Module 1: Introduction to Retailing

• Retail

  • It is the sale of goods and services from which individuals or businesses to the end-user, non-business use.
  • It involves the sale of merchandise from a fixed location, such as a store, boutique, or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.
  • The word Retail is derived from a french word with the prefix “re” and the “tailer” means “ to cut again”.
• TYPES OF RETAIL:

  • Department Stores
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Specialty Stores
  • Discount Stores
  • Warehouse Clubs
  • Online Retailers (E-commerce)
  • Hypermarkets
  • Specialty Chains
• Department Stores: Large stores that offer a wide range of products, organized into different departments.
• Supermarkets and Grocery Stores: Retailers that primarily sell food and household items.
• Convenience Stores: Small stores that offer a limited selection of goods, usually focused on convenience items such as snacks, beverages, and basic groceries.
• Specialty Stores: Retailers that focus on a specific product category or niche. Examples include Apple Stores (electronics), Sephora (beauty products
• Discount Stores: Retailers that offer products at lower prices, often through bulk purchasing and cost-cutting measures
• Warehouse Clubs: Membership-based retailers that sell products in bulk at discounted prices.
• Online Retailers (E-commerce): Retailers that operate primarily or exclusively online, selling products through websites and mobile apps.
• Hypermarkets: Large retail stores that combine elements of a supermarket and a department store, offering a wide range of products under one roof.
• Specialty Chains: Chains of stores that focus on a particular product category but have multiple locations.
• Supply: refers to the process of ensuring that a retailer has a consistent and efficient flow of products or services from suppliers to the point of sale.
• Supplier: person providing service ( domestic or international)
• Factory: supplier has raw materials made into products.
• Distribution Center: finished product goes here after leaving factory.
• Regional Distribution Center: local to area with many advantages
• The retail industry faces various challenges due to dynamic market conditions, changing consumer preferences, technological advancements, and global economic factors.
• Supply Chain Disruptions: Events such as natural disasters, geopolitical tensions, and global health crises (e.g., pandemics)
• Changing Consumer Behavior: Shifting consumer preferences, including a demand for personalized experiences, sustainability, and convenience, pose challenges for retailers to stay aligned with evolving trends.
• EVOLUTION OF RETAIL INDUSTRY:

  1. Traditional Retailing (Pre-20th Century)
  2. Department Stores and Catalogue Retailing (Late 19th - Early 20th Century)
  3. Supermarkets and Self-Service (Mid-20th Century)
  4. Big-Box Retailers and Malls (Late 20th Century)
  5. E-Commerce and Online Retailing (Late 20th - Early 21st Century)
  6. Omnichannel Retailing and Technological Integration (21st Century)
  7. Sustainability and Ethical Consumerism (21st Century)
  8. Post-Pandemic Retail (2020s and Beyond)
• Traditional Retailing consists of:

  • Local Markets and Itinerant Traders
• Department Stores and Catalogue Retailing consists of:

  • Rise of Department Stores
• Supermarkets and Self-Service consists of:

  • Introduction of Supermarkets
  • Expansion of Chain Stores
• Big-Box Retailers and Malls consists of:

  • Growth of Big-Box Stores
  • Shopping Malls
• E-Commerce and Online Retailing consists of:

  • Rise of Online Shopping
  • Mobile Commerce
• Omnichannel Retailing and Technological Integration consists of:

  • Omnichannel Retailing
  • Adoption of Technology
  • Data-Driven Retail
• Sustainability and Ethical Consumerism consists of:

  • Focus on Sustainability
  • Circular Economy Models
• Post-Pandemic Retail consists of:

  • Impact of COVID-19
  • Hybrid Retail Models
• Local Markets and Itinerant Traders: Initially, retail was predominantly

  about small, local markets and itinerant traders. Communities often relied on local markets or traveling salespeople for goods.
• Rise of Department Stores: The late 19th and early 20th centuries saw the advent of department stores, which offered a wide range of products under one roof. This was a significant shift, providing consumers with greater variety and a more sophisticated shopping experience.
• Introduction of Supermarkets: The mid-20th century introduced the

  supermarket model, revolutionizing the way people shopped for groceries with self-service formats.
• Expansion of Chain Stores: Retail chains began to expand, offering

  standardized products and shopping experiences across multiple

  locations.
• Growth of Big-Box Stores: Retailers like Walmart and Home Depot

  emerged, offering a vast selection of products at low prices in large,

  warehouse-like spaces.
• Shopping Malls: The development of suburban shopping malls created

  new retail hubs, combining shopping, entertainment, and dining in a single location.
• Rise of Online Shopping: The advent of the internet led to the growth of e-commerce. Companies like Amazon transformed the retail landscape, offering convenience, variety, and competitive pricing.
• Mobile Commerce: The proliferation of smartphones further evolved

  retail, making it possible to shop anytime and anywhere through mobile apps.
• Omnichannel Retailing: Retailers began to integrate online and offline

  channels, offering a seamless customer experience across various

  platforms.
• Adoption of Technology: The use of AI, VR, and AR in retail environments

  provided enhanced and personalized shopping experiences.
• Data-Driven Retail: Big data and analytics became crucial for

  understanding consumer behavior, personalizing marketing efforts, and streamlining operations.
• Focus on Sustainability: Retailers are increasingly focusing on sustainability, responding to consumer demand for environmentally

  friendly and ethically sourced products.