Retail Management - Revolution


By

P. Kishore Kumar
MBA (Marketing)
Asst. Professor
Lokamanya Tilak PG College
Hyderabad
 


Most of the organizations are planning to enter into retailing business, because there is a lot of scope for retailing business in developing countries like India. Here the following concepts gives an overview of retail management.

Retailing: All activities involved in selling goods or services directly to final consumers for their personal, non business use.

Retailer: Business whose sales comes primarily from retailing

Ex: Wal- Mart, Shoppers Stop, Cross Roads.

Types of Retailing:

There are different types of retailers depending on their size, shape, product lines, amount of service they offer and prices they charge etc. Some of them are given below.

a) Speciality Store: A store that carries a narrow product line with a deep assortment with in that line.

b) Department Store: A retail organization that carries a wide varieties of product lines- typically clothing, home furnishings and household goods; each line is operated as a separate department managed by specialist buyers or merchandisers.

c) Super Market: Large, low-cost, low-margin, high-volume, self service store that carries a wide variety of food, laundry and household products.

d) Discount store: A retail institution that sells standard merchandise at lower margins and selling at higher volume.

e) Factory Outlet: Off- price retailing operation that is owned and operated by a manufacturer and that manufacturers' surplus, discontinued, or irregular goods.

f) Chain stores: Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise.

g) Franchise: A contractual association, between a manufacturer, wholesaler, or service organization and independent business people who buy the right to own and operate one or more units in the franchise system.

The major difference between wholesaling and retailing is that, retailing involves selling for personal consumption unlike wholesaling. Retailer has the actual contact with the ultimate customer/ consumer.

Retailing in India:

The Pantaloon is one of the largest retail chains in India It belongs to Pantaloon Retail India Ltd (PRIL). Reliance Petroleum Ltd (RPL) is also doing retailing with petrol, diesel as products. The company has established many retail outlets, which are fully owned by the company. The companies like Shoppers Stop, Cross Roads, Spencer's chain, Food World are in retailing business. The above businesses are having crores of rupees turnover for example food world annual turnover is more than rupees 310 crores. There is lot of scope for retail business in India. It can be called as retail revolution but organizations must concentrate on place (city), area choice and should do market research on households of various strata of the society. The Wal- Mart is very much eager to enter into Indian retailing business.

References:

1. Marketing Management: Planning, Implementation and Control- V.S RAMASWAMY, S. NAMAKUMARI.

2. Principles of Marketing: KOTLER and ARMSTRONG.
 


P. Kishore Kumar
MBA (Marketing)
Asst. Professor
Lokamanya Tilak PG College
Hyderabad
 

Source: E-mail April 14, 2006

    

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