The prospects for significant modernization and development in retailing will depend on the nature of investment in this sector. The investment will be of two types-foreign and domestic. The quantum and nature of investment will depend on the factors outlined earlier namely economic development; civic situation; consumer needs; attitudes and behavior; and government policies. Although FDI is not yet permitted in retailing, a number of global retailers are testing the waters by signing technical agreements and franchises with Indian firms. Fast food chains like McDonald‘s and Pizza Hut are already operating in the metros. A Marks and Spencer store is already operational in Mumbai. Several global retailers are awaiting a change in policy. However, the development of the Indian retail sector is dependent not just on foreign investment but on Indian investment as well. Since the 1980s, industrial groups such as Reliance and Raymonds have been active in encouraging development Continue reading
Retail Management
Impact of Technology in Retail Industry
Technology in the retailing industry has provided a new dimension. The introduction of point of sale equipment, bar codes and huge storage capacity for billing and payment database has facilitated the management of large set-ups with ease. Operations can be recorded in a structured and systematic manner, providing detailed analysis of the sales and volume of transactions. Electronic transactions have increased the volume of sales in the country. Flexibility in the mode of payment and cashless transactions has helped in driving sales. Communication assists in maintaining a competitive advantage in retaining and attracting customers. The introduction of new technology may be intricate for retailers, but the convenience and cost effectiveness create the need for new advancements. Large stores need to monitor inventories and expenses of establishments. With automated machines and high-end computers making the task simpler, the focus of retailers can stay on retaining customers with new strategies. Security systems Continue reading
Retail Formats or Classification of Retail Firms
Retailing is to provide services and products and at a profit. Retailing consists of the sale of goods for personal or household consumption operating from an appropriate location offering wide range of access to its target audience. There are immense ways and places in which retail may be conducting in current business environment, however the aim of all types of retails is to engage with customer effectively and achieve the organization aims and objectives through the various strategies that may suit them. Regardless of the particular type of retailer (such as a supermarket or a department store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store operations. 1. Form of Ownership A retail business like any other type of business, can be owned by a sole proprietor, partners or a corporation. A majority of retail business in India are sole proprietorships and partnerships. Independent Continue reading
Interior Design Considerations in Retail Store Design
The interior design of the retail store determines the way the merchandise is stored and offered for sale. The interior design should allow easy access to merchandise for customer. There are several layout patterns that enhance the customer’s access to goods. The interior also projects an image to the shopper that should be consistent with that conveyed by the store’s promotion, price, and merchandise and with the exterior design. The store interior must make the customer comfortable and encourage shopping. The objective of layout management is to obtain the maximum benefits from the space available. There are issues that retail managers should consider when they make layout decision: 1. Value of Space The value of space, depending on the location within the store, is expressed in sales per square foot of floor space, and sales per cubic foot of cubic space. Sales per square foot is the typical measure for Continue reading
Theories of Retailing – Cyclic and Non-Cyclic Theories
Retailing may be defined as the selling of goods to the general public, rather than sales to businesses. The process usually involves sales of relatively small amounts of finished goods, with purchasers mainly motivated by their own consumption needs and not for resale. Numerous theories have bene developed to explain the patterns and trends that manifest in the retailing and selling. These can be divided into two main categories; cyclic and non-cyclic theories. Cyclic Theories Cyclic theories hypothesize the retail environment and competitive practices of retailers will follow a slightly, repeating pattern, with clear identifiable stages. 1. Wheel of Retailing Theory The wheel of retailing theory is one of the most common cyclic retailing theory. This was first proposed by McNair (1958) is one of the oldest retailing theories, and is frequently cited. The idea is that retailers will enter the market and progress through a cycle of strategies. Initially, Continue reading
Trading Area Adequacy for Retail Layouts
Trading area adequacy is the ability of a trading area to support proposed and the existing retail operations. The support capability may be viewed in a “Gross” as well as “Net” form. Here Gross adequacy is the ability of a trading area to support a retail operation without any consideration of retail competition. That is, the gross adequacy measures the total amount of business available to all the competing retailers within a defined trading area. Contrary to this, “net adequacy” is the ability of a trading area to provide support for a retailer after competition has been taken into account. The Gross Adequacy of Trading Area Measurement of gross adequacy determines the trading area’s total capacity to consume. The capacity of a retail market to consume is the function of the total number of consumers within a trading area at a given time and their need, willingness and the ability Continue reading