Even though non store retailing is growing, most of the retailers are still selling from retail store space. Some of these retailers are very small single-store operators, and some are huge superstore discounters. Each location selected resulted from an effort to satisfy the needs of the particular market each was designed to serve. Whether it was the customer’s need for convenience, their desire to do comparison shopping, the extent of the purchasing power in a market area, of the transportation facilities available, many factors together led to the development of different kinds of retail locations. There is an old saying that the value of real estate is determined by three things: location, location, and location. … Read the rest
Retail Management
Site Selection Criteria in Retail
There is no such thing, such as a “Perfect site” in retailing. Retailers must decide which attributes are the most important to their business. Let’s summarize the key criteria critical to the site selection decision in retailing.
- Sales potential for the site. The demographic, economic, and competition factors and strategies by which management hopes to create a competitive advantage determine the estimate of sales for a site. Growth potential should be a basic consideration in the evaluation of the sales potential.
- Accessibility to the site. Automobile and public transportation access to the site and adequate parking may well be defining criteria.
Increase in Power of Organised Retail
The bargaining power of organized retail translates directly into higher gross margins for the retailers. At present there are a large number of independent retailers with little bargaining power vis-Ã -vis manufacturers, distributors and wholesalers. The manufacturers have been promoting their brands and generating consumer demand for branded products. This makes it necessary for all varieties of stores especially in urban areas to stock branded products. The manufacturers take advantage of the consumer pull to limit margins to the retailers. The retailers manage their profitability by operating on a very low cost basis. This is possible because of low rental expenses due to historical reasons and low labor costs due to employment of family members in the store.… Read the rest
Increased Investment in Retailing
The prospects for significant modernization and development in retailing will depend on the nature of investment in this sector. The investment will be of two types-foreign and domestic. The quantum and nature of investment will depend on the factors outlined earlier namely economic development; civic situation; consumer needs; attitudes and behavior; and government policies.
Although FDI is not yet permitted in retailing, a number of global retailers are testing the waters by signing technical agreements and franchises with Indian firms. Fast food chains like McDonald‘s and Pizza Hut are already operating in the metros. A Marks and Spencer store is already operational in Mumbai.… Read the rest
Category Management Concept in Retailing
Retail is often termed as a business of responding to change. Today‘s retailer is faced with a rapidly changing and demanding consumer, intense competition, and pressures on costs. The combinations of the business condition that exist today and the advances in technology have created an opportunity for the development of new management approaches. One such approach is that of category management.
The need to reduce costs, control inventory levels and replenish stock efficiently, led to the concept of Efficient Consumer Response (ECR) taking shape in the grocery retail industry in Europe and America. By focusing on a superior understanding of consumer needs, category management provides renewed opportunities for meeting consumer needs, and at the same time, for achieving competitive advantage as well as lower costs through greater work process efficiencies.… Read the rest
Retail Selling Process – Personal Selling Process
Retail selling as the name suggests involves personal contacts. Advertising, on the other hand, involves no personal contact. Sales promotion is different from both these techniques. Now let us briefly explain about the Retail selling, its definition, qualities of retail seller and objectives .
Salesmanship and Retail SellingThe success of a marketing firm really depends on its effectiveness in creating a demand for its products and how effectively it satisfies its customers. To create a demand for the product, usually three techniques are employed by the marketing firms, namely, Personal Selling, Advertising and Sales Promotion. Of them personal selling has assumed an ever increasing importance than other techniques.… Read the rest