Century Publication Case Study

Century Publication, Pg.No.31-32

C. Emerging formats :

Two factors brought about the development of today’s retailing. The first is the growing domestic demand which cause a store to expand into a group of small shops under one roof. Demand growth in retail sector has been rising due to rising incomes, growing purchasing power and increasing urbanization, implying higher consumption at retail level. A second factor is the supply factors which is due to increase in discretionary spending among people, increase in proportion of working women and increase number of foreign retailers setting up in India in the recent past.

• Exclusive retail outlets – Today India has a host of both small and large formats with exclusive stores having national and international brands under one roof catering to all

These stores make their appeal on the basis of a single line or closely allied lines of goods. Because these shops specialize in a limited filed, they are able to offer a wide assortment of goods, an extensive range in sizes, and the newest styles. Since their buyers can concentrate on a few lines, their knowledge of these lines is more complete than that of a buyer for many different lines. Specialty stores offer an opportunity to practice salesmanship of a high order, and salespeople in these stores are frequently paid larger salaries than are those in other stores. A large amount of the retail trade of wealthy people in the larger cities goes to specialty stores. E.g. if a customer visits a Reebok store then they find just Reebok products in the stores.

• Multiplexes – When a group of shops all selling the same thing are brought together under one management they become a multiplexes. The multiplexes can afford to employ experts in buying, accounting, advertising and other functions of retailing.

Table No. - No. of Outlets in various modes of stores in food and grocery