KARISHMA SHARMA, BACHELOR OF BUSINESS ADMINISTRATION, DEZYNE E’COLE COLLEGE, AJMER

1. KARISHMA SHARMA, BACHELOR OF BUSINESS ADMINISTRATION
DEZYNE E’COLE COLLEGE, AJMER
WWW.DEZYNEECOLE.COM

2. A
Project report on
“Retail Management”
Submitted to
Dezyne E’cole College
Towards
The Partial Fulfilment
Of 2nd
Year Bachelor of Business Administration
By
Karishma Sharma
Dezyne E’cole College
www.Dezyneecole.com

3. ACKNOWLEDGEMENT
I, Karishma Sharma, Student of Bachelor of Business Administration third Year of Dezyne E’cole College, and I would like to express my
Gratitude to each and every person who has contributed and stimulating suggestions and encouragement which really helped me in successful
completion of my project.
I also take this opportunity to express my indebtedness to Mrs. Vinita Mathur principal “Dezyne E’cole College” for her cooperation and
affectionate encouragement also thank to Dezyne E’cole College who provided insight and expertise that greatly assisted the project. Also, a
special thanks to my teacher, parents, and colleagues who have supported me at every stage.
Thanking You
With Regards
Karishma Sharma

4. SYNOPSIS
I worked On the Topic- “Retail management”. World of Retailing, Retail management, introduction, meaning, characteristics, emergence of
Organizations of retailing - Types of Retailers (Retail Formats) - Multichannel Retailing Customer Buying Behaviour, Historical Perspective, role
of retailing, trends in retailing. Good Retail Management attracts the customers, gratifies them, leads to repeat business and is the best form
of indirect promotions as happy customers will always recommend the store to their friends/relatives. However, the customers can never feel
happy about their purchase if their experience at that particular store wasn’t worthy of it. Especially the youth of today, they just don’t like the
idea of being kept waiting. Thus, everything at the retail store must be well managed and properly organized in order to lure the customers to
visit the store again.
Retail Management is an art that includes the formulation of apposite strategies to bring customers into the store and to make buying as well
as selling of products a seamless process. All the procedures which facilitate the clients or customers to easily buy different products from
retail stores come under the category of Retail Management. It is significant for every retail firm as it makes shopping a hassle-free process for
both the customers and the sellers. Furthermore, it garners repeat business for the retail firm.

5. CONTENT
Overview of Retail Management
Classification of Retail Format
Types of Market and Market Segmentation in Retail
Merchandise Management
Marketing and Promotional Mix in Retail
Portal’s 5 Forces Model in Retail
Emerging Trends in Retail

7. OVERVIEW: RETAIL MANAGEMENT
What is Retail?
Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his
end use. In a layman’s language, retailing is nothing but transaction of goods between the seller and the end user as a single unit (piece) or in
small quantities to satisfy the needs of the individual and for his direct consumption.
Definition of Retail
Retailing includes all activities involved in selling goods or services to the final consumers for personal, non-business use.
− Phillip Kotler
What Is Management?
Management refers to the process of bringing people together on a common platform and make them work as a single unit to achieve the
goals and objectives of an organization. Management is required in all aspects of life and forms an integral part of all businesses.ION T
What is Retail Management?
Retail Management is the process which helps the customers to procure the desired merchandise form
the retail stores for their personal use. It includes all the steps required to bring the customers into the
store and fulfill their buying needs.

8. DefineRetailing
Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer (i.e. the one who
intends to use the product) are included. It encompasses sale of goods and services from a point of purchase to the end user, who is going to
use that product.
What Does A Retailer Mean?
A business or company that sells to the consumer directly. A retailer will buy goods from a manufacturer, distributor or wholesaler and sell
them on to the customer at a marked up price.
Functions of a Retailer
Retailer provides the goods that customer needs, in a desired form, at a required time and place.
➢ A retailer does not sell raw material. He sells finished goods or services in the form that customer wants.
➢ A retailer buys a wide range of products from different wholesalers and offers the best products under one roof. Thus, the retailor
performs the function of both buying and selling.
➢ A retailer keeps the products or services within easy reach of the customer by making them available at appropriate location And
Every retailer have to follow supply chain:-
Supply Chain Management:
It is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final
product to the consumer. To accomplish this task, a company will create a network of suppliers (the “links” in the chain) that move the product
along from the suppliers of raw materials to the organizations who deal directly with users.

10. EvolutionofRetail
Though the barter system is considered as the oldest form of retailing, the traditional forms of retailing such as neighbourhood stores, main-
street stores and fairs still exist in the laid-back towns around the world.
Conventional
Format
Established
Format
Emerging
Format
•Haats,mandis, melas
•Fairs
•Hawkers
•Weekly bazar
•Grocery shops
•Paan/ beedi shops
•Departmental stores
•Co-operative stores
•Speciality stores
•Super market
•Hyper market
•Fast food joint
•E-retailing

12. CLASSIFICATION OF RETAIL FORMATS
Retail formats can be classified into the following categories: Non Store Based: Non Store Retail Organizations Focuses on Establishing Direct
Contact with the Consumer. Store Based Formats: It Can Be Further Classified into Two Formats Based On the Basis Of Ownership or
Merchandise Offered. Service Based Formats: Such Retailers Specialize In Providing Different Kinds Of Services To The End Consumer.

13. Non-Store Based (Direct) Retailing
It is the form of retailing where the retailer is in direct contact with the consumer at the workplace
or at home. The consumer becomes aware of the product via email or phone call from the retailer,
or through an ad on the television, or Internet. The seller hosts a party for interacting with people.
Then introduces and demonstrate the products, their utility, and benefits. Buying and selling
happens at the same place.
For example, Amway and Herbalife multi-level marketing.
Non-Store based retailing includes non-personal contact based retailing such as –
➢ Mail Orders/Postal Orders/E-Shopping − the consumer can refer a product catalogue on internet and place order for purchasing the
product via email/post.
➢ Telemarketing − The products are advertised on the television. The price, warranty, return policies, buying
schemes, contact number etc. are described at the end of the Ad. The consumers can place order by calling
the retailer’s number. The retailer then delivers the product at the consumer’s doorstep.
For example, Asian Sky shops.
➢ Automated Vending/Kiosks − It is most convenient to the consumers and offers frequently purchased items
round the clock, such as drinks, candies, chips, newspapers, etc.

14. Store Based Retailing
The store based retailing is categorized into two forms:-
A. Ownership Based Retailing
➢ Independent Retailers − They own and run a single shop, and determine their policies
independently. Their family members can help in business and the ownership of the unit can be
passed from one generation to next. The biggest advantage is they can build personal rapport
with consumers very easily.
For example, stand-alone grocery shops, florists, stationery shops, book shops, etc.
➢ Chain Stores − When multiple outlets are under common ownership it is called a chain of
stores. Chain stores offer and keep similar merchandise. They are spread over cities and regions. The
advantage is, the stores can keep selected merchandise according to the consumers’ preferences in a
particular area.
For example, Westside Stores, Shopper’s Stop, etc.
➢ Franchises − These are stores that run business under an established brand name or a particular format by an agreement between
franchiser and a franchisee. They can be of two types –
Business format. For example, Pizza Hut.

15. Product format. For example, Ice cream parlors of Amul.
➢ Consumers Co-Operative Stores − These are businesses owned and run by consumers with the aim of providing essentials at
reasonable cost as compared to market rates. They have to be contemporary with the current business and political policies to keep
the business healthy. For example, Sahakar Bhandar from India, Puget Consumers Food Co-Operative from north US, Dublin Food Co-
Operative from Ireland.
B. Merchandise Based Retailing
➢ Convenience Stores − They are small stores generally located near residential
premises, and are kept open till late night or 24x7. These stores offer basic
essentials such as food, eggs, milk, toiletries, and groceries. They target
consumers who want to make quick and easy purchases.
For example, mom-and-pop stores, stores located near petrol pumps etc.

16. ➢ Supermarkets − These are large stores with high volume and low profit margin. They target mass consumer and their selling area
ranges from 8000 sq.ft. to 10,000 sq.ft. They offer fresh as well as preserved food items, toiletries, groceries and basic household
items. Here, at least 70% selling space is reserved for food and grocery products.
For example, Food Bazar and Tesco.
➢ Hypermarkets − These are one-stop shopping retail stores
with at least 3000 sq.ft. selling space, out of which 35% space
is dedicated towards non-grocery products. They target
consumers over large area, and often share space with
restaurants and coffee shops. The hypermarket can spread
over the space of 80,000 sq.ft. to 250,000 sq.ft. They offer
exercise equipment, cycles, CD/DVDs, Books, Electronics
equipment, etc.
For example, Big Bazar from India, Walmart from US.

17. ➢ Specialty Stores − These retail stores offer a particular kind of merchandise such as
home furnishing, domestic electronic appliances, computers and related products,
etc. They also offer high level service and product information to consumers. They
occupy at least 8000 sq.ft. selling space.
For example: bata, camera store, bookstores etc.
➢ Departmental Stores − It is a multi-level, multi-product retail store spread across average size of
20,000 sq.ft. to 50,000 sq.ft. It offers selling space in the range of 10% to 70% for food, clothing, and
household items.
For example: woodland, super bazaar, lifestyle etc
➢ Factory Outlets − These are retail stores which sell items that are produced in
excess quantity at discounted price. These outlets are located in the close
proximity of manufacturing units or in association with other factory outlets.
For example, Nike, Bombay Dyeing factory outlets.

18. ➢ Catalogue Showrooms − These retail outlets keep catalogues of the products for the consumers to refer. The consumer needs to select
the product, write its product code and handover it to the clerk who then manages to provide the selected product from the
company’s warehouse.
For example, Argos from UK. India’s retail Hyper City has joined hands with Argos to provide a catalogue of over 4000 best quality products
in the categories of computers, home furnishing, electronics, cookware, fitness, etc.
Service Based Retailing
These retailers provide various services to the end consumer. The services include banking, car rentals, electricity, and cooking gas container
delivery.
The success of service based retailer lies in service quality, customization, differentiation and timeliness of service, technological up gradation,
and consumer-oriented pricing.

20. TYPES OF MARKET AND MARKET SEGMENTATION IN RETAIL
Retailmarket
The market for the sale of goods or services to consumers rather than producers or intermediaries. There are two types of retail markets:
TypesofRetailMarket
1. Organized Retail: Organized Retailing is a large retail chain of shops run with up-to-date technology, accounting transparency, supply
chain management, and distribution systems.
2. Unorganized Retail: Unorganized Retailing is nothing but a small retail business conducted by an owner or a caretaker of the shop with
no technological and accounting aids.

21. Difference between Organized Retail and Unorganized Retail Market Segmentation
Parameter Organized Retail Unorganized Retail
Scale of Operations Large Small
Scope of Operations Nationwide, Worldwide Local
Employees Professional, skilled, and trained Unprofessional
Number of Stores Chain of multiple stores Maximum 2-3 outlets of the same owner within a
city or across nearby cities
Ambience of Store Pleasant, attractive Lack of good ambience
Range of Products Wide range of products across the nations Only a range of local products
Shopping experience Excellent, memorable, engaging Average
Bargaining Not possible. Pricing doesn’t depend on
relationship
Possible. Pricing varies according to personal
rapport
Convenience of choosing products Very high. Customer can walk around and choose
the product
Very less
Examples Walmart, HyperCity, Big Bazar Standalone shops

22. Market Segmentation
It is a process by which the customers are divided into identifiable groups based on their product or service requirements. Market segmentation is very
useful for the marketing force of the retail organization to create a custom marketing mix for specific groups. Segmentation can be done on the basis of
the following:
1. Demographic Segmentation: demographic segmentation involves
variables such as age, gender, family size, income, occupation,
religions, race and nationality.
2. Geographic segmentation: This type of market segmentation
divides people on the basis of geography. Your potential will have
different needs based on the geography they are located in.
3. Psychographic segmentation: it is one in which uses lifestyle of
the people, their activities, interests as well as opinions to define
a market segment. Psychographic segmentation is quite similar to
behavioural segmentation. But psychographic segmentation also
takes the psychographic aspects of consumers buying behaviour
into accounts. These psychographic aspects may be consumer’s
lifestyle, his social standing etc.
4. Behavioural segmentation: This type of segmentation divides the
population the basis of their behaviour, usage and decision
making pattern. For example, the buying patterns of youngsters
would be different from the buying patterns of old people.

24. MERCHANDISE MANAGEMENT
What Is Merchandise?
Merchandise, often called inventory, is a good or product that a retailer purchases and intends to sell for a profit. We’ve all familiar with
examples of retail inventory in stores like Best Buy and Target. Anything that is on the sales floor for sale is considered merchandise because
it’s a product that they are hoping to sell to customers for a profit.
What Is Merchandise Management?
It is the process through which each retailer decides what items to carry, how much to have on hand to meet the needs of customers, where
they should be displayed in the store to maximize sales, and how they should be priced to sell the best and maximize profits.
Types of Merchandising
1. Staple Merchandise: These are necessaries of life that are used every day.
For example: Food, Clothing, Stationery, Cosmetics, toiletries etc. They
have regular and stable demand. Fluctuation in demand supply and
price is minimum.
2. Fashion Merchandise: Consumption of these goods is dependent on
current fashion. Demand lasts until its fashion. Depending on nature
of goods, fashion may be for seasons or years. Retailer has to stocks
the product until the fashion lasts. If the stock remains unsold as
goods become out of fashion, has he has to adopt marketing
strategy like discount, ‘buy one get one offer’ to clear stock.

25. Merchandise Planning
Merchandise planning is a strategic process in order to increase profits. This includes long-term planning of setting sales goals, margin goals,
and stocks.
A. Define merchandise policy: Get a bird’s eye view of existing and potential customers, retail store image, merchandise quality and
customer service levels, marketing approach, and finally desired sales and profits.
B. Collect historical information: Gather data about any carry-forward inventory, total merchandise purchases and sales figures.
C. Identify Components of Planning.
➢ Customers – Loyal customers, their buying behaviour and spending power.
➢ Departments – What departments are there in the retail business, their sub-classes?
➢ Vendors – Who delivered the right product on time? Who gave discounts? Vendor’s overall performance with the business.
➢ Current Trends – Finding trend information from sources including trade publications, merchandise suppliers, competition, other stores
located in foreign lands, and from own experience.
➢ Advertising – Pairing buying and advertising activities together, idea about last successful promotions, budget allocation for Ads.
D. Create a long-term plan: Analyze historical information, predict forecast of sales, and create a long-term plan, say for six
months

26. Merchandise Buying
This activity includes the following:
A. Collect Information: Gather information on consumer demand, current trends, and market requirements. It can be received internally
from employees, feedback/complaint boxes, demand slips, or externally by vendors, suppliers, competitors, or via the Internet.
B. Determine Merchandise Sources: Know who all can satisfy the demand: vendors, suppliers, and producers. Compare them on the basis
of prices, timeliness, guarantee/warranty offerings, payment terms, and performance and selecting the best feasible resource(s).
C. Evaluate the Merchandise Items: By going through sample products, or the complete lot of products, assess the products for quality.
D. Negotiate the Prices: Realize a good deal of purchase by negotiating prices for bulk purchase.
E. Finalize the Purchase: Finalizing the product prices and buying the merchandise by executing buying transaction.
F. Handle and Store the Merchandise: Deciding on how the vendor will deliver the products, examining product packing, acquiring the
product, and stocking a part of products in the storehouse.
G. Record the Buying Figures: Recording details of transactions, number of unit pieces of products according to product categories and
sub-classes, and respective unit prices in the inventory management system of the retail business.

27. Visual Merchandising
It is the activity of developing floor plans and three-dimensional
displays in order to engage customers and boost sales. Both,
products or services can be displayed to highlight their features
and benefits. It is based on the idea that good looks pay off. It
requires creativity and an eye for presenting the products or
services aesthetically so that the customers find it appealing and
are motivated towards buying. Visual merchandising involves
displaying products or services aesthetically using various objects,
colors, shapes, materials, designs, and styles to attract the
customers.
Need of Visual Merchandising In Retail:-
The art of increasing the sale of products by effectively and sensibly
displaying them at the retail outlet is called as visual merchandising.
Visual merchandising refers to the aesthetic display of the merchandise
to attract the potential buyers, prompt them to buy and eventually
increase the sales of the store. In simpler words, visual merchandising
is the art of displaying the merchandise to influence the consumer’s
buying behaviour.
The store must offer a positive ambience to the customers for them to
enjoy their shopping. The location of the products in the store has an
important role in motivating the consumers to buy them. Sensible

28. display of the merchandise goes a long way in influencing the buying decision of the individual.
The end-user will never notice something which is not well organized: instead stacked or thrown in heaps.
Proper Space, lighting, placing of dummies, colour of the walls, type of furniture, music, fragrance of the store all help in increasing the sale of
the products.
▪ Lighting is one of the critical aspects of visual merchandising. Lighting increases the visibility of the merchandise kept in the store. The
store should be adequately lit and well ventilated. Avoid harsh lighting as it blinds the customers who walk into the store.
▪ The signage displaying the name of the store or other necessary information must be installed properly outside the store at a place
easily viewable to the customers even from a distance.
▪ The retailer must be extremely cautious about the colour of the paint he chooses for his store. The paint colour can actually set the
mood of the customers. The wall colours must be well coordinated with the carpet, floor tiles or the furnitures kept at the store. Dark
colours make the room feel small and congested as compared to light and subtle colours.
▪ The store must always smell good. Foul smell irritates the consumers and he would walk out of the store in no time. Use room
fresheners ‘or aromatic sticks for a pleasant environment.
▪ The merchandise must be properly placed in display racks or shelves according to size and gender. Put necessary labels (size labels)
on the shelves as it help the customers to locate the products easily. Make sure the product do not falls off the shelves as it gives a
messy look.
▪ The dummies should be intelligently placed and must highlight the unique collections, latest trends and new arrivals in order to catch
the attention of the individual. The dummies should not act as an obstacle and should never be kept at the entrance of the store.
▪ Don’t play blaring music at the store. It acts as a hindrance to effective communication and the retailer can never understand what the
buyer actually intends to buy.

29. ▪ Select the theme of the store according to the season. Red should be the dominating colour during Christmas or Valentines Day as the
colour symbolizes love, fun and frolic. A white theme would look out of place during the season of love.
▪ Don’t keep unnecessary furniture as it gives a cluttered look to the store.

31. MARKETING MIX & PROMOTIONAL IN RETAINING
Marketing mix is about putting the right product or a combination thereof in the
place, at the right time, and at the right price. The difficult part is doing this well, as you
need to know every aspect of your business plan.
The marketing mix is predominately associated with the 7P’s of marketing, and the 4 Cs
theories developed in the 1990s.

32. 1. Product: A product is an item that is built or produced to satisfy the needs of
a certain group of people. The product can be intangible or tangible as it can
be in the form of services or goods. You must ensure to have the right type of
product that is in demand for your market. So during the product
development phase, the marketer must do an extensive research on the life
cycle of the product that they are creating.
2. Price: The price of the product is basically the amount that a customer pays for to enjoy it.
Price is a very important component of the marketing mix. It is also a very important component
of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the
product has a big impact on the entire marketing strategy as well as greatly affecting the sales and
demand of the product.
3. Place: Placement or distribution is a very important part of the
product assortment. You have to position and distribute the product
in a place that is accessible to potential buyers. This comes with a
deep understanding of your target market. Understand them inside
out and you will discover the most efficient positioning and
distribution channels that directly speak with your market.

33. 4. People: Of both target market and people directly related to the business. Thorough research is important to discover whether there
are enough people in your target market that is in demand for certain types of products and services.
5. Process: the systems and processes of the organization affect the execution of the
service. So, you have to make sure that you have a well-tailored process in place
to minimize costs. It could be your entire sales funnel, a pay system, distribution
system and other systematic procedures and steps to ensure a working business
that is running effectively.

34. 6. Physical evidence: In the service industries, there should be physical
evidence that the service was delivered. Additionally, physical evidence
pertains also to how a business and it's products are perceived in the
marketplace.
For example, when you think of “fast food”, you think of
McDonalds.
7. Promotion: it is a very important component of marketing as it can boost brand recognition and sales. Promotion
is comprised of various elements like:

35. What Is Promotion Mix?
The Promotion Mix refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for
goods and services.

36. 4C's of Marketing Mix
The 4Cs marketing model was developed by Robert F. Lauterborn in
1990. It is a modification of the 4Ps model. It is not a basic part of
the marketing mix definition, but rather an extension. Here are the
components of this marketing model:
➢ Cost: price is not the only cost incurred when purchasing a
product. Cost of conscience or opportunity cost is also part of the
cost of product ownership.
➢ Consumer Wants and Needs: A company should only sell a
product that addresses consumer demand. So, marketers and
business researchers should carefully study the consumer wants
and needs.
➢ Communication: “promotion” is manipulative while
communication is “cooperative”. Marketers should aim to create an open dialogue with potential clients based on their needs and
wants.
➢ Convenience: The product should be readily available to the consumers. Marketers should strategically place the products in several
visible distribution points.
Whether you are using the 4Ps, the 7Ps, or the 4Cs, your marketing mix plan plays a vital role. It is important to devise a plan that balances
profit, client satisfaction, brand recognition, and product availability. It is also extremely important to consider the overall “how” aspect that
will ultimately determine your success or failure.

38. PORTER’S 5 FORCES MODELS IN RETAIL
Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws from industrial organization (IO) economics to derive
five forces that determine the competitive intensity and, therefore, the attractiveness (or lack of it) of an industry in terms of its profitability.
An "unattractive" industry is one in which the effect of these five forces reduces overall profitability. The most unattractive industry would be
one approaching "pure competition", in which available profits for all firms are driven to normal profit levels.
1. Threat of New entrant: The easier it is for a new company to
enter the industry, fiercer is the competition. Any new
entrant poses a threat to the existing players as it can
decrease the profit share of existing players. The factors that
limit new entrants are −
➢ How loyal are end consumers in the industry?
➢ How difficult it is for the consumer to switch to the new
product?
➢ How large is the amount of capital required to enter into the
industry?
➢ How difficult it is to access distribution channel?
➢ How hard it is to acquire new skills for the staff?
For example: These stores such as Target or Wal-Mart,
already enjoy economies of scale, have recognizable brands and a strong supply chain. So they do pose strong competition to
Amazon.

39. 2. BargainingPowerofSuppliers:It is the ability of the supplier to control the cost and supply of the products in the market. If the suppliers
are at a dominating position over the company while product pricing, threatening to raise price or reduce supply, then that retail
industry is said to be less attractive. The retail managers need to find out answers for the following −
➢ What are the substitute products other than what the supplier provides?
➢ Is the supplier providing goods to multiple industries?
➢ Is the supplier-switching cost high?
➢ If the supplier and the company are capable of entering into one another’s business?

40. 3. Bargaining Power of Buyers: It is the position of buyers and likelihood of their ability to gain benefit while buying. If there are many
suppliers and few buyers, the buyers are at advantageous position while pricing and they generally have the last word. The retail
managers need to think of the following −
➢ How large market share the retail company has?
➢ What size of consumers is the company depending upon for its sales?
➢ Are buyers buying in large volumes?
➢ How many other retail competitors are in the same product line?
4. Threat of SubstitutesProducts: Substitutes are the products or services that provide the same functionality. A successful product leads to
creating other similar products. While entering into retail, one should think of −
➢ How many near substitutes are available in the market?
➢ What is the price of the substitute?
➢ What is the consumer perception about those substitutes?
By advertising, marketing, and investing in R&D for the product or service, a retail business can elevate its position in the industry.
For example: Google+ and Face book both are social platforms the consumers use for socializing. They provide similar features such as posts,
chat, share text, graphics and media content, forming groups, etc.

41. 5. Rivalry among The Existing Firms: For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry. Having an understanding of industry rivals is vital to successfully market a product. Positioning
pertains to how the public perceives a product and distinguishes it from competitors. A business must be aware of its
competitors' marketing strategies and pricing and also be reactive to any changes made.
Potential factors:
➢ Sustainable competitive advantage through innovation
➢ Competition between online and offline companies
➢ Level of advertising expense
➢ Powerful competitive strategy which could potentially be realized by adhering to Porter‘s work on low cost versus differentiation.

43. EMERGING TRENDS IN RETAIL
In today’s era, the places in the cities have become congested, infrastructure has changed, transport facilities have increased, and the speed
of exchanging information has become extremely fast. Retailers are adopting new technology. Society is changing, consumers are changing
and so are the retailers. Retailing has managed to keep itself paced with the changing times.
ChangingNatureofRetailing
Retailers are changing their business formats, store designs, modes of communication with customers and ways of handling commercial
dealings.
➢ Modern retailers are adapting new technology for marketing,
retail operations, and business transactions.
➢ Forward-thinking retailers are using social media to
communicate with the consumers.
➢ With the space crunch, modern retailers have learnt how to
use every inch of the floor constructively.
➢ Apart from opening online retail store, the retailers take the
help of Augmented Reality such as 3D mock-ups to let the
customer try the products on themselves.
➢ Retailers are working progressively on delivery of orders that
customers placed through online shopping.
➢ Retailers are bringing something new now and then to charm

44. the customers. Those places where internet is still not accessible, retailers are exploiting the power of mobile phones to advertise
their products.
ModernRetailFormats
Today, the Internet has changed the way products are advertised and the manner of selling-buying transactions.
Here are some modern innovations in retail −
➢ Modern retail businesses such as malls, specialty stores, and hypermarkets are using micro development and contemporary
technology to increase customers’ shopping experience and in turn generate business revenue.
➢ Around the year 2000, online retail startups started changing the face of retail businesses around the world.
➢ Social media websites such as Face book changed consumer behaviour as well as made retailers sweat out to take the benefits and
develop their brands.
➢ Modern e-commerce facilities enable faster transactions and allow purchase on a simple 30-day credit facility.
E-Tailing
It is nothing but E-Retailing. It is the process of selling or purchasing the products using
Internet for B2B or B2C transactions. E-tailing process includes the customer’s visit to the
website, purchasing products by choosing a mode of payment, product delivery by the
retailer and finally, the customer’s review or feedback.

45. E-tailing Benefits
➢ It does not require floor space to display products.
➢ It allows the customer having internet access to shop any time, any place.
➢ It saves time of the customer otherwise spent travelling to a shopping place in the real world.
➢ It creates a platform for products from around the world, which are imported by the e-tailer when the customer places an order.

46. CONCLUSION
In many countries and regions, there will be small local retailers for many years to come. But as internet shopping takes hold in many
countries, the traditional high street or shopping area will come under threat, and will have to evolve or die. We’ve looked at traditional retail,
and the role of manufacturers, distributors and retailers and the part they play in getting products in front of the consumer. We have looked at
different types of retailers, and their shared objectives, of achieving a profit, by practicing the art of arbitrage. That is by purchasing and
subsequently selling a product or commodity to profit from a difference in the price. We have defined terms such as product mix, margin,
range planning, and profit targets. We have looked at why discounting happens. We have thought about legal and compliance issues.
Then we looked at new developments in the era of internet retailing, considered the speed of technological changes, and the effect of them on
retailers. We learnt about multi-channel retailing, click n collect, content marketing, and touch point. Mobile enabled website, Location based
marketing, and other new trends and developments We considered the effect of mobile devices on shopping and the need to optimize
websites for use on mobiles, and the ability to take payments on mobile devices. We looked at some new payment technologies too.
We looked at the effect on the delivery industry and the new developments and opportunities emerging there. And then we looked at Digital
Retail Media – a fantastic opportunity which will spawn its own industry and produce some great opportunities. Finally we looked at new retail
models and some emerging trends. It is only by having an appreciation of traditional retailing and how it works, that we can anticipate where
retailing might go in the very near future. Our shopping patterns will change irrevocably as the internet turns our world upside down. What
opportunities will there be for us in this new world.

47. BIBLIOGRAPHY
www.tutorialpoint.com
http://erply.com/what-is-retail/
https://www.managementstudyguide.com/retail-managemnt.htm
http://learn.org
http://www.managementskillscourses.com/retail-and-retailing-conclusion/