1. RETAIL MANAGEMENT
MODULE 1
BY HENNA PUNJABI

2. What is Retailing ?
1. Retailing includes all the activities involved
in selling goods or services to the final
consumers for personal, non-business use. A
retailer or retail store is any business
enterprise whose sales volume comes
primarily from retailing.

3. Characteristics of Retailing
1. Direct interaction with customers
2. Point-of-purchase display and promotions
3. Lower average amount of sales transaction
4. Location / larger number of retail business
units

4. Functions of Retailers
1. Providing assortment
2. Breaking bulk
3. Holding inventory
4. Providing services
5. Channel of communication
6. Transport and advertising functions
7. Creation of utilities

5. Imp. Of Retailer / Retailing
1. Higher sales / employment
2. Access for consumers
3. Convenience
4. Assortment
5. Advertisement
6. Completes transactions
7. Links producers and consumers
8. Anticipates cutomer’s wants

6. Factors influencing Retail Mgmt.
1. Range of merchandise
2. Convenience of shopping at a particular
outlet
3. Time to travel
4. Socio-economic background and culture
5. The stage of Family Life Cycle

7. Scope of Retail Mgmt.
1. Category management
2. Customer relationship management
3. Store management
4. Supply Chain Management
5. Inventory Management
6. Vendor Management

8. Retail Formats
1. Organized Retailing : It refers to trading
activities undertaken by licensed retailers,
that is, those who are registered for sales
tax, income tax etc.

9. Retail Formats
2. Unorganized Retailing : It refers to the traditional formats of
low-cost retailing, for example, the local kirana shops, owner
manned general stores, paan / beedi shops, convenience
stores, hand cart and pavement vendors, etc.

10. Factors responsible for the growth of
organized retailing in India
1. Urbanization
2. Convenience
3. Quality goods
4. Prompt after sales service
5. Rising household income

11. Multichannel Retailing
A. Store Channel
B. Catalogue Channel
C. Internet Channel

12. Multichannel Retailing
A. Store Channel
1. Browsing
2. Touching and feeling products
3. Personal service
4. Cash payment
5. Immediate Gratification
6. Risk reduction
7. Entertainment and social experience

13. Multichannel Retailing
B. Catalogue Channel
1. Convenience
2. Safety
3. Quality of visual presentation

14. Multichannel Retailing
C. Internet Channel
1. Broader selection
2. More information to evaluate merchandise
3. Personalization

15. E-tailing
E-tailing is the sale of goods and services
through the Internet.

16. Advantages of E-tailing
1. Round the clock business
2. Consumer convenience
3. Level playing field
4. Cost effective
5. Simplicity
6. Improved customer service
7. Lower transaction cost
8. Access to all markets
9. Reduction in setup cost

17. Advantages of E-tailing
10.Many products and services from a single
stop
11.Quick service
12.Building relatinship
13.Enhanced productivity of sales people
14.Enables the marketer adjust to market
conditions quickly
15.Consumer can ‘get more for less’

18. Advantages of E-tailing
16.Transparency
17.Accuracy of information
18.Customer loyalty
19.Creating new business models
20.Security and privacy
21.Instant payment
22.Increase market share

19. Disadvantages of E-tailing
1. Lack of awareness
2. Lack of infrastructure
3. Lack of confidence
4. Skeptic attitude
5. Credit card frauds
6. Absence of tax laws
7. Cyber laws

20. Disadvantages of E-tailing
8. Stock dilemma
9. Lack of strength
10.Lack of skills and expertise
11.Internet outrage
12.Absence of cyber brand image
13.Inadequate government role
14.No emphasis on commercial exploration
15.No encouragement from business community

21. Disadvantages of E-tailing
16.Preferring foreign sites
17.Inactive Indian software houses
18.Cyber competition
19.Difficulty of Reengineering
20.Skepticism
21.Internet for small business
22.Blocking and censorship
23.Infant stages
24.Barriers survey findings

22. Advantages of I.T. in Retail
1. Strategize business
2. Efficient management
3. Better integration and communication
4. Real – life shopping experience online

23. Disadvantages of I.T. in Retail
1. Customer data
2. Transparency and tracking
3. Global data synchronization
4. PCI security compliance

24. Application of I.T.
1. EDI
2. Bar Coding
3. RFI Tags
4. Electronic article surveillance
5. Electronic shelf labels

25. Electronic Data Interchange (EDI)
1. Standards for exchanging data
2. Electronically exchange documents
3. Purchase orders, invoices, shipping notices
4. EDI eliminates manual steps involved in this
transfer.
5. B2B e-commerce technology
6. “Trading Partners”

27. Electronic Data Interchange (EDI)
1. STEPS THE SENDER MUST TAKE
• Document preparation
• Outbound translation
• Outbound communication
2. STEPS THE RECEIVER MUST TAKE
• Inbound communication
• Inbound translation
• Document processing

28. BAR CODING
Series of parallel vertical lines (bars and space)

29. BAR CODING
1. Series of parallel vertical lines
2. Read by barcode scanners
3. Price tags, carton labels, invoices, credit card
bills.

30. Advantages of bar coding
1. Eliminates human error
2. Fast and reliable
3. Reduces employee training and reduces costs
4. Inexpensive method
5. Customizable
6. Tracks inventory control
7. Accuracy
8. Directly stored on computer
9. Better decision making

31. Radio-Frequency Identification (RFID) Tags
Radio-frequency identification (RFID)
uses electromagnetic fields to automatically
identify and track tags attached to objects. The tags
contain electronically stored information. Passive
tags collect energy from a nearby RFID reader's
interrogating radio waves. Active tags have a local
power source (such as a battery) and may operate
hundreds of meters from the RFID reader. Unlike
a barcode, the tag need not be within the line of
sight of the reader, so it may be embedded in the
tracked object. RFID is one method for Automatic
Identification and Data Capture (AIDC).

32. Radio-Frequency Identification (RFIO) Tags

33. How RFID works ?
1. A scanning antenna
2. A transceiver with a decoder to interpret
data
3. A transponder – the RFID tag – that has
been programmed with information

34. Uses of RFID
1. Tracking pets
2. Identifies trees or wood items
3. Anti-theft tags in stores
4. Heavy duty 120 by 100 by 50 mm
rectangular transponders

35. Electronic article surveillance (EAS)
1. It’s a method for preventing shoplifting from
retail stores, pilferage of books from libraries or
removal of properties from office buildings.
2. These tags are deactivated by clerks if they are
sold out
3. But if any active source checks out, the alarm
rings
4. This method helps retailers boost sales and
protect their profits.

36. Electronic article surveillance (EAS)

37. Electronic Shelf Label (ESL)
1. Displays product prices on shelves.
2. It shows current product price to the
customer.
3. A communication network allows the price
display to be automatically updated
whenever prices change.
4. It improves pricing accuracy

38. Electronic Shelf Label (ESL)

39. FDI in Retail
Foreign Direct Investment (FDI) means cross
border investment, where foreign assets are
invested into the organizations of the domestic
market. It brings private funds from overseas
into products or services. The domestic
company in which

40. Features of FDI in Retail
1. Developing economy
2. Abundant human resources
3. Low salaried employees
4. Low wage workers
5. Big private economy

41. Advantages of FDI in retail
1. Growth in economy
2. Job opportunities
3. Benefits to farmers
4. Benefits to consumers
5. Lack of infrastructure
6. Cheaper production facilities
7. Availability of new technology

42. Advantages of FDI in retail
8. Long term cash liquidity
9. Conducive for the country’s economic growth
10.FDI opens up new avenue for franchising
11.Foreign companies should source min. 30%
from Indian small industries
12.Higher the FDI… higher is economic growth
13.Supply chain management avoids food wastage
and perishables.

43. Franchising
Arrangement where one party (the franchisor) grants
another party (the franchisee) the right to use its
trademark or trade-name as well as certain business
systems and processes, to produce and market a good or
service according to certain specifications. The franchisee
usually pays a one-time franchise fee plus a percentage of
sales revenue as royalty, and gains (1) immediate name
recognition, (2) tried and tested products, (3) standard
building design and décor, (4) detailed techniques in
running and promoting the business, (5) training of
employees, and (6) ongoing help in promoting and
upgrading of the products.
(Students can refer any textbook for meaning)

44. Advantages of Franchising
1. Low risk
2. Growth
3. Ease of financing
4. Operational support
5. Advertising
Disadvantages of Franchising
1. Royalty / Fees
2. Lack of control

45. Green Retailing
Green retailing is the step every large retailer is
taking to reduce carbon emission, to make
themselves more energy efficient, recycling and
designing products that are more energy
efficient, recycling and designing products that
are more sustainable. Green retailing touches
every aspect of retailer’s supply chain – how
the product is designed, sourced, stored and
distributed

46. Green Retailing Initiatives
1. Green design
2. Green packaging
3. Green customer relationship management
and recycling
4. Green sourcing
5. Green logistics
6. Green Infrastructure
7. Green I.T.

47. Green Design & Packaging initiatives
1. Materials selection
2. Energy efficiency
3. Durability
4. Ease of disassembly
5. Recyclability
6. Disposability

48. Green Packaging

49. Green Sourcing
Sourcing fabric which is manufactured by using
least chemicals, least water and least energy
resources.

50. Green Logistics
1. Efficient transport management
2. Using alternate fuel
3. Consolidating shipments
4. Reducing food miles

51. Green Infrastructure
1. Energy efficient warehouses
2. Environmental friendly décor
3. Using least electricity
4. Efficient design of floor

52. Green Information Technology
1. Reduce power consumption
2. Reducing carbon footprint
3. Recycling ideas

53. Airport Retailing (advantages)
1. Increase in travel
2. Increased duration of halts
3. New international airports

54. Distinctive features of Airport Retailing
1. Large group of prospective buyers
2. Temporarily captive audience
3. Higher sales
4. Carry fewer items
5. Replenishing merchandise
6. Gift items
7. Longer hours
8. Duty-free shopping
9. Tighter security

55. THANK YOU