The Retail industry includes establishments selling merchandise and offering services related to the sale of goods. Retailers sell goods to the end consumer. The retail sector consists of two main types: store and nonstore retailer. 1. Store retailers operate from fixed locations that sell merchandise to the general public. The purpose is to attract high number of walking in customers by using marketing. The merchandise sold by store retailers includes personal, electronic and household goods. Some types of stores also offer after-sale services. 2. Nonstory retailers also sell merchandise to the end consumer. However, they reach their customers by “broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, …show more content…
Very often suppliers have only one major customer (retailer) and to they have no choice but to extend credit to their buyers. This situation benefits big retail stores, which already can borrow money at a low rate. However, it puts supplier into financial scrutiny as often they have no financial resources to invest or even pay their expenses. Economy gets hurt because companies instead of investing into good projects and make a return on their investment, support their big buyers. (Murfin, …show more content…
Considering that retail industry is divided into five segments, each of this segments operates in a different stage of a life-cycle. First of all, the Big-Box & Department Store Retailer segment is in declining stage, because of the recent recession that adversely impacted many industries. Many retail companies were not able to adapt to a new environment, where customers are more savvy and innovation oriented. Therefore, many retailers close down their underperforming stores. However, many Big-box and Department stores in order to keep up with the market demand are expanding by adding grocery sections and shifting into Warehouse Clubs & Supercenters Retail segment which is still growing. This segment is operating in a mature cycle-life. It still growing, but slowly as it reached the point of market saturation. Next the Supermarkets and Grocery Stores segment is also in a mature stage of life-cycle. However, this particular segment is undergoing a slow growth rate, as a result of strong rivalry in the food retail sector. Many customers during the recession switched to more economic sellers in the warehouse club & supercenter retailer segment. However, currently household income is increasing and many consumers are looking for healthier choices the supermarket and grocery stores segment will experience a faster growth rate. Finally the E-tailer segment is
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
E-commerce/ Online industry is a maturing industry but fails to attract purchase of daily consumer durables due to higher prices and longer fulfillment times. Grocery stores fail to offer a viable substitution due to high prices.
This is an opportunity to reach a large demographic and expand into emerging technological markets. As more consumers move to e-commerce and their main shopping venue, the need to manage high cost, larger retail stores dimensions. The money saved in operating costs can be allocated elsewhere.
The term 'food retailers' is becoming ever more inappropriate as the operators of the largest stores increase their non-food offer. But food remains the core of the offer and the main reason that people visit the stores.
Over the previous couple of decades, modern business has been evolving rapidly and the retail industry has been no exception. Whereas previously the customers received retail ads and offers from disconnected sources, today retailers are operating a combination of all available retail marketing methods to reach the customer.
Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers – whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's
The online retailer plans to strengthen its dominance in both the e-commerce and physical commercial space with its expansion into the grocery industry. Maintaining the original name of the grocery chain, to retain the chain’s
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by post, 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. 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-users / consumers. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing
India traditionally been a country where most of retailing is done by the unorganised sector. But in the past few years the scenario is changing rapidly with organised retail growing rapidly. Retail as an industry includes department Stores, discount Stores, clothing Stores, specialty retailers, convenience stores, grocery stores, drug stores, home furnishing retailers, auto Retailers, Direct sales catalog and mail order companies.
Retailing in India came with evolutionary patterns from Kirana store to Super market. This sector was un-organized in the initial stage, and after that it carried forward by the textiles industries through the dealer model. Now it is growing as supermarket and hypermarket. The main drivers of the retail evolution in India are buying behavior of the customer, increase in disposable income of middle class, infrastructure development and changing customer choice. The target segments of retailers are the younger middle class earners which belong to more than 20% of total population.
Observation – In this competitive world, retailers needs to ensure that quality services are delivered to retain the customers and improve the services as per the customer convenience, accordingly strategy must be developed. To attract more customer retail sector must be well organized as there is personal interaction and physical aspects involved that affects customer perception and if customer are happy they are satisfied with services. To sustain in this global economy, retailers have to develop new strategies. Retailers must know to persuade
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
The basic function of retail is to provide the right goods at right place to right consumers at right time. The marketing tools that a retail organisation uses to pursue its marketing objectives are termed as marketing mix.
Retailing can thus be defined as consisting of all such activities involved in the marketing of goods and services directly to the consumers for their personal, family or household use.
The growing disposable income in the country is resulting in increasing consumer spending habits. A large young working population with age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. (Thambala, 2013)