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RetailingRetailing
Retail is the sale of goods to the end users, not forresale, but for the use and consumption of the
purchaser.
Retail Industry in India is the second largest employer afterAgriculture. It contributes to 10 % of GDP and 6-7 % of the
Employment
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Organised RetailingOrganised Retailing
USAUSA 80 %80 % Western European CountriesWestern European Countries 70 %70 %
ArgentineArgentine 40 %40 %
ThailandThailand 40 %40 % ChinaChina 20 %20 % MalaysiaMalaysia 20 %20 % IndiaIndia 06 %**06 %**
** FDI (Foreign Direct Investment is allowed partially)** FDI (Foreign Direct Investment is allowed partially)
Country Wise Share:Country Wise Share:
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Top 7 Global RetailersTop 7 Global Retailers
Rank Name ofRetailer Sales
GrocerySales
(%)
(USD Bn)
1 Walmart - USA 235 44%
2 Tesco- UK 63 75%
3 Carrefour-France 58 84%
4 Home Depot -USA 55 51%
5 Kroger - USA 55 70%6 WalGreens -USA 52 75%
7 Aldi Group- Germany 48 18%
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Growthoforganized Retail inGrowthoforganized Retail in
IndiaIndia Organized Retail is 5.5 % ofthe total Retail Industry and
expected to Growby 10% by 2012.
Increasing Consumer aspiration
Growing noofNuclearfamilies
Growing Size ofworking women segment
Demand from tier II and III cities and rural
markets.
Large young working Population
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Category Volume % Margin % Weightage %
Oils 30 5-7 14
Pulses 17 16-18 22
Rice 17 12-13 16
Flours 11 12-14 10Spices 10 22-28 20
Sugar 9 6-7 5
Dry Fruits 3 20-25 7
Salt 1 25-30 2
Wheat 1 15-18 1
Staples Share in Retail StoreStaples Share in Retail Store
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Buying Behaviors StaplesBuying Behaviors Staples
Any item that is washed before cooking, the consumerpreferstobuy it loose as its economical.
Items such as Dals, Rice & Wheat mostly sells In loose.
Dals - No National Brand, all are Pvt label of the Retailers.
Items like Atta, Edible Oil, Powered Spices, salt etc is sold inpackets (Branded), because of its Hygienic aspect.
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North
Plano- Category Wise Stacking
Stacking from Left To Righ
tStacking from Top to Bottom
Cont.
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PlanoPlano Bay Allocation forBay Allocation for
32BM32BMFamily Bay
32
OIL 6.00
Rice 6.00
Pulses 6.00 ,, Toor 2Flours 3.50 Mung 1
Wheat 0.50 Chana 1
Spices 5.00 Urad/ Masoor 1
Salt 0.50 Minorpulses 1Sugar 2.50
DF 2.00
Total 32.00
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Pulses Mix in Modern RetailPulses Mix in Modern Retail
Major dal - 85 % Toor, Urad, Moong and Chana, Kabuli and Masoor
Minor dal - 15 % Green peas, White Peas, Chitra, Red, Sharmili, Lobia,
Soyabean, Moth,
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Pulses AssortmentPulses Assortment
Item Select Value Loose Bins
Toor Gujarat Latur Latur/Sawa
Moong Desi Desi Desi/Import
Urad Desi Import Import
Chana Bold Medium Medium
Masoor Bold Medium medium
Kabuli 42-44 58-60 58-60
Chitra Import Import
G Peas USA Canada
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Types ofPulses Volumes %
ToorDal 24
Chana Dal 23
Mung Dal 16
Urad Dal 10
Peanuts 5
OtherDal 22
Pack Size %
200 gm 5500 gm 44
1 kg 43
2 kgs 8
Pulses Sales MixPulses Sales Mix -- IndiaIndia
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Weekly Buying BehaviorWeekly Buying Behavior
MondayMonday :: 11%11%
TuesdayTuesday :: 12%12%
WednesdayWednesday :: 11 %11 %
ThursdayThursday :: 11 %11 %
FridayFriday :: 16 %16 %
SaturdaySaturday :: 20 %20 %
SundaySunday :: 19 %19 %
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SupplyChain & SourcingSupplyChain & Sourcing
Bulk OriginBulk Origin Bulk WarehouseBulk Warehouse Packing CentrePacking Centre
Material Flow
CityDistribution
Centre
Store 1
Store 2
Store 3
Store 4
Indent Flow
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Buying ofDalsBuying ofDals
Small retailerStore::
Buying locallyBuying locally
Buying at High Price.Buying at High Price.
Lack economies of ScaleLack economies of Scale
Bigger Retail chains:
Buy from origins.Buy from origins. Better quality and quality Consistency.Better quality and quality Consistency.
Definite demand, makes buying Easy.Definite demand, makes buying Easy.
Better bargaining Power.Better bargaining Power.
Can work in Positions if market is bullish.Can work in Positions if market is bullish.
If market drops:If market drops: loss of profit/ Averaging of Bulk Price.loss of profit/ Averaging of Bulk Price.
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Pricing PolicyPricing Policy
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Problems / ChallengesProblems / Challenges
Getting low income groups to shop at ourStores i.edrivers, maid, labourer
Highcost ofReal estate.
Lack ofadequate infrastructure, poorroads,Cold c
hain,
Lack ofavailabilityofskilled manpower.
Unavailabilityofuniform qualityraw material roundthe year.
Govt Regulations, PFA, Package Commodity Act,Weights & Measures, Factory Act. etc.
Price war among Retailers
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Thank YouThank You