RETAIL MANAGEMENT4

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RETAIL MANAGEMENT-4

• Prepared by
• Dr. Pooja Sharma
• Presented by
• Education Information Network
• http//www.InfoFanz.com
• Info_at_InfoFanz.com

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Unit 4 Retail Store Location

• Types of Retail Location, Step involved in
  choosing a Retail Location.
• Merchandising, Basis of retail merchandising,
• Factors affecting the Merchandising functions,
• The Merchandises Role Responsibilities. Visual
  Merchandising

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Introduction

• Define Store
• A store is place , real or virtual , where the
  shoppers comes to buy goods services. The sales
  transaction occurs at this junction.
• The location of retail store has for along time
  been considered the most important P in
  retailing.
• Locating the retail store in the right place was
  considered to be adequate for success.

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• Location becomes a critical decision for a
  retailer for several reasons. As like
• Location is generally one of the most important
  factors customers consider while choosing a
  store.
• A bad location may cause a retailer to fail even
  if its strategic mix is excellent.. On the other
  hand , a good location may help a retailer
  succeed even if its strategic mix is mediocre.
• Store location is least flexible element of
  retailers strategic mix due to its fixed
  nature, the amount of investment, and the length
  of lease agreements

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Types of Retail Location

• Various option are available to the retailer for
  choosing the location of store.
• The choice of the location of the store depends
  on the target audience and the kind of
  merchandise to be sold.
• A retailer has to choosing among alternate types
  of retail locations available . It may locate in
  an isolated place and pull the customer to the
  store on its own strength, such as a small
  grocery store or paan shop in a colony which
  attracts the customers staying close by

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• Typically a store location may be
• Freestanding /Isolated store.
• Part of Business District/Centers (unplanned
  Business Districts).
• Part of a Shopping Center (Planned Shopping
  Centers)

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Freestanding /Isolated store

• Where there are no other outlets in the vicinity
  of the store and therefore store depends on its
  own pulling power and promotion to attracts
  customers.
• A biggest advantages for freestanding stores is
  that there is no competition around.
• This type of location has several advantages
  including no competition, low rent, often better
  visibility from the road, easy parking and lower
  property .
• Neighborhood Stores colony shops serves small
  locality.
• Highway Stores Ebony store in Ludhiana .

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• Business Associated Location These are location
  where a group of retail outlets offering a
  variety of merchandise work together to attract
  customers to their retail area, but also compete
  against each other for the same customers.two
  types includes in
• Part of Business District/Centers (unplanned
  Business Districts).
• Part of a Shopping Center (Planned Shopping
  Centers)

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Part of Business District/Centers (unplanned
Business Districts).

• A retail store can also be located as a part of a
  business district. Or we can refer this as
  unplanned business centers
• A business district is place of commerce in a
  city which developed historically as the center
  of trade and commerce in the city or town.
• A business districts can be a central, secondary
  or a Neighborhood business district.
• A Central business District CBD is the main
  center of commerce and trade in the city. (high
  land rates , intense development)

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• A CBD is the hub of retailing activity in a city.
• CBD served different sections of population for
  Examples of Cannaught place in Delhi, Colaba in
  Mumbai, Commercial Street and in Bangalore are
  up market CBDs.
• CBDs serving the upper and upper middle class
  customers across these cities like, chandani
  chowk in Delhi, Kalbadevi-Bhuleswar in Mumbai,
  Chickpet in Bangalore.
• Secondary Business District are composed of
  unplanned cluster of store often located on a
  major intersection of city they a customers from
  a large part of the city

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Part of a Shopping Center (Planned Shopping
Centers)

• A shopping center has been defined as a group
  of retail and other commercial establishments
  that is planned , developed, owned and managed as
  a single property
• The basic configuration of a shopping centre is a
  Mall or Strip centre.
• A mall is typically enclosed and climate
  controlled. A walkway is provided in front of the
  stores.
• A strip centre is a row of stores with parking
  provided in the front of the stores.

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• In India we can planned shopping centre can
  categorize in two category
• Regional shopping centers or Mall Regional
  shopping centers or mall are the largest planned
  shopping centers..
• Often they are anchored by two or more major
  department stores have enclosed mall serve a
  large trading area and have high rents. (ansal
  plaza,spencers plaza crossroads, DLF city in
  Gurgaon)
• Neighborhood/community/shopping centers
  Neighborhood /community centers usually have a
  balanced mix of stores including a few grocery
  stores , a chemist, a verity store and a few
  other stores selling convenience goods to the
  residents of the neighborhood.

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Step involved in choosing a Retail Location

• In order to arrive at the decision on where to
  locate the retail store a retailer needs to first
  on the region that he wants to locate the store.
• After identifying the region the following steps
  Have to be followed .
• Identifying the market in which to locate the
  store.
• Evaluate the demand and supply within that
  market. i.e. determine the market potential.
• Identify the most attractive sites
• Select the best site available

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• Market Identification
• The first step in arriving at a decision on
  retail location is to identify the market
  attractiveness to a retailer.
• This is important that retail needs to understand
  the market well.
• Determining the market Potential
• The retailer need to take into consideration
  various elements as shown in format. (features of
  population)
• Demographic features of the population
• The characteristics of the household in the area
  (average household income)
• Competition and compatibility (Need to know
  compatibility competition in market)
• Laws regulations( good understanding of the
  laws

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Determining the market Potential
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• Trade area analysis
• A trade area is the geographic area that
  generates the majority of the customers for the
  store.
• Primary trade area primary trading covers
  between 50-80 of the stores customers.
• Secondary Trading Area this area contains the
  additional 15- to 25 of the stores customers.
• Tertiary trading area covers the balance
  customers
• These trading areas are dependent on distance and
  do not always have to be concentric in nature

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Types of Trades areas.
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• 3 4 Identify Alternate sites and select the
  site
• After taking decision on the location and market
  potential the retailer has to select the site to
  locate the store based on these
• Traffic
• Accessibility of the market is also a key factor
• The total number of stores and the type of store
  that exist in the area
• Amenities
• To buy or to lease
• The product mix to be offered by the retailer

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Merchandising,Basis of retail merchandising,

• Product and merchandising management is key
  activity in the management of retail business.
• The primary function of the retailing Is to sell
  Merchandise.
• One of the most strategic aspects of the retail
  business is to decide the merchandise mix and
  quantity to be purchased .
• Merchandising can be termed as the planning,
  buying and the selling of merchandising .

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• Define Merchandising as The analysis, planning,
  acquisition, handling and control of merchandise
  investments of a retail operation.
• Merchandising is the core of retailing.
• The function of merchandising is an integral
  part of retailing and also one of the most
  challenging functions.
• AMA define The planning involved in marketing
  the right merchandise at the right place at the
  right time in the right quantities at the right
  price.

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• Achieving these five Right is the key to
  successful merchandising and many a times, this
  remains an elusive goal for most retailers.
• Merchandising management can be termed as
  Planning, analysis, acquisition, handling and
  control of the merchandise

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• Analysis because retailers must be able to
  correctly identify their customers before they
  can ascertain consumer desires and their
  needs/requirements for making a good buying
  decision.
• Planning is important because merchandise to be
  sold in the future must be bought now.
• Acquisitions because the merchandise needs to be
  procured from others, either distributors or
  manufactures.
• Handling involves seeing that the merchandise is
  where it is needed and in the proper condition to
  be sold.
• Control is required since the function of
  merchandise involves spending money for acquiring
  products it is necessary to control the amount of
  money spent on buying

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Factors Affecting the Merchandising Function

• Merchandising does not function in isolation.
• It is affected by various factors like the
  organization structure, the size of the retail
  organization and the merchandise to be carried.
• Rarely are any two stores organized in the same
  way.
• The function of the merchandising is vary from
  one organization to another.
• Size The needs of the individual retailers vary
  from those of large chain store operation.

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• The merchandiser to be carried by a retailer
  largely determines the responsibilities of the
  merchandiser.
• Merchandise to be carried The buying for basic
  merchandise is fairly different from buying
  fashion merchandise.
• A merchandisers who I handling fashion products
  will need to spend more time in the market, and
  looking for the products which is more suitable
  for the customers.
• Organization structure that the retail
  organization adopts also affects the
  merchandising function. Some organization may
  differentiate the role of the buyer and the role
  of a merchandisers separately.

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The Merchandises Role Responsibilities

• Planning Thought the merchandising may not be
  directly involved in the actual purchase of
  merchandise.
• They formulate the policies for the areas in
  which they are responsible.
• Forecasting sale for the forth coming budget
  period and can estimate the consumer demand and
  the impact of changes in the retail environment.
• Directing Guiding and training buyers as and
  when the need arises, is also a function of the
  merchandiser.
• The buyers have to be guided to take additional
  markdowns for products which may not be doing too
  well in the stores.

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• Co-ordinating Merchandise managers supervise
  the work of more than one buyer.
• They need to coordinate the buying effort in
  terms of how well it fits in with the store image
  and with the other products being bought by other
  buyers.
• Controlling assessing the buyers performance ,
  is a also part of the merchandise managers Job.
• This includes evaluated on the basis of net sale,
  maintain mark up percentage, gross margin and
  stock turn

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Role of the Buyer

• Buyers plays an important role in the retail
  industry. they select and order merchandise to be
  sold.
• Buyers may be responsible for buying for a
  department, an entire store, or a chain of stores
• Developing the merchandising strategies for the
  product line
• Planning and selecting merchandise assortments
• Vendor Selection
• Pricing of the merchandise
• Inventory Management

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Retail Store Design Visual Merchandising

• Store design and layout tells a customer what the
  store is all about and it is very strong tool in
  the hands of the retailer for communicating and
  creating the image of the store in the mind of
  the customers.
• The design and layout of the store are a means of
  communicating the image of the retail store.
• The environment which is creates in the retail
  store, is a combination of the exterior look of
  the store, the store interiors, the atmosphere in
  the store and the events, promotions and the
  themes.

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• The overall look of a store and the series of
  mental pictures and feelings it evokes within the
  beholder.
• For the retailer, developing a powerful image
  provides the opportunity to embody a single
  message, stand out from the competition and be
  remembered.

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Elements of store design
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Exterior Store Design Interior Design

• Exterior
• Location
• Parking
• Ease of access
• The building architecture
• Health and safety standards
• Store windows, lighting
• Interior
• Fixtures
• Flooring Ceilings
• Lighting
• Graphics Signages
• Atmospherics

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Visual merchandising

• Can be termed as the orderly, systematic,
  logical and intelligent way of putting stock on
  the floor
• VM is the art of presentation, which puts the
  merchandise in focus.  It educates the customers,
  creates desire and finally augments the selling
  process.

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• METHODS OF DISPLAYS
• Color Dominance
• Co-ordinated Presentation
• Presentation by price