Page 91 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes

Notes Modern marketing theory may have stemmed from producers of fast moving
consumer goods; more recent developments such as relationship marketing and interactive
marketing have evolved from the needs of service providers. These new marketing
activities gained the immense popularity which can act as a bridge between customer and
manufacturer.
Retailing Needs to Cross the Following Hurdles

1. The first challenge facing the organized retail sector is the competition from unorganized
retail sector.
2. Customer service expectations are high at a time when more retailers offer self-service
and automated systems. At the same time, many retailers remain unsure what to do with
the web; they are still grappling with the emphasis to place on image enhancement,
customer information and feedback, and sales transactions.
3. In retail sector, Automatic approval is not allowed for foreign investment.
4. Lack of trained work force.
5. Intrinsic complexity of retailing – rapid price changes, threat of product obsolescence and
low margins.
6. Cost of business operations is very high in India.

Self Assessment

Fill in the blanks:

11. Return Exchange becomes the Retail .......................
12. The Return Exchange has been focused on return .......................
13. Due to the ....................... every body come and launch their products in India.
14. Manufacturers or suppliers who offer products for immediate consumption are known as
....................... manufacturers or suppliers.
15. Every retailer needs ........................

Case Study Retail Math Formulas

etail math is often used in various ways by store owners, managers, retail buyers
and other retailing employees. It is used to evaluate inventory purchasing plans,
Ranalyze sales figures, add on markup and apply markdown pricing to plan stocks.

Although there are computer programs and other tools available, performing these retail
math calculations often requires familiarity with formulas. Use the following equations
and retail math formulas to track merchandise, measure sales performance and help create
pricing strategies.

Contd....

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