Retail Management Functional Principles and Practices

About Pearson Pearson is the world’s learning company, with presence across 70 countries worldwide Our unique insights and world-class expertise come from a long history of working closely with renowned teachers, authors and thought leaders, as a result of which, we have emerged as the preferred choice for millions of teachers and learners across the world We believe learning opens up opportunities, creates fulfilling careers and hence better lives We hence collaborate with the best of minds to deliver you class-leading products, spread across the Higher Education and K12 spectrum Superior learning experience and improved outcomes are at the heart of everything we This product is the result of one such effort Your feedback plays a critical role in the evolution of our products and you can contact us - reachus@pearson.com We look forward to it This page is intentionally left blank Retail Management Functional Principles and Practices Fifth Edition Gibson G Vedamani Retail Industry Expert and Thought Leader Visiting Professor of Retail Management in B-Schools: Prin L N Welingkar Institute of Management Development and Research and Jamnalal Bajaj Institute of Management Studies Mumbai Copyright © 2017 Pearson India Education Services Pvt Ltd Published by Pearson India Education Services Pvt Ltd, CIN: U72200TN2005PTC057128, formerly known asTutorVista Global Pvt Ltd, licensee of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent This eBook may or may not include all assets that were part of the print version The publisher reserves the right to remove any material in this eBook at any time ISBN 978-93-868-7327-9 eISBN: 9789352864256 Head Office: 15th Floor, Tower-B, World Trade Tower, Plot No 1, Block-C, Sector-16, Noida 201 301,Uttar Pradesh, India Registered Office: 4th Floor, Software Block, Elnet Software City, TS-140, Block & 9, Rajiv Gandhi Salai, Taramani, Chennai 600 113, Tamil Nadu, India Fax: 080-30461003, Phone: 080-30461060 www.pearson.co.in, Email: companysecretary.india@pearson.com To My Loving Parents, my first teachers of Management Prof Dr Vedamani Balraj Retired Professor & Head of the PG Dept of English and Mrs Mercy Balraj Retired Teacher This page is intentionally left blank Brief Contents Foreword xix Preface xxi About the Authorxxiii Testimonials xxv SECTION Chapter   Introduction to Retailing Chapter   Trends in Retailing 21 Chapter   Retail Economics 37 Chapter   Retail Strategies 47 Chapter   International Retailing 65 Chapter   Retail Formats 79 Chapter   Rural Retailing in India 91 Chapter   Mall Management 101 SECTION Chapter   Merchandise Planning 113 Chapter 10 Buying in Retail 127 Chapter 11 Category Management 143 Chapter 12 Pricing Strategies 153 Chapter 13 Private Labels 167 Chapter 14 Supply Chain Management in Retailing 179 viii | Brief Contents SECTION Chapter 15 Store Planning, Store Design and Store Layout 193 Chapter 16 Retail Location Management 209 Chapter 17 Retail Store Operations 225 Chapter 18 Retail Legislations and Taxation 239 Chapter 19 Human Resource Management (HRM) in Retailing 255 Chapter 20 Customer Service Management 275 Chapter 21 Role of Personal Selling in Retailing 285 SECTION Chapter 22 Consumer Behaviour 295 Chapter 23 Retail Marketing and Advertising 309 Chapter 24 Visual Merchandising and Displays 327 Chapter 25 Franchising in Retailing 337 Chapter 26 Retail Research 345 SECTION Chapter 27 Retail Management Information Systems 355 Chapter 28 Omnichannel Retailing 367 Chapter 29 Online Retailing (E-Commerce) 379 Glossary395 Index413 Contents Forewordxix Prefacexxi About the Author xxiii Testimonials xxv SECTION Chapter Introduction to Retailing Definition and Scope of Retailing The Global Retail Scenario The Indian Retail Scenario Retail Evolution Consumption and its Impact on Retailing in India Prospects of Retailing in India Summary Questions Illustrative Insight: The First Phase of Organised Retailing in India Key Terms Chapter Trends in Retailing Global Overview of Retailing Key Drivers of Retailing in India Projected Trends in Retailing Growth of Organized Retailing in India Summary Questions Case Study: Reliance Retail – Setting New Retail Trends in India Key Terms 3 13 14 16 17 17 19 21 21 24 31 32 34 34 35 36 406 | Retail Management Over-stored Trading Area: A geographic area with so many stores selling a specific good or service that some retailers will be unable to earn an adequate profit accounts department and the petty cash float is always maintained This system does not allow anyone to spend from the sale proceeds Paan Shop: A small Indian shop in a temporary structure selling betel leaves, cigarettes, etc They are in the form of concessions on the front space of small hotels or kiosks in busy high streets Petty Shop: A very small store, often a mobile kiosk selling cigarettes, sweets etc These items are often sold in single units and not in packs Parasite Store: An outlet that does not create its own traffic and that has no real trading area of its own Perceived Risk: The level of risk a consumer believes exists while purchasing a specific product or service from a specific retailer, whether or not that belief is factually correct Physical Inventory System: Involves actual counting of merchandise A retailer using the cost method of inventory valuation and relying on a physical inventory system can make gross profits only as often as it conducts a full physical inventory Percentage Lease: Stipulates that rent is related to the retailer’s sales or profits Planned Shopping Centre: Consists of a group of architecturally unified commercial establishments built on a site that is centrally owned or managed, designed and operated as a unit, based on balanced tenancy, and surrounded by parking facilities Percentage-of-Sales Method: A promotional budgeting technique whereby a retailer ties its promotion budget to sales revenue Planogram: A visual (graphical) representation of the space to be allocated to selling, merchandise, personnel, and customers – as well as to product categories Performance Measures: The criteria used to assess retailer effectiveness They include total sales, average sales per store, sales by goods/service category, sales per square foot, gross margins, gross margin return on investment, operating income, inventory turnover, markdown percentages, employee turnover, financial ratios, and profitability Point of Indifference: The geographic dividing point between two cities (communities), so that the trading area of each can be determined At this point, consumers would shop in either area Perpetual-Inventory Unit-Control System: Keeps a running total of the number of units handled by a retailer by ongoing record-keeping entries that adjust for sales, returns, transfers to other departments or stores, receipt of shipments, and other transactions It can be done manually, use tags processed by computers, or rely on point-of-sale devices Personal Selling: Involves oral communication with one or more prospective customers to sell products Personnel Space: The area required for employees for changing clothes, lunch and coffee breaks, and rest rooms Petty Cash: Retail stores often need small amounts of discretionary funds in the form of cash known as Petty Cash, to meet expenses at the store where it is not practical to make the disbursement by cheque This works on the imprest system where such expenses are reimbursed to the store usually by the head office Point-of-Purchase (POP) Display: An in-store/ interior display that provides consumers with information, adds to store atmosphere, and serves a substantial promotional role Point-of-Sale (POS) Terminal: A cash register that has the capability to electronically scan a UPC code with a laser and electronically record a sale; also known as computerized checkout Positioning: The design and implementation of a merchandising mix, price structure and style of selling to create an image of the retailer, relative to its competitors, in the customer’s mind Post-Purchase Behaviour: Further purchases or re-evaluation based on a purchase Poverty of Time: Occurs when greater striving for financial security leads to less rather than more free time since consumers have a large number of alternatives to choose from Power Centre: A shopping site with: (a) up to a halfdozen or so category killer stores and a mix of smaller Glossary | 407 stores, or (b) several complementary stores specializing in a product category Power Retailer: The status reached by a company that is dominant in some aspect of its strategy Consumers view the company as distinctive enough to become loyal to it and go out of their way to shop there Predatory Pricing: A method of pricing merchandise at very low levels to drive competition out of the marketplace Premium: Merchandise offered at a lower price, or free, as an additional incentive for a customer to make a purchase Prestige Pricing: Assumes consumers will not buy goods and services at prices deemed too low, since they may fear it is of poor quality Pre-training: Indoctrination on the history and policies of the retailer and a job orientation on the hours, compensation, chain of command, and job duties Also known as induction training Price Adjustment: A process by which the retailer compensates the customer by matching the price if the customer finds a similar item with identical features at a lower price in any competing store in the same retail channel Price Elasticity of Demand: The effect of a price change on consumer demand, that is, the quantity that they buy Measured by percentage change in demand divided by percentage change in price Price Fixing: An illegal pricing activity in which several companies collude to establish a fixed retail price for a product within a market area Price Guarantees: Protect retailers against possible price declines If a retailer cannot sell an item at a given price, the manufacturer pays the difference between planned retail and actual retail selling prices Price Line Classifications: Enable retail sales, inventories, and purchases to be analysed by retail price category Also referred to as price point groups Price Lining: Selling merchandise at a limited range of price points, with each price point representing a distinct level of quality Generally used by service retailers providing a wide selection of services A range of prices is matched to service levels Price-Quality Association: The feeling among consumers that high prices connote high quality and low prices the opposite Primary Customer Services: Basic components of the retail strategy mix to satisfy customers; they must be provided Primary Trading Area: Has 50% to 80% of a store’s customers It is the geographic area closest to the store and has the highest density of customers to population and the highest per-capita sales Private (Dealer) Brands: Names designated by wholesalers or retailers as being more profitable for them, better controlled, not sold by competing retailers, less expensive for consumers, and loyal to them Private-Label Brand: A brand of products that is produced by a store The brand carries the store’s own name or one that it has created For example, Shoppers’ Stop has STOP and Pantaloons has BARE brand of clothes This is also known as a store brand Product Line: Refers to the details of the sub categories that form each category of product in the merchandising strategy for the season in a retail store A product line is defined by its width – the number of sub categories in each category and by depth – the number of options in each sub category Product Life Cycle: Shows the expected behaviour of a product or service over its life The traditional cycle has four stages: introduction, growth, maturity and decline Product/Trademark Franchising: In this arrangement, franchised dealers acquire the identities of their suppliers by agreeing to sell the latter’s products and/or operate under suppliers’ names Productivity: The efficiency with which a retail strategy is carried out Profit-and-Loss (Income) Statement: Summary of a retailer’s revenues and expenses over a particular period of time, usually on a monthly, quarterly, and/or yearly basis Product Liability: Itis the aspect of law initiating punitive action against those if the product they designed, manufactured, sold or furnished has harmed customers by becoming or being unsafe 408 | Retail Management Profit Margin: Net profit after taxes divided by net sales Proof of Delivery: Verification provided by a freight company that a shipment was delivered at a certain time and place and was signed for by the recipient Proprietary Store Credit Card System: A system in which credit cards have the store’s name on them and the accounts receivable are administered by the retailer; also known as in-house credit system Prototype Stores: An operations strategy that requires multiple outlets in a chain to conform to relatively uniform construction, layout and operations standards Psychological Pricing: Refers to consumer perceptions of retail prices Public Relations: Communication intended to create a favourable image for a retailer among the public (consumers, investors, government, channel members, employees, etc) Purchase-Motivation Product Groupings: Appeal to the consumer’s urge to buy a product and the time he or she is willing to spend on shopping QR Code: QR Code is the scannable trademark for a type of matrix barcode consisting of an array of black and white squares carrying product information for reading by the camera on a smartphone Quick Response (QR) Inventory Planning: Enables a retailer to reduce the amount of inventory it keeps on hand by ordering more frequently and in lower quantity Rack Display: An interior display that hangs or presents products neatly Rack Jobber: A wholesaler that is allowed by a store to install, stock and replenish selected items on display racks Rain check: A record of commitment made by the retailer for future fulfillment of an order/service Range Planning: The systematic process of planning the merchandise range according to the merchandise hierarchy of products to be sold in a retail store every season, right from category level to the SKU level taking into consideration details of specified options such as design, style, colour, weight or size, price points, etc while determining quantities of each SKU to be placed in the retail store Rationalized Retailing: A strategy involving a high degree of centralized management control combined with strict operating procedures for every phase of business Reach: The number of distinct people exposed to a retailer’s ads in a specified period Relationship Retailing: Exists when retailers seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter with them Rented-Goods Services: The area of service retailing in which consumers lease and use goods for specified periods of time Some book stores extend this service to customers Reorder Point: The stock level at which new orders must be placed Resident Buying Office: An inside or outside buying organization that is usually situated in important merchandise centres (sources of supply) and provides valuable data and contacts Retail Audit: The systematic examination and evaluation of a firm’s total retailing effort or some specific aspect of it Its purpose is to study what a retailer is presently doing, appraise how well the firm is performing, and make recommendations for future actions Retail Balance: Refers to the mix of stores within a geographic area Retail Brand Architecture: The portfolio character of a retail organization that distinguishes the retail store brand by its various brand elements such as its core product offerings, its private labels, pricing strategy, service strategy, co-branding initiatives, concessionaire and alliance strategy Retail Catchment: The settlements of customers surrounding a retail store or retail market within a distance that is convenient for them to visit the store or market Retail Chain: A firm that consists of multiple retail units under common ownership and usually has some centralization of decision-making in defining and implementing its strategy Retail Gravity: The capability of a retail store or retail market to attract customers from as much distance as possible Glossary | 409 Retail Information System: Anticipates the information needs of retail managers; collects, organizes and stores relevant data on a continuous basis, and directs the flow of information to the decision makers Retail Institution: Refers to the basic format or structure of a business Institutions can be classified according to ownership or its retail strategy mix – storebased, service versus goods, or nonstore-based Retail Life Cycle: A theory according to which institutions – like the goods and services they sell – pass through identifiable life-cycle stages: innovation, accelerated development, maturity and decline Retail Method of Accounting: A way in which the closing inventory value is determined by calculating the average relationship between the cost and retail values of merchandise available for sale during a period Retail Organization: How a firm structures and assigns tasks (functions), policies, resources, authority, responsibilities and rewards to efficiently satisfy the needs of its target market, employees and management Retail Performance Index: Includes five-year trends in revenue growth and profit growth, and a six-year average return on assets Retail Promotion: Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm Retail Reductions: Difference between beginning inventory plus purchases during the period and sales plus ending inventory Includes anticipated markdowns, employee and other discounts, and stock shortages Retail Strategy: The overall plan guiding a retail firm It has an influence on the firm’s business activities and its response to market forces, such as competition and the economy Retailing: Consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use Retailing Concept: Comprises these four elements: customer orientation, coordinated effort, value-driven, and goal orientation Retailing Effectiveness Checklist: Lets a firm systematically assess its preparedness for the future Return on Assets (ROA): A performance ratio based on a retailer’s net sales, net profit and total assets Return on Net Worth: A performance measure based on a retailer’s net profit, net sales, total assets and net worth Revolving Credit Account: Allows a customer to charge items and be billed monthly on the basis of the outstanding cumulative balance Sales Forecasting: Lets a retailer estimate future sales Sales Opportunity Grid: Rates the promise of new goods, services, procedures, and/or store outlets on a variety of criteria Sales Per Square Foot of Selling Space: Net sales divided by the square feet of selling space Sales-Productivity Ratio: A method for assigning floor space on the basis of sales or profit per foot Sales Promotion: Encompasses the paid marketing communication activities other than advertising, public relations and personal selling that stimulate consumer purchases and dealer effectiveness Saturated Trading Area: A geographic area having a proper amount of retail facilities to satisfy the needs of its population for a specific good or service, as well as to let retailers prosper Scenario Analysis: Lets a retailer project the future by examining the key factors that will affect its long-run performance and then preparing contingency plans based on alternative scenarios Scrambled Merchandising: Occurs when a retailer adds goods and services that are unrelated to each other and to the firm’s original business Secondary Trading Area: A geographic area that accounts for 15% to 25% of a store’s customers It is located outside a primary trading area, and customers are more widely dispersed Selective Distribution: Takes place when suppliers sell through a moderate number of retailers This allows suppliers to have higher sales than in exclusive distribution and lets retailers carry some competing brands Sell-Through Analysis: A comparison between actual and planned sales to determine whether early markdowns are required or whether more merchandise is needed to satisfy demand Selling Space: The area set aside for displays of merchandise, interactions between salespeople and customers, demonstrations, and so on 410 | Retail Management Separate Store Organization: Treats each branch as a separate store with its own buying responsibilities Customer needs are quickly noted, but duplication by managers in the main store and the branches is possible Service Blueprint: Systematically lists all the service functions to be performed and the average time expected for each one’s completion Service Retailing: Involves transactions between companies or individuals and final consumers where the consumers not purchase or acquire ownership of tangible products It encompasses rented goods, owned goods, and non-goods Shanty Market: A street market with many small retailers spread in an open space under temporary shanty roofs Shelf-talkers: Part of the signage used to announce the offers/prices/ product features etc placed usually on fixtures near the products applicable Shrinkage: The difference between the recorded value of inventory (at retail) based on merchandise bought and the retail value of actual inventory in stores and distribution centres divided by retail sales during a time period Shrinkage is caused by employee theft, customer shoplifting or by merchandise being misplaced, damaged or mispriced Simulation: A type of experiment whereby a computer program is used to manipulate the elements of a retail strategy mix rather than test them in a real setting Situation Analysis: The candid evaluation of the opportunities and potential problems facing a prospective or existing retailer SKU: See Stock Keeping Unit Soft Goods: Apparel and linens Specialty Department Store: A store with a department store format that focuses on apparel and soft home goods (e.g., Westside) Specialty Store: A general merchandise retailer that concentrates on selling one product or service line In other words, a store specializing in one category of merchandising, frequently fashion-related Stock Keeping Unit (SKU): An identification number assigned to a unique item by the retailer signifying its position in the merchandise hierarchy The SKU may be an internal number for that retailer representing each aspect of the merchandise hierarchy or classification, or may be tied to an item’s UPC (Universal Product Code) Stock-to-Sales Ratio: The beginning-of-month (BOM) inventory divided by sales for the month The average stock-to-sales ratio is 12 divided by planned inventory turnover This ratio is an integral component of the merchandise budget plan Stock Turnover: Represents the number of times that the average inventory on hand is sold during a specific period, usually one year Stock turnover can be computed in units or rupees (at retail or cost) Store Brand: See Private-Label Brand Store Loyalty: Exists when a consumer regularly patronises a particular retailer (store or non-store) that he or she knows, likes, and trusts Store Maintenance: Encompasses all the activities involved in managing a retailer’s physical facilities Storefront: The total physical exterior of a store It includes the marquee, entrances, windows, lighting and construction materials Sole Proprietorship: An unincorporated retail firm owned by one person Straight Lease: Requires the retailer to pay a fixed amount per month over the life of a lease It is the simplest, most direct leasing arrangement Sorting Process: Involves the retailer collecting an assortment of goods and services from various sources, buying them in large quantities, and selling them to consumers in small quantities Strategy Mix: A firm’s particular combination of these factors: store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services, and promotional methods Sourcing: The process of identifying the right suppliers and vendors, who are capable of supplying merchandise according to specified parameters of product quality and pricing within stipulated timelines String: An unplanned shopping area comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway (example: the ladies’ footwear string along Linking Road, Mumbai) Glossary | 411 Super Centre: A special type of combination store that blends an economy supermarket with a discount department store Supermarket: A self-service food store with grocery, meat and produce departments This retail category includes conventional supermarkets, food-based superstores, combination stores, box (limited-line) stores, and warehouse stores Superstores: A large supermarket or specialty store, usually between 20,000 and 100,000 square feet Tactics: Actions that encompass a retailer’s daily and short-term operations Tall Organization: A format with several levels of managers It leads to close supervision and fewer employees reporting to each manager Target Market: The customer group that a retailer seeks to attract and satisfy Terms of Occupancy: Include ownership versus leasing, the type of lease, operations and maintenance costs, taxes, etc Theme-Setting Display: An interior display that depicts a product offering in a thematic manner and lets a retailer portray a specific atmosphere or mood Theory X: The traditional view of motivation that assumes employees must be closely supervised and controlled It has been applied to lower-level retail positions Theory Y: A more modern view of motivation that assumes workers can be self-managers and be given authority The motivation is social and psychological, and management is decentralized and participatory It applies to all levels of retail personnel Theory Z: Advocates more employee involvement in defining their jobs and sharing decision-making with management It adapts elements from Theory Y and Herzberg’s theory space into categories, and then works on in-store product layouts Total Retail Experience: Consists of all the elements in retail offering that encourage or inhibit consumers during their contact with a given retailer Trading Area: A geographic area containing the customers of a particular firm or group of firms for specific goods or services Trading density: The customer spend (expressed in rupee terms) per sq ft of carpet area of a retail store/ mall is expressed as trading density Trading Manager: Trading Manager is on who leads and directs the key functions of merchandising and buying In a retail organization Unbundled Pricing: Involves a retailer’s charging separate prices for each service offered Uncontrollable Variables: Those aspects of business to which the retailer must adapt (such as competition, the economy, and laws) Unit Control: Relates to quantities of merchandise a retailer handles during a stated time period Unit Pricing: A practice required by many states, whereby retailers (mostly food stores) must show both the total price of an item and its price per unit of measure Universal Product Code (UPC): A system for putting machine-readable data onto products with a series of thick and thin vertical lines It lets a retailer record data instantaneously as to the model number, size, colour etc when an item is sold The data is then transmited to a computer monitoring unit sales, inventory levels, and other information UPC: See Universal Product Code Ticket Size: Refers to the average cash memo value in a particular period for a retail store Value Added Tax (VAT): A form of consumption tax levied on the value addition of a product whenever it is sold For a buyer it is a tax on the purchase price while for the seller it is a tax only on the “value added” to a product, material or service The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs Top-Down Space Management Approach: Exists when a retailer starts with its total available store space (by store and for the overall firm, if a chain), divides the Value Delivery System: Comprises all the activities needed to develop, produce, deliver and sell and service particular goods and services Threats: Environmental and/or marketplace factors that can adversely affect retailers if they not react to them (and sometimes, even if they do) 412 | Retail Management Value Pricing: Occurs when prices are set on the basis of fair value for both the service provider and the consumer Variable Markup Policy: A strategy whereby a retailer varies markups according to merchandise category Variable Pricing: A pricing strategy where a retailer alters its prices to coincide with fluctuations in costs or consumer demand Variety Store: A retail store that handles a wide assortment of inexpensive and popularly priced goods and services, such as stationery, gift items, women’s accessories, health and beauty aids, light hardware, toys, houseware, confectionery items and shoe repair Vending Machine: A retailing format that involves coin- or card-operated dispensing of goods and services It eliminates the use of sales personnel and allows around-the-clock sales Vendor: Any firm such as a manufacturer or distributor from which a retailer obtains merchandise Vertical Cooperative-Advertising Agreement: Enables a manufacturer and a retailer or a wholesaler and a retailer to share an ad Vertical Price Fixing: Occurs when manufacturers or wholesalers are able to control the retail prices of their goods and services Vertical Retail Audit: Involves analysing – in depth – a retail firm’s performance in one area of its strategy mix or operations Video Kiosk: A freestanding, interactive computer terminal that displays products and related information on a video screen; it often uses a touch screen for people to make selections Visual Merchandising: A process of creating visual displays by using a relevant theme with the required props to enhance the visibility of a product or merchandise assortments in a retail store to ultimately increase footfalls and sales Want Book (Want Slip): A notebook or slip in which store employees record consumer requests for un-stocked or out-of-stock merchandise Also known as the raincheck Wheel of Retailing: A theory stating that retail innovators often first appear as low-price operators with a low-cost structure and low profit-margin requirements Over time, these innovators upgrade the products they carry and improve their facilities and customer services They then become vulnerable to new discounters with lower cost structures Wholesale Club: A retail store that sells a limited assortment of general merchandise to customers who are members of the club Memberships are generally feebased, margins are small and there is little customer service provided to the members Width of Assortment: Refers to the number of distinct goods/service categories with which a retailer is involved Word-of-Mouth Communication: Occurs when one consumer talks to others Also known as ‘viral communication’ Yield Management Pricing: Used when a service firm determines the combination of prices that yield the highest level of revenues for a given time period Zero-Based Budgeting: The practice followed when a firm starts each new budget from scratch and outlines the expenditures needed to reach that period’s goals All costs must be justified each time a budget is done Index A Aadhar wholesale market, 96 Abercrombie & Fitch, 206, 332 AC Nielsen, 118, 349, 405 Accent lighting, 198, 335 Add-ons, 287, 349 Ad hoc reports, 360 Agency temporaries, 261, 262 Ahold, 31, 251 Al Ries & Jack Trout, 227 Aldi, 22, 23 Alukkas wedding centre, 28 Amazon.com, 152, 379 Apollo health and lifestyles, 343 Apprentices, 261 Army and Navy Stores, 18 Arrow, 28, 339 Arvind garments, 124, 341 Assorting function, 37 Assortment of merchandise, 10, 60,313,318 Assortment plan, 116, 120, 134, 186, 187 AT Kearney, 15, 74, 350 Authority, 278 Average selling price, 228 Average stock price, 228 AV Birla, 29, 103 B ‘Bania’ shops, 30 Bar coding, 31, 181, 361 Barista, 330 Barter system, 80 Bata, 59, 157, 341 Bay pride mall, 29 Bazaar format, 82 Behavioural merchandising, 152 Benetton, 28, 74 Biba, 174 Big Bazaar, 29, 85, 171, 174, 310 Big box format, 84, 198 Bombay Dyeing, 12, 83 Bonus, 266, 268 BPCL, 341 Break point, 214 Brick and mortar retailing, 368, 380 Brigade road & commercial street, 28 BRIC report, 22 Browser, 181, 328 Browser buttons, 384, 382 BSNL, 372 Bulk breaking, 37 Business portfolio, 48 Buying habits, 34, 303, 380 Buying signals, 287 C Cafe Coffee Day, 28, 154, 323, 372 Carrefour, 22, 84, 291, 251 Cash & Carry, 8, 350 Category assessment, 145 Category captain, 147 Category definition, 144 Category killer format, 83 Category management, 143–151 Category review, 146 Category role, 145 Category score card, 145 Category strategies, 145 Category tactics, 146 Category vision, 144 Cautious internationalist, 72 Chain store format, 60, 81 Channel power, Checkpoint systems, 41 Christine Furedy, 18 Circulation planning, 198, 200 City center, 85, 108 414 | Retail Management Clicks, 380 Command and control regulations, 239 Company-owned and company-operated (COCO), 341 Competition Act, 163, 240 Competition commission of India (CCI), 164, 240 Commissions, 267, 341 Consultants, 207, 261 Consumerism cycle, 26 Consumer pull, 24 Convenience merchandise, 81, 197 Convenience store format, 81 Cookies, 382 Cost of goods sold (COGS), 119, 229 CPFR, 182 Cross-docking, 189 Cross merchandising, 118, 328 Crossroads, 42, 83 Croma, 170, 172, 175–176 Customer accommodation, 225 Customer check-out, 357 Customer conversion, 227, 235, 266 Customer database programs, 358 Customer decided relationship, 316 Customer defined relationship, 315 Customer entry, 227, 236 Customer expectations, 275–277 Customer feedback, 279 Customer intimacy, 50, 362 Customer loyalty, 50, 370 Customer managed relationship, 315 Customer owned relationship, 316 Customer profile, 276, 345 Customer relationship management (CRM), 50, 315, 373 Customer satisfaction, 227, 255 Customer segmentation, 144, 318 Customer service, 225, 275, 278, 385 Customer service management, 275–281 Customer stickiness, 363, 384 Customer transactions, 227 Cyber space, 385 D Dairy farm international, 312 Data collection, 346 Debenhams, 76 DeBeers, 87 Demand chain, 189, 364 Demographic profile, 217, 347 Department store, 82 Dependability, 278 Destination format, 81 Digital marketing, 320 Dipstick parameters, 227 Direct marketing, 309, 317 Direct-to-home (DTH), 99 Discount format, 82 Displays, 226, 304, 327–334 Display discount, 129 Display fixtures, 331 Distribution centre, 189 Diversification, 53 DLF mall, 194 Docking plan, 181 Dollar stores, 83 Dominant displays, 329 Donna Karan, 281 E eBay, 371 Economic utility, 37 Efficient consumer response (ECR), 181, 319 Electronic article surveillance (EAS), 31, 226 Electronic data interchange (EDI), 180, 357 Email marketing, 321 Emotional experience, 387 Empathy, 278 Employee behaviour, 266 Employee satisfaction, 255 Employment generation, 37 Emporium, 82 Entrepreneur, 30 e-Tailing, 98, 383, 387 Everyday-low-price (EDLP) format, 82, 156, 313 Exception reports, 360 Executive information system (EIS), 358 External growth, 55 F Facilitation, 96, 246 Facilitation centres, 96 Facilities management, 105, 226 Factory outlet format, 83 Family-owned businesses, 30 Family store, 60, 81 Fashion retailing, 328–331 Feasibility analysis, 345 Index | 415 Federation of Indian chambers of commerce & industry 14 First-in-first-out (FIFO), 181 flipkart.com, 387 Floor space management, 198, 201 FMCG, 26, 93 Focal points, 198, 328 Focus groups, 346 Food Bazaar, 53 Food World, 32, 53 Footfalls, 218, 271, 309, 380 Foreign direct investment (FDI), 7, 22, 41, 339 Forward cover, 132 Forward planning, 124, 180 Format scalability, 79–84 Forum mall, 109 Fosterfields, 236 Franchise format, 81 Franchising in retailing, 337–342 Francis, Harrison and Hathaway, 18 Frontline employees, 37, 280 FSSAI, 245 Full truck load (FTL), 189 G Ganjam Jewellery, 28 Garuda mall, 27 GDP, 6, 40, 338 General lighting, 335 Giant, Hyderabad, 82 Gini & Jony, 174 Gili, 174 Global retail development index (GRDI), 15, 74, 350 Global trade item number (GTIN), 360 Goal-setting, 266 Goldman Sachs, 22, 350 Goods and service tax (GST), 249 Goods received note (GRN), 181 Graphics, 335 GRDI, 15, 74, 350 Greeting methods, 287 Gross margin return on footage (GMROF), 230, 234, 259 Gross margin return on inventory (GMROI), 119, 229, 233, 259, 373 Gross margin return on labour (GMROL), 231, 259 Gross merchandise value (GMV), 383 Gross profit return (GPR), 201 Growth strategies, 52 H ‘haat’ 26 Hall and Anderson, 18 Health&Glow, 312 High-street format, 81 High-street location, 193 HomeShop, 18 371 HPCL, 341 Human resource management (HRM) in retailing, 255–270 Human resources information system (HRIS), 359 Human resources management, 358 Hypermarket, 15, 53, 82, 107 I IBM, 41, 183, 370 ICICI, 30, 56 Ikea, 24 IL&FS, 30 Impulse buying, 26 Impulse merchandise, 196 Incentives, 266 Independent store format, 81 Inorganic growth, 55 In-store promotion, 306, 328 Integrity levels, 286 Interactive reports, 360 Internal growth, 55 International retailing, 65–75 Inter-transfer note (ITN), 181 Inventory planning, 114, 179, 373 Inventory turnover, 229 ITC, 8, 29, 95, 96 J Jardine Matheson, 31 JC Penney, 83 JDA, 41, 120, 185 Job autonomy, 265 Job variety, 265 K KFC, 339 Kingfisher, 31 Kiosk, 83, 316 ‘kirana’ shops, 5, 31 416 | Retail Management Knowledge levels, 286 KSA Technopak, 343 L Landmark, 30, 103 Lavazza, 372 Less than truck load (LTL), 189 Lifestyle, 83, 139, 174 Liz Claiborne, 206 Location boundaries, 380 Location mapping, 194 Location planning, 193 Logistics, 179, 385 Loss leader pricing, 50, 155, 313 Loyalty benefits, 316 Luxury mall, 109 M M-Commerce, 379 Madura Garments, 30 Mall, 85, 101 Mall management, 101–106 Management information systems (MIS), 360–365 Mannequins, 329 Manning standards, 257 Manpower audits, 260 Manpower costs, 257 Manpower information system, 260 Manpower planning, 257, 260 Margin potential, 382 Markdown, 119, 124, 159 Market development, 53 Market expansion, 53 Market Intensity Index (MII), 217 Marketing mix, 3, 313 Market penetration, 53 Market potential value (MPV), 52, 216 Marks & Spencer, 7, 24 Markup, 119, 159 Mass approach, 318 Material handling equipment, 181 Maximum retail price (MRP), 159, 161, 172, 242, 313 McDonalds, 32, 340 McKinsey, Media formats, 81 Melange, 139, 174 Merchandise characteristics, 79 Merchandise hierarchy, 115 Merchandise intensity (strategic resource model), 233, 234 Merchandise mix, 73, 114, 319 Merchandise presentation, 328 Merchandising, 113–122 Metcalfe’s law of networks, 379 Metro, 23, 31, 74, 350 Micromarketing, 318 Mobile e-Commerce, 33 Motivation, 265 MS Retail, 185 Multichannel retailing, 367 Multiple franchising, 340 Municipal market, 18 Mystery customer audit, 349 Mystery shoppers, 317 N Nalli’s, 27 National bureau of accreditation of AICTE, 315 National skill development council (NSDC), 251 N.B Grant, 253 Net margin return on footage (NMROF), 235 Net margin return on inventory (NMROI), 235 New Market, 17 Nieman Marcus, 207 Nike, 204, 241, 341 Nilgiris, 27, 82, 339 Non-store format, 80 Non-cash incentives, 268 Nordstrom, 50, 124, 281, 312 O Obsolescence, 363 Occupancy cost, 56, 230 Omnichannel retailing, 367–375 Online merchandising, 152, 382 Online retailing, 379–392 Open-to-buy (OTB), 131 Operating expenses, 357 Operational excellence, 50 Oracle Retail, 185 Organic growth, 55 Organized retailing, 32 ORG-MARG, 349 Orra, 87 Outsourcing, 40 P ‘panwala’ 31 P&G, 183 P.N Hall and William Anderson, 19 Index | 417 Pantaloon, 84, 109 Park Avenue, 28 Parking spaces, 106 Part-timers, 261 Payment discount, 129 PC penetration, 392 Pearl academy of fashion, 16 Percentage yield rate, 227 Personal selling, 285–290, 322 Physical space, 380 Physical store formats, 80 Pizza Corner, 339 Pizza Hut, 109 Planet M, 330 Planogram, 365, 375 Plaza, 85 Point of purchase (POP), Point of sale (POS), 3, 355 Polaris Retail InfoTech Ltd., 185 Portable data transfer (PDT), 357 Portfolio approach, 318 POS advertising, 321 POS terminal, 355 Positive attitude, 286 Predatory pricing, 156 Pre-purchase order, 180 Price management, 360 Price signalling, 155 Pricewaterhouse Coopers, 14 Pricing strategy, 50 Private labels, 167–175 Process mapping, 278 Product differentiation, 49 Product hangtags, 287 Product knowledge, 285 Product range, 53 Production cycle, 37 Promotional discount, 129 Promotion management, 360 Props, 206, 336 Publicity, 322 Purchase order, 180 Q Qualitative research, 346 Quantity discount, 129 Quantitative survey, 345 Questionnaire, 347 Qwikys, 83 R ‘Retaillier’ and supply chain management, 184 Radio frequency identification (RFID), 184, 357 Rahejas, 29 Ralph Lauren, 206 Range planning, 113, 134 Ranger Farms, 35 Raymonds, 30, 174 Recruitment, 262–264 Recruitment process, 262, 263 Reebok, 341 Reliance, 27, 35 Reliance digital, 32, 35 Reliance fresh, 35 Reliance mart, Remuneration structures, 260 Research design, 346 Research methodology, 346 Research objectives, 346 Responsiveness, 278 Retail audits, 348 Retail automation, 359 Retail distribution channel, Retail economics, 37–43 Retail environment, 37 Retail excel, 185 Retail floor, 226 Retail floor design, 198 Retail formats, 53, 79–85 Retail grocer, 14 Retail jobs, 264 Retail legislations and taxation, 239–252 Retail location management, 209–221 Retail Magik, 185 Retail marketing, 309 Retail mediation, 79 Retail operations, 225–226 Retail pro, 185 Retail process audit, 348 Retail research, 345–349 Retail revolution, 79 Retail selling process, 225 Retail space management, 197 Retail store operations, 225–235 Retail technology, 355–357 Retailers’ association of India (RAI), 38, 251 Retainers, 261 RFID, 184, 357, 364 418 | Retail Management Rio Tinto, 87 Ritazza, 83 RPG, 27, 170 Rural landscape, 94 S Sales associate, 291 Sales force motivator, 266 Salesperson, 285–290 Sales plan, 132 Sales promotion, 322 Sample quota, 346 Sanchalaks, 96 SAP, 41, 185 Saravanas, 27 Satellite warehouses, 385 Scheduling, 226 Scullers, 339 Search engine optimization (SEO) strategy, 321 Self-employed agents, 261 Selling skills, 286 Services, 275 Service culture, 282 Service goals, 276, 278 Service intensity (strategic resource model), 232, 234 Service quality measurement, 279 Service standards, 207, 275 Service strategy, 50, 278, 314 Service vision, 275 ‘shanty’ market, 80 Shelf management, 226 Shelf-on-hire, 322 Shelf-talkers, 118, 322 Shoplifting, 226, 357 Shopper observation, 347 Shoppers Stop, 31, 186, 282, 311 Shopping centre, 82 Shopping cycle, 348 Shopping experience, 328 Shopping mall, 82 Shrinkage, 57, 119–120, 226, 230 Signage, 330, 335 Signature configuration, 83–84 ‘silent salesman’ 328 Singapore Retail Association, 38 Single price denomination format, 83 SMS marketing, 321 snapdeal.com, 388 Social Media Marketing, 320 Socio-economic classification (SEC), 347 Space audit, 201, 202 Space mix, 196 Space performance, 201 Space productivity, 201, 230 Special additional duty (SAD), 250 Specialty mall, 104 Specialized training, 265 Specialty store, 82 Spencers, 28 Spender, 328 Staff empowerment, 279 Standards of weights and measures act, 242 Staple goods, 196 Stock keeping unit (SKU), 115 Stock turnover, 229 Stopover store, 83 Store administration, 226 Store atmospherics, 329 Store brand, 309 Store design, 194, 204 Store events, 309 Store formats, 80–83 Storefront, 330 Store location, 52 Store layout, 198, 330 Store operating parameters, 226 Store planning, 193 Store positioning, 154, 258, 310 Store security systems, 358 Store staffing, 226 Storing function, 37 Strategic business unit (SBU), 82, 143 Strategic resource, 232 Strategic retailing, 53 Sub-contract employees, 261 Suggestive selling, 288, 328 Supermarket, 15, 82 Superstore, 82 Supply chain management (SCM), 179, 184, 226, 359 and retail automation, 184 Swarovski, 32, 206 Swatch, 364 T Tangible evidence, 278 Tanishq, 87, 185 Target segments, 174, 347 Tatas, 29, 169 Tata consultancy services, 185 Tesco, 31, 51, 375 Tesco homeplus, 375– 376 Theatrical ambience, 386 Index | 419 Thematic visual merchandising, 331 Ticket size, 227, 288, 328 Titan, 30, 185, 291, 340 Tommy Hilfiger, 108, 109, 339 Trade discount, 129 Trade journals, 287 Trade Practices Act, 244 Transportation, 181 Trent, 103 Trial close, 287 T.V Sundaram Iyengar & Sons, 185 U UB city mall, 104 Unit franchising, 340 Universal product code (UPC), 360 Up-selling, 288 V Value added tax (VAT), 38, 250 Value chain, 181 Value for money, 310 Variety, 117 VAT, 38, 250 Vasanth & Co 27 Vendor managed inventory (VMI), 180 Vision express, 35 Visual density, 382 Visual merchandising, 60, 206, 226, 327 Viveks, 27, 32 VMoksha Technologies, 185 VM themes, 334 Varkeys department stores, 28 W Walk to buy ratio, 227 Wal-Mart, 311, 350, 374 Walt Disney, 338 Warehouse format, 83 Warehouse management, 181 Warehouse model, 381 Warehousing, 226 Weekender, 28, 109 Welingkar institute of management, 16 Whiteaway, Laidlaw and Co., 18 Window displays, 60, 332 Wipro Info tech, 185 Women in retail, 264 Work-task organization, 257 Z Zara, 72, 206 Zegna, 29, 109 Zensar Technologies, 185 Zodiac, 341 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Introduction to Retailing Definition and Scope of Retailing The Global Retail Scenario The Indian Retail Scenario Retail Evolution Consumption and its Impact on Retailing in India Prospects of Retailing... 23 Retail Marketing and Advertising 309 Chapter 24 Visual Merchandising and Displays 327 Chapter 25 Franchising in Retailing 337 Chapter 26 Retail Research 345 SECTION Chapter 27 Retail Management. .. Chapter Merchandise Planning Merchandise Planning Gross Margin Return on Inventory Markups and Markdowns in Merchandise Planning Shrinkage in Retail Merchandise Management IT and Systems