Page 10 - DMGT552_VISUAL_MERCHANDISING

Unit 1: Introduction to Retail

One Stop Shopping: The changes occur in retail sector due to the changes in environmental Notes
conditions. In the early part of the 20th century, the housewife, which shopping for her family’s
dinner, thought various products at various places and tired a lot. Then she thought that if all
products available under one roof; there by we can save our time/ effort/money. The retailers
trapped the need and had launched the biggest hypermarkets. Then these retail stores started to
sell food, varieties of products and variety of schemes introduced in order to draw the attention
of the customers.

Example: Big Bazaar, Spencer

Supermarket Revolution: The revolution of supermarket was first sparked off in the 1920’s, and
by the 1950’s it had won acclaim almost throughout America with its span ranging from a global
depression to global war; this revolution had literally seen it all. In the 1920, one could not even
dream of retailing as it exists today.
Initially, many items used to come in bulk and were sold as it is at the retail outlets. Potatoes
were sold from barrels and later from 100-pound sacks, while sugar was sold from 100-pound
sacks and sacks and better in tabs. The retailers were keen to acquire the know-how to upgrade
their quantity and service for the consumers and to develop the best stores possible. They may
become business friends and some even became family friends.

Did u know? By the 1930s, the Self-service Supermarket gained immense popularity due to
the choice leftover on consumers (housewives). It was sparked off by the success of Michael
Kullen, an independent operator who opened the kind Kullen supermarket in Jamaica,
New York. Storeowners found that housewives enjoy the shopping. Because when they
are preparing the list of require items for daily purpose, they may forget, there by again
they need to shop. Here picking their groceries from shelves themselves, piling their
purchase into shopping carts and wheeling the carts through the checkout counters.
As supermarkets grew, they extended the self-service concept to other foods besides
groceries. For example: More4u, Big Bazaar.

Globalisation of Retailing: Due to the Globalisation Foreign investors launched their businesses
in India where the expenditure is very less to start any business in India. The biggest corporate
giants entered into India and disturbed the Indian businesses.
Today, retailers from all over the world are venturing beyond their own borders to establish
stores even in other countries. In fact, the business of retailing cans clearly the defined as a
global business. Many retailers have realised and have therefore made international expansion
an integral part of their overall strategy. The immense impact of communication technology
has narrowed the cultural gap between countries over the decades.
Today’s consumes, be they in the developed or developing countries, share almost the same
important characteristics that the best specialty retailers already understand from their own
domestic experience. Consumers are now far more knowledgeable than ever before about
products, brands and prices that they have ever been in history. The advancement of
communication technologies has made a major contribution towards educating consumers about
the products and services they require and the Internet explosion is bound to further trend.
Size of the Operations: “Size” has become the keyword in international retailing and the larger
the size of the operations, the better the economies of scale and chances of survival in this
vicious war to win over the consumer. Some global retailers are now taking over existing retail
chains in a desperate bid to consolidate their operation in this world of retailing. It is evident
that eventually the comparatively smaller retail chain will be unable to compete in the market

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