[ VOLUME 2 I ISSUE 1 I JAN.

- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

RETAIL MANAGEMENT
Mr. Bankim R. Vaja
M. J. College of Commerce,
Bhavnagar-364002

Received Feb. 16, 2015 Accepted March. 01, 2015

ABSTRACT Retailing encompasses the business activities involved in selling goods

and services to consumers for their personal, family, or household use. While retailing can
be defined as including every sale to the final consumer (ranging from cars to apparel to
meals at restaurants), we normally focus on those businesses that sell “merchandise
generally without transformation, while rendering services incidental to the sale of
merchandise. Retailing today is at an interesting crossroads. On the one hand, retail sales
are at their highest point in history. Wal-Mart is now the leading company in the world in
terms of sales ahead of ExxonMobil, General Motors, and other manufacturing giants. New
technologies are improving retail productivity. There are lots of opportunities to start a
new retail business or work for an existing one—and to become a franchisee. Global
retailing possibilities abound. On the other hand, retailers face numerous challenges. Many
consumers are bored with shopping or do not have much time for it. Some locales have too
many stores, and retailers often spur one another into frequent price cutting (and low
profit margins). 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 about
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. Retail is the sale
of goods to end users, not for resale, but for use and consumption by the purchaser. The
retail transaction is at the end of the supply chain. Manufacturers sell large quantities of
products to retailers, and retailers sell small quantities of those products to consumers. A
person who wants to obtain a product for his/her own personal use will usually purchase it
at a retail store or from some other retail marketing channel. Thus, retailing refers to the
sale of goods or commodities in small quantities sold directly to ultimate consumers.
Key words : Retail Management, Factors Influencing Retail Management, Career
Opportunities Are Available in Retailing, Need for Retail Management, Retail
Management In India.
*A research paper presented at National Seminar held at Department of Commerce, M. K.
Bhavnagar University on 14th February.
Introduction:
desired merchandise from the retail stores
Retailing is an important field to study
for their end use refer to retail management.
because of its impact on the economy, its
functions in distribution, and its relationship Retail management includes all the steps
with firms selling goods and services to required to bring the customers into the store
retailers for their resale or use. It encomasses and fulfill their buying needs. Retail
the business activities involved in sellig goods management saves time and ensures the
and services to consumers for therepersonal, customers easily locate their desired
family, or household use, it includes every merchandise and return home satisfied.
sale to final consumer ranging from cars to
Retail management is to rightly manage all
apparel to meals atresturants to movie
the activities needed to carry out to make
tickets. Retailing is the last stage in the
products or services available to customers
distribution channel. The various processes
from vendor for personal or family use. It
which help the customers to procure the
carries all the activities that are being done in
Research Paper IJRAR- International Journal of Research and Analytical Reviews 22
[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

a business like raising capital, buying What is Retail Management?

products and services, deploying accounting
The various processes which help the
and management information system for
customers to procure the desired
control activities, managing warehouses and
merchandise from the retail stores for their
distribution, developing new products and
end use refer to retail management. Retail
also the marketing activities. Managing all
management includes all the steps required
these activities in retail is what we call retail
to bring the customers into the store and
management.
fulfill their buying needs.
Objectives
Retail management makes shopping a
Retailing may be understood as the final step pleasurable experience and ensures the
in the distribution of merchandise for customers leave the store with a smile. In
consumption by the end consumers. Retailing simpler words, retail management helps
is responsible for matching final consumer customers shop without any difficulty.
demand with supplies of different marketers.
“Retailing includes all the activities involved
Retailing is high intensity competition
in selling goods or services to the final
industry, The reasons for its popularity lie in
consumers for personal, non business use”.
its ability to provide easier access to variety
of products, freedom of choice and many Retailing encompasses the business activities
services to consumers. The Indian retail is involved in selling goods & services to
dotted by traditionally market place called consumers for their personal, family, or
bazaars or hats comprises of numerous small household use.
and large shops, selling different or similar It includes every sale to the final consumer –
merchandise ranging from cars to apparel to meals at
New retailers often enter the market place restaurants to movie tickets.
with low prices, margins, and status. The low Retail Function in Distribution
prices are usually the result of some
innovative cost-cutting procedures and soon
attract competitors. With the passage of time,
these businesses strive to broaden their
customer base and increase sales. Their
operations and facilities increase and become
more expensive. They may move to better up
market locations, start carrying higher
quality products or add services and
ultimately emerge as a high cost price service
retailer. By this time newer competitors as
low price, low margin, low status emerge and
these competitors too follow the same
evolutionary process.
The wheel keeps on turning and department
stories, supermarkets, and mass merchandise
went through this cycles. From the customer
point of view, the retailer serves him by
providing the goods that he needs in the
required assortment, at the required place
and time. From an economic standpoint, the
role of a retailer is to provide real added
value or utility to the customer. This comes
four different perspectives

Research Paper IJRAR- International Journal of Research and Analytical Reviews 23

[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

Factors Influencing Retail Management ● Be a “people person” to understand

customer needs and be an effective team
 Social
member.
How consumers, households and
● Be flexible to be able to perform a variety of
communities behave and their beliefs. For
tasks throughout the workday.
instance, changes in attitude towards health,
or a greater number of pensioners in a ● Be decisive to make quick decisions that are
population. well thought out.
 Legal ● Have analytical skills to analyze data and
predict trends.
The way in which legislation in society
affects the business. E.g. changes in ● Have stamina to be able to work under
employment laws on working hours. pressure for long time periods.
 Economic What makes retailing so fascinating is the
constant change that a retail executive must
How the economy affects a business in
understand and manage. Among the areas of
terms of taxation, government spending,
retailing that are now undergoing rapid
general demand, interest rates, exchange
change are the increased importance on
rates and European and global economic
nonstore retailing. the focus on customer
factors.
satisfaction, and the application of technology
 Political to all areas of retailing. These changes
How changes in government policy might represent both opportunities and challenges.
affect the business e.g. a decision to subsidies' Need for Retail Management - Why retail
building new houses in an area could be good management ?
for a local brickworks.
Peter wanted to gift his wife a nice
 Technological watch on her birthday. He went to the nearby
How the rapid pace of change in store to check out few options. The retailer
production process and product innovation took almost an hour to find the watches. This
affect an organization. irritated Peter and he vowed not to visit the
store again.-An example of poor
Career Opportunities Are Available in management.You just can’t afford to make the
Retailing customer wait for long. The merchandise
Although the typical entry-level positions in needs to be well organized to avoid
retailing for a postsecondary graduate unnecessary searching. Such situations are
include retail management trainee, common in mom and pop stores (kirana
department/sales manager, and assistant stores). One can never enjoy shopping at such
buyer, it is generally difficult to classify retail stores.Retail management saves time and
career opportunities—because there are so ensures the customers easily locate their
many of them. Most large retail organizations desired merchandise and return home
can be described as “small cities.” As such, satisfied.
these retailers offer career paths in almost Last decade has seen tremendous changes in
every aspect of business, such as buying, Retail Business – from made to order to ready
store operations, accounting, financial to wear, from counter sales to self service,
management, human resources, advertising, emphasis on value addition and cost
public relations, marketing research, and so reduction.Retail improving inventory
on. management through systems – faster
The ideal candidate pursuing a retail career turnover, better profitability, fast changing
should possess the following qualities: customer preferences for assortment of
goods and services.

Research Paper IJRAR- International Journal of Research and Analytical Reviews 24

[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

 The retailer must keep a record of all  Remove the unsold merchandise from
the products coming into the store. the shelves. Keep them somewhere
else.
 The products must be well arranged
on the assigned shelves according to  Create an attractive display.
size, colour, gender, patterns etc.
 Plan things well in advance to avoid
 Plan the store layout well. confusions later on.
 The range of products available at the  Ask the customers to produce bills in
store must be divided into small case of exchange. Assign fixed timings
groups comprising of similar for the same. Don’t entertain
products. Such groups are called customers after a week.
categories. A customer can simply
The Framework of Retailing
walk up to a particular category and
look for products without much Suppose we manage a manufacturing firm
assistance. that makes vacuum cleaners. How should we
sell these items? We could distribute via big
 A unique SKU code must be assigned
chains (such as Future Shop) or small
to each and every product for easy
neighborhood appliance stores, have our own
tracking.
sales force visit people in their homes (as
 Necessary labels must be put on the Aerus formerly Electroluxdoes), or set up our
shelves for the customers to locate own stores (if we have the ability and
the merchandise on their own. resources
 Don’t keep the customers waiting. to do so). We could sponsor TV infomercials
or magazine ads, complete with a toll-free
 Make sure the sales representatives
phone number.
attend the customers well. Assist
them in their shopping. Greet them Suppose we have an idea for a new way to
with a smile teach first graders how to use computer
software for spelling and vocabulary. How
 The retailer must ensure enough
should we implement this idea? We could
stock is available at the store.
lease a store in a strip shopping centre and
 Make sure the store is kept clean. run ads in a local paper, rent space in a Y and
Don’t stock unnecessary furniture as rely on teacher referrals, or do mailings to
it gives a cluttered look to the store. parents and visit children in their homes. In
The customers must be able to move each case, the service is offered “live.” But
freely. there is another option: We could use an
 The store manager, department animated Web site to teach children online.
managers, cashier and all other Suppose that we, as consumers, want to buy
employees should be trained from apparel. What choices do we have? We could
time to time to extract the best out of go to a department store or an apparel store.
them. They should be well aware of We could shop with a full-service retailer or a
their roles and responsibilities and discounter. We could go to a shopping centre
customer oriented. They should be or order from a catalogue. We could look to
experts in their respective areas. retailers that carry a wide range of clothing
 The store manager must make daily (from outerwear to jeans to suits) or look to
sales reports to keep a track of the firms that specialize in one clothing category
cash flow. Use softwares or maintain (such as leather coats). We could zip around
registers for the same. the Web and visit retailers around the globe.
Retailing does not have to involve a store.
Mail and phone orders, direct selling to
Research Paper IJRAR- International Journal of Research and Analytical Reviews 25
[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

consumers in their homes and offices, Web against the products of the poorer countries
transactions, and vending machine sales all would significantly reduce poverty.
fall within the scope of retailing. Retailing
Refonns are not accidental but they are
does not even have to include a “retailer.”
incidental. The wave of refonns yields in
Manufacturers, importers, nonprofit firms,
different ways to our digital economy. The
and wholesalers act as retailers when they
traditional economy has been changed. Now
sell to final consumers.
the digital economy stimulates higher level of
Retail Management In India gross domestic product and the stock
markets crosses 18,000 points of sensex
A dose of refonns in India have been changed
which is a memorable journey in the Indian
the entire economy ofsuper power house of
stock markets. The strong dose of refonns,
Asia. India is a sleeping lion in Asia. A lion
good A dose of refonns in India have been
appearance is enough to control the situation
changed the entire economy of super power
in its environment. Incredible but true, way
house of Asia. India is a sleeping lion in Asia.
back in 1700, India was actually the world's
A lion appearance is enough to control the
largest economy accounting for 22.6% of
situation in its environment. Incredible but
world income, second only to china. Three
true, way back in 1700, India was actually the
hundred years on, it is among the handful at
world's largest economy accounting for
the bottom and just chips in with just around
22.6% of world income, second only to china.
5% of the world's income. India and china are
Three hundred years on, it is among the
the locomotives of the global village. They are
handful at the bottom and just chips in with
powerhouses of digital global economy. They
just around 5% of the world's income. India
pull the economy in the right direction with
and china are the locomotives of the global
competing each another. China is a friendly
village. They are powerhouses of digital
enemy and throwing challenges towards
global economy. They pull the economy in the
other nations. India and china are the two
right direction with competing each another.
demographic giants of the planet. Together
China is a friendly enemy and throwing
they count close to 250 crores of inhabitants,
challenges towards other nations. India and
representing more than 37% of the world
china are the two demographic giants of the
population. They are about to become
planet. Together they count close to 250
economic giants and are shaking traditional
crores of inhabitants, representing more than
power relations in the global arena India has
37% of the world population. They are about
the second largest population of able-bodied
to become economic giants and are shaking
men and women in the world.
traditional power relations in the global
The estimated workforce is 46 crores in arena India has the second largest population
overall population of about 108 crores. The of able-bodied men and women in the world.
unemployment present rate is 9 % in India. The estimated workforce is 46 crores in
Market is a reflection of the customer's needs overall population of about 108 crores. The
and desires. The customer is king in the unemployment present rate is 9 % in India.
market. India and china are the two biggest
Market is a reflection of the customer's needs
global markets for all business enterprises.
and desires. The customer is king in the
Globalization is a worldwide battle for the
market. India and china are the two biggest
commercial enterprises. An expanded
global markets for all business enterprises.
international flow of goods, capital and labor
Globalization is a worldwide battle for the
creates significant opportunities for
commercial enterprises. An expanded
improving the material welfare of the most
international flow of goods, capital and labor
disadvantaged people in the poorer countries
creates significant opportunities for
of the world. Promoting greater global
improving the material welfare of the most
integration by simply eliminating trade
disadvantaged people in the poorer countries
barriers and subsidies that discriminate
of the world. Promoting greater global

Research Paper IJRAR- International Journal of Research and Analytical Reviews 26

[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

integration by simply eliminating trade The report in media indicated that a tie-up
barriers and subsidies that discriminate between Walmart and Bharati Enterprises
against the products of the poorer countries has been made and this venture is significant
would significantly reduce poverty. Refonns in the Indian retail management market. As
are not accidental but they are incidental. The per their agreement, BHARATI will run the
wave of refonns yields in different ways to front end of the business and Wal-Mart the
our digital economy. The traditional economy supply chain. Reliance industry was also
has been changed. Now the digital economy made collaboration with Britain's Tesco and
stimulates higher level of gross domestic France's Carfefour. It plans to invest 5.6
product and the stock markets crosses billion dollars in 4,000 stores in 1,500 towns
18,000 points of sensex which is a across India. As per the report of financial
memorable journey in the Indian stock express, dated 4-10-07, A V Birla has
markets. announced investment ofRs.8, 000 crores in
retail via super markets and hypermarkets
The strong dose of refonns, good press the
and presently has 16 more stores in Pune 7
consumer exploitation by the multination
stores in Mumbai. As per this report Delhi is
companies. The share of organized retailing is
to be retailer's paradise, since it is the hot bed
less than I % in India, compared to 80% in
ofretail consumption with a high annual
USA, 40% in Thailand and 20% in china. As
household consumption expenditure of
per some estimates, there are over 200 retail
Rs.9511 crores.
mall projects under construction or under
active planning stage spanning over 25 cities. Conclusion
The existing supply chain in India for most
Retail Strategy is largely information based.
goods is woefully inefficient, and built around
The gathering and analysis of data relevant to
obsolete warehousing, logistics and
the retailer is done by market research. From
transportation technology. Furthermore, the
the retailer ’s perspective, market research
omnipresent middleman compounds this
needs to be done prior to the setting up of a
problem. India was now part of the global
retail store and after setting up the retail
economy and that the economy was riding on
store. The information needed at both the
the back of middle class consumption. Finally
stages varies significantly. In the world of
the impression was that large foreign
increasing competition, research can aid the
companies were poised to invest in large
retailer in satisfying the customer and hereby
shopping centers as the Indian market is now
building loyalty Consumer understanding or
reputed to be the fastest growing retail
an understanding of the consumer buying
market in the world. (Sridhar 2007).
behavior is the starting point of strategy
According to a survey by at Kearney, an
creation. It is not important to understand
overwhelming proportion of the Rs. 4, 00,000
consumers know about a product, but also
crores Indian retail market constitutes the
what they do not know. Shopping is an
unorganized sector. In fact only rs. 20,000
activity that everybody perform with high
crores of segments ofthe market are
level of regularity ad involvement. It has been
organized. India has been called a nation of
found that shoppers behave differently
shopkeepers due to the existence of a large
depending on the type of shopping situation.
number of enterprises in the country which
They tend to change their information search
totaled over 12 million in 2003. About 78% of
process depending on the type of store and
these are small family business utilizing only
product The buying function plays a very
household labor. Even among retail
important role in trade companies. In retail
enterprises that employ hired workers, the
companies buying policy is much more
bulk of them use less than three workers.
integrated with sales and marketing policy,
India's first true shopping mall complete with
Company policy is primarily focused on
food courts, recreation facilities, and large car
improving turnover and margin whilst
parking space called "Cross Roads" was
inaugurated in 1999 in Mumbai.
Research Paper IJRAR- International Journal of Research and Analytical Reviews 27
[ VOLUME 2 I ISSUE 1 I JAN.- MARCH 2015 ] E ISSN 2348 –1269, PRINT ISSN 2349-5138

reducing working capital. Retail today is a Anuradha, K. (2007, June 2) Impact ofmalls on
truly international business. small shops and hawkers, economic and political
weekly, pp2063.
References:
14.Grewal, D., Baker, J. L. & Vose, G.B.(2003) The
1. .Swapna pradhan, Retailing Management : Text effects ofwait expectations and store atmosphere
and Cases. Tata McGraw hill, New evaluations on Patronage intentions in service
Delhi- 2 nd edition, 2006 Intensive retail stores-journal ofretailing pp 11-
15. (3460)
2. M.Chael hevy and barton.A Weitz,Retail
Management, Irwin Mcgraw hill,international 15.Guy, C. (2006) Planning for Retail Development
Taylor and Francis London. Holmes; D. (2001)
editition,U.S,1798. Virtual globalisation an introduction in D holmes,
3. Bert Rosenbloom,Marketing Functions and the virtual spaces tourist spaces Routledge London, 1-
whole sale distribution, distribution rosenbloom 64.
and Education Foundation, U.S. 16.Kohli, A. (1989) The Politics of Economic
4. Harish V.Verman, Brand Management: Text and liberalisation in India, world development, vol. 17,
Cases,Excell Books, 2002. no.3 pp 305-28.

5. K.Suresh (Sl) , Positioning and Repositioning : 18.Kunmar, S. (2005) Brand equity, the economic
Percepectives and Applications,ICFAI times, 2005. Lowe, M.S. (2000) Britain's regional
shopping centres new urban reforms? Urban
University Press, Hydrabad, 2005 studies vo1.37 no.2.pp 261-274
6. Stephen Spinnclli Jr, Robert .M.Rosenberg, and 19.Reddy, B. (2005) Wal-mart assault: India may
five birling, franchising; patteneiring to be forced to open its retail sector, but walmart for
wealth creation, pearson education, UBS the first time will face real communist in India,
Publication,New Delhi,2004. India today, July 12. Sridhar, V. (2007) Wall mart
walks in frontline, January 12, p.37.
7. Nicolas Alexander International Reataling-
Blackwell Business Publishers Ltd. http://catalogue.pearsoned.ca/assets/hip/ca/
hip_ca_pearsonhighered/samplechapter/0131
8. Arthur A Thompson,AJ Strickland,John E 204017.pdf
Gamble &Arun K Jain Crafting and Executing
Strategy-Concepts and Cases –Tata McGraw Hill http://www.nintec.com/case-
Publishing Company Ltd. study/Industries/Retail/NINtec_IRMA.pdf

9. Marketing Creating and Keeping Customers in http://www.nintec.com/case-

an e-commerce world- Wiiliam G Zikumund & study/Industries/Retail/NINtec_IRMA.pdf
Michael d Amico- South Western –Thomson http://www.b-
10. Retail Management A Strategic Approach – u.ac.in/sde_syllabus/1112/mba_retail.pdf
Barry Berman & Joel R.Evans- The Prentice Hall of http://cde.annauniv.edu/mbaqp/pdf/Elective
India, New Delhi /DBA1737/MBA%201737.pdf
11. Legal Aspects of Business –Akhileshwar https://www.welingkaronline.org/autoptlibra
Pathak- The McGraw Hill Companies ry/librarynotices/retailmanagement.pdf
12. Top Grading – How Leading Companies Win
by Hiring, Coaching and Keeping the Best
13.People- Bradford D Smart- Viva Books Pvt Ltd.

Research Paper IJRAR- International Journal of Research and Analytical Reviews 28