Monday, August 13, 2007

Retail Management Notes

  • Entertainment is a very important aspect of organised retail
  • Indian has a low retail space
  • Why Malls- Increased Consumerism, With the advent of BPO phenomena, there is a lot of disposable income in people's pocket.
  • People's spending on cloth is decreasing worldwide, because other avenues to spend are opening up
  • In single brand retail, upto 51% of the FDI is allowed
  • If fully allowed- farmers get better price, bulk of population which is unaffected by BPO phenomena, retail can absorb it
  • Why it should not be allowed- patriotism , small retailers will be wiped out.
  • Why FMCG is against FDI- Reduct their consumer base, competition
  • Role organised retail plays in our day-to-day life- we need to pay less than small retail price, convenient availability, selection, ambience, quality, break bulk, certain services e.g. alteration and credit
  • Retail is detail
  • retail is a service
  • For some people retail is Therapy- people treat you like a princess.
  • Retail is entertainment
  • Fashion has a shelf life
  • Fashion is the biggest racket- to say whether quality is right is a guesswork
  • Fashion can add excitement to a retailer, it can also wipe him out.
  • Store formats are of four types: independent, chainstores, franchise, and concession of shop in shop
  • Independent store are one or two in number, can be small or large, typical example is mom-and -pop stores. Advantages are quick, v. good customer relations, high service levels. Disadvantages are the lack economy of scale, no best management, and cannot advertise more
  • Chain stores are 3+, advantages are economy, best management and can go for advertisement
  • Franchise are mid way between chain and independent stores. The franchiser provides use of brand, product, advertisement support, specifies store, training and sometime minimum guarantee also. Franchisee provides space, administer space, buy stocks or take on consignment. Good location and caliber of the franchisee decides the success of the agreement
  • On the basis of products stores can be department, mass merchandiser or speciality stores.
  • Department stores are multibrand, multidepartment stores
  • Mass merchandisers are multidepartment stores, they also carry their own labels.
  • Speciality stores can be single line e.g. apparels, limited lines eg. men's apparels or superspeciality stores e.g. formal shirts
  • Stores can also be divided in the basis of pricing, they can be factory outlets, discounters, Category killers, price clubs (cash and carry) or catalogue retailers like IKEA
  • Factory outlets do not contain A grade merchandise, they provide 20-30% discount. Indian is the only country where factory outlets are franchised.
  • In price clubs you have to pay a membership fee.
  • Discounters can be EDLP( Everyday Low Price) or discounters
  • Hypermarket is a combination of EDLP and discounters
  • Mall is not a store: it is enclosed, organised managed market space
  • Every mall has an anchor, which is a famous store which draws crowd to the mall. Multiplexes are not necessarily anchors as people who watch movies normally shop less.
  • Malls are managed in the sense that only best stores are kept and worst stores are removed.
  • Retail organisation can be buyer or merchandiser led. Shopper's stop is a merchaniser led organisation, whereas pantaloon is a buyer led organisation.
  • Retails functions are Merchandising, Buying, Store Operations, New Store Operations, HR, Finance, Supply Chain, Marketing Research, Logistics and Design.
  • Two most important retail functions are Merchandising Buying and Store Operations
  • Store organisations can be centralised or decentralised. In Shopper's stop for example, 90% of the merchandise is same, only 10% is different, they have similar stores. Store operations are mainly administrative in nature, they have little choice on product selection, they have very strong MIS. On the other hand Pantaloon is decentralised. Here buying, merchandise is done at the store level, but it increases the cost.
  • Store operations can be front office- interation with customer, floor management etc. Back office include house keeping, Security, liasioning, Maintenacne and Cash office ( Cash grab is done 2 to 3 times a day.

1 comment:

Harish said...

Hi,

Do you have any projects/thesis done on Retail Management.