Retail Management

Dr. Anupamaa S. Chavan

Students are strictly warned not to share/upload this PPT with any person/website.

Copyright © 2020
BOOKS ON RETAILING/RETAIL MGT BY
……
• MICHAEL LEVY & BARTON WEITZ (Reference Book)
• BARRY BERMAN & OTHERS
• SWAPNA PRADHAN
• DR. RAM KISHEN
• KVS MADAAN
• V V GOPAL
• ARIF SHEIKH
• GIBSON, VEDAMANI
• K S MENON
• KEITH LINCOLN, LARS THOMASSEN, ANTHONY ACONIS.

Dr. Anupamaa S. Chavan

2
anupamaa.chavan@nmims.ac.in
Pedagogy
• Lectures (Online)
• PowerPoint Presentations
• Pre reading notes
• Case Study & Discussions
• Quiz
• Store visit and field work

Dr. Anupamaa S. Chavan

3
anupamaa.chavan@nmims.ac.in
Learning Objectives
1. Understanding the theoretical foundations of retailing such as Retail Strategy,
Merchandising Management, Category Management, Store Management, and
Retail Pricing.
2. To acquire conceptual clarity of the various functional areas of retailing such as
SCM, EDI, RFID, VMI,CPFR, HR issues in retailing, CRM, financial
implications of retail decisions, retail promotions, etc.
3. To understand the various evolving formats of retailing: online and offline
4. To make sense of the evolving external environment and competitive factors to
make better strategic decisions.
5. Analysis and interpretation of the various kinds of data used to make effective
decisions in retailing at an operational level.
Dr. Anupamaa S. Chavan
4
anupamaa.chavan@nmims.ac.in
Learning Outcomes:
• Gain a conceptual understanding of the various retail concepts.

• Build student appreciation of current trends–

• like role of internet in retailing,
• newer ways to sell and communicate with customer,
• greater emphasis on environment and social responsibility of retail
sector,
• use of technology and analytical methods in retailing.

Dr. Anupamaa S. Chavan

5
anupamaa.chavan@nmims.ac.in
Evaluation Scheme
• Term End Exam (TEE): 50 marks

• Internal Continuous Assessment (ICA): 50 marks

• Test – 20 marks
• Project & Presentation – 20 marks
• Assignment/Class Participation – 10 marks

Course Structure: Will be mailed to the students…..\Retail Mgmt Course Outline-21-22 (002).pdf
 Important Terms in Retail
• Distribution Centre
• Merchandise

• Shop Lifting
• Sales associates

• Stock Shrinking
• POS – Point of Sale

• Category
Dr. Anupamaa S. Chavan
8
anupamaa.chavan@nmims.ac.in
Important Terms in Retail
• Buyer

• Private Labels
• Drop Shipping

• Variety & Assortment

• Mom & Pop stores

• Traffic

SKU – Stock keeping unit

Dr. Anupamaa S. Chavan
9
anupamaa.chavan@nmims.ac.in
Introduction to the World of Retailing
Presentations: 20 marks
Topics: Admin Groups – Presentations (Chapter-10marks; Retail Brand Case Study- 10marks)

Presentations will be done on Module V chapters

• E-commerce and Recent trends in Retail: (Groups: 1, 6, 11)
• Innovations in Retailing: (Groups 2, 7, 12)
• International Retailing: (Groups 3, 8, 13)
• Ethical aspects in retailing and Green retailing: (Groups 4, 9, 14)
• Use of social media and mobile marketing for customer communication:
(Groups 5, 10)

Note- Module V is Self Study. Every chapter will be presented by various groups
twice/thrice. Students are required to pay attention when these presentations are on.
Retailing

The term ‘retailing’ is derived from the old

French word ‘retaillier’ meaning ‘to cut piece
off’ or ‘to break the bulk’.
 What is Retailing?
• Retailing – a set of business
activities that adds value to the
products and services sold to
consumers for their personal
or family use

• A Retailer is a
businessman/business unit
that sells products
and/services to consumers for
personal or family use.

Dr. Anupamaa S. Chavan

13
anupamaa.chavan@nmims.ac.in
RETAILING
• Retailing includes all the activities in selling goods or services directly
to final consumers for personal / non business use.

• A retailer or retail store is any business enterprise whose sales volume

comes primarily from retailing.

• Any organisation selling to final consumers – whether it is a

manufacturer, wholesaler or retailer – is doing retailing.
Examples of Retailers
• Retailers:
Walmart,
Amazon
www.amazon.com,
Carrefour,
Dmart,
BigBazaar,

• Firms that are retailers and wholesalers - sell to

other business as well as consumers:
Office Depot, The Home Depot, United Airlines,
Bank of America, Costco
Source: https://fortune.com/global500
Source- Deloitte
Source- Deloitte
 The Retailer’s Role in a Supply Chain

• A Supply Chain is a set of firms that make and deliver a given

set of goods and services to the ultimate consumer.

• Retailers are the final business units within a supply chain which
links manufacturers to consumers.
Distribution Channel
• https://www.shopify.com/enterprise/omni-channel-vs-multi-channel
Break Out Room Activity:
• THE FUTURE OF SHOPPING: WHAT'S IN STORE?
• https://www.youtube.com/watch?v=ad-GuV6YIMI
• •Make a PPT containing the information about:
• •Evolution of Retail
• •Various brands and their strategies as discussed in the AV.
• •Maximum 7 slides. Each student contributing atleast 1 slide
• •Write your Roll No and Name on the respective slide made by you.
Best Brands by YouGov BrandIndex
 Manufacturing, Wholesaling
and Retailing
• Vertical Integration – firm performs more than one set of activities in
the channel
• Ex: retailer invests in wholesaling or manufacturing

• Types:
• Backward Integration
• Forward Integration
 Manufacturing, Wholesaling
and Retailing

• Backward Integration –
Retailer performs some
distribution and manufacturing
activities

• Ex: JCPenney sells Arizona

jeans (Private Label)

• Big Bazaar coming up with

FBB brand (Apparel)
Manufacturing, Wholesaling,
and Retailing
• Forward Integration – manufacturers undertake retailing activities
• Ex: Ralph Lauren (New York )

• Pantaloons, Titan (India)

• Large retailers engage in both wholesaling and retailing

• Ex: Wal-Mart, Lowe’s, Safeway, Brown Shoe Company
Retail Overview : BIG BAZAAR
2001
Future Retail Brands
Big Bazaar - Private Labels
• Tasty Treat: Biscutes, Namkeen, Ready to eat snacks, mithai
• Vooms: Home Care, Detergent (Powder & Liquid)
• Karmiq: Dry Fruits, Olive oils
• Dreamery: Dairy products: Milk, Curd, Milk Shakes
• Mother Earth: Organic Food Products

• Private labels are brands which are not owned by the manufacturer or the
producer but by a retailer. The retailer gets their goods made by a contract
manufacturer under their own labels, similar to brands. Private labels have
seen a sharp rise with offline as well as online retailers.
Future Groups In-house Brands

Dr. Anupamaa S. Chavan

31
anupamaa.chavan@nmims.ac.in
 Dr. Anupamaa S. Chavan
32
anupamaa.chavan@nmims.ac.in
 Big Bazaar delivers
products through its 290
stores in 140 cities,
while JioMart delivers in
200 cities and
BigBasket in 26 cities.

June 12, 2021

 How Retailers Add Value - Functions
• Provide Assortment
Buy other products at the same time

• Break Bulk
Buy it in quantities customers want

• Hold Inventory
Buy it at a convenient place when you want it

• Offer Services
See it before you buy; get credit; layaway

• Increasing the Value of Products and Services

By providing assortments, breaking bulk, holding inventory, and providing services, retailers
increase the value that consumers receive from their products and services.
 Retail Progression-

Evolution of Retail
Reliance Retail Ventures Ltd
(2006)

- Reliance Retail is a part of Reliance Industries Limited

- Reliance Retail operates chain of convenience stores, supermarkets, specialty and

online stores providing choice, convenience and superior value

- Reliance Retail operates 12,711 stores across 7,000+ cities with a retail area of over
33.8 million sft.

- Reliance Retail has been ranked as the fastest growing retailer in the world. It is ranked
53rd in the list of Top Global Retailers and is the only Indian Retailer to feature in the
Top 100. It is the largest and the most profitable retailer in India with the widest reach.
In house brands/Private Labels

Food Brands

Personal Hygiene
and Home Care

Personal Grooming
& Beauty
Source: Deloitte
Reliance Retail in the list of Top 250 Global
Retailers
• Factors contributing to achieve this Position:
• a strong focus on boosting e-commerce growth through its
website Ajio.com;
• a push for sales of smartphones and other consumer electronics online;
• an aggressive pricing strategy across its offline stores;
• the acquisition of Hamleys in 2019, UK-based toy retailer;
• and new store openings.
• Acquisition of retail and wholesale business and the logistics and
warehousing business from the Future Group for Rs. 24,713 crore
• Mukesh Ambani-led Reliance Industries Ltd. has acquired Stoke Park Ltd,
a luxury hotel, spa, and country club in the UK for $79 million
Tata Group: Trent Retail
Established in 1998 and part of the Tata group, Trent is headquartered in Mumbai but has pan-India
operations. Trent is one of the leading players in the branded retail industry in India.

The company primarily operates stores across four formats, as below:

Westside offers an exclusive range of its own branded fashion apparel and is the mainstay of the
retailing business of the company. The company has already established 174 Westside stores across
90 cities.
Zudio offers irresistible fashion at irresistible prices. The company has established 133 Zudio stores
across 57 cities.
Star, is a fresh food and grocery retail chain, operating 60 stores across 7 cities.
Landmark, into books, music, movie VCD/DVDs, video game consoles, PC games, video games, console games,
video game accessories, toys, and magazines, operates through six independent stores and retailed
through select Westside locations.

Tata group also has Taj Group of Hotels, Tata SIA, Tata Sky, Outlets like Tanishq, Titan, Croma (Infinity
Retail) Dr. Anupamaa S. Chavan
42
anupamaa.chavan@nmims.ac.in
 K. Raheja Group
Residential
• The residential business of K Raheja Corp spans multiple projects in
Mumbai, Pune and Hyderabad.
Hospitality
• The group's hospitality business is focused on hotels and convention
centers for business and leisure needs. Hotel Renaissance, J. W. Marriot,
The Resort
Retail
• Multi-brand lifestyle store Shoppers Stop and its subsidiary bookstore
company Crosswords are part of K Raheja Corp.
Malls
• K Raheja runs In orbit mall which is present in Bengaluru, Hyderabad,
Pune, Navi Mumbai and Vadodara
Growth Drivers for Retail
INDIAN SCENARIO
SOURCE: IBEF
INDIAN SCENARIO

SOURCE: IBEF , MAY 2021

Indian Retail Scenario : 2018
Source- Indian Brand Equity Foundation Report

By 2021
Orgainised Retail
share will reach 18%

E-Commerce Retail
share will reach 7%

Unorganised/Traditio
nal Retail will be 75%
Key Players in Organised Market in India
 MAJOR RETAIL PLAYERS IN INDIAN MARKET:
• Future Group: Big Bazaar, Food Bazaar, Ezone, Future Bazaar,
Central; Hypercity (Now taken over by Reliance Retail)
• K Raheja Group: Shopper’s Stop, In orbit, Crossword
• Tata Group: Tanishq, Titan, West Side, Titan Eye, West Land
• Landmark Group: Lifestyle (Headquaters in Dubai, tapping tier2 cities)
• Reliance: Reliance fresh, Reliance Digital, Reliance Jewels, Reliance
Retail
• AV Birla Group: Pantaloon, R Mall Thane, More Store
• Subhiksha – Shut down
Source: IBEF
 Forbes ranked Sam Walton as the richest person in
the United States from 1982–88
Bill Gates first headed the list in 1992, the year Walton
died.

Founded in 1962 in Rogers, Arkansas

Walmart operates approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce
websites.Largest Private Employer in the world employing more than 2.3 million people across the globe.
 WALMART – PRIVATE LABELS
Apparel brands:
• George – men's casual and dress clothing, shoes, and accessories (previously also women's and
children's)
• Terra & Sky – plus size women's clothing
• Time and Tru – women's clothing, shoes, and accessories
• Wonder Nation – children's clothing, shoes, and accessories
• Other brands:
• Athletic Works – men's, women's, and children's activewear
• Brahma – men's and women's work boots
• EV1 – women's casual clothing, accessories, and shoes endorsed by American television personality Ellen
DeGeneres
• Boundaries – women's and men's clot hing and accessories
• Secret Treasures – women's sleepwear and intimate wear
• And1 – men's athletic footwear and clothing
• Avia – men's and women's athletic footwear
 WALMART – PRIVATE LABELS
• Sam's Choice – Staple and food items
• Adventure Force – toys suitable for outdoor use. Products include waterarms
(water blaster guns).
• Great Value – Grocery
• Equate – consumable pharmacy and health and beauty items,
• Mainstays- lower-priced lines of bedding, kitchen utensils, ready-to-assemble
furniture, and home decor.
• Ol' Roy - store brand of dog food,
• Special Kitty - cat food and other cat care products, such as litter and treats.
• Play Day - budget-priced children's toys.
• Pen+Gear is Walmart's store brand for school and office supplies
 Walmart India
• Walmart India owns and operates 28 B2B Modern Wholesale
Stores under the brand name of `Best Price’.
Key requirements to become a Best Price Member:
• Valid business licenses issued by the Central, State or Local
Governments
• Membership can also be granted to institutions such as offices,
hospitals, schools, societies, public trusts, etc. basis their valid business
licenses for their self-consumption
• The Best Price membership form is to be filled, signed and submitted at
your nearest Store Membership Desk, online at www.bestprice.in or by In 2018 Walmart bought a roughly
sending an 77% stake in Flipkart for $16 billion
email
Member Support Center
• An undertaking/declaration agreeing to the use of merchandise for
business / commercial / institutional purposes of the member and not for
personal consumption, is to be signed or uploaded
CHALLENGES TO RETAIL DEVELOPMENT IN INDIA

• Retail not being recognized

• The high costs of real estate
• Faces very high stamp duties on transfer of property
• Lack of adequate infrastructure
• Multiple and complex regulations/licenses/certifications/taxation
system
INDIAN RETAIL SET TO BENEFIT FROM FDI
POLICY
Foreign Direct Investment (FDI) in Retail

• FDI up to 100% for cash and carry wholesale trading and export
trading

• 51 % foreign direct investment in multi-brand retail and

• 100% foreign direct investment in single-brand retail

FDI for E-Commerce Sector:

Guidelines for Foreign Direct Investment on e-commerce sector

• 100% FDI under automatic route is permitted in marketplace

model of e-commerce.

• FDI is not permitted in inventory based model of e-commerce.

DMart

DMart is owned and operated by Avenue Supermarts

Ltd. (ASL) – a company founded by Mr. Radhakishan
Damani in the year 2002

DMart today has a well-established presence in 234

locations across Maharashtra, Gujarat, Andhra Pradesh,
Madhya Pradesh, Karnataka, Telangana, Chhattisgarh,
NCR, Tamil Nadu, Punjab and Rajasthan.
Net Income: $133.85 million in FY. 19

Private Labels: D Mart Minimax, D Mart Premia, D

Homes, Dutch Harbour, etc are brands owned by ASL
 •

4th Richest Indian - NET WORTH: $16.5 BILLION

Source: Forbes
Damani Beats Covid Crisis – Net worth up by
11% (2019-20)
 Break Out Room Activity - 4/5 SLIDE PER GROUP
How Covid-19 is changing our shopping habits: CNBC
Reports
https://www.youtube.com/watch?v=Y7bKxIT1ILM

Retail and Covid-19: Responding to the Pandemic what

are the strategies recommended to combat post Covid
Situation
https://www.youtube.com/watch?v=Sk0HYV9_Wng
Module 1 (Part II) to be continued…...