Page 14 - DMGT552_VISUAL_MERCHANDISING

Unit 1: Introduction to Retail

etc. and the factory outlets of apparel and footwear brands, namely, Levi’s factory outlet, Nike’s Notes
factory outlet, Koutons, etc.
They are expected to spearhead the organised retailing revolution. There are stores in India
which are trying to emulate the model of Walmart e.g. Big Bazaar. Unorganised retailing is
getting organised: To meet the challenges of organised retailing such as large cineplexes, and
malls, which are backed by the corporate house such as ‘Ansals’ and ‘PVR’ the unorganised
sector is getting organised. 25 stores in Delhi under the banner of Provision mart are joining
hands to combine monthly buying. Bombay Bazaar and E-foodmart formed which are
aggregations of Kiranas.

Convenience Store: A convenience store is a relatively small retail store located near a residential
area (closer to the consumer), open long hours, seven days a week, and carrying a limited range
of staples and groceries.

Example: In & Out, Safal, amongst others. The average size of a convenience store is
around 800 sq. ft.

Self Assessment

Fill in the blanks:
9. Vast majority of the millions stores are small ……………… outlets.

10. Huge amounts of taxes are evaded from the ………………
11. Mostly small individually owned businesses, average size of outlet equals ………………
s.q. ft

12. Rural retail industry has typically two forms: ……………… and ………………
1.4 Relating Retail with Customer Profile

Regardless if it is a small town or an urban area populated by millions, tiny, usually open-air
shops line neighbourhood streets throughout India. They sell fresh fruit and vegetables, groceries,
clothing, tires, household goods and even appliances.
Traditional retail refers to these thousands of small, mostly family-owned retail businesses.
They are also referred to as the “unorganised” retail sector. The “organised” sector refers to
large, modern regional and national retail stores.
The Indian retail industry is the world’s fifth largest and accounted for 12 percent of GDP (gross
domestic product) in 2009. Approximately, 97 percent of retail businesses are traditional.

Task Visit your nearby retailers and find out what all activities do they perform to
enrich customer service.

Through the centuries, Indians have purchased goods from small local vendors, entrenching
this style throughout the country. Only recently have urban shopping centres been opened that
offer goods at large “chain-type” stores. These continue to be rare in rural areas.
Supporters of traditional retail note several benefits—buyer proximity, personal service and
monthly credit. Even though it is small, traditionalists understand their customer base and only
stock goods suitable for them.

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