The Retail industry includes establishments selling merchandise and offering services related to the sale of goods. Retailers sell goods to the end consumer. The retail sector consists of two main types: store and nonstore retailer. 1. Store retailers operate from fixed locations that sell merchandise to the general public. The purpose is to attract high number of walking in customers by using marketing. The merchandise sold by store retailers includes personal, electronic and household goods. Some types of stores also offer after-sale services. 2. Nonstory retailers also sell merchandise to the end consumer. However, they reach their customers by “broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, …show more content…
Very often suppliers have only one major customer (retailer) and to they have no choice but to extend credit to their buyers. This situation benefits big retail stores, which already can borrow money at a low rate. However, it puts supplier into financial scrutiny as often they have no financial resources to invest or even pay their expenses. Economy gets hurt because companies instead of investing into good projects and make a return on their investment, support their big buyers. (Murfin, …show more content…
Considering that retail industry is divided into five segments, each of this segments operates in a different stage of a life-cycle. First of all, the Big-Box & Department Store Retailer segment is in declining stage, because of the recent recession that adversely impacted many industries. Many retail companies were not able to adapt to a new environment, where customers are more savvy and innovation oriented. Therefore, many retailers close down their underperforming stores. However, many Big-box and Department stores in order to keep up with the market demand are expanding by adding grocery sections and shifting into Warehouse Clubs & Supercenters Retail segment which is still growing. This segment is operating in a mature cycle-life. It still growing, but slowly as it reached the point of market saturation. Next the Supermarkets and Grocery Stores segment is also in a mature stage of life-cycle. However, this particular segment is undergoing a slow growth rate, as a result of strong rivalry in the food retail sector. Many customers during the recession switched to more economic sellers in the warehouse club & supercenter retailer segment. However, currently household income is increasing and many consumers are looking for healthier choices the supermarket and grocery stores segment will experience a faster growth rate. Finally the E-tailer segment is
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. 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-users / consumers. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing
"The average outlet shopper spend over two hours at the outlet mall (60 percent longer than at regional miles malls), and the average expenditure per outlet visit per shopper is 79 percent higher than at regional malls” (Couglan and Soberman, 6-7). Retailing dates back all the way back to 6,000 BC, when it was known as the bartering system. It was introduced by
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
The basic function of retail is to provide the right goods at right place to right consumers at right time. The marketing tools that a retail organisation uses to pursue its marketing objectives are termed as marketing mix.
Internal resources of the global retail industries can be their machinery, fixed assets, building etc. it can be anything which helps to finalize and ready to provide their services to the customers. Also the analysis of competitive advantage that means what all benefits are gained by the company from their competitor in terms of providing the same product of same value at the lower price. Competitive advantages may be includes the customer support, product offering and the distribution channel as well. All above analysis will be done below. Firstly, the global retail industry analysis will be done by porter’s 5 forces i.e. threat of new entrant, Threat of substitutes, bargaining powers of suppliers, bargaining power of customers and rivalry among existing competitors with the outside-In approach. This analysis also includes the market structure of these global retail industry weather it’s a monopoly, duopoly or oligopoly and what type of competition they are facing in the market. VRIO analysis i.e. valuable, rare, difficult to imitate, supported by organisation in terms of inside-in approach and also analyse what all resources does they have and what all resource are they lack. Than will
That is one of the reasons that technology has changed the retail market and it will develop the retail market’s performance and force traditional stores to undergo or close. Actually, technology has provided new ways for retailers to sell their products and do their businesses. Obviously technology is not a new product for sale, it is a tool given to the world. Technology has appeared as web sites, shopping network and other systems that provides different types of payments such as credit cards in the retail industry. Technological advancements made the market more
In today’s era retail domain is growing on a large scale. Lot of analytics are done in Retail Industry to enhance the revenue out of it . Retailing means selling merchandise in small proportions to the consumers for their end use. According to retailing, the individual reaches a nearby retail store and purchase products as per his need and pocket in small units for his own consumption.
Customers are able to view and test the products out at the retail outlet with convenience. Retailers can also promote the product to the customers by making them aware of the products availability and tell them the information of the product before encouraging the sale. This is an excellent intermediary for distributing the products around the world. Many retails prefer getting their products directly from the producers to save the trouble of going through wholesalers as it will be more convenient.
An outlet store is a retail channel which allows the manufacturers to sell stocks directly to consumers (Wikipedia,2013). Although people may hold the misperception that products in outlet stores do not have the same quality as good as those sold in the department store, a research conducted by Fowler and Clodfelter (2001) indicates that besides the prices, there are hardly any differences between products sold in the two channels.
"Retail Store Manager Job Description Sample." Recruiting and Hiring Advice. Monster, 2012. Web. Feb. 2012. .
Since the world’s economy has a major impact on the determination of market decisions, it is important for business owners to be informed of every detail to be. In order for them to make an intelligent investment decisions so, in the future they be prepared for any unexpected economical downturns. Also, it is essential to recognize the key risks a business may encounter and build up strategies to diminish them. Furthermore, a large quantity of the markets profit share around the world comes from the retail and wholesale industry. Even though they may fall into the same category in the financial system of the world it does not mean they are made with the same process and purpose. Owners of stores usually start up with retail and look forward in enlarging their business to wholesaling as experience is gained. In order, for business owners to expand their stores from retail to wholesale they are required to understand and be able to access various skills. First, owners must understand the difference between wholesale and retail. Secondly, there are some transitional changes that occur to the business which an entrepreneur must prepare for. Last, there are policies to follow in order not to commit some illegal transactions. By understanding these elements businesses would be more flexible and capable to endure unstable market conditions.
In Thane district, retail market is slowly and steadily moving towards organised sector, but still there is great impact of unorganised retail sectors, Both the sectors having their own different place in the minds of the customers.
A retailer can link its store to specific attribute or benefit such as convenience or
The growing disposable income in the country is resulting in increasing consumer spending habits. A large young working population with age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. (Thambala, 2013)