Managing Retailing by Aarushi

8/6/2019 Managing Retailing by Aarushi

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Minor Project Report

On

MANAGING RETAILING

Submitted in partial fulfilment of the requirements for the award of the

degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Institute of Information Technology and Management

New Delhi 110058

Batch 2009 - 2012

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1. DEFINITION AND MEANING

Retailing consists of those business activities involved in the sale of goods and

services to consumers for their personal, family, or household use.

Retailing consists of the sale of goods or merchandise from a very fixed location, such

as a department store, boutique or kiosk, or by mail, in small or individual lots for

direct consumption by the purchaser. Retailing may include subordinated services,

such as delivery.

In commerce, a "retailer" buys goods or products in large quantities from

manufacturers or importers, either directly or through a wholesaler, and then sells

smaller quantities to the end-user. Retail establishments are often called shops or

stores. Retailers are at the end of the supply chain.

The term "retailer" is also applied where a service provider services the needs of a

large number of individuals, such as a public utility, like electric power.

Pic.1. Retailing process

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. Therefore, bringing about operational

efficiency at this last stage, and creating an environment so compelling that he looks

nowhere else, is "Retail Management"(RM).

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RM- is an art, and necessitates employing several tools of logistics management for a

complete end user satisfaction. RM - is getting to know the final user on behalf of the

producer. RM - is a process of facilitation.

2. CONCEPT OF RETAILING

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The distribution of consumer products begins with the producer and ends at the

ultimate consumer. Between the producer and the consumer there is a middleman-the

retailer, who links the producers and the ultimate consumers. Retailing is defined as a

conclusive set of activities or steps used to sell a product or a service to consumers for

their personal or family use. The word retail is derived from the French work

retailer, meaning to cut a piece off or to break bulk.

Manufacturer Distributors/Wholesalers Retailers Consumer

Pic.2. Distribution process of consumer goods.

A retailer is a person, agent, agency, company, or organisation which is instrumental

in reaching the goods, merchandise, or services to the ultimate consumer. Retailers

perform specific activities such as anticipating customers wants, developing

assortments of products, acquiring market information, and financing. A common

assumption is that retailing involves only the sale of products in stores. However, it

also includes the sale of services like those offered at a restaurant, parlour, or by a car

rental agencies. The selling need not necessarily take place through a store. Retailing

encompasses selling through the mail, the internet, door-to-door visit sany channel

that could be used to approach the consumer. Retailing has become such an intrinsic

part of our day today lives that it is often taken for granted. Why has retailing become

such a popular method of conducting business? The answer lies in the benefits a

vibrant retailing sector has to offer-an easier access to a variety of products, freedom

of choice and higher levels of customer service.

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Therefore, the ease of entry into retail business results in fierce competition and better

value for customer. To enter retailing, is easy and to fail is even easier. Therefore, in

order to survive in retailing, a firm do a satisfactory job in its primary role i.e.,

catering to customers.

3. SCOPE OF RETAILING

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Retail is clearly the sector that is poised to show the highest growth in the next five

years. The sector is set for a revolution, as both the present players and new entrants

are gearing up to explore the market. This sector contributes 10% of India's GDP and

the current growth rate is 8.5%. The present size of the organized retailing sector is

approximately 3% and is expected to grow to 25-30% by the year 2010. There are

about 300 new malls, 1500 supermarkets and 325 departmental stores currently

under construction. Many players are coming up with huge investments, due to

which the present 12 million mom-and-pop shops and kirana stores fear losing their

business. Most predictions say that the sector might reach to US$ 400-600 billion by

the year 2010. (Data provided by www.naukrihub.com)

3.1 Retail Landscape

Modern retail development in India is focused on the following cities:

West

Mumbai

Pune

Ahmadabad

North

Delhi and the National Capital Region

South

Chennai

Bangalore

Hyderabad

East

Kolkata

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Over the past 2-3 years the modern retailing has also shifted to suburban and small

cities as well like Ludhiana, Rajasthan, etc.

3.2 Some leading Indian Retailers are as follows:

Bata India Ltd

Big Bazaar

Food Bazaar

Liberty shoes Ltd.

Music World Entertainment Ltd.

Pantaloon Retail India Ltd.

Shoppers Stop

Subhiksha

Titan industries

3.5 FDI in retailing sector

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3.5.1 What is FDI?

Foreign direct investment (FDI) is the movement of capital across national frontiers in

a manner that grants the investor control over the acquired asset. Thus it is distinct

from portfolio investment which may cross borders, but does not offer such control.

Consistent economic growth, de-regulation, liberal investment rules, and operational

flexibility are all the factors that help increase the inflow of Foreign Direct Investment

or FDI.

3.5.2 Retailing Sector and FDI - Retailing is the largest private sector industry in the

world economy with the global industry size exceeding $6.6 trillion and a latest

survey has projected India as the top destination for retail investors. And the further

upsurge is anticipated in the retail sector as the Government of opened up 51% FDI in

single brand retail outlets. And as the government is in a process to initiate a second

phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The

Government is seeking for these options keeping in view the existing social

framework of India and the will ensure that the entry of global retail giants do not

displace the existing employment in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the

retail investors in India as they have unique advantages such as an understanding of

local needs and extended service like home delivery. As the FDI influence on the

Indian retail sector sets in, the total size of the retail trade is expected to grow

extensively in the coming years and the consumer segments patronizing the big malls

will create frenzy for organized retailing predicting a growth of 25-30 per cent per

annum over the next decade. Moreover, Indian retail chains would get integrated with

global supply chains since FDI will bring in technology, quality standards and

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marketing thereby, leading to new economic opportunities and creating more

employment generation.

3.5.3 Benefits of FDI in Retail Sector

Higher competition would lead to higher quality in products and services.

Better lifestyle as better products would be introduced.

Exports would increase due to greater sourcing of major players.

Investment in whole supply chain would increase.

Technology would be upgraded in terms of logistics, production, and

distribution channels.

The markets of the sector would flourish and develop.

Employment would increase and skills & manpower will develop.

A strong retailing sector would promote tourism.

Economies of scale would help lower consumer prices and increase the

purchasing power of the consumer.

In the long term it will be beneficial in the up-gradation of agriculture and

small scale & medium scale industries. (Above data in figures is provided by

www.docstoc.com)

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4. RETAILING IN INDIA

4.1 Origin in India

Although retailing does not enjoy the status of an industry, the sheer size it will

develop into, is grabbing attention. The origin of retail in India dates back to ancient

times when the melas and mandis made their presence felt. The changing socio

economic patterns coupled with the consumption increase led to the emergence of the

convenience stores, which became a part of the civic planning. The next step was the

commercial plazas, which comprised merely shops offering a variety of goods and

services clubbed together. The inconveniences caused by lack of parking place, toilets

and maintenance, ushered in the entry big international brands opening their exclusive

showrooms. The opening up of the economy only fuelled this globalization. There

are, however, certain bottlenecks as well; the scarcity of space, coupled with the

stringent provisions of the Rent Control Act, act as a dissuasive factor for many

players to initiate operations in the main markets. This also explains why the Rahejas

forayed into their retail venture-Shoppers Stop.

4.2 Composition of Urban Outlets

RETAIL OUTLET

Grocers

Cosmetic stores

Chemist

Food stores

General stores

Tobacco, pan stores

Others

COMPOSITION

34.7%

4.0%

6.3%

6.6%

14.4%

17.0%

17.0%

(Data Source: www.docstoc.com)

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4.3 Emergence of Organised Retailing

Organized retailing in India represents a small fraction of the total retail market. In

2001, organized retail trade in India was worth Rs.11, 228.7 billion.(data

source:www.naukrihub.com). The modern retail formats are showing robust growth

as several retail chains have established a base in metropolitan cities, especially in

south India and are spreading all over India at a rapid pace. However, space and

rentals are providing to be the biggest constraints to the development of large formats

in metropolitan cities since retailers are aiming at prime locations.

In urban India, families are experiencing growth in income but dearth of time.

Women are taking up corporate jobs, which is adding to the familys income and

leading to better lifestyles. Rising incomes has led to an increased demand for better

quality products while lack of time has led to a demand for convenience and services.

The demand for frozen, instant, ready-to-eat food has been on the rise, especially in

the metropolitan and large cities in India. There is also a strong trend in favour of one-

stop shops like supermarkets and department stores.

Rural India continues to be serviced by small retail outlets. Only 3.6 million outlets

cater to more than 700 million inhabitants of rural India. Here,provision stores, paan

shops and rationshops are the most popular vehicles of retailing. Apart from this,

there are periodic or temporary markets, such as haats, peeth and melas that come up

at the same location at regular time intervals.

The McKinsey report predicts that FDI will help the retail businesses to grow to US $

460-470 billion by 2010. There has been a strong resistance to foreign direct

investment (FDI) in retailing from small traders who fears that foreign companies

would take away their business, lead to the closure of many small businesses and

result in large-scale unemployment. Therefore, government has discouraged FDI in

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the retail sector. At present, foreign retailers can enter the retailing sector only

through restricted modes. Global players in the retail segment have been entering the

market for a while now. Players that entered before the easing of restrictions on FDI

in retail had to come through different modes, such as joint ventures where Indian

partner is an export house (Total Health Care); franchising/local

manufacturing/sourcing from small-scale sector (McDonalds, Pizza Hut); cash and

carry operations (Giant) and licensing (Marks & Spencers).

The main condition for organised retailing is that the retailer should be able to manage

and influence the supply chain variables in a commercially viable and sustainable

manner. The organized retailer should be able to, through diversified risks and volume

sales command huge concessions on prices from the manufacturers. He should then

be in a position to allow a trickle down of this advantage to consumers out of his

saved costs.

4.4 Current Scenario

The Indian population is whooping 1 billion with 75% of the people living in villages

and small towns. It is only natural that the service sector is the biggest employer with

its contribution to GDP pegged at 54%. (Data source: www.tradechakra.com) Retail

in Indias largest industry after Agriculture with around 20% of the economically

active population engaged in it and generation 10% of Indias GDP. The growth of

the efficient small store culture can be attributed to the 6 million villages distributed

across the length and breadth of the country. The 12 million retail outlets in India are

the highest in the world. Its interesting to note that the Urban Population although

just 25% of the total, is an astounding 250 million in size is growing at healthy rate of

7% per annum. The chief driver of growth in the retail sector has been the consumer,

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with the spending increasing at an average of 11% per annum. The core and the

Lower middle have increased their share in the Growth.

The Indian consumers shopping needs are and traditionally have been fulfilled by

Kirana sores, Kiosks,street vendors and high-street shops for consumer durables and

luxury goods. To cater to this, each city developed its own identity and shopping

cluster, for instance in Pune there is MG Road, Bangalore has Brigade Road and

Commercial Street, Delhi has Connaught Place, Karol Bagh and South Extension. In

India we have 196 malls, covering an area of 51.6 million sq ft. And by year end

(2010) the count will shoot up to 258 malls. It will cover 94 million sq ft area. (Data

provided by www.docstoc.com)

4.5 Drivers of Change in Retailing

Changing demographics and industry structure

Expanding computer technology

Emphasis on lower costs and prices

Emphasis on convenience and service

Focus on products

Added experimentation

Continuing growth of non-store retailing

In todays competitive environment retailers have redefined their role in general, and

in the value chain in particular. Retailers act as gatekeepers who decide on which new

products should find their way to the shelves of their stores. As a result, they have a

strong say in the success of the product or service launched by a business firm. A

product manager of household appliances claimed, Marketers have to sell a new

product several times, first within the company, then to retailer and finally to the user

of the product.

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It is a well-established fact that manufacturers need to sell their products through

retail formats that are compatible with their business strategy, brand image, and

market profile in order to ensure a competitive edge. The role of retailers in the

present competitive environment has gained attention from manufacturers because

external parties such as market intermediaries and supplying partners are becoming

increasingly powerful. It is necessary for marketers of consumer products to identify

the need and motivations of their partners in the marketing channel. This is especially

true in the case or new products.

The increasing numbers of product categories followed by multiple brands in each

category complicate decision-making for both manufacturers and market

intermediaries. Retailers want of optimize sales within the limited shelf space,

governed by their individual sales philosophy. Retailers undertake risk in selection of

goods to be sold given the following major concern which is selling space available is

relatively fixed and returns maximum profits. If such space is occupied by

merchandise that is not moving, it will not result in profit. The retailer may have to

resort to substantial price reductions in order to get rid of the unsold stock.

Therefore, we can say that retailing is a dynamic industry-constantly changing due to

shifts in the needs of the consumers and the growth of technology. Retail formats and

companies that were unknown three decades ago are now major forces in the

economy. Therefore, the challenges for retail managers the world over are increasing-

they must take decisions ranging from setting the price of a bag of rice to setting up

multimillion dollar stores in malls. Selecting target markets, determining what

merchandise and services to offer, negotiating with suppliers, training salespeople-

these are just a few of the many functions that a retail manager has to perform on a

perpetual basis.

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The larger retailers have managed to set up huge supply/distribution chains, inventory

management systems, financing pacts and wide-scale marketing plans. In the

backdrop of globalization, liberalization and highly aware customers, a retailer is

required to make a conscious effort to position himself distinctively to face the

competition. This is determined to a great extent by the retail mix strategy followed

by accompany to sell its products.

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Extend credit facility - He develops personal contact with the

consumers and gives them goods on credit.

Create demand by window display etc.

He bears the risks in connection with Physical Spoilage of goods and

fall in price. Besides he bears risks on account of fire, theft,

deterioration in the quality and spoilage of goods.

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6. TYPES OF WHOLESALERS

6.1 Merchant Wholesalers: These wholesalers own the products they sell. For

example, a wholesale lumber yard that buys plywood from the producer is a

merchant wholesaler. It actually owns - takes title to - the plywood for some

period of time before selling to its customers. About four out of five wholesaling

establishments in the United States are merchant wholesalers - and they handle

about 59 percent of wholesale sales. Merchant wholesalers often specialize by

certain types of products or customers and they service relatively small geographic

areas. And several wholesalers may be competing for the same customers. For

example, about 3,000 specialized food wholesalers compete for the business of

restaurants, hotels, and cafeterias across the United States.

6.2 General Merchandise Wholesalers: These are service wholesalers who carry

a wide variety of non-perishable items such as hardware, electrical supplies,

plumbing supplies, furniture, drugs, cosmetics, and automobile equipment. These

wholesalers originally developed to serve the early retailers - the general stores.

Now, with their broad line of convenience and shopping products, they serve

hardware stores, drugstores, electric appliance shops, and small department stores.

6.3 Single-line (or general-line) Wholesalers: These are service wholesalers who

carry a narrower line of merchandise than general merchandise wholesalers. For

example, they might carry only food, wearing apparel, or certain types of industrial

tools or supplies. In consumer products, they serve the single- and limited-line

stores. In business products, they cover a wide geographic area and offer more

specialized service.

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6.4 Speciality Wholesalers: These are service wholesalers who carry a very

narrow range of products - and offer more information and service than other

service wholesalers. A consumer products specialty wholesaler might carry only

health foods or oriental foods instead of a full line of groceries. Or a specialty

wholesaler might carry only automotive items and sell exclusively to mass-

merchandisers. Specialty wholesalers often know a great deal about the final target

markets in their channel. For example, Advanced Marketing is the leading

wholesale supplier of books to membership warehouse clubs. The company offers

hardcover best sellers; popular paperbacks, basic reference books, cookbooks, and

travel books. Consumers in different geographic areas are interested in different

kinds of books and that affects what books will sell in a particular store.

6.5 Cash-and-Carry Wholesalers: These wholesalers operate like service

wholesalers - except that the customer must pay cash. Some retailers, such as

small auto repair shops, are too small to be served profitably by a service

wholesaler. So service wholesalers set a minimum charge - or just refuse to grant

credit to a small business that may have trouble paying its bills. Or the wholesaler

may set up a cash-and-carry department to supply the small retailer for cash on the

counter. The wholesaler can operate at lower cost because the retailers take over

many wholesaling functions. And using cash-and-carry outlets may enable the

small retailer to stay in business. These cash-and-carry operators are especially

common in less-developed nations where very small retailers handle the bulk of

retail transactions.

6.6 Drop-Shippers: These wholesalers own (take title to) the products they sell -

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but they do not actually handle, stock, or deliver them. These wholesalers are

mainly involved in selling. They get orders - from wholesalers, retailers, or other

business users - and pass these orders on to producers. Then the producer ships the

order directly to the customers. Because drop-shippers do not have to handle the

products, their operating costs are lower. Drop-shippers commonly sell products

so bulky that additional handling would be expensive and possibly damaging.

6.7 Truck Wholesalers: These wholesalers specialize in delivering products that

they stock in their own trucks. By handling perishable products in general demand

- tobacco, candy, potato chips, and salad dressings - truck wholesalers may provide

almost the same functions as full-service wholesalers. Their big advantage is that

they deliver perishable products that regular wholesalers prefer not to carry. Some

truck wholesalers operate 24 hours a day, every day - and deliver an order within

hours.

6.8 Mail-Order Wholesalers. These wholesalers sell out of catalogs that may be

distributed widely to smaller industrial customers or retailers who might not be

called on by other middlemen. These wholesalers operate in the hardware,

jewellery, sporting goods, and general merchandise lines. For example, Inmac uses

a catalog to sell a complete line of 3,000 different computer accessories and

supplies. Inmac's catalogs are printed in six languages and distributed to business

customers in the United States, Canada, the United Kingdom, Germany, Sweden,

the Netherlands, and France. Many of these customers - especially those in smaller

towns - don't have a local wholesaler.

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6.9 Producers' Cooperatives. These wholesalers operate almost as full-service

wholesalers - with the "profits" going to the cooperative's customer-members.

Cooperatives develop in agricultural markets where there are many small

producers. Examples of such organizations are Sunkist (citrus fruits), Sunmaid

Raisin Growers Association, and Land O' Lakes Creameries, Inc. Successful

producers' cooperatives emphasize sorting - to improve the quality of farm

products offered to the market. Some also brand these improved products - and

then promote the brands. For example, the California Almond Growers Exchange

has captured most of the retail market with its Blue Diamond brand.

6.10 Rack Jobbers: These wholesalers specialize in nonfood products sold

through grocery stores and supermarkets - and they often display them on their

own wire racks. Most grocers don't want to bother with reordering and

maintaining displays of nonfood items (housewares, hardware items, and books

and magazines) because they sell small quantities of so many different kinds of

products. Rack jobbers are almost service wholesalers - except that they usually

are paid cash for what is sold or delivered.

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8. KINDS OF RETAILERS

8.1 On the Basis of Ownership -

There are four basic legal forms of ownership for retailers:

8.1.1 Sole Proprietorship: - The vast majority of small businesses start out as

sole proprietorships. These firms are owned by one person, usually the individual

who has the day-to-day responsibility for running the business.

8.1.2 Partnership: - A partnership is a common format in India for carrying out

business activities (particularly trading) on a small or medium scale. In a

partnership, two or more people share ownership of a single business.

8.1.3 Joint Venture: - A joint venture is not well defined in the law. Unless

incorporated or established as a firm as evidenced by a deed, joint

ventures may be taxed like association of persons, sometimes at

maximum marginal rates. It acts like a general partnership, but is clearly

for a limited period of time or a single project.

8.1.4 Limited Liability Company (public and private): - The Limited

Liability Company (LLC) is a relatively new type of hybrid business

structure that is now permissible in most states. The owners are members,

and the duration of the LLC is usually determined when the organization

papers are filed.

8.2 On the Basis of Operational Structure -

Retail businesses are classified on the basis of their operational and

organizational structure. Operational structure defines the key strategic decision

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of retail entity, whether to hire employees and manage the distributed sales

function internally or to reach customers though franchised outlets owned and

operated by the local entrepreneurs.

Retail firms can be classified into five heads on the basis of their respective

operational structures:

8.2.1 Independent Retail Unit: - The total number of retailers in India

is estimated to be over 5 million in 2003. About 78% of these are

small family businesses utilizing only household labour. An

independent retailer owns one retail unit.

8.2.2 Retail Chain: - A chain retailer operates multiple outlets (store

units) under common ownership; it usually engages in some level

of centralized (or coordinated) purchasing and decision making.

8.2.3 Franchising: - Franchising involves a contractual arrangement

between a franchiser (which may be a manufacturer, a wholesaler,

or a service sponsor) and a retail franchisee, which allows the

franchisee to conduct a given form of business under and

establishments name and according to a given pattern of business.

8.2.4 Leased Department or Shop in Shop: - It refers to

department in a retail store that are rented to an outside party.

Usually this is done in case of department and specially stores and

also at times, in discount stores.

8.2.5 Co-operative Outlets: - Co-operative outlets are generally owned

and managed by co-operative societies. In this context the detailed

example of Kendriya Bandar in India.

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8.3 On the Basis of Location

8.3.1 Retailers in a free-standing location: - Retailers located at a site which is

not connected to other retailers depend entirely on their sores drawing power

and on the various promotional tools to attract customers. This type of location

has several advantages including no competition, low rent, and better visibility

from the road, easy parking and lower property costs. For example the

Haldirams outlet on the Delhi-Jaipur highway and the McDonalds outlet on

Delhi Ludhiana highway.

8.3.2 Retailers in a Business- associated Locations:- In this case, a retailer

locates his store in a place where a group o retail outlets, offering a

variety of merchandise, work together to attract customers to their retail

area, and also compete against each other for the same customers.

8.3.3 Retailers in Specialized Markets: - Besides the above location-based

classification, we also have in India-retailers who prefer specialized

markets, particularly traditional independent retailers or chain stores. In

India, most of the cities have specialized markets famous for a particular

product category. For example, in Chennai, Godown Street is famous for

clothes, Bunder street for stationary products, Usman Street for jewellery,

T Nagar for ready-made garments, Govindappan Naicleen street for

grocery, Poo Kadia for food and vegetables.

8.3.4 Airport Retailing: - For quite some time, duty-free shops and

newsstands dominated the small amount of commercial space provided at

airports. Lately, serious efforts are being made to design new airports

facilities in order to incorporate substantial amounts of retail space.

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9. MARKETING DECISIONS BY RETAILERS

Today, retailers are looking for new marketing strategies to attract and retain

customers. Previously, it suffices was to offer people the convenience of location,

special or unique assortment good, better than the competitor, service, and Internet

presentations credit cards that buyers can make purchases on credit. Now everything

is different. At many stores you will find quite the same range - trying to reach

maximum volume of sales, the manufacturers sell their products wherever possible.

Many stores cut its own set of services and shops reduced prices, on the contrary,

increased their number. People are not going to pay for the same or similar mark

more, especially if the amount provided in this service is reduced. Not they need a

credit card of a shop, because bank cards now accepted almost universally.

All this leads to the fact that many retailers trade today are rethinking their marketing

strategies. Example, department stores, faced with competition from specialized and

trading at a discount store, started a real war, trying to regain former popularity. Many

of them have historically located in the centre of cities, opening their offices in the

suburbs, where there is always space on the Parking, and higher income families.

Others are increasingly satisfied with the sale; rebuild their stores, experimenting with

trading by mail and tele marketing. Superstores compete with supermarkets, and so

have to open offices with a large range and variety of goods, upgrade their facilities.

Supermarkets more money spent on activities sales promotion, moving to small

private brands, to reduce its dependence on marks on a national scale.

One of the most important and most responsible decisions that have to take a retailer

associated with the target market. What customer oriented shop: high, medium, low-

income? Do buyers diversity, depth of assortment, convenience? Yet will identify and

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describe the target market, the retailer will not make informed decisions on

assortment, store environment, means and content of advertising, the price level.

Many companies do not have a specific target market. Trying meeting the needs of a

large number of different segments, they are not satisfying either one of them. Some

retailers target market determined fairly accurately.

Therefore, with the emergence of retailing sector in India retailers should periodically

conduct market studies to monitor the achievement and satisfaction targets consumers

and should adopt effective marketing strategies so as to establish its position in

market and also fulfils the needs of consumers by catering services to them.

10. TYPES OF RETAIL DISTRIBUTION OUTLETS

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10.1 Small-scale Retailers: - are those retailers whose scale of operation is restricted

to a small segment of the market and to a narrow range of products. They generally

hold small stocks of the products of regular use. Such retailers are very large in

number but account for a small portion of the total retail business. But, small-scale

retailing is a very common, simple and flexible way of distributing the products to the

final consumers. It incurs low operating costs and is usually owned and operated by a

proprietor. The most important feature is that the small-scale retailers have a direct

and personal contact with their customers. This form of retailing faces the problems of

small capital, lack of professionalism and low purchasing power.

Pic.3.Small Scale Retail Outlets

The two prevalent forms of small scale retailing in India are:-

10.1.1 Mobile Traders: - are those retailers who carry on their business by moving

from place to place for selling the products and have no fixed business premises. They

change their place of business according to their convenience and sales prospects.

They serve either at the consumer's doorsteps or on busy places frequently visited by

the customers. They do not have any particular line of business and carry very little

stock of those goods. They save time and efforts of customers in buying articles of

ordinary use. The hawkers and pedlars; cheap jacks; market traders and street sellers

fall under this category.

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Pic.4.Mobile Retailing.

10.1.2 Fixed Shop Retailers: - are those retailers which have fixed business premises

and operate through unit stores or small shops located in residential areas or markets.

They mainly include:- Street stalls: - are the small shops on the roadside, street-

crossing, bus stops, etc. They sell a limited variety of products of regular use like

stationery, grocery, etc. ; Dealers of second hand goods: - are engaged in purchase

and sale of used goods like books, clothes, etc. ; General stores or variety stores: - are

the shops which deal in all types of general consumer goods of regular use like bread,

butter, paper and pencils, etc.They are set up in residential areas or busy markets.

They provide services like goods on credit and home delivery to their customers ;

Speciality shops: - are the shops which deal in only one or two special types of goods.

They are generally located in shopping centres. For example, chemist shops, grocery

shops, readymade garments shop, sweets shop, etc.

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Pic.6. Large Scale Retailing in form of Departmental Stores

10.2.2 Supermarkets: - are large scale retail shops operating at lower costs. They sell

a wide variety of consumer goods of regular use such as food items, groceries, etc at

one place. They sell goods at lower prices than the departmental stores. Customers

select the goods themselves without salesman's assistance. It is also called self-service

stores. But, they do not provide additional facilities to their customers.

Pic.7. Retailing in supermarkets

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10.2.3 Multiple Shops or chain stores: - are a group of retail stores of the same type

under one common ownership and centralised management but are located at various

locations. All of them deal in similar range of products and sell the same standardised

products at the same terms and conditions. The goods dealt are generally meant for

everyday use and are readily acceptable to all kinds of customers. They offer goods at

lower prices as they enjoy economies of bulk buying.

Pic.8. Multiple shops or the retail chain outlets in India10.3 Mail order houses: - are those retail trading establishments which receive their

orders by mail and deliver the goods by parcel or post express. The post office is their

main channel of distribution. Orders from customers may be secured by advertising in

newspapers or journals or through telephone contacts. But this type of retailing is non-

personal and without any face-to-face contact between buyers and sellers. However, it

helps the consumers to get their requirements at their own place and thus saves their

time and expenses.

Pic.9. Mail order house retailing

10.4 Consumer cooperative stores: - are the cooperative stores which are owned and

operated by the consumers themselves. They are incorporated as an association under

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through such vending machines.

Pic.11. Vending machines

BIBLIOGRAPHY

BOOKS:

Pradhan, Swapana (2007). Retailing Management; McGraw Hills

Weitz, A Barton (2003). Retailing Management; Sage Publications Ltd.

Krafft, Manfred and Mantrala, K.Murali (2010). Current and Future Retailing

Trends; Springer Heidelberg Dordrecht; London.

John Fernie, John and Moore, Christopher (2003). Principles of Retailing;

Oxford OX2 200 Wheeler Road Burlington.

INTERNET:

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Managing Retailing by Aarushi

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