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
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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
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
Some dominant economic features of this industry include the number of rivals, the number of buyers, vertical integration, and supply/demand conditions. The number of rivals in this industry varies on the scope of how large or small the firm is. Larger rivals include Whole Foods and Walmart and smaller rivals include Lucky’s Food Market and Pathmark. For example, Walmart has a highly differentiated product selection. it offers various forms of products that are ‘identical’ to better convenience its consumers. Walmart also has large channels of distribution where its “shippers are always on the lookout for ways to speed product from source through supply chains to the consumer” (Walmart, 2014 Pg.1). The number of buyers in this industry is consumers who are buying large volumes of products, where these buyers do not necessarily have any buying power. The majority of of grocery stores are in the retail industry, where larger involvement occurs from integrating operations, and suits the industry as a competitive
Specialty retailers cater to a narrow or niche audience – either by location, type of customer or product mix. On a national level, specialty retailing is dominated by national chains, such as office supply store Staples or electronics outlet Best Buy.
In recent years there has been major growth in the wider business world surrounding the overall influence that the retailing industry holds and because of which, retailing and the issues that surround it have become a vital influence in today’s global economy. (Fisher & Raman, 2001)
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
...Thus, it’s a significant and strategic step to set up small and medium sized shops in the second and third tier cities.
India traditionally been a country where most of retailing is done by the unorganised sector. But in the past few years the scenario is changing rapidly with organised retail growing rapidly. Retail as an industry includes department Stores, discount Stores, clothing Stores, specialty retailers, convenience stores, grocery stores, drug stores, home furnishing retailers, auto Retailers, Direct sales catalog and mail order companies.
“Flagship stores are stores which are mainly used to showcase the brand of the items and do not fully focus on profits and revenues” (Joy , et al, 2010).ES thought of using these flagship stores as an entry mode especially for strategic locations such as Paris, Beirut and Dubai. These locations had their own importance as they were the hub for fashion house and helped in company’s market development. Apart from flagship stores the company also had direct stores in Beirut and Paris to ensure that it has full control on these stores and could market their products in these stores. “ The advantage of having direct ownership is that this falls under your custody and you don’t have to depend on external agencies to promote your products” (Brondoni and Fabio , 2010). The quality of the product will not be neglected. The other advantage of having your own store is that you don’t have to compromise with the profit margin and its up to you to decide what profit margin you would like to go with for each item. However one of the disadvantages of having direct store ownership is that you will have to bear the overhead cost and at the same time also you may not be having enough knowledge about the local market. Direct stores also involve hiring of right staff, their trainings and
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Community shopping centre, which consists of only one primary store, plus 20 to 40 smaller ones;
Metro Holdings Ltd is a multi-national company that operates two major business segments, namely Property Development and Investment, and Retail. This report explores the retail arm of Metro, which manages three department stores and four specialty “accessorize” stores in Singapore, and another five department stores in Jakarta and Bandung, Indonesia.
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.
2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.
Rajagopal. "International Journal of Retail & Distribution Management." Emerald. Emerald Group Publishing Limited, 2011. Web. 21 Feb. 2014
Local Inventory. Another approach is to have all inventory available at the store at all times. This allows for the centralization of cooking capacity. The main risk is obsolete inventory and the need for extra space.