INTRODUCTION:

RETAIL INDUSTRY

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Retail comes from the Old French word tailer (compare modern French retailler), which means "to cut off, clip, pare, divide" in terms of tailoring (1365)It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring"). Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel, respectively) also refers to the sale of small quantities of items.

Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows:

Food products Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Supermarkets - sell mostly food products; Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. General store - a rural store that supplies the main needs for the local community; Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats.

Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon, Pennyful and Ebay. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Convenience store - a small store often with extended hour, stocking everyday or roadside items; General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales.

Challenges
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles:

Regulatory barriers including o Restrictions on real estate purchases, especially as imposed by local governments and against "big-box" chain retailers; o Restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g., common stock) purchased; Unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers (see "Regulatory" above); Absence of developed supply chain and integrated IT management; High competitiveness among existing market participants and resulting low profit margins, caused in part by o Constant advances in product design resulting in constant threat of product obsolescence and price declines for existing inventory; and Lack of properly educated and/or trained work force, often including management, caused in part by o Lack of educational infrastructure enabling prospective market entrants to respond to the above challenges.

Retailing in India
Retailing is one of the pillars of the economy in India and accounts for 13% of GDP. The retail industry is divided into organised and unorganised sectors. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Organized retail such supermarkets accounts for just 4% of the market as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states.

The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world. 1.8 million households in India have an annual income of over 45 lakh (US$91,260). Delving further into consumer buying habits, purchase decisions can be separated into two categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing machines, dishwashers, microwave ovens and DVD players fall in the status category. Indulgence-oriented products include plasma TVs, state-of-the-art home theatre systems, iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers in the status category buy because they need to maintain a position in their social group. Indulgenceoriented buying happens with those who want to enjoy life better with products that meet their requirements. When it comes to the festival shopping season, it is primarily the statusoriented segment that contributes largely to the retailers cash register. While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, little use of IT systems, limitations of mass media and existence of counterfeit goods.

Major Indian Retailers

- 6TEN and 6TEN kirana stores oups- Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc. - Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, ColTheirplus, Neck Ties & More, Shirts & More etc. Fabindia- Textiles, Home furnishings, handloom apparel, jewellery Formats- Music World, Books & Beyond, Spencers Hyper, Spencers Super, Daily & Fresh -Formats- Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Croma. -Formats- Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore - Reliance World Formats- Shoppers Stop, Crossword, Hyper City, Inorbit Mall -Formats- Nilgiris supermarket chain Marks & Spencer- Clothing, lifestyle products, etc. - Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. - Formats: Pyramid Megastore, TruMart

lectronics)(www.next.co.in) - Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers - T-Mart India [3], Switcher , Respect India , Grand India Bazaar ,etc., -Formats- Subhiksha supermarket pharmacy and telecom discount chain. - Formats- Fabmall supermarket chain and Fabcity hypermarket chain - Formats: Vishal Mega Mart -Formats: In & Out - Formats: Shoprite Hyper stores bazaar- honey shine stores - "More" Outlets - Cotton garment outlets - with 71 operating Stores till now and total 153 Stores in India and 1 to open in Dubai Shortly.

Challenges (in India)

To become a truly flourishing industry, retailing needs to cross the following hurdles:

Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favours small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Lack of Retailing Courses and study options Intrinsic complexity of retailing rapid price changes, constant threat of product obsolescence and low margins. The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill

One very important measure to overcome some of the challenges faced by retail, is for companies to invest heavily in training and recruitment, using up to date cost efficient services. One of the leading retail training companies in India is Metamorph Learning Pvt. Ltd, a Bangalore-headquartered, pan-India company which specialises in e-learning, content development as well as blended training (classroom+virtual training) to cater to retail and other companies across India. Also, the country is developing a support infrastructure in form of specialised retail schools. One such skill development initiative has been taken by TKWs Group. Its TKWs Retail School has already training over a thousand students and retail professionals for different retail skills. TKWs Retail School is also associated with government projects like enhancing retail experience of foreign tourists, improving retail of handicraft and local produce, skill development of village youth.

The Future
The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

RETAIL MANAGEMENT
Retail management is the sale by seller in small quantities to customer not for resale.

I prefer to understand "Retail Management" as: The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. Therefore, bringing about operational efficiency at this last stage, and creating an environment so compelling that he looks nowhere else, is "Retail Management". RM- is an art, and necessitates employing several tools of logistics management for a complete end user satisfaction. RM - is getting to know the final user on behalf of the producer. RM - is a process of facilitation.

ABOUT THE ORGANIZATION: PANTALOONS INDIA PVT. LTD

Founder: Mr.kishore biyani (Group CEO- FUTURE GROUP)

Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today Their core values continue to guide how we do business and improve the quality of life of the people we serve.
Mission:

They share the vision and belief that Their customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. They shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost- conscious and committed to quality in whatever They do. They shall ensure that Their positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

values:

Indianness: Confidence in Themselves. Leadership: To be a leader, both in thought and business. Respect & Humility: To respect every individual and be humble in Their conduct. Introspection: Leading to purposeful thinking. Openness: To be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: To build long term relationships. Simplicity & Positivity: Simplicity and positivity in Their thought, business and action. Adaptability: To be flexible and adaptable, to meet challenges. Flow: To respect and understand the universal laws of nature.

Retail chains under PANTALOONS INDIA PVT.LTD. :

Pantaloons Fresh fashion store

Big Bazaar Hypermarket chain

Food Bazaar Supermarket chain

eZone Electronics superstore

Home Town Home improvement and building materials store

Central Seamless department store

Planet Sports SportsTheyar retailer

Aadhar Rural retail chain

KBs Fairprice Urban low-frills neighbourhood store

Futurebazaar.com Shoppin

Strategy
A new normal is being defined in the Indian consumer market every day. With farreaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead Indias consumption story with sustainable value creation. Their multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, Their strategy is based on Their deep understanding of Indian consumers. They understand the varied buying behaviour of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levers Customer-orientation The bottom line in each of Their retail success stories is "know your customer". Insights into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally. Continuous-innovation As India's largest retailer, They understand the importance of innovation. They rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences. Collaborative transformation Creating a collaborative environment combining Their strengths with Their suppliers and vendors helps us create immense value for Their customers which in turn fosters matual growth.

They believe that modern Indian retail rests on the strength of two pillars scale and efficiencies. As front-runners in both areas, They firmly believe Their core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of Their operations helps us improve efficiencies, it also ensures They deliver greater value to Their customers. Their retail thrust is focussed on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, They are creating retail pure play through divestment and demerger of non-retail businesses to concentrate Their efforts on these verticals. Indias retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country, that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in Their country.

Retail: Winning the Hearts of Indian Consumers

Future Group was conceived as a force to drive domestic consumption and capture every addressable need of Indian consumers.

Future Group makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires. They operate some of Indias most popular retail formats. Across value and lifestyle segments, Their multi-format retail strategy caters to the complete consumption needs of a wide cross-section of Indian consumers.

Lifestyle: Style for Every Occasion Value: Helping India Save Home: Building Dreams in a New India Digital: Connecting the Youth of India

As modern retail drives fresh demand and consumption in new categories, Their strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format. Future Group offers innovative offerings at affordable prices tailored to the needs of every Indian household.

Pioneers in the Indias retail space, Their formats are household names in more than 85 cities and 60 rural locations across the country Their stores cover around 15 million square feet of retail space and attract around 220 million customers each year Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the Pantaloons and Central formats Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaar and KBs Fairprice formats

INTRODUCTION TO PROJECT

PLACE- BHUBANESWAR SAMPLE SPACE- 60 ORGANIZATIONS- 1. BIG-BAZAAR, satyanagar BBSR 2. BIG-BAZAAR, patia BBSR 3. PANTALOONS, vani vihar BBSR I have done this project sighting the fast growing industry in India, i.e retail. And chosen the organizations under PANTALOONS RETAIL PVT. LTD. Which is today the top retailer in India.

OBJECTIVE: The main objective of my project is to find out, why and how retail chains like BIG-BAZAAR, PANTALOONS, CENTRAL etc. have emerged as giants in their fields,. Why customers are preferring these stores for shopping.

Procedure:

RESEARCH METHODOLOGY

I described a methodology by which a retailer can identify action steps that are likely to increase sales and customer satisfaction and demonstrate the methodology using proprietary data from a customer point of view as well as retailer point of view, so as to lead the industry and find out innovative ways to understand the virgin market of India and to understand Indian consumers. LITERATURE REVIEW: My research agenda on retail store execution straddles three existing areas of literature: 1. empirical studies of retail store execution, 2. literature on the relationship between customer satisfaction and financial performance in the retail industry- Big Bazaars and pantaloons and 3. empirical studies of execution strategies in their retail outlets or malls. Retail store execution strategies have attracted the attention of researchers in operations management only recently, but this stream of work is most closely related to my paper . DATA COLLECTION: My study requires detailed store-level and customer survey data which is not publicly available. To obtain these data we worked closely with a large national retail chains under conditions of anonymity and nondisclosure. Since we did not have financial and operational data for a significant part of this project, I have relied mostly on the primary data which I have collected from my questionare we eliminated surveys that did not have matching store-level data. Moreover, customer surveys changed significantly over time, with the number of questions in each month ranging from about 10 to about 70. Answer scales varied over the years as well. To overcome this problem, we decided to focus only on 13 key questions that remained unchanged over a 17-month period and that, we believe, are most closely

related to store execution policies. Thus, we limit our study to 17 months starting from January 2004. We summarize corresponding variables in Table 1 where we calculate descriptive statistics for each