Q. 1.The word "retail" comes from the Old French word "retaillier," which means "to cut or divide.

", it
referred to the sale of goods in small quantities, as opposed to wholesale transactions.

A Mom and Pop store, also known as a mom-and-pop shop or a small family-owned business, is typically
a small retail outlet operated by an individual or a family. These stores are often characterized by their
personalized service, locally sourced goods, and a close connection to the community. They may offer a
limited selection of products.

Organized retail refers to larger retail chains or stores that operate under a corporate structure with
standardized processes and systems. These stores often have multiple locations, a wide range of products,
and may offer discounts or promotions. They are typically more formalized in their operations and have a
higher level of organization compared to Mom and Pop stores.

Sharma Kirana Store: A small, family-owned grocery store located in a residential neighborhood.

Organized Retail: Walmart - A multinational retail corporation with thousands of stores worldwide,
offering a wide range of products at competitive prices

Gupta Electronics: A small electronics store owned and operated by the Gupta family

FActor affecting growth of organise retail system in India .

1.increasing per capita income .per capita income means how much individual earn of the yearly income
that is generated in the country through productive activities India has marked growth in per capita
income by 10.5% which shows tremendous increase gross national product of the country income of the
household which in turn will consume more does leading to growth of retail sector

2. demographic changes India having huge young age population which is the great income and high
saving for any developing country young age group , income savings are key factor for its growth

3. high standard of living, standard of living in India has improved people use to have myth that shopping
from shopping complexes for Mall is costlier and it suit only to reach class but now this have changed
people have changed their missconception and have adopted mall culture

4. changes in consumption pattern. customer are good response to new product entering the market
because they have realised that they are paying for quality this drastic change in customer preception has
opened way for many new entrants.
5. Availability of low cost consumer credit it is rightly said that sales generated on credit are more as
compared to cash sale due to lack of cash many buyer used to postpone their purchases but now with the
modernisation they are carrying it on a credit basis and it is cheaper to repay.

6. Infrastructure improvement with the many infrastructure changes taking place retail from metro rail to
Bandra Worli sea link in the country retail also expanding its wings.

2.Factor necessary for considering final store 1.the location of shopping store spell it's success or failure
Store in a remote area will suffer from weak sale poor cash flow and increased marketing and advertising
expensive

2. to increase more customer visit to the store it is necessary to choose location that is convenient for
customer3. the store should be located at place where the target customer live or regularly visited for
purposes such as work pleasure or shopping the store should be easily approachable from road

4. There should be sufficient and convenient parking places for customer

. 5. the stores should have pleasant and healthy environment

6. places with unpleasant environment such as foul smell or dirt are likely to discourage customer from
visiting the store.

7. The location should have high visibility customer is more likely to see and notice stores that are on the
main road.

Footfall" in the retail industry refers to the number of people who visit a particular store or shopping area
within a specific period, usually measured on a daily, weekly, or monthly basis. It is a critical metric for
retailers as it provides valuable insights into consumer behavior, helps assess the performance of the store,
and influences strategic decision-making.

Usefulness :

Performance Measurement: Footfall helps retailers gauge the popularity and attractiveness of their stores
or shopping centers. By tracking footfall numbers over time, retailers can assess the effectiveness of
marketing campaigns, promotions, and seasonal trends.

Sales Forecasting: Higher footfall generally correlates with increased sales opportunities. By analyzing
footfall patterns, retailers can forecast sales volumes, plan inventory levels, and staff appropriately to
meet customer demand during peak times.
Customer Behavior Analysis: Studying footfall patterns allows retailers to understand customer behavior,
such as peak shopping hours, preferred shopping areas within the store, and popular product categories.

Marketing Effectiveness: Footfall data helps retailers evaluate the effectiveness of marketing efforts, such
as advertising campaigns, promotions, and in-store events.

Operational Efficiency: Understanding footfall patterns allows retailers to optimize operational processes,
such as staffing levels, checkout procedures, and store maintenance. By aligning resources with customer
traffic, retailers can improve service quality, reduce wait times, and enhance overall operational
efficiency.

3. Responsibility of store manager. he is responsible for following task . 1. to ensure that the store is kept
clean 2. shelves and racks are properly stocked and product do not fall of the shelves.3. mannequins are
kept that right place to attract customers into the store and rotated frequently 4. the signage displaying
name and logo of store is installed at right place and viewable to all.5. the merchandise should be as per
the latest trained and offers positive ambience to the customer.6. one of major responsibility of store
manager is to make the customer feel safe and comfortable in the store it his key responsibility to make
sure that customer leaves the store with pleasant smile.7.he is responsible for managing the asset of the
store the security and safety of store it he is responsibility the store manager must ensure that sufficient
inventory is available at Store to avoid being out of stock 8.along with his subordinate is responsible for
planning, managing profit and loss, handling cash at Store as well as collecting daily sales as well as
collecting daily report.

A store manager is a person ultimately responsible for day to day operation of retail store all employees
working in the store report to store manager, store manager report to general

.manager 5S of store retail operation

1. stock .stock relates 24 factor variety is the number of different merchandise categorised retailer offer ,in
simple word it refer to different product line that retailer is offering.

2. The assortment is the number of different items in merchandise category variety often referred refer to
breadth of merchandise and assortment referred to depth of merchandise.

3. Depth refers to variety of good in one product line

4. breath refer to various brand in one product line which retailer carries.
2 . Employee of retail interact one on one with customer and therefore form the image of organisation to
the outside world the retail industry is a service industry and people are its most critical resource .
People management in retail is very critical as it involve cost and revenue generation .in a retail store
sales associate or frontline staff is the backbone of business.

3 .space . It is also computer as consider as study of distribution of space alloted to particular categories in
the relationship to their productivity and their inventory balance the store should be set up to help
customer examine product, make product buying decision and facilitate paying for goods promptly, space
include interesting displays and amenities to keep customer on site longer.

4 . Standard. standard is a document that provide requirement,specification guidelines or characteristics

that can be used consistently to ensure that material, product ,process and service are fit for their purpose.

5. System system not only talk about technology it also focuses on procedure how things are related to
each other It refer to the process and procedure that retailer has in place for smooth functioning of Store.

HR function :Function of HRM rate 1.recruitment depending on the size of number of vacancies
recruitment is done through recruiter and consultant for shop floor sales requirement put up in the local
newspaper

2.selection . Selection are based on group discussion and interview performance appraisal it is one of
most controversial system within human resource No one in any organisation is ever happy with this
system because it it explore bitter truth of an employee

3 . training and development. the talent base is limited and with the entry of big retailer in the market
there is a huge demand for trained and skilled professionals in this sector . This led many retailer to
introduce learning and development department within organisation.

4 . Compensation compensation maybe direct or indirect and it is motivator for an employees at all level

5 .reward and incentives recognition .every retailer is looking at various ways to motivate it employees
introduction of rewards incentive and recognition of employee increasingly becoming popular within the
industry.

4.Information technology is the backbone of modern retailing.modern retail format are superstore and
large chain owned by large organisations are difficult to handle without efficient and reliable It system in
place.technology prove beneficial in creating and maintaining customer relationship.analysis of data
collect at the retail point of sales .help understand preference,buying habit, spending budget, family need
of an individual customer.emailimg sms greetings promotional letters and personal callings, relationship
are maintaining by utilising It .overcome challenges namely business optimization, increasing SCM
efficiency,innovating shoping experience and other manual intervention.technology become critical and
competitive tool for surviving in business,retailer are using software.systme to manage and plan their
inventory ,reduce procurement cost electronic ordering , electronic fund transfer ,email communication
and many other things.

RFID Tags.stand for radio frequency identification.the acronym refer to small electronic device that
consists a small chip and antenna.the chip capable of carrying 2000 bytes data or less.it provide unique
identifier for that project. RFID device must be scanned to retrieve identifying info.to track every product
that you put in shopping cart,buyer no longer has to wait in queue to pay bills and record item taken up
from the shelf instead theses RFID tag will communicate with an electronic reader that will detect every
item in the cart .send info on product to retailer and product manufacturers.the buyers bank will then be
deducted from his account.

Bar coding is a proven technology for automated data collection need of the business .barcode contain
any given alphanumeric info encoded In the form of bars and spaces .on retail product barcode normally
contain product I'd.eg.item code ,product code etc.with the barcode in place data is fed into the system
automatically by scanning the barcode using barcode scanner instead of punching same through
keyboard.ex.in a big bazar when bill is asked at exit point employee use barcode reader which will
automatically record items picked by you from which shelf basically reason for always replenish
stock.advantage help to increase transaction speed and quality services .help to improve efficiency and
productivity.help in better cash control.helps with stock management.improv3 customer loyalty and
retention,enable us to collect customer contact details and know them better.

A Point of Sale (POS) terminal in retail refers to the hardware and software system used for processing
transactions and completing sales at the checkout counter. It typically consists of a combination of
hardware components like a computer, monitor, barcode scanner, cash drawer, and receipt printer, along
with POS software.

5*.Merchandising managers and Category* managers play a crucial role in retail businesses by managing
the product assortment, pricing, promotions, and overall presentation in order to drive sales and meet
customer demand. Some of their key duties and responsibilities include:

1. Developing merchandising strategies: This involves analyzing market trends, customer preferences,
and competitor activities to create effective merchandising plans.
2. Product selection and assortment planning: Selecting the right mix of products to ensure a balanced
assortment that meets customer needs and drives sales.

3. Pricing and markdowns: Determining optimal pricing strategies and managing markdowns to maximize
sales and profitability.

4. Inventory management: Monitoring inventory levels and making decisions on replenishment,

allocation, and liquidation to improve turnover and reduce excess stock.

5. Promotions and marketing: Planning and executing promotional campaigns to drive traffic and increase
sales.

6. Visual merchandising: Creating visually appealing displays and layouts to showcase products
effectively and attract customers.

7. Vendor negotiation and management: Developing strong relationships with vendors to ensure timely
delivery, competitive pricing, and high quality products.

8. Performance analysis and reporting: Monitoring key performance indicators (KPIs) such as sales,
margin, and inventory turnover to evaluate the effectiveness of merchandising strategies

1. Grocery store: A category manager in a grocery store may be responsible for managing categories such
as fresh produce, dairy, or beverages. They would work closely with suppliers to ensure a consistent
supply of products and implement promotional strategies to drive sales.

2. Clothing retailer: A merchandising manager in a clothing retailer may oversee categories such as
women's wear, men's wear, or accessories. They would be responsible for selecting the right mix of
products, coordinating visual displays, and monitoring inventory levels to ensure a profitable assortment.

3. Electronics store: A category manager in an electronics store may focus on categories such as
smartphones, laptops, or home entertainment. They would analyze market trends, negotiate with
suppliers, and develop pricing strategies to meet customer demand and achieve sales targets.

6*.1. In retail management, mark up *is the difference between the cost price of a product and its selling
price. It is typically expressed as a percentage of the cost price.

2. A common formula to calculate mark up is: Mark up = (Selling Price - Cost Price) / Cost Price * 100%

3. Mark up is an essential metric for retailers to determine pricing strategies and profitability.

5. Example : A grocery store purchases a case of water bottles for $10 and sells them for $15. The mark
up is ($15 - $10) / $10 * 100% = 50%.
6. Mark up can vary ,based on factors such as product demand, competition, industry standards, and
pricing strategy. Higher mark ups are common for luxury goods,

8. Retailers should regularly analyze and adjust mark up percentages to stay competitive, Proper mark up
management is key to a successful retail business

. 1. GMROI stands for Gross Margin Return on Investment. It is a profitability ratio that measures how
much profit is generated for every investment made in inventory. A higher GMROI indicates that a
retailer is generating more profit from their inventory investment.

2. Turnover per Square Foot is a metric used to measure the efficiency of retail space utilization. It is
calculated by dividing the total sales generated by a store by the total square footage of the store. A higher
turnover per square foot indicates that a retailer is making more sales per square foot of space.

3. Turnover per Employee is a metric used to measure the productivity of employees in a retail store. It is
calculated by dividing the total sales generated by a store by the total number of employees in the store. A
higher turnover per employee indicates that employees are more effective at generating sales.

4. Both Turnover per Square Foot and Turnover per Employee are important metrics for retail
management as they help in assessing the efficiency and productivity of a store.

6. Ways to improve turnover per square foot include optimizing store layout, merchandising Product
effectively

. Ways to improve turnover per employee include providing training and development opportunities for
employees, motivating.

7.Mall Management Functions:

Finding and Keeping Stores: Mall managers need to find stores to fill up the mall and make sure
those stores are happy and want to stay.

1.Taking Care of the Mall: They have to make sure everything in the mall works well, like the bathrooms,
lights, and parking lots.

2.Getting People to Come: Mall managers plan events and promotions to get people excited about coming
to the mall.

3.Keeping People Safe: They make sure the mall is safe for everyone, with security guards and plans for
emergencies.
4.Money Matters: They handle the money side of things, like collecting rent from stores and paying for
repairs and bills.

5.Helping Shoppers: They make sure shoppers have a good experience, like helping them if they have a
problem or complaint.

Legal Aspects of Retail:

1.Store Agreements: Making sure the contracts between the mall and the stores are fair and clear.

2.Property Laws: Following rules about how the mall can be built and used, like where it can be and how
big it can be.

3.Taking Care of Customers: Following rules about how stores can sell things, like making sure prices are
clear and products are safe.

4.Treating Employees Right: Making sure the people who work in the stores are treated fairly and paid
enough.

5.Staying Safe and Covered: Making sure the mall has insurance in case something bad happens, like
someone getting hurt.

6.Respecting Brands: Making sure the mall doesn't use logos or names without permission from the
companies that own them.

7.Being Good for the Environment: Making sure the mall follows rules about not hurting the
environment, like recycling and saving energy.

Green retail" refers to the practice of conducting retail operations in an environmentally sustainable and
eco-friendly manner. This approach aims to minimize the environmental impact of retail activities by
adopting practices that conserve resources, reduce waste, and promote environmental responsibility.

Example :Aditya Birla Fashion and Retail Limited (ABFRL):

They prioritize materials like organic cotton, recycled polyester, and sustainable fibers in their clothing
lines.They utilize LED lighting, and solar power installations to reduce energy consumption.They
promote recycling and waste segregation practices in their stores.They invest in water recycling and reuse
systems to minimize water consumption.

Eco friendly practices that retailer can follow .

1.reuse of material use of packing material and cardboard boxes

2.print double sided whenever possible

3.use renewable source of energy

4 reduce paper transaction by adopting technology for billing , invoicing, vendor payment, order
management.use rechargeable battery.

Franchising is marketing and distribution methods transfer from franchisor to Frenchisee for making
huge profit and to make moe awareness. Advantage of franchise 1.ready to use corporate image and
brand awareness of the company is already established, consumer are always more comfortable
purchasing item form familiar name or company they trust

2.saves time the concept of franchise give a ready to operate unit to the franchisee which will save their
time on deciding about various department.

3.Lower failure rate .when one buy franchise he is buying established and successful concept chances of
failure are almost negligible as the successful strategies are being transferred from franchisor to the
franchisee

4. Purchasing power inventory and supply will cost less as compared to own setup the business5. 5.saves
upon promotional cost

.6.Create brand awareness a franchisor can easily expand there business by granting new franchises .the
franchisor will rape the benefitof royalty and increase brand recognition .

7. Higher return on investment able to concentrate resources in expanding the business rather than in
investing in additional plant equipment and overhead.

Disadvantage of franchising

1.operational restriction franchisor place several restriction on there franchisees this restriction can take
variety of form including limitation on product, pricing ,employee performance ,and policies ,tertiary
marketing ,and other areas

2 on-going cost .beside the original franchise fee royalty a percentage of your franchises need to be paid
to the franchisor each month.

3 lack of support .not all franchisors offer the same degree of a assistances in starting business and
operating it successfully some are just startup operation and everything after startup is up to you.
4 Conflict there are more chances of conflict taking place as the franchisee doesn't need to have same
opinion of as franchisor has .

5 obligation to share profits with franchisee. Franchisor must share profits along with other franchisees

6 loss of control on day today operations.franchiseee are free to operate in manner they want still rules
and regulations given by the franchisor.

Types :

1.product or trade name franchising: a franchisor owns the right to the name or trademark and sale that
right to the franchisee,is this oldest approach of franchise, this type of franchisee can be found in
industries such as automobiles, drinks, and automobile accessories Example: Coca-Cola distributing its
beverages through various franchisees.

2.Business Format Franchise: This is the most common type of franchising, where the franchisor provides
not only its products, but also the entire business format, including branding, operating procedures,
marketing strategies, and ongoing support. Example: McDonald's providing franchisees with its brand,
recipes, training, and support in running a fast-food restaurant.

3.distributorship Franchise: In this format, the franchisor provides the franchisee with the business model
and systems, while the franchisee handles day-to-day operations. The franchisor may offer support in
areas such as marketing, training, and administration. Example: Anytime Fitness, where franchisees
manage the gym locations while following the company's operational guidelines and marketing strategies.