Professional Documents
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(2017 – 2020)
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time before.
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DATE:
OMER SIDDIQI
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Over the last few decades retailers have realized the importance of store design in the retail
outlets. In the past, the stores were simple and small and the customers too didn’t expect
much from their experience in the stores but with time and rise in competition there has
been a change in the way retail stores are designed. Customer is king and they will make or
break a business of a retailer. Therefore, more emphasis has been laid on the design of
stores and every little aspect ranging from store lighting, temperature, fixtures, floor layout,
displays, among other things have been given prime importance. With the market getting
diluted by the day, stores are giving more and more importance on these aspects and a
prime example of a retailer using these aspects as rightly as possible is Ratnadeep. The
following research has been carried out with Ratnadeep in mind and a total of 100 members
questionnaire will be used to gather primary data. For deep understanding factor analysis
will be used.
Key Words: Store design, Floor layout, Display, Lighting, Factor analysis, Ratnadeep
Acknowledgement
The Project work was a wonderful opportunity for me to connect my classroom learning
My foremost gratitude goes to my parents Mr. Tarek Siddiqi & Mrs. Asma Arshiya who
have been teaching me lessons of life since the day I opened my eyes. They are the one
who taught me to have open mind towards learning and made my education their top most
priority.
I would like to acknowledge the support I received from each and every member of
I also express my gratitude to all members of erudite faculty of EThames Degree College,
Before I finish, I would like to offer my gratitude towards my mentor Ms. Aishwarya S
Ray, Assistant Professor– Marketing, EThames Degree College, Hyderabad for her
Contents Page
Numbers
1. List of Tables i
2. List of Figures ii
3. Introduction 1
4. Literature Review 5
5. Company Profile 17
6. Research Objective 23
7. Research Methodology 24
11. References 42
Contents Page
Numbers
1. Reliability Statistics 26
3. Communalities 29
i
List of Figures
1. FMCG Statistics 3
ii
Introduction
Over the centuries humans have come a long way from the barter system to the current state
of retailing. The whole dynamics have changed. The stores are not just a place of storage of
day to day items. They are now a major participant in the customer experience. It is
precisely due to this reason that the retailers have started to give the much due importance
to store design.
With the advent of online retailing over the past two decades the landscape has changed.
Not only are the retailers competing over each other but also with online portals. With
numerous advantages the online portals offer, the retailers are trying to find unique points
of interest that can make customers flock to their stores instead of logging online and
buying goods.
Here is where store design has come into limelight. The way the stores are designed plays a
major role in retaining customers and also in how often the customers would prefer to visit
the store again instead of opting for other retailers. Therefore, store design is now one of
the most important aspect of retailing and this project will aim to explore the determinants
of store design.
Customer experience is directly connected to customer loyalty and history is evidence that
no business can thrive without satisfied and loyal customers. It is said that a satisfied
customer may or may not result in a loyal customer but customer loyalty cannot exist
design.
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In India, the retail industry has developed from single small stores to multi store outlets and
today there are major players on the national level with stores in almost all tier 1, tier 2 and
tier 3 cities providing best in class services in order to retain as much customers as possible
Retailers are of many kinds. The scope is monumental and therefore to bring things to a
smaller and easier understanding we will put in focus fast moving consumer goods stores
specifically Ratnadeep. Brands like Big Bazaar, D-Mart, Spar, Spencer, Metro have
become household names in India with their USP being stores with almost everything a
consumer might need under one roof. These departmental stores are big in size and have
several branches in each city. Ratnadeep operates similarly but its operations are currently
Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy.
There are three main segments in the sector – food and beverages which accounts for 19 per
cent of the sector, healthcare which accounts for 31 per cent and household and personal
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum,
which is likely to boost revenues of FMCG companies. Revenues of FMCG sector reached
Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion
in 2020.
2
3
For fast moving consumer goods stores, the main aspects influencing customer experience
include convenience of location, the range of goods that the retailer provides and the ease
of buying those goods. Other aspects that influence the customer experience in FMCG
stores include store lighting, use of colors, display, shelves, floor layout, climate inside
store, ease of movement, position of billing counters, among other things. All of these
aspects combine to give customers an experience that either retains them or loses them.
With the current rise in competition and the focus of market shifting towards customer
satisfaction, the FMCG stores are giving utmost importance to their promotions and even
more importance to store design as the price-based competition is rigid and therefore the
The city of Hyderabad is a hub of many stores of these major FMCG retailers. But there are
also many local retailers like Balaji Grand Bazaar, Ratnadeep, Ghanshyam supermarkets
among other supermarkets who have provided stiff competition to the big departmental
stores. The supermarkets benefit from convenient locations which are spread in the local
These local supermarkets provide a good opportunity to study determinants of store design
at a more intimate level and allows the observation of the less obvious aspects often missed
while studying store design in big retail stores. This is why the following research is based
on Ratnadeep which has seen an immense growth over the past decade. Major credit for its
success is given to its distinct store design that is considered very delightful by the
customers. The research will try to understand how Ratnadeep has used store design and
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Literature Review
For the purpose of understanding the determinants of store design we shall review some
reports made in the past few decades which will provide us an insight into the aspects of
Retail industry has boomed in the past two decades and brought organised trade in the
forefront. With rise in competition, retailers are now focusing on how to improve customer
experience and for that they are diverting their attention and resources at improving store
Several demographic indicators indicate favourable patterns for the growth of organized
trade in India according to Swar (2007). These are: i) rapid income growth: customers are
more able to spend, ii) Urbanization is increasing: a greater urban population then value
convenience, couple with a higher urban consumer's propensity to spend iii) Youth growth:
population growth since liberalization, mindset and willingness to buy, and iv) spending
now versus saving earlier: customers are able to borrow current consumption.
In recent years India has witnessed a rapid pace of retail growth. The tastes and preferences
of consumers are evolving leading to radical change and lifestyles and habits of spending
which in turn creates new business opportunities. The shopping behaviour of consumers is
changing, which has led to the rise of major retail chains in metros cities and towns.
Ghosh and Tripathi's research (2010), aims to examine consumer purchasing habits towards
structured retail outlets in terms of purchased product types, time spent in the shop, amount
of product purchased on each visit, shop behaviour switching and store attribute. The study
result indicates a greater propensity for the younger generation to frequent organized retail
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outlets. The shopper who spent at least two hours in a store found shopping a stress reliever
and an enjoyable activity. The frequently purchased goods from the retail outlet are
garments accompanied by food, lifestyle products and appliances for household use.
So not only has the organized sector been rising rapidly over the past two decades, but it
has also become a significant part of life for all age groups. This growth of organized retail
stores and more specifically fast-moving consumer goods stores has increased many to
investigate the various aspects of stores, their architecture and other factors affecting
customer experience.
Jain and Bagdare (2009) studied the idea of customer experience by examining consumer
preferences and defining its major determinants in the context of modern format retail
stores. The study highlights that new format stores are pre-engineered retail outlets
with modern outlook and practices. The same by fulfilling both hedonic and utilitarian
needs to attract and influence young minds. The spectrum of demographic, psychographic,
experience.
In addition to this Sachdeva, Goel, 2015, realise the current context of retail is extremely
challenging. It’s a retail world in which customers are forced to accept hedonic market
aspects. Retailers are searching for new ways of delivering something unique or exclusive
to their consumers to attract traffic to physical stores. People like touching, feeling,
smelling, eating, checking, and putting on. This approach is holistic, including both
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Focusing on engaging the consumer both emotionally and behaviourally is crucial, which
means that contact on social media and physical retail stores should both excel and have
emotional appeal, and anchor various types of brand interaction. Rising retail success is less
about what the seller has to offer and more about how they're selling it.
Therefore, with research showing the value of store design as a prime determinant in
customer experience, we are now shifting our attention from the rising organised structure
of retail stores to how these stores are now being planned with the store design dimension
in mind.
The results presented by Rompay, Dijkstra, Verhoeven, Annemiek (2011) largely support
the relationship between retail design and the affective in-store interactions and behavioural
intentions of the customers. But more significantly, the results show that the effects of store
variables differ based on the aims of entertaining a retail atmosphere that consumers
influence practical goal-oriented actions (i.e. moving through the store in pursuit of a
particular product) and variables that specifically affect consumer sensory perception of the
Taking into account these distinctions, the results support the idea that task-oriented
shoppers are mainly under the control of spatial, function-related design variables because
they most specifically interfere with target achievement. In other words, because
unhindered movement and (visual) overview are the most essential to locate a specific
product in the store area, task-oriented shoppers benefit from a well-organized, spacious
layout. Such customers view a cluttered layout of the store as an impediment to achieving
the target, and therefore express a lower intention to stay in or return to the store. The effect
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of store layout on shopping pleasure, however, did not exceed any significance, indicating
perhaps that shopping pleasure is of less importance to these shoppers (intent on task
completion). (Note, however, that the two outcome variables, i.e. shopping pleasure and
behavioural intentions, were very positively associated, and that the findings for shopping
Therefore, consumers want an unhindered view of the goods and to ensure that they can see
and travel seamlessly around stores towards their product choice in store. We are now
shifting emphasis on the dimension of store design dealing with crowd management and
also how the crowd in the store can be affected by various factors in order to enhance their
Retail density is defined as the number of people (human density) and objects (spatial
density) in a limited space, by Eroglu, Machleit and Chebat (2005). Shoppers experience
supermarket crowding as density limits their shopping targets for interfering with their
activities. Retail crowding has an effect on customer behaviour and is a crucial determinant
in shopping experience. There are usually almost no spatial elements in a typical shopping
street, which limit or interfere with the activities and objectives of the shopper.
Psychological stress and increased arousal may result from crowding (Michon, Chebat and
Turley, 2004). Individuals may get bored when human density is low, resulting in
avoidance behaviour. The effect of human density on customer expectations and behaviours
varies depending on the shopper's motivation and target (Eroglu and Harell, 1986) and store
styles (discount vs. upscale) (Machleit, Eroglu and Mantel, 2000). Density influences
perceived power negatively (Hui and Bateson, 1991) by restricting movement, increasing
shopping time, posing social interactions, etc. Nevertheless, density research by Van
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Rompay, Galetzk, Pruyn and Moreno-Garcia (2008) also negatively affected perceived
control, but only for those in high need of control. Additionally, a study by Van Rompay,
Krooshoop, Verhoeven and Pruyn (2011) shows that the impact of density on shopping
enjoyment and approach behavior differs with shopper's affiliation needs: negative effects
In their paper Baum, Davis, 1976, addresses the mediation of crowding experience in
and interior visual complexity. Subjects perceptions of available space and crowding
threshold were measured by placing miniature figures in model rooms and room ratings in
multiple dimensions. The data presented showed that expectations of the available physical
space in setting and crowding thresholds are effectively mediated by variations in interior
design. Although the actual amount of space was kept unchanged, the subjects viewed dark
rooms as smaller, with less figures crowded than the corresponding light rooms. It was
found that high visual complexity correlates with setting orientation and room colour; non-
social dark rooms were viewed as being smaller than other interiors with high complexity.
Areni and Kim (1994) performed a field experiment on the effect of in-store lighting at a
central retail establishment (restaurant's wine cellar). They found that customers inspected
and treated more products under conditions of bright lighting than under conditions of soft
light. Often, when the lighting was bright rather than dim, they treated more eye level
products. They find out that the effect of lighting on functional aspects has to be paid
attention. For example, a restaurant usually uses soft lighting to create a romantic
atmosphere but this is at the cost of menu readability (Areni & Kim, 1994). Summers and
Herbert (2001) tested the impact of light in two types of stores in an extended study: a
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hardware store and a western clothing / feed shop. The results confirm Areni and Kim's
(1994) findings that customers were looking at and handling more products under bright
lighting than soft lighting. Furthermore, the results showed that customers were touching
more things and picking up more belts with additional display light. These findings indicate
that light has an effect on anticipation and can improve approach behaviour.
Certain variables discussed by Baum and Davis were colour, and Babin, Hardesty and Suter
(2003) further explored the value of colour (and lighting) inside a fashion store with a
scenario analysis. Results show that shoppers respond to cool colours more favourably and
identify the blue environments as more likable than the orange. In the blue climate the
Lights will regulate the impact of colour, according to Baker et al. (1994). Such results are
supported by a scenario study by Babin et al. (2003), who compared an orange and blue
shop with different lighting levels and found it had an effect on the cognitive representation
and affective response of the customers. Most favoured was the blue shop, but when the
orange shop was paired with soft lighting it became almost as positively valued as the blue
shop.
Belizzi, Crowley and Hasty (1983) performed a laboratory experiment to test how colour
affects the orientation and attraction of approaches. This showed that people are physically
attracted to warm colours but that warm coloured environments are uncomfortable in
general. In the study the participants actually sat closer to the walls of yellow and red than
the walls of blue and green. Subjects suggested that while warm environments were bright
and colourful, they were also seen as less desirable and less friendly than cooler
environments. The warm colours were rated higher on an activity factor but on an
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evaluative factor, lower or unfavourable. In a negative, stressful atmosphere consumer
might consider shortening their shopping time. Even, unplanned, impulse purchases were
associated with warm colours. These results indicate that if a retail display is designed to
draw customers physically by using warm colours, it runs the distinct risk of creating a
colours may be good colours of physical appeal, they have been rated colourful yet
negative, bright yet tense. Bellizzi et al. (1983) suggest that warm colours not be used for
bulk use, as this can become annoying and distracting on a larger scale. Note that the colour
results studied were in the sense of a furniture store and that full saturated colours were
used in this study (Belizzi, Crowley and Hasty, 1983). Based on these findings, it may be
recommended to use cooler colours in the shop, because customers may feel more
comfortable and stay longer. Warmer colours are probably better suited to bringing
customers into the store for the exterior of a shop or show window.
Such research papers illustrate just how important a store's colour and lighting can be.
Window dressing forms an important aspect of store design and an informative study on
between storage window styles and customer perceptions of store image and attitudes to
shopping. The results showed that consumers ' perceptions of two different types of store
windows about store image attributes such as advertising merchandise and fashion are
different, and the difference between them is statistically significant (p < 0.001 level).
Consumers have a more positive perception of flat screens, in terms of advertising, product
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The study also found that storage window styles play an important role in the attitudes of
customers toward store entry and product purchase (p<0.001 level). Consumers have a
more positive perception of flat windows in relation with shopping behaviours such as store
entry and product purchase than arcade windows, according to those findings. This supports
the findings of Sen et al. [1] revealing a similar finding regarding the effects of store
windows on customer shopping decisions. Considering the results of this study and its
discussions, the respondents noticed that the type of arcade window was less popular
compared to the type of flat store window, since the former type made them feel as if they
were already in store, stressing that they could be interrupted by a salesperson at any
moment.
The research results suggest that retailers and designers could easily attract the attention of
customers using flat windows. And other alternatives could be offered for the form of
arcade (such as hiding from outside the interior to make the consumers feel they are still
outside). As stated, this work was done using large shopping mall consumers asking them
The other significant finding of this analysis is the disparity according to flat and arcade
windows in the gender groups. Indeed, women were more negative about the types of
window displays than males. This result supports Dube and Morgan's findings which
concluded that female satisfaction judgments were largely influenced by their initial
negative emotions, while male satisfaction judgments relied on their initial positive
emotions, indicating a primacy effect for both sexes. In addition, Sommer et al. found
females spent more time in the store than males did. It can be concluded from this finding
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With the visual aspects covered, we are now going to shift our attention to another olfactory
receptor that is ear and the music aspect in shops. Background music will affect the
customer experience and we are now going to delve deep into this with the help of the
reports below.
In 2004 North, Tarrant, and Hargreaves concentrated on the study of music effects. Several
studies indicate that mood can affect an individual's probability of demonstrating instances
of behavioural support, and one earlier laboratory study has suggested that music can be
used to bring about mood manipulations to such an end. To investigate this in a naturalistic
environment, 646 university gym users were either playing uplifting or distracting music
while they were working out. They were asked to either sign a petition in support of a
fictional sporting charity (i.e., a low-cost task) or distribute leaflets on their behalf (i.e., a
high-cost task) upon completion of their workout. Responses to the petition signing
measure suggested a ceiling effect with virtually all participants offering assistance.
However, in line with previous work on mood and behaviour, elevating music has led
participants to offer more help on the high-cost, leaflet-distributing task than annoying
But then came the 1990 dissertation of Yalch and Spangenberg. Despite the widespread
belief that music improves a retail environment and results in increased constable
satisfaction to traffic and highest use a review of literature found insufficient direct
evidence supporting this hypothesis. Consequently, a research program has been launched
to enhance our understanding of the complex relationship between retail shopping and the
quest for atmospheric influences as an initial effective music in establishing that this work
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activities. For that given its limited reach and sample research results indicate that the
presence of music is actively noted by the few shoppers who react psychologically and
between the groups subjected to different types of music are our ability to quantify these
But on the other hand, Milliman had a different take on music and its influence in stores in
1982.
The study by Milliman (1982) along with others like it can support marketing managers
can have a significant impact on both the rate of traffic flow in-store and the average gross
sales volume purchased by consumers, at least in certain cases. In his report, gross average
sales for fast tempo music increased from $12,112.35 to $16,740.23 for slow tempo music.
This is an average increase in sales volume of $4,627.39 per day, or an increase of 38.2
percent.
The exact figures are not relevant, because they relate to this research situation alone. What
these findings mean, however, is important: Music behaviour can be affected, but this
influence can either lead to or interfere with the process of achieving business goals. So, it
would seem that Grayston was right to say that the music chosen and its expected aims
must be balanced.
Certainly, in some retail circumstances the aim may be to delay the flow of customers,
keeping people in the store for as long as possible in an attempt to encourage them to buy
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more. But, in other cases the aim may be the reverse, i.e. pushing customers along as a way
Since discussing many aspects of retail design, we will now finish the literature review by
concentrating on the general atmosphere of the store that affects the customer and their
experience.
In his work on Effects of Store Environment on Shopping Behaviour, Billings, 1990, he has
deduced from his analysis that store-induced satisfaction, the first variable in the
seems appropriate that it would also be pleasurable and rewarding for the behaviours that
transpire in that environment. Consumers would therefore tend to exhibit more approach
actions in pleasurable settings. They'd browse through the items, connect with sales staff
This result offers some especially useful implications for retail merchandisers. Since
consumer behaviour is so complex and dynamic, retailers need to become more reactive to
economics and engineering focus (Markin, et ale 1976). Merchandisers often emphasize
cognitive factors (such as price, place, variety, and product quality), rather than
concentrating on the influence of the customer emotional effect. Donovan and Rossiter
(1982) indicate that, while cognitive factors that largely account for product selection and
the majority of planned shopping in the store, the emotional responses caused by the store's
atmosphere are primary determinants of the degree to which the person spends beyond their
original expectations. Retailers may want to pay particular attention to men's frequented
15
stores, as this study suggests males are more influenced by enjoyment caused by the store
than females.
Therefore, merchandisers may benefit from creating an atmosphere that is more exciting,
more unusual, and more novel, as novelty appears to increase the level of pleasure in a
person. An atmosphere that provokes a feeling of pleasure will increase sales significantly
All these reports and research papers give us enough insight into the mission to be tackled
and help us understand and interpret the feedback we will be collecting in our assignment.
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Company Profile
Ratnadeep Retail Pvt. Ltd are a chain of supermarkets in the cities of Hyderabad and
Bengaluru. It started 33 years ago as a single store and over the years has grown its
operations across the city of Hyderabad and now has stores in the city of Bengaluru too.
Ratnadeep is part of the fast-growing sector of Fast-moving consumer goods sector which
is now the 4th largest sector in the Indian economy with household and personal care
accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access and
changing lifestyles have been the key growth drivers for the sector. The urban segment
accounts for a revenue share of around 55 per cent which is the largest contributor to the
With a market revenue of a little over 100 billion dollars and growth expected around 8-10
per cent, the Fast-moving consumer goods sector provides lucrative opportunities to many
upcoming businessmen.
Ratnadeep was originally a small store back in 1987 but with changing times and new
economic policy and more importantly with the change in lifestyle of the urban consumers,
Ratnadeep has found a niche which it now dominates in the city it opened and operates in.
Big Bazaar, D-Mart, Spencer’s and other prominent retailers are trying to increase their
market size and share in the very market that Ratnadeep functions in. The FMCG sector is
allowing a high rate of competition with each competitor trying to provide the best of
services.
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Ratnadeep is part of the growing sector and it has taken in stride the growing needs and
lifestyle changes seen in the urban life of consumers and adapted that into its business
model, allowing it to not only establish itself as a viable option to buy fast moving
consumer goods but also is now one of the leading supermarket in the city of Hyderabad.
With time, Ratnadeep supermarkets have become a household name and are a brand that is
known for good quality products at reasonable prices and at convenient locations. The store
outlets have become famous for their design and attractiveness and are a go to store for
History
Ratnadeep Retail Pvt. Ltd was established in 1987. It started as a small grocery store where
one could find all the essential items. It was just like the innumerable little general stores
that had populated the Indian market before New Economic Policy and more importantly
Ratnadeep had not established any Brand identity. But change came when Ratnadeep was
sold to Brijkishore Bhartiya and who with the help of Sandeep Agarwal changed
Ratnadeep. Sandeep with his uncle Brijkishore worked hard day and night. Sandeep was
pursuing his bachelor’s in commerce and had never thought this little store would in future
be so successful. When his uncle came with the opportunity to him, Sandeep knew he was
the man for the job. He had no concrete plans for his future so he decided that Ratnadeep
might be a nice opportunity for him to learn the trade and business.
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Sandeep’s uncle Brijkishore was a very enterprising businessman, he was certain
Ratnadeep had a bright future. Ratnadeep, the word, meant illuminating jewel or lamp in
which jewel give out light and much like its meaning, Ratnadeep was an illuminating
opportunity for Brijkishore and Sandeep. But initially they faced quite a few problems.
Since the family had no experience of running a retail business, they had to struggle a lot
for the first three years. The biggest problem was the in-house pilfering that ensured money
kept getting stolen from right under the noses of Brijkishore and Sandeep. It took them 3
years to catch the culprits and solve the issue. But in these 3 years they had lost a lot of
money and it made them very cautious and they started to monitor the business very
meticulously. After some time, they finally started seeing some physical cash in the cash
counters.
From 1995 to 1997, Foodworld and other supermarkets came up with their retail models
that had beautiful lighting and air-conditioned spaces. These new outlets attracted the urban
consumers more than the little general stores and Ratnadeep was badly affected by these
new outlets. So, Sandeep and Brijkishore started to think how they could adapt this model
themselves. They travelled to Bengaluru, Chennai and other places of the country to get a
thorough understanding of the new trends of Supermarkets. After understanding the new
concept, they finally renovated the space and Ratnadeep now was part of the new culture
Its first branch at Srinagar Colony was prospering but tragedy struck the family as
Brijkishore Bhartiya passed away. It was then Manish Bhartiya, his son, stepped into the
business. Manish was never involved in the business and had no plans to join it either and
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was in fact preparing for his Chartered Accountant exams. But with the situation in the
Growth
By 2007, Ratnadeep had three outlets. The turning point came in 2008 when inflation was
at its worst and rent prices were high but Sandeep and Manish took risk and set up a branch
in Madhapur were the rent was 8 lakh which was so high that people started questioning
whether it was the right decision. But both Sandeep and Manish were willing to take the
risk and were even prepared for the losses. They had calculated the losses they would face
But they never had to face losses as the store was a major success. The store’s success gave
the family a firm believe that expansion was the only way forward and it made them
understand what made them a successful brand. It was their store and its ambience and its
service.
By financial years 2014-15 Ratnadeep had registered a total turnover of Rs 329.43 crores.
In the years that followed Ratnadeep opened 26 stores within 9 years and kept growing.
The USP of Ratnadeep was that every store was similarly designed and were meant to be
large, well lit, air-conditioned stores that made shopping for fast-moving consumer goods a
20
The timeline
investment to open stores and warehouses in Bengaluru. The chain of stores had grown into
a 675 crores revenue earning business. With an aim of earning 1000 crores plus revenue,
Sandeep and Manish have dedicated their efforts into growing the assortment of goods
offered. Around 15% of Ratnadeep business comes from its own label and 12% from fruits
and vegetables. They now plan to get into the dry fruits and organic fruits market and earn
higher margins. With 26% gross margin and 5% net margin, the numbers are considered
among the highest in the sector Ratnadeep operates in showing how its leading in the cities
it operates in.
The secret to success for Ratnadeep is several. A relatively unknown secret is its unusual
but functional feature of operating 28,000 plus SKU’S (stock keeping units) in its stores
without the support of an ERP platform something which they confirm is deliberate
strategy.
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Sandeep Agarwal reveals that their supply chain effectiveness is very high which gives
them high fill rates and ensures product freshness. Company owned trucks maintain the
This often-overlooked feature is a major factor behind the success of Ratnadeep. But it’s
also true that Ratnadeep has become successful based majorly on its formula of having
Today Ratnadeep is a household name with very few areas in the city remain bereft of at
least one branch of the supermarket. It’s the leading supermarket that found success by
providing the best service to the consumers and by providing fresh and good quality goods
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Research Objective
23
Research Methodology
Research Design
Exploratory research design has been used in order to gain in depth insights into the
research area and for the purpose of exploring the impact of store design. At the same time
causal research design was used to examine the effect of store design on customer
experience at Ratnadeep.
Sources of Data
Data was collected through primary as well as secondary sources with the aim of
conducting research.
Primary Sources:
Structured questionnaire was given to the respondents directly, which resulted into primary
data collection and the study is intended to appreciate customers perspective with reference
to the effect of store design on customer experience at Ratnadeep. The primary data was
collected only from the respondents who visited Ratnadeep on a regular basis.
Secondary Sources:
The two major sources for secondary data where we Research Gate and Google scholar;
various research papers on articles were sourced from these data sources.
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Scale Development
Questionnaire design was mainly based on multiple item measurement scales derived from
the previous studies. The various variables and items were identified from the research
papers related with the present study undertaking exhaustive literature review. In the
structured questionnaire which was given to respondents for data collection, all the selected
items related to aspects of store design and were represented in the form of variables along
with five-point scale 1 stood for highly unimportant and 5 stood for highly important in
Store design is an important aspect of any store. With this research aimed specifically at
store design of Ratnadeep, we aim to understand the determinants of store design. In the
past century store design has gained prominence in several studies as many scholars have
pointed out the far-reaching effects of certain variables of design on customers. In order to
explore the determinants of store design, 30 variables were identified from the previous
research papers and were included in the questionnaire with Likert five-point scale where, 1
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Reliability and Validity
Reliability of a scale can be understood as the extent to which scale produces consistent
results if repeated measurements are made using analysis. The internal consistency
Table 1- Reliability
Statistics
Cronbach's
Alpha N of Items
.911 30
split-half coefficients resulting from different splitting of the scale items. In the present
research study, as mentioned above in table, the Cronbach’s Alpha value is .911. The
obtained value of .911 indicates that all 30 variables have high internal consistency. Hence,
Sample Size
In the present research study, the sample size considered is 100, who regularly visit
Ratnadeep at Hyderabad were considered as sampling unit in the sample. Due care was
taken at the time of data collection while administering structured questionnaire to avoid
26
bias from the viewpoint of any particular demographic group. Responses for the study were
Data collection
In the present research study, the survey of respondents was undertaken and data was
collected by administering structured questionnaire. All the variables (30 for effects of store
agreement of statement where respondents were asked to choose any number in between 1
to 5, where 1 was Highly Unimportant and 5 was Highly Important. Responses for research
were taken directly by the researcher in person. Respondent give responses on the basis of
The research employed two step data analysis strategy where in first step exploratory factor
analysis was conducted with the objective of identifying the determinants of store design.
27
Data Analysis and Interpretation
The Kaiser-Meyer-Olkin, commonly known as KMO test, value of .696 supports the
appropriateness of factor analysis in this research study and Bartlett’s test of Sphericity the
null hypothesis that “the variables are uncorrelated, correlation matrix an identify matrix”,
was rejected and it was concluded that there are correlations among variables that were
extracted from various research papers are appropriate for factor analysis.
Adequacy.
Sphericity df 435
Sig. .000
Sphericity suggested the use of factor analysis in order to understand the determinants of
component factor analysis was employed using SPSS 20.0. Factor loading 0.3 or above on
the items was taken into consideration. All the 30 variables related with store design where
28
Table 3 - Communalities
Initial Extraction
Counter
Furnishing
counter
Storage
29
Toilets 1.000 .389
Finding
Movement
Analysis.
The above table (Table 3) is table of communalities which shows how much of the variance
in the variables has been accounted for the extracted factors. The community value should
be more than 0.4 to be considered for further analysis, else variable having value of below
0.4 are considered to be insignificant for further analysis. The output of above table shows
30
that 3 variables namely, Ventilation (.397), Toilets (.389) and Floor Size (.357) are below
0.40 and therefore will be considered as insignificant. The remaining 27 variables have
extracted more than 0.40 of value which means they are correlated and highly significant.
Floor Elevation and Hygiene tends to highly significant with highest extracted value of
The exploratory factor analysis employed for the present research study yielded five factors
that were deemed to explain determinants of store design at Ratnadeep. Together all factors
explained 61.026% Of variance. All the factors were named on the basis of correlation
among items.
31
Table 4 - Factor 1 (Crowd flow and Ambience)
Explained
Temperature .175
Hygiene .190
Out of 30 variables considered for the factor analysis, 8 variables were found to be loading
on factor 1, and these factors has emerged as the most important factors as it explains
16.182% of variance. Most of the variables loaded on this factor are observed to be related
with Crowd flow and Ambience. The factor was named as ‘Crowd Flow and Ambience’
and it can be noted that aspects of ambience like temperature, smell, hygiene along with
aspects of crowd flow form the most important determinants of store design at Ratnadeep.
This factor was found to be highly reliable with Cronbach alpha value of .867.
32
Table 5 - Factor 2 (Entrance and Floor Design)
Explained
Out of 30 variables, 5 were found to be loading on Factor 2 and these were observed to be
related to Entrance and Floor Design. These were found to be the second most important set
of variables as they had a variance of 15.147%. The factor was named ‘Entrance and Floor
Design’ as it included variables like window design, storefront design, floor elevation and
floor size along with music. These variables deal with how the store and window are
designed and also deals with the floor size along with its elevation. This factor was found to
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Table 6 - Factor 3 (Geography of store)
Explained
Toilets .102
Out of 30 variables considered for the factor analysis, 6 variables were found to be loading
on factor 3, and these factors has emerged as the third most important factors as it explains
14.067% of variance. Most of the factors were related to the geography of the store and
therefore the factor was named Geography of Store. The variables included placement of
product, cold storage, and how the shelfs were categorized along with toilets and ease of
navigation in the store. With all the variables related to position in one way or another, it
shows how geography is important part of store design at Ratnadeep. This factor was found
34
Table 7 - Factor 4 (Convenience of Amenities)
Explained
Another important factor is forth one which explained 9.465% of variance. On factor 4,
total 6 variables were found to be loaded. The variables were found to be relating to
size, and waiting time at lifts and the position and waiting time at billing counter along with
shelf size emerged as variables that held considerable importance to the customers. These
amenities and their convenience form a crucial aspect of store design at Ratnadeep. This
factor was found to be highly reliable with Cronbach alpha value of .752.
35
Table 8 - Factor 5 (Store Aesthetics)
Explained
The least important factor is the fifth one that is named as ‘Store Aesthetics’. This factor
consists of 5 variables as 5 variables were loaded on factor 5 which explains the 6.165%
variance. It is interesting to notice that the least important factor in store design at
Ratnadeep deals with the aesthetics ranging from the likes of lighting to material used in
furnishing and to colour of walls, ceiling and shelfs. Therefore, it can be concluded that
from all the variables put forth to the respondents, the aesthetics of the store were the least
important aspect in the design of a store in their experience. This factor was found to have
36
Table 9 - Total Variance Explained
% of Cumul % of Cumulative
37
19 .300 1.001 94.703
38
Findings and Conclusion
The objective of the present research study was to explore the determinants of store design
Set of five independent factors of store design viz. Crowd flow and Ambience, Entrance
and Floor Design, Geography of Store and Convenience of Amenities where extracted
through exploratory factor analysis. These factors were found to be highly significant in
After analysing data and performing exploratory factor analysis, factors of store design viz.
Crowd flow and Ambience, Entrance and Floor Design, Geography of Store and
The findings of the present study were found to be consistent and supports the findings of
some previous research studies that explored the determinants of store design.
It can be concluded that Ratnadeep can better their customer experience by focusing more
on providing sufficient efforts in keeping the crowd flow smooth, ensuring the Ambience is
well maintained and extremely pleasant with the ventilation, smell, temperature and
The supermarket should also pay attention to the entrance and floor design. The geography
of the store is an important aspect too. The product and cold storage placement, parking and
toilets are major aspects of the geography of the store which Ratnadeep should pay
attention towards. The main three important factors should be given high attention but it is
also important to improve on the remaining two factors as they are a part of the store design
39
The stores should put some efforts in improving the amenities and increase its convenience.
The least important factor but still a major part of store is the store aesthetics which
Ratnadeep should work on and make sure the customers are greeted with good store
Overall, Ratnadeep should give undivided attention to these aspects of store design which
have proven to contribute highly to the success of many retailers in the Indian retail
industry.
40
Limitations and Future Directions
The present study successfully explores the determinants of store design in the Indian retail
industry at Ratnadeep. The study has been relied upon the primary data collected from the
The study was conducted for about two months and the customers of several outlets of
Although this research is based on primary data collected from selected respondents, the
considered only the customers visiting the outlets of Ratnadeep located at Hyderabad. At
the same time possibility of respondent bias and researcher bias can’t be ruled out.
As the present study is cross sectional in nature, the future researchers may undertake a
longitudinal study in order to track the changes that influence the determinants of store
design in the Indian retail sector. Future researchers may also consider the impact of
demographic variables like gender, education, age, occupation, income etc. on store design
in Indian retail industry. The same study can also be replicated in different geographical
locations across the industry in order to validate the present research study.
41
References
1. Singh, P., Katiyar, N., & Verma, G. (2012). Retail Shoppability: The Impact of
foray.
4. FMCG Industry in India: Sector Overview, Market Size & Growth | IBEF. (2019).
Base.
6. Erdem, O., Oumlil, B., & Tuncalp, S. (1999). Consumer values and the importance
8. Donovan, R., Rossiter, J., Marcoolyn, G., & Nesdale, A. (2002). Store atmosphere
42
9. Merrilees, B., & Miller, D. (2001). Superstore interactivity: a new self‐service
10. Baker, J., Parasuraman, A., Grewal, D., & Voss, G. (2002). The Influence of
Intentions.
11. Burke, R., & Leykin, A. (2014). Identifying the Drivers of Shopper Attention,
12. North, A., Tarrant, M., & Hargreaves, D. (2004). The Effects of Music on Helping
14. Sachdeva, I., & Goel, S. (2015). Retail store environment and customer experience:
15. Rompay, T., Dijkstra, K., Verhoeven, J., & Annemiek, J. (2011). On Store Design
and Consumer Motivation: Spatial Control and Arousal in the Retail Context.
43
16. Kiran, R., & Jhamb, D. (2011). A Strategic Framework for Consumer Preferences
17. Yalch, R., & Spangenberg, E. (1990). Effects of Store Music on Shopping
Behavior.
Supermarket Shoppers.
44
Appendix A – Questionnaire
SECTION - A
1. Name: ………………………….
iii. Self-employed/Entrepreneur
iv. Homemakers
v. Student
vi. Others
6. Designation ……………………………….
7. Years of Experience
45
iii. 3 to 5 years iv. More than 5 years
v. Above 50 years
SECTION – B
Please tell us your opinion towards the different elements of store design in your
. tant
1 2 3 4 5
1 Lighting
2 Ventilation
3 Colour of Ceiling
46
4 Position of
Billing Counter
5 Availability of
Lift
6 Shelf size
7 Material used in
Furnishing
8 Waiting time at
billing counter
9 Ease of
Movement
10 Product
Placement
11 Placement of
Cold Storage
12 Shelf
Categorization
13 Size of Lift
14 Colour of Walls
15 Window Design
16 Parking
Availability
17 Toilets
47
18 Waiting time at
Lift
19 Smell
20 Colour of Shelf
21 Floor Elevation
22 Ease of Direction
Finding
23 Music
24 Smooth Crowd
Movement
25 Floor Size
26 Storefront Design
27 Size of Walkways
28 Temperature
29 Size of Entrance
30 Hygiene
Statistics
48
Missing 0 0 0 0 0
Statistics
Missing 0 0
Frequency Table
Gender
Cumulative
Cumulative
49
Above 9 Lakh 17 17.0 17.0 40.0
Years of Experience
50
Less than 1 year 55 55.0 55.0 85.0
51
40 to 50 years 4 4.0 4.0 76.0
Bar Chart
52
Interpretation:
From the above graph, it can be observed that 48% Females, 51% Males and 1% others
53
Interpretation:
From the above graph, it can be observed that Annual Income of 5% of people lie between 3 Lakh
to 6 Lakh, 18% of people lie between 6 Lakh to 9 Lakh, 17% of people lie above 9 Lakh and 60%
54
Interpretation:
From the above graph, it can be observed that the occupation of the respondents are: Government
sector employee (4%), Homemakers (8%), Pilot (1%), Private sector employee (17%), Self-
55
Interpretation:
From the above graph, it can be observed that the years of experience of respondents are as follows:
1 to 3 years (21%), 3 to 5 years (9%), Less than 1 Year (55%) and More than 5 years (15%).
56
Interpretation:
From the above graph, it can be observed that the qualification of respondents are as follows:
57
Interpretation:
From the above graph, it can be observed that the age of respondents are: 20 to 30 years (59%), 30
58