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Retail ManagementIntroduction
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Retail
Sale of goods to end users, not for resale,but for use and consumption by thepurchaser
Old French wordretaillier (cut off bits)
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Wholesale
Wholesale is the sale of goods,usually in quantity, for the purpose ofresale to consumers. Wholesale is
distinguished from retail, which is thedirect sale of goods to the consumer.
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Management
The organization and coordination of theactivities of an enterprise in accordancewith certain policies and in achievement ofdefined objectives.
Management is often included as a factor ofproduction along with machines, materials,
and money. According to the managementguru Peter Drucker (1909-2005), the basictask of a management is twofold: marketingand innovation.
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Retailing
is a vital part of the business industrythat involves selling products andservices to consumers for their
individual or family use. Retailing canalso be defined as the timely deliveryof goods demanded by consumers at
an affordable and competitive price.
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Retail Management
The process of bringing the ultimate user tothe main producer, through a series ofstages, where retailing is the last one. It isnot limited to quantities, but limited to theexact requirement of the ultimate user.
managing the retail side of a business suchas points of sale, stock control, and just-in-time purchasing
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Retailing involves a set of businessactivities that adds value to the productsand services sold to the final consumersfor their personal, family or householduse. Retailers play a major role in thedistribution system by helpingmanufacturers to reach out to thecustomers and at the same time, offeringan array of value added services likebreaking bulk, providing assortment,holding inventory and providinginformation for their customers.
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Issues in Retailing
How can we best serve our customerswhile earning a fair profit?
How can we stand out in a highly
competitive environment whereconsumers have too many choices?
How can we grow our business, while
retaining a core of loyal customers?
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A TYPICAL TYPE OFDISTRIBUTION
MANUFACTURER
WHOLESALER
RETAILER
FINALCONSUMER
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Distribution Types
1) Exclusive
2) Intensive
3) Selective
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Customer Service
Activities undertaken by a retailer inconjunction with the basic goods andservices it sells.
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Relationship Retailing
Seek to establish and maintain long-term bonds with customers, ratherthan act as if each sales transaction is
a completely new encounter
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Functions of Retailing
Providing an assortment of productsand services
Breaking bulk
Holding inventory
Providing Services
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Providing an assortment ofproducts and services - offering an assortment which
enables their customers to choosefrom a wide selection of brands,
designs, sizes, colors and prices atone location.
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Breaking Bulk
- process wherein retailers offerproducts in smaller quantities tailoredto individual consumers and
households consumption patterns.
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Holding Inventory
By doing these process, retailersreduce the cost the consumers wouldhave to pay to store products.
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Providing Services
Retailers provide services that make iteasier for customers to buy and useproducts
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Social and EconomicSignificance of Retailing Corporate Social Responsibility
describes the voluntary actions takenby a company to address the ethical,
social, and environmental impacts ofits business operations and theconcerns of its stakeholders
Retail Sales Employment
Global Retailers
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Retail Industry
Is the largest private industry (aheadof finance and engineering)
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Benefits of Retailing
Higher competition lead to higherquality of products and services
Enhances better lifestyle of its
customer Technological advancement
Provide variety to customers
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Functions of a Retailer
Buying and assembling of goods Storing function
Develops personal contact with the
consumers Bears the risk in connection with
physical spoilage of goods
Bears the risk on account of fire, theft,etc.
Makes arrangement for delivery ofgoods
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Examples of Retailers
Department Stores large storesranging from 20,000 50,000 sq.ft.
- catering to a variety of consumer
needs Discount Stores offer discounts on
the MRP through selling in bulk
reaching economies of scale orexcess stock left over at a season
Category killers or MBOs offer
several brands across a single product
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Examples of Retailers
Specialty Stores focusing on specificmarket segments and haveestablished themselves strongly intheir sectors.
Malls largest form of organizedretailing today; 60,000 sq.ft. to700,000 sq.ft or more.
- lend an ideal shopping experiencewith an amalgamation of products,services, and entertainment, all under
a common roof
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Examples of Retailers
Convenience Stores relatively smallstores (400 2,000 sq.ft.)
-located near residential areas
-usually open for extended periods (7days a week)
-prices are slightly higher due to the
convenience premium Hypermarkets/Supermarkets large
self-service outlets
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Examples of Retailers
E-tailers retailers who operate onlinestores to purchase their products
Vending machines automated piece
of equipment wherein customer candrop the money and acquire theproduct.