Retail Management

Introduction

Retail
Sale of goods to end users, not for resale, but for use and consumption by the purchaser Old French word retaillier (cut off bits)

Wholesale

Wholesale is the sale of goods, usually in quantity, for the purpose of resale to consumers. Wholesale is distinguished from retail, which is the direct sale of goods to the consumer.

Management

The organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909-2005), the basic task of a management is twofold: marketing and innovation.

Retailing

is a vital part of the business industry that involves selling products and services to consumers for their individual or family use. Retailing can also be defined as the timely delivery of goods demanded by consumers at an affordable and competitive price.

Retail Management

The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. managing the retail side of a business such as points of sale, stock control, and just-intime purchasing

Retailing involves a set of business activities that adds value to the products and services sold to the final consumers for their personal, family or household use. Retailers play a major role in the distribution system by helping manufacturers to reach out to the customers and at the same time, offering an array of value added services like breaking bulk, providing assortment, holding inventory and providing information for their customers.

Issues in Retailing
How can we best serve our customers while earning a fair profit? How can we stand out in a highly competitive environment where consumers have too many choices? How can we grow our business, while retaining a core of loyal customers?

A TYPICAL TYPE OF DISTRIBUTION

MANUFACTURER

FINAL CONSUMER

WHOLESALER

RETAILER

Distribution Types
1) Exclusive 2) Intensive 3) Selective

Customer Service

Activities undertaken by a retailer in conjunction with the basic goods and services it sells.

Relationship Retailing

Seek to establish and maintain longterm bonds with customers, rather than act as if each sales transaction is a completely new encounter

Functions of Retailing
Providing an assortment of products and services Breaking bulk Holding inventory Providing Services

Providing an assortment of products and services

- offering an assortment which enables their customers to choose from a wide selection of brands, designs, sizes, colors and prices at one location.

Breaking Bulk

- process wherein retailers offer products in smaller quantities tailored to individual consumers and households consumption patterns.

Holding Inventory

By doing these process, retailers reduce the cost the consumers would have to pay to store products.

Providing Services

Retailers provide services that make it easier for customers to buy and use products

Social and Economic Significance of Retailing

Corporate Social Responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders Retail Sales Employment Global Retailers

Retail Industry

Is the largest private industry (ahead of finance and engineering)

Benefits of Retailing
Higher competition lead to higher quality of products and services Enhances better lifestyle of its customer Technological advancement Provide variety to customers

Functions of a Retailer
Buying and assembling of goods Storing function Develops personal contact with the consumers Bears the risk in connection with physical spoilage of goods Bears the risk on account of fire, theft, etc. Makes arrangement for delivery of goods

Examples of Retailers
Department Stores large stores ranging from 20,000 50,000 sq.ft. - catering to a variety of consumer needs Discount Stores offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at a season Category killers or MBOs offer several brands across a single product

Examples of Retailers
Specialty Stores focusing on specific market segments and have established themselves strongly in their sectors. Malls largest form of organized retailing today; 60,000 sq.ft. to 700,000 sq.ft or more. - lend an ideal shopping experience with an amalgamation of products, services, and entertainment, all under a common roof

Examples of Retailers
Convenience Stores relatively small stores (400 2,000 sq.ft.) -located near residential areas -usually open for extended periods (7 days a week) -prices are slightly higher due to the convenience premium Hypermarkets/Supermarkets large self-service outlets

Examples of Retailers
E-tailers retailers who operate online stores to purchase their products Vending machines automated piece of equipment wherein customer can drop the money and acquire the product.