericanF&B counterparts Pizza Hut. They are so called pioneers in organized food retailing and go by the western model in look and feel and format. S. it plans to open another 100 outlets in cities across India. Franchise outlets: Like Tommy Hilfiger and Wal Mart.Supermarkets are relatively new entrants in the market. they are undergoing rapid expansion. S Kumar’s. other US retailers are firming up their India entry strategies and if they are already in. Fashion brands DKNY is also al set to foray into the Indian fashion Industry through a franchisee agreement with Indian company. other US retailers are firming up their India entry strategies and if they are already in. Fashion brand DKNY is also all set to foray into the Indian fashion Industry through a franchisee agreement with Indian company.

The specific features of a hypermarket are the wide range of goods offered. Over 300 malls are expected to be built over the next two years and most Indian cities with over a million populations will be exposed to this modern method of retailing.A very large commercial establishment that is a combination of departmental store and a supermarket. These Shopping Arcades tried to maximize on their store space and did not offer any areas for recreation and entertainment. most of which were small stores that promised bargains for their various wares. built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. quality display of goods on the shelves and complex systems providing for customers loyalty. It consist of dozens of thousands of items. In order to work with such an assortment it is necessary to group it into categories and sub categories that would unite goods according to this or that criteria. quality service. Hypermarket is known for a wide range of goods offered. Shopping Malls: The new shopping malls that have been expanding their footprint across Indian cities are well designed. while similar goods can be offered in several forms. These malls also known as Shopping Arcades offered only rows of shops. Shopping malls have existed in India since several decades but were designed and built to house several shops in a single facility. .

recreation. food and entertainment. Most malls also feature a multiplex cinema that offers entertainment to the visitors of the mall.The present day malls are a creation of the past few years post 2000. . Malls also have a large format store that serves as their anchor for shopping and a prominent restaurant that anchors the food needs of visitors. They are designed professionally using a lot of international experience and combine shopping with a lot of brand building. Finally the mall has large atria and open spaces to allow visitors and families to hang-out.

Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. and has been concentrated mainly in the metro cities. Most of the organized retailing in the country has just started recently. though they are mostly small. about 12 million. India also has the largest number of retailers. Retail business contributes around 10-11 per cent of GDP. This is despite the fact that India is one of the biggest markets.Organized Retail Sector Product Segments: The organized retail business in India is very small. Organized retail only accounts .

325 large department stores. especially in Tier II Cities. Bangalore and Kanpur. Reebok. Delhi. Consumer Durables and Books & Music.for 3% of the total retail industry as yet and is estimated to grow to $64 billion by the year 2015. Cities and metropolis in which retailing will show booming prospects include Mumbai. footwear is the highest category. the retailing space in the country will also rise by 15-20% by 2010. private consumption expenditure in India amounted to Rs 1. adds to this slice of the pie.690. In 2003-04. is pegged to rise. said Agarwal adding that the popular mode adopted for building shopping malls in these cities will be based on build. Nike etc. Chennai. Foreign Presence. shopping centre and multiplexes under construction To open 35 hypermarkets. 50 million sq ft of quality space under development 7 major cities to account for 41 million sq ft development 300 malls.000 crores (USD 375 billion) of which. especially through the franchisee route. Footwear is driven by the dominance of home –grown players like Liberty as well as the 15% market share that MNC retailer Bata Commands.g. Clothing. Adidas. Anil K Agarwal says:” The organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been projected for $17 billion by 2010-11. ASSOCHAM president. Kolkata. . retail sales constitute about 61% (USD 230 billion). followed by clothing. As a result. operate. The 4 major organized retail sectors are Food & Grocery.In terms of penetration by the organized retail sector. e. Franchisee activity in this category. lease and sell basis". 1500 supermarkets and over 10.000 new outlets To add US $ 10 billion of business to organized retail.

315 2.091 Organized retail The Four Large Segments: Food 391 1.924 5.624 -Chain 326 1.462 Stores 65 162 -Single Large Stores Clothing 1.075 2.024 Segments Other 1.478 8.266 293 590 Manufacture 315 852 r retailers 467 824 -Chain stores -Single Large Stores Consumer 359 822 durables 141 284 98 298 Manufacture 120 240 r retailers -Chain stores -Single Large Stores Book and 97 310 Music 54 202 -Chain 43 108 Stores -Single Large Stores 33% 35% 20% 16% 15% 22% 12% 18% 15% 25% 15% 26% 30% 20% .2004 2009 CAGR (%) 21% 15% 12% 18% Estim ated Growth in Organized Retail Large 1.645 Segments Non-store 239 422 Retailing Total 3.

Retail is amongst the fastest growing sectors in the country. . in terms of emerging markets potential in retail and is deemed a ‘Priority’ market for International retail. Indiaranks First. ahead of Russia.

Crossroads in Mumbai imparted some valuable lessons to their parent. did not see any logic to expand beyond the southern frontiers. that is now omnipresent in almost all formats right from small groceries to e-tailing. Nilgiris. the Piramyd . Pantaloon in the East and Crossroad in the West were the pioneers of the retail revolution in India. Pantaloon went to scale up and become bigger and bigger to form the Future Group.Major Industry Players Nanz in North India. Nilgiris in the South. Nanz faced several obstacles in their business and had to finally down their shutters. due to some strange reason.

Westside. The newcomers who are knocking at the gates are Reliance Retail. It came out with a public issue in 1991 and later changed their name to Pantaloon Fashions (India) Limited (PFIL). The first exclusive men’s store called Pantaloon Shoppe was inaugurated in 1992. The store was a success and recorded revenues of Rs . The big players in Indian retail landscape now are the Future Group. Bharti Walmart and Aditya Birla Trinethra. it had reached to a crucial number of 70. V++ Capital. V++ Media and V++ Logistics.7 million. V++ Space. The first departmental store called Pantaloons was opened in Kolkata in 1997 with an investment of Rs 0. Subiksha and RPG Spencer. 1 The V++ Group The V++ Group. V++ Brands. Shoppers Stop. who has since then gone on an expansion drive with other formats of retailing in different cities. we intend to do a brief profiling of the major players in order to understand the retail business in a better manner. The V++ Group started operations in the mid 1987s by incorporating the company as Manz Wear Private Limited. Pantaloons went for a franchisee route to expand the number of retail outlets and by 1995.Group. which was earlier known as PRIL (Pantaloon Retail India Limited) began as a trouser manufacturer in the mid 1980s. Here. The company went on to manufacture ready made trousers under the “Pantaloons” brand name. The V++ Group is divided into six verticals – V++ Retail.

5 million sq ft of retail space and over 100 stores across 25 cities in India. thereby turning the V++ Group into a US$7 billion company with over US$1 billion in profits by the year 2010. Kishore Biyani.100 million within the first year of operations. As of 2005. In 1999. RPG Spencer RPG’s Spencer presently has 125 stores across 25 cities covering a retail trading area of half a million square feet and with a clientele of 3 million customers a month.000 people and has a customer base of more than 120 million. called Dailies. It employs more than 12. . The success of Pantaloons departmental stores encouraged PRIL to come up with other retailing formats such as “Big Bazaar” to retail low cost general merchandising. 6. and “Food Bazaar” to retail food products. three supermarkets and 70 daily use outlets. Spencer's has a national footprint with seven hypermarkets. the company’s name was changed to Pantaloon Retail (India) Limited (PRIL). the promoter of the group who likes to address himself as “Chief Knowledge Officer” has plans to launch 18 formats and over 3. the V++ Group has 3.340 stores.

branded as Spencer's Super and the daily purchase 4. bakery and weekly top up shopping. fresh food. 8.000-sq ft Spencer's Daily for groceries.All the newly opened Spencer's stores stock every conceivable product that is required by a household on a daily basis. household items. Spencer's Hyper. fastmoving consumer goods.000-sq ft mini hyper stores. At Spencer's Daily shoppers can get fresh fruits. groceries. Bharti Wal-Mart . with regular offers and discounts.000-sq ft hypermarkets stocking over 25. chilled and frozen products. These are. vegetables.000sq ft to 15. the over 25. Spencer's outlets are divided in to three retail formats.000-sq ft to 7.000 items. The 8.

20.000 crore) from this business by 2015. This investment would be only for setting up front-end stores. Bharti’s plan is to invest $2. he added.) Ltd.5 billion (about Rs. are in the process of being worked out. A high-level team from Wal-Mart was visited India in the later part of February to work out the details of the back-end chain. including its joint venture with the world's largest retailer Wal-Mart. supply chain and cash-and-carry. The first retail outlet is expected to open somewhere in the month of August . 2007 envisaging an investment of $2. including logistics.Bharti Retail (Pvt. Wal-Mart would be involved in the back-end. The modalities for its back-end linkage.5 billion with expectation of revenue of $4. unveiled the roadmap for its retail venture on 19th February.5 billion by 2015 and open stores across all major cities. While Bharti would manage front-end of the retail venture. .

which would include hypermarkets.000 people. 9. However. A lurking fear of monopolistic regime in the retail sector is also enhancing their fears. They also expect Wal-Mart to take a tough stance on lowering prices and force farmers to sell their produce at lower rates. agriculturists. supermarkets and convenience stores and would provide employment to about 60.The JV was presently scouting for 10 million sq. politicians. of retail space. Both Bharti and Walmart are presently having a tough time in convincing the ministers. the NGOs and other pressure groups that their business model would serve to work in the best interests of all the stakeholders. Bharti is now conducting a massive consumer survey to take a final decision on branding and promotional campaign. Bharti and Wal-Mart have been facing stiff opposition from the left parties and other political outfits who fear that the entry of the Bentonville giant will make life difficult for the small grocers and create massive unemployment. ft. VISHAL RETAIL : . The company would open multi-format retail outlets in all cities with a population of about one million.

Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India.Vishal is one of fastest growing retailing groups in India. India’s first hyper-market has also been opened for the Indian consumer by Vishal. and can be catered to under one roof. The showrooms have over 70. The cost benefits that is derived from the large central purchase of goods and services is passed on to the consumer. Each store gives you international quality goods and prices hard to match. in 18 state across India. The group’s philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors. Its outlets cater to almost all price ranges. ft. It is covering about 1282000 sq. What started as a humble one store enterprise in 1986 in Kolkata(erstwhile. Company will come . The Vishal stores offer affordable family fashion at prices to suit every pocket. The group’s prime focus is on retailing. Company has already tied up for 5-lakh sq ft space and is looking for more.00 products range which fulfills all your household needs. Calcutta) is today a conglomerate encompassing 51 showrooms in 39 cities.

Currently.up with 32 new stores this year. Company is doing research on more formats. Apparel sales currently at 63% in the next 2-3 years should come down to 50% as the company is now also focusing on different segments. will go up to 25%. Contribution of apparels business at 53% may slightly come down to 50%. which in the next two to three years. Company is increasing its focus on the non-apparel and FMCG segment. it will have a pan-India set up. it has very little space in the south India. Company will venture wherever it gets real estate space. Eventually. The current share of FMCG at 15% could go up to 20-25%. Company is looking for opportunities of expansion in the South. Vishal can always sustain growth in this big market. With growth in volumes. the cost of sourcing will come down in the near future. . Company can sustain margins as it is going for backward integration. India is a big country and there is huge space for four-five big retail players. Currently manufacturing contributes 10% of the business.

THE GROWTH DRIVERS Drivers of Retail Industry • The Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age. .

• Plastic Revolution: Increasing use of credit cards for categories relating to Apparel. Now a customer can travel miles to reach a particular shop. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale.• Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. Consumer Durable Goods. DRIVERS FOR GROWTH: . if he or she sees value in shopping from a particular location. covering distances has become easier than before. • Covering distances has become easier: with increased automobile penetration and an overall improvement in the transportation infrastructure. • Urbanization: increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Food and Grocery etc.

Prominent ‘tier-II' cities and towns which are witnessing a pick-up in activity include Surat.Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. In addition. Bhubaneswar. Raheja. Varanasi and Ludhiana among others. Successful development of value based concepts as well as development of retail space in smaller cities and towns shall drive the organized retail into the next levels of cities. India is on the radar of Global Retailers and suppliers / brands world-wide are willing to partner with retailers here. ITC. Retail Space is no more a constraint for growth. The quantum of investments is likely to sky-rocket as the inherent attractiveness of the segment lures more and more investors to earn large profits. Bhopal. mobile phones. consumer durables. Vijaywada. petro-retailing efforts of petroleum giants scattered through out the country's landscape have also ensured that smaller towns are also exposed to modern retailing formats. Nasik. Murugappa & Piramal Groups etc and also foreign investors and private equity players are firming up plans to identify investment opportunities in the Indian retail sector. Dehra Dun. manufacturers and retailers of products such as personal computers. automobiles. Further. and over INR 200 billion by end of 2010. Reliance. With consumption in metros already being exploited. Stocks in the retail sector are also becoming increasingly attractive from an investor's point of view. . Coimbatore. Retailers have responded to this phenomenon by introducing contemporary retail formats such as hypermarkets and supermarkets in the new pockets of growth. large Indian corporate groups like Tata. Gorakhpur. Bombay Dyeing. Indore. Investments into the sector are estimated at INR 20 – 25 billion in the next 2-3 years. Vadodara. financial services etc are increasingly targeting consumers in tier II cities and towns.

On the supply side. Over the last few years. the ‘retail boom'. many international retailers have entered the Indian market on the strength of rising affluence levels of the young Indian population along with the heightened awareness of global brands and international shopping experiences and the increased availability of retail real estate pace. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. H&M. Tesco. Retailers like Wal-Mart. GROWING CONSUMER CLASS: Favorable demographic and psychographic changes relating to India's consumer class. 85% of which has so far been concentrated in the metros is beginning to percolate down to smaller cities and towns. Development of India as a sourcing hub shall further make India as an attractive retail opportunity for the global retailers. Thus. availability of increasing quality retail space. thereby. . wider availability of products and brand communication are some of the factors that are driving the retail in India. Karstadt-Quelle etc stepping up their sourcing requirements from India and moving from third-party buying offices to establishing their own wholly owned / wholly managed sourcing & buying offices shall further make India as an attractive retail opportunity for the global players. mall development activity in the small towns is also picking up at a rapid pace. GAP. creating quality space for retailers to fulfill their aggressive expansion plans. JC Penney. international exposure.

Age demographics 4. Indian consumer class can be classified according to the following criteria: 1. In India they do not have to face this dilemma largely because rapid urbanization. in line with trends in developed markets. manufacturers are beginning to acknowledge them as channel members to be partnered with for providing solutions to the end-consumer more effectively. Already.Manufacturers in industries such as FMCG. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. any number of opportunities are available . presence of large number of young population. Income 2. instead of viewing retailers with suspicion. Also. paints etc are waking up to the growing clout of the retailers as a shift in bargaining power from the former to the latter becomes more discernible. Socio-Economic status 3. consumer durables. a number of manufacturers in India. have set up dedicated units to service the retail channel. or as a ‘necessary evil' as was the case earlier. Geographical dispersion . increase in demand.

SWOT OF THE MARKET STRENGTH 1) Organized retailing at US$ 3.31 billion. . growing at 8%.

. 7) Paradigm shift in shopping experience for consumers pulling in more people. and have ventured into retail as their business extension. ft. retail space available. 8) Most of the entrants to organized retail come from 3 main categories. • • • Real Estate Developers Corporate Houses Manufacturers/Exporters WEAKNESSES 1) Shortage of quality retail spaces at affordable rates. 6) Almost 25 million sq. 5) Consumer spending increasing at 11% annually. 4) A Growing population will translate to move consumers. 3) Pattern of consumption changing along with shopping trends.2) 2nd largest contributor to GDP after agriculture at 20%. 2) Government regulations on development of real estate(Urban Land Ceiling Act) 3) Need to provide Value for Money-squeezing margins 4) Lack of industry status.

2) FDI restrictions in the retail sector. 3) Poor monsoons and low GDP Growth could affect consumer spending drastically.5) Retail revolution restricted to 250 million people due to monolithic urban-rural divide. 5) Availability of old industrial lands-prime real estate locked in sick industrial units. 7) Increase in use of credit cards THREATS: 1) Rising lease/rental costs affecting project viability. 6) Average grocery spends at 42% of monthly spends-presents a huge opportunity. 7) Lack of huge investments for expansion OPPORTUNITIES: 1) Increasing urban population-more participants in retail revolution. 3) Social factors like dual household income have enhanced spending power. . 2) Increase in consuming middle class population. 4) Spends moving towards lifestyle products and esteem enhancing products. 6) Footfalls not a clear indicator of sales as actual consumers lower in number. 4) Archaic labor laws are a hindrance to providing 24/7 shopping experience.

But retail management in the true sense (as retailing is known in the west) is a relatively new discipline in India. as in service.5) Personalized service offered by Mom-&-Pop stores. In retailing. 7) Differentiate taxation laws hindering expansion. It is unlike other forms of marketing and the traditional marketing rules do not apply. 6) Unavailability of qualified personnel to support exponential growth in retail. CHALLENGES Retailing in its traditional form has been existing in India for decades. .

Promotion. His shopping patterns need to be analyzed in detail.there is a fifth P added to the existing 4 of marketing. people is added which is critical. different from other Indian consumers. discount and collection schemes (say. a key to success for many retailers is the ability to attract customers by offering low price guarantee. Therefore the contact person (whom the Consumers interact with) becomes a doubly important entity. Price and place).Retailers need to conduct MRs and behavioral studies into the Indian psyche simply because he is so different from those in the west and in fact. the People. The following are the key challenges of retailing: • Large transactions: Retailers need to handle smaller transactions in large numbers and still be able to make money. They are critical to a service business like retailing both as employees who execute the business and the customers with whom retailers must interact. • Aggressive sales. .) and thus keep the enthusiasm going. • Indian consumer behaviors . in retailing a fifth P. The most important difference is that where marketing has the classic 4 Ps (Product. • Low price strategy: The Indian consumer being value-conscious. credit facilities.

this is not a difficult task. As somebody rightly pointed out. the poorer (but strong) unorganized cousins and of course.• Location: A prime location in the city/town so a big plus. India remains one of the last frontiers of modern retailing. the success of anyone foraying into the land of snake-charmers and maharajas ultimately depends on how well and in-depth understanding they have of the conditions. Benchmarking the best in the country and seeing oneself as to where exactly he wants to be in the complicated perceptual map would be a fine starter. Any retail chain needs to experiment and re-orient to cater to the local needs and preferences. Given that these chains come with huge asset bases and financing from their international operations. the people. While Indian markets still beckon a large retail chain. Conquering the retailing in India will be a major challenge. the supply Retailing in India chain dynamics. A wise retailing hawk would set up special cells. given the complications that the unorganized sector poses those of the supply chain and consumer behavior as well as the glaring complexities of such a vast a market with all kinds of consumer segments thrown in. committees to track retailing industry throughout the country. Things such as waiting and parking areas need to be taken care of. • Use of information technology (IT) in developing a supply chain and integrating all the retailing processes from procurement to after sales. the local Gods! Fraud in retail is expensive We feel that fraud in going to be one of the retail sector’s primary challenges in the future. .

A bulk of its population. with 29 states and 18 officials’ languages. We believe that the implications and size of this loss will be more significant as retailers continue to scale up and increase product lines. lives in rural retail potential We feel that private logistics companies offering specialized services.1%. In financial terms. vendor frauds and inaccuracy in supervision and administration costs the Indian retail industry about Rs 550-600 crores every year. refrigerated transport and ware house facilities across the country. .Fraud and theft. cost of this fraud constitutes about 2% of the organized retail sector’s revenues. POS systems and anti shoplifting systems for greater control over fraud and theft. including employee pilferage. This is despite the fact that most large modern format retailers use standard security features such as CCTV’s. shoplifting. along with timely distribution of supplies to retail outlets will. 66. Improvement in infrastructure and logistics needed India is a large and highly fragmented country.

Very busy with high customer traffic. .LOCATION PLANNING TYPES OF LOCATIONS A) High – Street Location: a.

d. This will help in an overall decline in logistics a cost which is currently 10-12% of total GDP. c.In contrast to the global standards. or lack of it. the average load carried by trucks in India around 7 tons_ is very low.000 MW of power needs to be added every year for next decade. with a deteriorating railway system and a limited highway network . Transport is a major concern.a. Infrastructure is the weakest link in India’s path to progress and there is urgent need to address issues plaguing this area. necessitates quadrupling of airport capacities. 10. estimated at 20% p. Has an array of retail stores in small sizes. for instance. High real-estate rentals. However. areas.000 Passenger car units (PCU’s) far exceeds the highway capacity of 15. An indicator of the urgent need for highway development. for next two years. The lack of quality infrastructure across the country and a nonexistent distribution sector results in inefficient logistics systems. is a major hindrance for retailers in India. Brigade Road in Bangalore . Ports will witness 38% increase in tonnage in next -3 years and hence.000 PCU’s. Urbanization is driving an increasing need to upgrade or create infrastructure facilities. port infrastructure cannot be ignored. Distribution. Growth in air passenger traffic. Eg: Linking road in Bandra.b. Has stores that are generally found in clusters based on product categories. the Indian Government is presently investing heavily in the state highway system. is the fact that average daily traffic volume on highways of 39. The lack of adequate infrastructure makes it virtually impossible to reach this virtually untapped market.

and location. c. d. Low real-estate rentals. c.location. the next step in formulating the retail business plan is to select a site for the store. b . (C) Shopping Centre/Mall Location a .Medium to High rental cost. May not be a commercial retail area at all. location. Eg: Phoenix Mills Compounds and Shopper’s Stop in Mumbai.Has a clean Environment. d . Has a designated parking area. May have a large parking area. Eg: DLF Mall in Delhi." . Does not have a high footfall rate (customer traffic needs to be pulled I through the store’s marketing efforts or products/services/process differentiations) b. store design and layout: Once a geographical market has been chosen. Crossroads in Mumbai Location.Has an Existing mall traffic.(B) Destination / Freestanding Location a. The importance of this decision is summarized by a favorite saying of retailers: "There are three vitally important things in retailing .

but mistakes made in the area of store design and layouts are usually quite costly to correct. fixtures. Retailers can get specialized assistance from merchandise suppliers. psychology. Some bad decisions made in the planning stage can be corrected. note the positive and negative aspects of each. Display windows. but it is so important that the successful retailer must give it top priority. analysis of trends is important. and maximizing profit per square foot. It is a function often neglected under the pressure of day-to-day business activity. In planning a new store or remodeling of an old one. Once again. The retailer draws on knowledge from such areas as marketing. and store planning consultants. lighting. and storage are examples of areas covered in this part of the retail business plan. No location is static. there is plenty of room for creativity. it is either improving or declining in such things as traffic flow and potential market area. customer traffic flow throughout the store. Planning a retail business has several advantages. Store design and layout of the store's interior and exterior help determine the store's image and character. but also anticipates future contingencies Retailing is a challenging and dynamic field. This part of the plan takes a lot of thought and consideration. From the field of management. . A well thought out plan not only makes the best of the present. local architects. finance. Store layout involves such considerations as allocation of space. accounting and management. we learn that planning is one of the most important functions of the retailer.In assessing the desirability of various available locations.

A workable retail business plan should be detailed. By gathering and synthesizing the relevant information into a retail business plan. specific. growth. or why it should be done.Retailers must decide how to make the best use of limited resources. retailers do not know what to do. policies. Some . Planning involves selecting objectives and developing specific program’s. and procedures for achieving them. and inventories. the retailer can make better decisions. there is no predetermined course of action. and development of a good store image. where to do. funds. the retailer plans for the future. Steps in formulating the retail business plan: Setting objectives- Planning begins with objectives. a major advantage of planning is that it forces the retailer to put ideas in writing. They waste their own energies and the resources of the store. Indeed. Careful planning at this time can greatly enhance a store's chances of success. high return on investment. and in writing. Stores can have many different objectives: survival. such as people. In order to use these resources in the most productive way. Without planning. The most important planning occurs before a retail store even opens for business. market share increase. and with out some predetermined course of action.

Do not lose sight of these objectives once they are formulated. if the store is to be a "good citizen" of its business community Objectives are difficult to apply to real situations and decisions if they are stated in vague terms. In fact. or if appropriate. however. The retailer must make a sales forecast. must often be given consideration. Social concerns. They must be supported with concrete plans that are specific for reaching these goals. This information can be invaluable to the manager in the initial planning stages.Financial statistics on the type of business under consideration is often available from trade associations. too. is a primary objective for any retail organization. of course. Schedule quarterly. In forming the retail business plan. calculate a break- . Goals or objectives such as "to increase sales by 18 per cent this year" or "to break even in the first year of operation" are examples of clearly defined and measurable objectives.objectives are more important than others. An objective should establish a measurable goal . Remember to be customeroriented while setting objectives. monthly reviews of progress. it is one of the keys to successful retailing. inadequate financial planning is a frequent cause of store failure. be as specific as possible. Revise and update your objectives periodically as well. Financial planning: Financial planning is an important part of the retail business plan.a yardstick to compare results with efforts. Profit.

the shoe business. At least as important as knowing the strengths of the business is analyzing its weaknesses. a retailer can maximize the use of all available assets and can limit or eliminate the handicaps imposed by the inherent weakness of these resources. and cash. accounts receivable. equipment and fixtures. and estimate the capital requirements of the business. Often. say. A retailer who is weak in the areas of financial planning and control needs to work closely with a good accountant. Awareness of weak areas is the first step in overcoming them. Asset planning. and so on. Even during the planning stage. relatives. Experienced. Assessing available resources: What are the strengths and weakness of the business? By assessing these factors. an accountant can be helpful in setting up an appropriate bookkeeping system.banks. another essential part of financial planning. A retailer with general retailing experience but little knowledge of. Sufficient working capital to meet the costs of doing business the first year is another. creative management is a strong resource. Additional training and outside reading are other answers to many weak areas. Some weaknesses can be overcome by hiring an outside expert in areas in which the retailer's knowledge and experience are limited. . could benefit greatly by hiring experienced shoe salespeople if she is planning to open a shoe store.even point. involves inventory. these assets must be financed in part with funds obtained from outside sources .

Assessing market potential

What type of customer, or what segment of the market, does the store cater to? Is there enough demand for the products to provide sufficient sales volume? These are some of the main questions the retailer tries to answer by assessing market potential.

The key factors in market assessment are: first, the number of people living in the trade area, and second, the buying power of these people. An extreme example of poor market assessment would be trying to sell expensive fur coats in a poor mining town. Even the age distribution of the population can affect a store's market potential.

Assessing the competitive situation

Competition is a good thing. It leads to better products and services at lower prices. It can inspire a retailer to do a better job. However, numerous and / or aggressive competitors are costly to the retailer in many ways. Price wars eat away profits. Too many similar stores serving too few consumers cause the sales volume of each store to suffer.

For some types of stores, however, the best strategy can be to locate as close as possible to the competition. Competing stores located in the same area may increase customer traffic. Some cities, for example, have an area with many antique shops. Customers are drawn to the area because of this convenience, and each store's traffic helps the other stores. Retailers should not

be afraid of competition, but they should try to find a market where there is an unfilled demand for the type of store they are planning.

Other assessments:

Local laws, tax rates, and the labour force are other areas that can affect the retail store. The planner should investigate these uncontrollable environmental factors.

In this preliminary work, be aware of trends as well. For example, demand for the products may look very promising in a certain area, but the population of this area might be declining. On the other hand, an area with slightly lower market potential at present could be growing very fast and provide a better long-run market for a particular store. These assessments are often difficult to make, but the effort put into planning at this stage will pay off handsomely when store operations get under way.

Location, store design and layout:

Once a geographical market has been chosen, the next step in formulating the retail business plan is to select a site for the store. The importance of this decision is summarized by a favorite

saying of retailers: "There are three vitally important things in retailing - location, location, and location."

In assessing the desirability of various available locations, note the positive and negative aspects of each. Once again, analysis of trends is important. No location is static; it is either improving or declining in such things as traffic flow and potential market area. Store design and layout of the store's interior and exterior help determine the store's image and character. In planning a new store or remodeling of an old one, there is plenty of room for creativity. This part of the plan takes a lot of thought and consideration. Some bad decisions made in the planning stage can be corrected, but mistakes made in the area of store design and layout are usually quite costly to correct.

Retailers can get specialized assistance from merchandise suppliers, local architects, and store planning consultants. Display windows, fixtures, lighting, and storage are examples of areas covered in this part of the retail business plan. Store layout involves such considerations as allocation of space, customer traffic flow throughout the store, and maximizing profit per square foot.

Organization and supervision

The retailer's professionalism and attitudes set the tone for employees' attitudes and performance. leading. Labour is organized and divided. Because leadership means understanding people. while at the same time accomplishing the goals of the organization. materials. Controlling is the follow-up function of retail management. it is one of the most creative and challenging aspects of a retailer's job. Leadership means motivating employees to achieve their maximum potential.Planning is an example of a management function. By organizing. staffing. Other management functions performed by the retailer are organizing. Every retailer is in a leadership position. It is a vitally important function because the employees of a store represent that store to the public. and other resources to get a job done. People can really be the most important asset of a retail firm. the retailer establishes relationships among people. Staffing entails the recruitment and selection of employees. and responsibility is delegated. and controlling. Actual performance is compared with planned performance to spot and evaluate deviations. Knowledge on buying .

Pricing The goals of retail pricing are fourfold. the goods must sell at a satisfactory rate. a desired profit must be made. A balance between meeting customers' needs and high inventory carrying costs must be found. the beginning inventory figure can be calculated. Third. First. . inventory costs and expenses must be covered.For established retail operations. these past data are not available. and at the right price for the customer. an understanding of the target customer's shopping habits and motivations is helpful. a unit control system must be set up to keep track of the stock. Once the inventory has been obtained. if a sales forecast and desired inventory turnover rate have been determined. past sales data are very helpful in knowing how much to buy. Second. Successful retailing involves having the right merchandise in the right place. at the right time. and fourth. In the absence of this information. For a new retail business. prices should be fair to customers. There are different pricing strategies for different types of stores. Information from suppliers can provide valuable input for the store buyer. Pricing in retailing is both a science and an art. However. Information from store records is a valuable aid in knowing what to buy. from the discount store to the exclusive shop with quality merchandise and expanded customer services. Knowing how much to buy goes hand in hand with knowing what to buy.

Advertising and promotion A store's location. . such as generation of immediate sales. attracting customers to the store. The content of an advertisement should focus on benefits desired by the target customers. naturally.Retailers have special terms to describe various pricing operations. and packaging. and psychological pricing. and product lines affect its overall image. and to persuade the customer to take action to satisfy the stimulated want or need. layout. Pricing is. By giving careful consideration to defining who the advertisement is directed at (the "target customer"). Sales promotions can have various objectives. Besides advertising. sales promotion. markdown. retailers can get more mileage out of advertising spend. closely related to financial planning. Advertising is another key element of the store's image in the minds of customers. Sales promotion and display techniques are a major promotional tool. The objective of an advertisement is to stimulate the customer to want what the retailer has to offer. such as markup. Information channels beyond the direct control of the retailer are publicity and word-of-mouth communication. retailers send messages to customers through personal selling. design. Advertising can be thought of as communicating with customers. and building goodwill.

Interior displays can be informative. Many retailers are surprised to learn that monetary compensation. the salesperson is the representative of the store to its customers. and to project the image of the store. Good advertising and promotion can get people into a store. Other sales promotion strategies include special events. honesty. sales.Window displays can serve to attract customers. although important to employees. But most important. Services . In addition. coupons. Because window displays are so visible. and trading stamps. they can enhance the store's image. Employee selection and training The salesperson is a communicator: This person translates product features into benefits and satisfactions for the customer. and creative input they deserve. they should be given the attention. Good salespeople and good value keep them coming back. care. security. or can suggest uses of a product. is usually not their most important concern. The importance of employee selection and training cannot be overstated. and opportunity are often more important than pay. Fairness. to show customers the kind of merchandise the store carries. The unique quality that distinguishes personal selling from other promotion activities is the opportunity for feedback between customer and salesperson. can stimulate impulse buying.

services. and fair values. deserve the ongoing attention of the manager. and ultimately. They are the tools a manager uses to control inventory. and give evidence about the quality of management decisions. As part of the retail business plan. Financial statements. More and better information is available to the retailer now than ever before. profits. Financial planning in the form of budgets helps retailers to spot problems before they occur. employee attitudes. They tell how well a business is doing. Services. This means that better and faster decisions can be made. and handling of credit policies and customer complaints. . Computers offer speed and accuracy of information processing that is especially helpful in inventory management. This attitude is expressed to the customer through shopping conveniences. Accounting and financial management Information and control play an important role in the internal operation of a retail business. because of computers. Information One information tool in particular has been a real boon to retailers. expenses. decisions must be made about the types of services to be offered. Good records are the basis for guiding and controlling a retail business. such as balance sheets and income statements.An enlightened retailer realizes that the customer is the pivot around which all retailing activities revolve. and that is the computer. are summaries of the financial strength and profitability of the retail business.

Information is important for intelligent decision-making. marketing research. promotion and distribution. Much of this information evolves from basic store records or is provided by a computer system. Another source of information for the retailer is marketing research. . such as the market assessment. Research can also help answer questions in such areas as pricing. Most of the research involved in formulating the retail business plan is in fact.

Technology in Retail .

• Internet Internet is also rapidly evolving as a customer interface. which makes the process very fast. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories. All that the consumer has to do is to pay for the goods. • Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. removing the need of a consumer physically visiting the store. a recent development in this area. Electronic cheque conversion. the items in the cart are hit with laser beams and scanned. processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. having digitally captured and stored the image of the cheque. Customer Interfacing Systems • Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item. use pre-stored data to calculate the cost and generate the total bill for a client. Rather than manually process a cheque.Over the years as the consumer demand increased and the retailers geared up to meet this increase. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. . the retailer voids it and hands it back to the consumer along with a receipt. In a matter of seconds. technology evolved rapidly to support this growth.

They enable consolidation of activities such as long term budgeting. These APS packages complement existing (but often limited) ERP packages. . • CRM Systems The rise of loyalty programs. preventing stock-outs and thus reducing his costs. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. An integrated supply chain helps the retailer in maintaining his stocks. along with the various available CRM (Customer Relationship Management) Systems. all the way from raw material supplier’s right through to the retail shelf. getting his supplies on time. • Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain. mail order and the Internet has provided retailers with real access to consumer data. This. while servicing the customer better. front and back office store systems and merchandising. allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. monthly forecasting.• ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution.

Manugistics. distributors and retailers and considering APS packages such as those from i2. . software packages are helping retailers not only in their location decisions but in decisions regarding store sizing and floor-spaces as well. The SPACEMAN Store Suit from AC Neilsen and Modal CAD are example of products helping in modeling a retail store design. Today. Strategic Decision Support Systems • Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. MerciaLincs and Stirling-Douglas. • Visual Merchandising The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager. Bann. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options.Leading manufactures.

Investment Opportunities • Potential For Investment: The total estimated Investment Opportunity in the retail sector is around US$ 5-6 Billion in the Next five years. Delhi. • Location: with modern retail formats having made their foray into the top cities namely Hyderabad. Pune. Coimbatore. Mumbai. • Sectors with High Growth Potential: Certain segments that promise a high growth are      Food and Grocery Clothing Furniture and Fixtures Pharmacy Durables. Nagpur there exists tremendous potential in two tier towns over the next 5 years. Ahmedabad. Footwear & Leather. Chennai. Bangalore. Watch & Jewellery • Fastest Growing Formats: Some of the formats that offer good growth potential are: o Speciality and Super Market Hyper Market Discount stores Department Stores Convenience Stores and E-Retailing     .

• Wholesale Trading: wholesale trading also holds huge potential for growth. • Rural Retail: Retail sector offers opportunities for exploration and investment in rural areas. ITC launched the country's first rural mall ' Chaupal Sagar'. Other corporate bodies include Escorts and Tata Chemicals (with Tata Kisan Sansar) setting up agri-stores to provide products/services targeted at the farmer in order to tap the vast rural market. There has been yet another initiative by the DCM Sriram Group called the ' Hariyali Bazaar’ that has initially started off by providing farm related inputs and services but plans to introduce the complete shopping basket in due course. India's largely rural population has caught the eye of retailers looking for new areas of growth.• Supply Chain Infrastructure: Supply chain infrastructure in terms of cold chain and Logistics. German giant Metro AG and South African Shoprite Holdings have already made headway in this segment by setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai respectively. offering a diverse product range from FMCG to electronics appliance to automobiles. These new-format cash-and-carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for all their needs. • Cheap Consumer Credit . with Corporates and Entrepreneurs having made a foray in the past. attempting to provide farmers a one-stop destination for all of their needs.

Better lifestyle Greater level of wages paid by international players usually More product variety Newer product categories Economies of scale to help lower consumer price.Benefits of opening the Retail sector Improve competition Develop the market: Greater level of exports due to increased sourcing by major players Sourcing by Wal-Mart from China improved multifold after FDI permitted in China Similar increase in sourcing observed for Metro in India Provides access to global markets for Indian producers. Investment in technology Cold storage chains solves the perennial problem of wastage. Increased purchasing capacity of consumers Manpower and skill development through retail training and Greater managerial talent inflow from other countries . Greater investment in the food processing sector technology Better operations in production cycle and distribution.

RESEARCH METHODOLOGY .

• What are the factors affects for the purchase? Research Design: Descriptive research design will be used. scheme and location for retail purchase. ambience. service. • To study the preference given by consumers in term of quality.Objectives of study • The overall purpose of this endeavor is to investigate empirically customers’ preference towards exclusive and multi brand retail outlets and to determine the factors that influence the satisfaction level of customers’ in retail sector especially in GORAKHPUR city. • • • Type: Descriptive Study Scope: combination of theoretical study as well as Statistical Study Environment: Field Research . • This study is also aimed at finding out the relation between major demographic variables and satisfaction level of customers’ and preference of retail formats.

Data Analysis: Data will be analyzed with the help of certain statistical tools. journals. As well as unstructured observation will also come in use at some part (topic) of study.Survey of Customers in GORAKHPUR. It will be collected with the help of Questionnaire Method and Survey Research. Sample size: 50 consumers from GORAKHPUR city. Questionnaire method 2. Significance of the Study: • To know the awareness of people about different brands of retail sector. Secondary Data .It will be collected with the help of Internet. articles of newspapers & magazines and research papers related to booming organized retail sector. books. Method of observation Sampling Design: • • • • Population: Consumers of GORAKHPUR city Survey area: Consumer located in different area of GORAKHPUR city Sampling method: Non-Probability Convenient sampling plan. 1.Data Sources: Primary Data . .

Delivery Method: Two hard copies in form of booklets and two softcopies in form of CDs.• Result will be the knowledge about customer’s preference towards exclusive and multibrand retail outlet that will be helpful to find out the factors that influence the satisfaction level of customer. • • First copy of project report will be submitted to project guide. Second copy is participant’s own copy. education and choice of people for different types of product. The study was limited to only in GORAKHPUR city. Limitations of the Study: • • • The present study is limited to the growth of retail sector in india only. The bias of respondents while responding cannot be eliminated. . income. • It will be helpful to know the connection between demographic factors of consumer like age.

.RESEARCH ANALYSIS This research analysis is based on the answers given by the sample customers of Gorakhpur city in the above given consumer survey questionnaire.

.e. 70%) were able to do shopping between Rs. What is your monthly shopping budget? 0-2 K 2-5 K 5-10K 10-20 K 20-50K >50k 35 10 4 1 0 0 0% 8% 20% 2% 0% 0-2 K 2-5 K 5-10K 10-20 K 20-50K 70% >50k InterpretationThe below given was the interpretation of the average monthly shopping budget for the sample size in the project survey. In the sample size most of the people (i.1. 0-2000.

Which retail chains do you visit often? . Which retail chains did you visit? Spencer V++ Sahara Vishal Mega mart Any other 15 3 1 15 16 16 15 3 1 15 InterpretationThe store location. The Vishal Mega Mart is also famous because of its reach in the various areas of the city. discount schemes and offers.2. its customer services. attractive offers and discounts and its very good promotional and marketing activities. Spencer & Vishal mega mart of future group in Gorakhpur is very well known brand among the people of sample because of it’s pricing. its quality are the important factors for the awareness of the any retailing company or brand but apart from all these the most important thing which influence the awareness of any particular brand is it’s advertising and other promotional activities. 3.

Vishal Mega Mart & Spenser are also giving attractive discount on formal wear so it is also known for good footfall. Which retail chain did you like most? . shopping comfort and good customer services.Spencer V++ Sahara Vishal Mega mart Any other 12 3 1 13 21 24% 42% Spencer V++ 6% 2% 26% Sahara Vishal Mega mart Any other InterpretationBecause of it’s attractive pricing and good schemes and offers people like to visit other retail shop most often. 4. Sahara & V++ do not have discount offers and schemes but it still likes to some of people in sample size because of its ambience.

Sahara &V++ do not have discount offers and schemes but it still likes of some of people in sample size because of its shopping comfort and good customer services. 5. Why did you like that particular retail chain? . Vishal Mega Mart & Spencer are also giving attractive discount on formal wear so it is also known for good footfall.Spencer V++ Sahara Vishal Mega mart Any other 14 2 1 14 19 28% 38% Spencer V++ Sahara 4% 2% 28% Vishal Mega mart Any other InterpretationBecause of it’s attractive pricing and good schemes and offers people like to visit other retail store most often.

After that they also go there for the quality experience. How much time do you spend in the retail chain on every visit? . They want to get well treated by the sales persons of the stores. 6. Ambience came in last for all of them. Thereafter they are also looking for good customer services. attractive pricing and for their discount schemes and free offers.Attractive Prices Wide range of choices Discount Schemes Free Offers Customer Service Any Other 5 17 8 6 10 4 8% 20% 10% 34% 12% 16% Attractive Prices Free Offers Wide range of choices Customer Service Discount Schemes Any Other InterpretationThe consumers of sample size were visiting the big retail outlets most because of their wide range of choice. The location of the store is also a big concern for the consumers.

They are always hurrying in shopping. The chart showing that 36% people has given 30 minutes for shopping from retail store.0-30 Minutes 30-60 Minutes 1-2 Hour 2-3 Hours 3-4 Hours 4-5 Hours <5 Hours 18 20 10 2 0 0 0 0% 4% 20% 0% 0% 36% 0-30 Minutes 30-60 Minutes 1-2 Hour 2-3 Hours 3-4 Hours 4-5 Hours <5 Hours 40% InterpretationThe above pie charts we have find that most of the people have no time for shopping. The emergence of retail chains will create unemployment problems: . 7.

The emergence of retail chains will destroy social harmony: Strongly Agree 0 .Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree 2 4 15 20 9 18% 4% 8% 30% 40% Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree InterpretationAs we have seen the pie chart showing 40% people are disagree from the question that emergence of retail chains will create unemployment problems. They think that emergence of retail chain increases the employment and Give broader chance for growth in this sector. 8.

Agree Neither Agree Nor Disagree Disagree Strongly Disagree 4 20 15 11 22% 0% 8% 40% 30% Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree Interpretationthe pie chart showing no of the peoples have majority to saying that emergence of retail chain will not destroy the social harmony. The emergence of retail chains will cause monopolistic control over prices: . they think that the growing sector of retail chains improve the quality of services & goods and also play a important role for Indian market so how can they destroy the social harmony. 9.

FDI in Retail Sector will contribute to the Growth Momentum: Strongly Agree 2 .and 6% people are strongly agree and saying that the emergence of retail chains will cause the monopolistic control over prices because emergence of retail chain increases the possibility of collusion so it increases the monopolistic control over the prices. 10.Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree 3 7 10 20 10 20% 6% 14% 20% 40% Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree Interpretationwhen we ask this question to the people 20% people disagree .

Entry of foreign players must be gradual and social safeguards so that the effects of the labor dislocation can be analyzed & policy fine-tuned. Conclusion The consumer’s preferences are changing rapidily and becoming highly diversified. The most of the consumer’s want to .Agree Neither Agree Nor Disagree Disagree Strongly Disagree 16 20 10 2 4% 20% 4% 32% 40% Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree InterpretationThe pie chart showing that 40% peoples have neither neither agrees nor disagrees from this question. because of FDI (foreign direct investment). It is difficult for the retail stores to satisfy all the needs of the customers. But 32% peoples are agree and 4% peoples are strongly agree.

Because of competitions in the market the branded formals are also became cheaper so the younger generation prefers to purchase from the retail outlets. In the case of other items like wristwatches. good schemes. As a result. Big Retail store has a capacity for satisfying the highly diverse needs of the Indian population. mobiles. Only the big retail chains are able to satisfy all these needs of the new age consumers where as there is still some consumers mostly of the old age are willing to purchase from the local kirana store. Please let us know your spontaneous response to the questions that pertain to your shopping experience in Retail Chains. credit facility and offers on every purchases and a shopping comfort as well. branded jewelry. APPENDIX CONSUMER SURVEY QUESTIONNAIRE RETAIL CHAINS The objective of this survey is to collect tangible information about shopping in Retail Chains. Because the small retail stores play also very vital role in development of the country as well as to the society. Some of them have perception that these big stores are too costly to afford and some of them are not able to make purchases in a bulk so they do not want to waste their time to go especially in the big store for 2-3 items purchase. This questionnaire is being administered to people like you who have visited and bought products in Retail Chains. All information provided by you shall be kept confidential and we shall only be publishing the outcomes. . gift items and other. we can say that the big retail stores should co-exist with small retail store.get some attractive prices. Please provide us your unbiased and frank opinions. they prefer to take it from where they are getting cheap prices. after sales services and the goodwill of the store. Those who are able to purchase their needs and want for a month in a bulk prefer to go to the retail chains. After studying the customer survey questionnaire statistically and theoretically we are trying to observing the consumer’s mood and their preferences.

Which retail chains do you visit often? Spencer V++ Sahara Vishal Mega mart Any other (Please specify) ________________________________ 4. What is your monthly shopping budget? 0-2K 2-5K 5-10K 10-20K 20-50K >50K 2.1. Which retail chain did you like most? Spencer V++ Sahara . Which retail chains did you visit? Spencer V++ Sahara Vishal Mega mart Any other (Please specify) ________________________________ 3.

Vishal Mega mart Any other (Please specify) ________________________________ 5. Which products do you normally buy from retail chains? _______________________________________ _______________________________________ Vishal Megamart Westsid e Sahara Other . Why did you like that particular retail chain? Attractive Prices Wide range of choices Discount Schemes Free Offers Customer Service Any Other (Please Specify) ___________________________________ 6. Mark on a scale of -3 to +3 your perceptions about your shopping experience in the following retail chains (where -3 indicates inferior and + 3 indicates superior) : Feature Spence r Attractive Prices Range of Choices Price Discounts Freebies Salespeople Behavior Parking Facilities Convenience Home Delivery 7.

Why do you like to buy from local grocery store? _______________________________________ _______________________________________ _______________________________________ _______________________________________ 10._______________________________________ _______________________________________ 8. Which products do you normally buy from your local grocery store? _______________________________________ _______________________________________ _______________________________________ _______________________________________ 9. The emergence of retail chains will create unemployment problems: Strongly Agree Disagree Agree Neither Agree Nor Disagree Disagree Strongly . How much time do you spend in the retail chain on every visit? 0-30 Minutes 3-4 Hours 30-60 Minutes 4-5 Hours 1-2 Hour <5 Hours 2-3 Hours 11.

Age: ______________________________________________________ 15-20 40-50 3. The emergence of retail chains will cause monopolistic control over prices: Strongly Agree Disagree Agree Neither Agree Nor Disagree Disagree Strongly 14. Occupation: Student 20-30 50 & above Govt. FDI in Retail Sector will contribute to the Growth Momentum: Strongly Agree Disagree. Name: 2. Agree Neither Agree Nor Disagree Disagree Strongly Demographics 1. The emergence of retail chains will destroy social harmony: Strongly Agree Disagree Agree Neither Agree nor Disagree Disagree Strongly 13.12. Employee Private Employee 30-40 Businessman Any other (Pls specify) _______________ .

indiainfoline.4.fashion2fibre.indiabiznews.com .com www. Number of Family Dependants: Nil Any other (Pls specify) 7. Education: Student MBA Post-Graduate Any other (Pls specify) ___________________ One Two Five _____________________ 6.com www. Income group: 5k-10k 40k-50k 10k-20k 50k & above Graduate 20k-30k 30k-40k 5. Telephone Number / E-mail:___________________________________________ ________________________________ Thank You______________________________ References Web Sites and Search Engines • • • • www.com www.equitymaster.

com www.economywatch.rediff.• • • www.com Newspapers • • • • • The Times Of India The Indian Express The Economic Times Financial Express Business Line Books and Magazines • • • Business World The Indian Dream Business & Economy .google.com www.

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