Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services. The impact can be best seen in countries like U.S.A., U.K.
Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong and Dubai are also heavily assisted by the retail sector. In 1990, there was not a single retailer in the fortune 500 companies, now there are over 50 and Wal-Mart is the largest of all companies. Wal-Mart has more than 100 million customers visiting every week at about 5000 outlets.
Top 5 Retailers of the world
- Wal-mart (US)
- Carrefour (France)
- Tesco (UK)
- Metro (Germany)
- The Kroger Co. (US)
Top 5 Retailers of India
Pantaloon Retail/Future Group
- Big bazaar, Food Bazaar – Food & grocery
- Hometown, Furniture Bazaar, Collection-i – Home solutions
- e-Zone – Consumer electronics
- Shoe Factory – Foot wear
- Depot – Books, music & gifts
- Star, Sitara & Health village(w.i.p.) – Health & Beauty care services
- com – e-tailing
- Bowling co. – Entertainment
K Raheja Group
- Shopper’s Stop
- HomeStop – the exclusive home furnishings
- Décor as well as furniture store
- HyperCity– a premium shopping destination for foods, homeware, home
- entertainment, Hi-Tech appliances, furniture, sports, toys & fashion
- Other format of the company includes – Crossword, Book Store, Mothercare & Early
- Learning Centre (ELC), Estee Lauder group, Airport Retailing, TimeZone
- Entertainment
Tata Group
- Westside, a lifestyle retail chain
- Star India Bazaar – a hypermarket
- Landmark, India’s largest book and music retailer
- Croma, a consumer electronics chain
- Titan Industries
- Tanishq, the jewellery brand
RPG Group
- Foodworld stores, food & grocery retail
- Spencer’s Hyper, Super, Daily and Express formats
- Music World stores
Landmark Group
- Home Centre
- Centrepoint
- Babyshop
- Splash
- Shoe Mart
- Lifestyle
- Max
- Lifestyle Department Stores
- SPAR hypermarkets
- Foodmart
- Fitness First
- Citymax India
The Indian Retail Market is worth a whooping 10,00,000 crores. Of the total Retail Market, major contribution of more than 95% comes from the unorganized sector. The balance is contributed by the Organized retail sector, which is still in nascent stage but growing steadily since last decade.
The first retailers in India include Bata, Pantaloon, Bombay Dyeing, Spencers, Nilgiris. The current retail scenario is controlled by the likes of Shoppers’ Stop, Branded Outlets, Big Bazaars and the likes.
The difference between the organized and unorganized retail sectors in US and some of the Far East Asian countries are pretty low unlike in India. With the advent of some big players in the field of retail in India, the gap is likely to be reduced in the coming years. The difference between them is 85:15 in favor of the organized sector in US and 81:19 in Taiwan.
Types of Retail Outlets
The retail set up can be classified in two different types. One the store based and the other non-store based. The store based can be classified further into Product, Price, Ownership and Service based outlets whilst the Non-store based retail outlets would consist of On-line, Direct, Catalogue and the TV retail.
Product based retail outlets would consist General Merchandise, Food retailing, Services Retail and Food Service Retailing. The examples of price based retail outlets are; Factory outlets, single price outlets, the Dollar Store and the category killers. Ownership based retail outlets would ideally cover the corporate retail outlets, franchises outlets, the independent retail outlets and the co-operative outlets. The service based retail outlets encompass full service, limited service, self service and the vending machines.
Automated Retail
Automated retail is the category of self-service, standalone kiosks in heavily trafficked establishments such as airports, malls and resorts.
Big Box Store
A big-box store (also supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store. The store may sell general dry goods in which case it is a department store, or may be limited to a particular specialty (such establishments are often called “category killers”) or may also sell groceries, in which case some countries use the term hypermarket.
Cash-and-Carry format
A store where customers pay cash for the goods they purchase and carry them away themselves (the retailer does not offer delivery service). Mostly these are wholesale stores wherein buyer has to purchase worth certain minimum specified amount.
E.g. Metro Cash & Carry
Category Killer or Category Specialist
A product, service, brand or company that has such a distinct sustainable competitive advantage (range/price) that competing firms find it almost impossible to operate profitably in that industry (or in the same catchment area). You think of the category & it’s in mind.
E.g. Toysrus, Best buy, Vijay Sales, Croma
Convenience Store
These stores are located at convenient locations like fuel stations, residential areas and are Open for longer durations through the day. Stocks products which are used in high frequency but the range is restricted. Fast movers are kept & price is not a driving factor. Small supermarkets & small stores in retail chains which are conveniently located for customers can be called Convenience stores.
E.g. Local Kirana (Grocery) stores, 7-Eleven.
Department Store
It represents retail outlets that stock a wide variety of merchandise that is organized into separate departments for the purpose of promotion, service & control. The products range from apparel, toiletries, cosmetics, toys, footwear, watches & jewellery to appliances & furniture.
Discount Store
Discount Retail can be broadly defined as a retail format where 60% to 70% of the merchandise is sold at a sharp discount. Usually they carry small range of products.
E.g. Subhiksha, wholesale grocery stores
E-Retailer
It is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, internet shop, web-shop, web-store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre.
General Store
A general store, general merchandise store carries a general line of merchandise. It carries a broad selection of merchandise, sometimes in a small space, where people from the town and surrounding rural areas come to purchase all their general goods. The store carries routine stock and obtains special orders from warehouses.
Hypermarket
A very large retail format that offers low prices & stocks all food & non-food products of personal & household needs under one roof. Hypermarkets typically hold more than 25000 SKUs.
These are Destinations, located at non-prime locations, outskirts of major towns & cities. Value Proposition – Diverse offerings & high quality products & services at prices which may be 10-20% lower than supermarkets & department stores. These are monthly destination stores.
E.g. Wal-mart, Carrefour, Hypercity, Big Bazaar, Star India Bazaar
Kiosk
Kiosks are located in malls, multiplexes, railway stations and airports where space is at a premium and mostly engage in selling consumer goods like edibles and snacks, newspapers and magazines, fashion accessories stores and entertainment. Kiosks are also put-up for special promotions & marketing activities.
Mall
A large retail complex containing a variety of stores and often restaurants and other business establishments housed in a series of connected or adjacent buildings or in a single large building.
Mom-and-Pop Store
A store that is small and operated by people who appear to be members of a family. Most traditional grocery stores & general stores are of this type.
Retail Chain
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses.
Specialty Store
Small stores which specialize in a specific range of merchandise and related items. Most stores have an extensive depth of stock in the products that they specialize in and provide high levels of service and expertise.
E.g. Spinach(for F&V), Nature’s basket, My Dollar store.
Supermarket
These are normally low cost, low-margin, high volumes, self service stores which offer a wide range of food, laundry & household articles. Catchment for such store is considered approximately 1-1.5 km. Located in town centre or neighborhood locations. Value Proposition – Variety, quality & service. One-stop family shop; having everything that goes in a basket on a monthly basis.
E.g. Food Bazaar, D-Mart
Vending Machine
A machine which dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, consumer products and even gold and gems to customers automatically, after the customer inserts currency or card into the machine.
Types of Retail Products
- Books, Music & Gifts
- Clothing, Textile & Fashion Accessories
- Consumer Durables, Home Appliances/ equipments
- Entertainment
- Food & Grocery
- Footwear
- Furnishings, Utensils, Furniture- Home & Office
- Health & Beauty Care Services
- Jewellery
- Out-of-Home Food Services
- Pharmaceuticals pupils
- Watches
Transfer Mechanisms
There are several ways in which consumers can receive goods from a retailer.
Counter Service
Where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor.
Delivery
Commonly called as Home-Delivery, where goods are shipped directly to consumer’s homes or workplaces
Door-to-door Sales
Where the salesperson travels door-to-door with the goods for sale
Self-Service
Where goods can be handled and examined prior to purchase. E.g. ATMs, Buffet style restaurant, Self service fuel station, Vending machines.
