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Retail Store Management

Notes his customers unless he is able to collect and analyze the vast amount of data available to him.
Retailers usually deal with very large volumes of data as thousands of suppliers, which are
finally purchased by thousands of customers as well by enabling the retailer to keep track of all
this information and to analyze the reports that emergence from such data. The concept of
retailing however, is still under-development in India, with emphasis only being laid on
distribution. The Indian retail market is quite large but highly fragmented, comprising very
few large retailers.
In this unit, we will have an overview of retail operations. We will also focus on stores
organization, selection of right location.

1.1 Retail Operations

It is necessary to understand that in the complex world of trade today, retail would include not
only goods but also services, which may be provided to the end consumer. In an age where the
customer is the king and marketers are focusing on customer delight/retailing may be redefined
as the first point of customer contact.

According to Phillip Kotler “Retailing includes all the activities involved in selling goods or
services to the final consumers for personal, non-business use. A retailer or retail store is any
business enterprise whose sale volume comes primarily from retailing.”

Did u know? IT plays an extremely critical role in the development of retail all over the
world.
Retailing today is at an interesting crossroads. On the one hand, retail sales are not at their
highest point in history. New technologies are improving retail productivity and global retailing
possibilities abound. On the other hand retailers face numerous challenges.

1.1.1 Functions of a Retailer

Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers and
consumers. In this context, they perform various functions like sorting, breaking bulk, holding
stock, as a channel of communication, storage, advertising and certain additional services.

Sorting

Manufacturers usually make one or a variety of products and would like to sell their entire
inventory to a few buyers to reduce costs. Final consumers, in contrast, prefer a large variety of
goods and services to choose from and usually buy them in small quantities. Retailers are able
to balance the demands of both sides, by collection an assortment of goods from different
sources, buying them in sufficiently large quantities and selling them to consumers in small
units.
The above process is referred to as the sorting process. Through this process, retailers undertake
activities and perform functions that add to the value of the products and services sold to the
consumer. Supermarkets offer, on and average, 15,000 different items from 500 companies.
Customers are able to choose from a wide range of designs, sizes and brands from just one
location. If each manufacturer had a separate store for its own products, customers would have
to visit several stores to complete their shopping. While all retailers offer an assortment, they
specialize in types of assortment offered and the market to which the offering is made. Westside
provides clothing and accessories, while a chain like Nilgiris specializes in food and bakery

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