Retail

Session 1 | July 27, 2012

What exactly is retail, does it involve a lizard growing a second tail?

Welcome to Advertising, Now Get Lost Omkar Sane

(French) Retailler : Cutting off, clip and divide (in terms of tailoring ~ 1365)
n. Sale in small quantities (~1433)

RetaiLink

Manufacturer

Wholesaler

Retailer

Consumer

What do retailers do?

Retailing

Merchandise manufactured elsewhere

Additional Services

Retailing

Retailer Services
Provide assortment Break bulk Hold inventory Provide services

Is Retail Important?

Retail industry in USA was more than $ 4.7 trillion in 2011

US Commerce Department

Retail industry in India is slated to reach $ 850 b in 2020

IBEF (2012)

Retail industry in India accounts for 22% of GDP

IBEF (2012)

Retail industry in USA employed more than 14 million, as of April, 2010

US Bureau of Labor Statistics

Unorganized retail in India employs more than 35 million people

The Economist (March 2011)

Top Retailers
Rank 1 2 3 4 5 6 7 8 9 10 2010 Sales (mn) Walmart $ 4,18,952 Carrefour $ 1,19,642 Tesco $ 92,171 Metro $ 88,931 Kroger $ 82,189 Schwarz $ 79,119 Costco $ 76,255 The Home Depot $ 67,997 Walgreen Co. $ 67,420 Aldi $ 67,112 Name Growth over 2009 3.4% 4.8% 6.7% 2.8% 7.1% 9.4% 9.1% 2.8% 6.4% 5.2% Country USA France UK Germany USA Germany USA USA USA Germany

Deloitte (2011)

Distribution Systems
Characteristic Concentration (% of retail sales in category by top-3 firms) Number of Outlets per 1000 people Retail Density (Sft. of retail space per person) Sales in Large Stores (over 10,000 sft) Wholesale sales as a % of retail sales Distribution Inefficiency (Distribution markup as % of retail price) USA High Medium High High Low Low UK Northern Europe Belgium France High Medium Medium Medium Medium Medium German Southern Europe Spain Italy Low High Low Low Medium High Central Europe Hungary Czech Very Low Low Low Low High High Japan Medium High Medium Low High High

Make a Career?
Managerial Entrepreneurial

Retail Management Process

Retail Types Of Retailers Customer Behavior Multi-channel Retailing

Retail Strategies Retail Locations Supply Chain Management Customer Relationship Management

Merchandise Management Merchandise Planning Buying Pricing Retail Communications

Store Management Store Layout Visual Merchandising Customer Service

One Look at India

12 million outlets
7 outlets per 1000 people 2 sft per outlet
Organized Retail penetration in % USA France Japan Malaysia Brazil Russia China India 85 80 66 55 36 33 20 5

Total Retail Sales

2011 - $395.96 B 2015 - $785.12 B

Organized retail growing at 40% per annum Organized retail by 2014

10% (AT Kearney) 16% (McKinsey)

GRDI #5 (2011 Rank - #4)

Technopak Train
Air India Upper Berth
International, entrepreneurial

Ground India Middle Berth

Aspiring, Silicon city Indian

Roots India Lower Berth

Grassroots, mango people

Ponder
Why is Retail in India undergoing so much change?

Ponder
Ethics in retail

Thank you