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
Retail Management Concepts
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
Planning Reductions in Merchandise Budgeting
This is a very significant stage in developing the merchandise budget namely planning of reductions. “Retail reductions” are the difference between the merchandise item’s original retail value and its actual final sales value. This difference is the result of three major factors namely, mark-downs, discounts and shortages. “Mark downs” are the reductions in the original retail price for the purpose of stimulating the sale of merchandise. The amount of markdown can vary considerably depending on the type of merchandise and the condition under which it is sold. “Discounts” are reduction in the original retail price that are granted to store employees as special fringe benefits and to special customers in recognition of their special status say senior citizens, disadvantaged customers and religious personalities like clergy, priests, and so on. “Shortages” are the reductions in the total value of the retailer’s inventory as a result of shoplifting, pilferage and merchandise being Continue reading
Exterior Design Considerations in Retail Store Design
The exterior design of any retail store must protect the interior from the outside elements (heat, dust, humidity, light etc.). Just as important, it also serves to convey information to potential customers. The exterior is first part of the store that potential customers see. They will determine from the outside whether or not they wish to enter and shop. It is critical that the outside of the store gain the attention of customers and entice them to enter. If the outside does not reflect an image appropriate to customers, they will not enter into the store. The important exterior design considerations for the retail store design are: 1. New Building versus Existing Facility The decision to build a new facility or seek existing space is a critical element in exterior design planning. Each option has its advantages. Building allows the retailer to design all aspects of the exterior and interior. Continue reading