facts about retailing sheetal arora 9th nov,09

Facts Facts aboutabout Retailing Retailing

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Retail GiantsRetail Giants


RPGRPG

Rama Prasad Goenka (better known as RP Rama Prasad Goenka (better known as RP Goenka), starts RPG Enterprises in 1979Goenka), starts RPG Enterprises in 1979

Today, RPG has more than twenty companies Today, RPG has more than twenty companies across eight business sectors, with a Turnover across eight business sectors, with a Turnover of Rs. 15,000 cr. of Rs. 15,000 cr.

8 Business Sectors are: Power, Tyres, 8 Business Sectors are: Power, Tyres, Transmission, IT, Retail, Entertainment, Transmission, IT, Retail, Entertainment, Carbon Black, and SpecialityCarbon Black, and Speciality


Spencer's Retail Limited is one of India's largest and Spencer's Retail Limited is one of India's largest and fastest growing multi-format retailer with 250 stores, fastest growing multi-format retailer with 250 stores, including 36 large format stores across 50 cities in including 36 large format stores across 50 cities in India. India.

The merchandise ranges from fruits & vegetables, The merchandise ranges from fruits & vegetables, processed foods (Ready to Eat, Ready to Cook, processed foods (Ready to Eat, Ready to Cook, FMCG products),specialty foods including FMCG products),specialty foods including international, sugar free, organic foods, international, sugar free, organic foods, etc...groceries, meat, chicken, fish, bakery, chilled etc...groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments, consumer electronics & and frozen foods, garments, consumer electronics & electrical products, home care, home décor & home electrical products, home care, home décor & home needs, office stationeries, soft toys.needs, office stationeries, soft toys.


Pantaloon Retail (India) LimitedPantaloon Retail (India) Limited

Future Group, led by its founder and Group CEO, Future Group, led by its founder and Group CEO, Mr. Kishore BiyaniMr. Kishore Biyani

has over 1000 stores across 71 cities in India and has over 1000 stores across 71 cities in India and employs over 30,000 people.employs over 30,000 people.

The company’s leading formats include The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chainFood Bazaar, a supermarket chain

The company also operates an online portal,The company also operates an online portal,futurebazaar.com..


The first set of Big Bazaar stores opened in The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.2001 in Kolkata, Hyderabad and Bangalore.

Line of Business: e-tailing, food, fashion, Line of Business: e-tailing, food, fashion, Home solutions, IT, leisure and Home solutions, IT, leisure and Entertaiment,etc..Entertaiment,etc..


Shoppers StopShoppers Stop

The foundation of Shopper's Stop was laid on The foundation of Shopper's Stop was laid on October 27, 1991 by the K. Raheja Corp. October 27, 1991 by the K. Raheja Corp. group of companies.group of companies.

With an unparalleled assortment of the leading With an unparalleled assortment of the leading international and national brands in clothing international and national brands in clothing for men, women, and kids; accessories, for men, women, and kids; accessories, fragrances, cosmetics, footwear; home fragrances, cosmetics, footwear; home furnishing and décor products, our stores aim furnishing and décor products, our stores aim to provide shoppers a truly international to provide shoppers a truly international shopping destination.shopping destination.


Shopper's Stop is the only retailer from Shopper's Stop is the only retailer from IndiaIndia to become a member of the prestigious to become a member of the prestigious Intercontinental Group of Departmental Stores Intercontinental Group of Departmental Stores (IGDS).(IGDS).

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WESTSIDEWESTSIDE

Established in 1998 as part of the Tata Group, Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's Trent Ltd. operates Westside, one of India's largest and fastest growing chains of retail stores.largest and fastest growing chains of retail stores.

This story began is 1998 when The Tatas acquired This story began is 1998 when The Tatas acquired Littlewoods – a London based retail chain. This Littlewoods – a London based retail chain. This acquisition was followed by the establishment of acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently Trent Ltd (a Tata enterprise that presently operates Westside). Littlewoods was subsequently operates Westside). Littlewoods was subsequently renamed Westside.renamed Westside.


Lifestyle InternationalLifestyle International

Lifestyle International (P) LtdLifestyle International (P) Ltd is part of the is part of the Landmark Group, a Dubai – based retail chainLandmark Group, a Dubai – based retail chain

Lifestyle India began operations in 1999 with Lifestyle India began operations in 1999 with its first store in Chennai.its first store in Chennai.

Lifestyle has: Apparels, babyshop, the home Lifestyle has: Apparels, babyshop, the home centre, shoe mart,, and lifestyle accessories.centre, shoe mart,, and lifestyle accessories.


5 Types of Retail Ownership5 Types of Retail Ownership


Independent Retailer

Independent Independent retailer is one who builds his/her is one who builds his/her business from the ground up. From the business from the ground up. From the business planning stage to opening day, the business planning stage to opening day, the independent retail owner does it all. He/she independent retail owner does it all. He/she may hire consultants, staff and others to assist may hire consultants, staff and others to assist in the business endeavor. The opportunities are in the business endeavor. The opportunities are endless.endless.


Existing Retail Business

Someone who inherits or buys an existing Someone who inherits or buys an existing business is taking ownership and responsibility business is taking ownership and responsibility of someone else's hard work. The foundation of someone else's hard work. The foundation has already been laid.has already been laid.


Franchise

Purchasing a franchise is buying the right to Purchasing a franchise is buying the right to use a name, product, concept and business use a name, product, concept and business plan. The franchisee will receive a proven plan. The franchisee will receive a proven business model from an established business.business model from an established business.


Dealership

Retailers may find the business model of a Retailers may find the business model of a licensed dealership as a mix of franchise and licensed dealership as a mix of franchise and independent retailer. The licensee has the right independent retailer. The licensee has the right (sometimes this is exclusive) to sell a brand of (sometimes this is exclusive) to sell a brand of products. Unlike a franchise, the dealer can products. Unlike a franchise, the dealer can sell a variety of brands and there generally no sell a variety of brands and there generally no fees to the licensor. Dealerships may or may fees to the licensor. Dealerships may or may not be identified as an authorized seller or by not be identified as an authorized seller or by the company's trademark.the company's trademark.


Network Marketing Multi-level marketing (MLM) or network Multi-level marketing (MLM) or network

marketing is a business model where the selling marketing is a business model where the selling of products depends on the people in the network. of products depends on the people in the network. Not only is a product being sold, but other Not only is a product being sold, but other salespeople are being recruited to sell that same salespeople are being recruited to sell that same product or product line. It's probably not a type of product or product line. It's probably not a type of business one would initially consider when business one would initially consider when discussing retail businesses, but Amway used this discussing retail businesses, but Amway used this model quite successfully for many years.model quite successfully for many years.


9 Myths of Retailing9 Myths of Retailing


““If You Build It, They Will Come”If You Build It, They Will Come” The right The right product mixproduct mix, , pricing strategy and and store store

atmosphereatmosphere will do no good if your customers don't will do no good if your customers don't know you exist. Many new retail stores fail to know you exist. Many new retail stores fail to properly market their business. The lack of funds or properly market their business. The lack of funds or the wrong advertising campaign can keep your the wrong advertising campaign can keep your message from being heard. Even during the hardest message from being heard. Even during the hardest economic times, advertising can be an effective tool.economic times, advertising can be an effective tool.


““Small Stores Can't Compete With Chain Small Stores Can't Compete With Chain Stores”Stores”

While it is true that smaller stores cannot generally While it is true that smaller stores cannot generally compete strictly on price with the compete strictly on price with the large chain storeslarge chain stores, , they can still compete. By maximizing the uniqueness they can still compete. By maximizing the uniqueness of their business, exceptional customer service and of their business, exceptional customer service and cozy atmosphere, the small retailer can take a fair cozy atmosphere, the small retailer can take a fair share of the market.share of the market.


““Your Best Customer Spends The Most”Your Best Customer Spends The Most” You may have a customer who comes in occasionally You may have a customer who comes in occasionally

and spends more than the average shopper in your and spends more than the average shopper in your store. Before declaring him or her as your best store. Before declaring him or her as your best customer, stop to consider the customer who may customer, stop to consider the customer who may spend little, but tells his friends and family about spend little, but tells his friends and family about your business. Referrals and repeat customers are your business. Referrals and repeat customers are highly valuable and may add up to much more than highly valuable and may add up to much more than the big-spending customer who shops with you twice the big-spending customer who shops with you twice a year.a year.


““Online Shopping Will Replace Retailing”Online Shopping Will Replace Retailing” E-commerceE-commerce is making big strides in the world of is making big strides in the world of

retail. But while it is important for retail. But while it is important for brick and brick and mortarmortar retailers to have an online presence, there will retailers to have an online presence, there will always be consumers who want to try things on, feel always be consumers who want to try things on, feel and inspect the quality of the merchandise and some and inspect the quality of the merchandise and some shoppers still prefer the security of paying for shoppers still prefer the security of paying for products in person.products in person.


““Moving Your Store Will Hurt Your Business”Moving Your Store Will Hurt Your Business” Relocating a business can be expensive and possibly Relocating a business can be expensive and possibly

disruptive, but with some planning it can be the best disruptive, but with some planning it can be the best thing for your bottom line. Start early and make a thing for your bottom line. Start early and make a checklist to keep the move organized. Be sure to plan checklist to keep the move organized. Be sure to plan your relocation marketing focus around retaining your relocation marketing focus around retaining your existing customers, as well as making new your existing customers, as well as making new customers in the new location.customers in the new location.


““The Government Has Free Money For Your The Government Has Free Money For Your Business”Business”

Television commercials, website ads and general Television commercials, website ads and general false information has distorted the half-truth in this false information has distorted the half-truth in this statement. There are grants available from the statement. There are grants available from the government for particular projects but these are government for particular projects but these are generally for non-profits and educational business, generally for non-profits and educational business, not for individuals who will use the proceeds to start not for individuals who will use the proceeds to start their own retail business.their own retail business.


““The Customer Is Always Right”The Customer Is Always Right” No, the customer is not always right. Sometimes the No, the customer is not always right. Sometimes the

customer is quite wrong. customer is quite wrong. Customers Customers make honest make honest mistakes and sometimes they want something for mistakes and sometimes they want something for nothing. While the customer isn't always right, it's our nothing. While the customer isn't always right, it's our job as retailers to make them feel like they are always job as retailers to make them feel like they are always important.important.


““Good Help Is Hard To Find”Good Help Is Hard To Find” It may take a little longer, but it is possible to find It may take a little longer, but it is possible to find

excellent employees. Start by writing a thorough job excellent employees. Start by writing a thorough job description. Establish a review system to weed out description. Establish a review system to weed out candidates that don't fit the bill. Learn interviewing candidates that don't fit the bill. Learn interviewing techniques and prepare a comprehensive training techniques and prepare a comprehensive training program. To keep good help once you've found it, program. To keep good help once you've found it, learn how to motivate your employees through pay learn how to motivate your employees through pay and promotion. and promotion. Staffing your storeStaffing your store is easy if you have is easy if you have a plan.a plan.


““You Can't Make a Living in Retail”You Can't Make a Living in Retail” This one is just completely untrue. The small profit This one is just completely untrue. The small profit

margin for most retail items may prevent one from margin for most retail items may prevent one from becoming rich, but good sales can generate a healthy becoming rich, but good sales can generate a healthy income for someone operating their own retail income for someone operating their own retail business. And for those not interested in business. And for those not interested in entrepreneurship, there are many, many entrepreneurship, there are many, many positions in positions in retailretail other than store manager or clerk. Some retail other than store manager or clerk. Some retail career fields include buyers, merchandisers, logistics career fields include buyers, merchandisers, logistics and sales.and sales.


How To Turn Returns into SalesHow To Turn Returns into Sales


Listen and Learn:Listen and Learn: Start the return transaction by Start the return transaction by genuinely listening to the customer. This allows the genuinely listening to the customer. This allows the customer to be heard and it’s your chance to customer to be heard and it’s your chance to understand the shopper’s needs. Once the customer is understand the shopper’s needs. Once the customer is finished speaking, begin asking any unanswered finished speaking, begin asking any unanswered questions to establish the reason for the return. Why questions to establish the reason for the return. Why is the item being returned? What is wrong with the is the item being returned? What is wrong with the item? What end result is the customer seeking? Once item? What end result is the customer seeking? Once the reason for the return is known, we can offer the reason for the return is known, we can offer solutions to the problem.solutions to the problem.


Offer Suggestions:Offer Suggestions: Now that we understand why Now that we understand why an item is being returned, we can suggest alternative an item is being returned, we can suggest alternative products or solutions. Would the shopper like a products or solutions. Would the shopper like a different style, color or size? Could a similar item different style, color or size? Could a similar item serve the customer’s needs? Do we offer a better serve the customer’s needs? Do we offer a better product than the one being returned? If so, make product than the one being returned? If so, make those suggestions. Be sure to mention the benefits to those suggestions. Be sure to mention the benefits to the customer. This isn’t just a return; it’s another the customer. This isn’t just a return; it’s another opportunity to sell.opportunity to sell.


Cross-Sell Cross-Sell ((selling an additional product or selling an additional product or service to an existing customer)service to an existing customer): : If no substitution If no substitution will satisfy the customer, all is not lost. Depending on will satisfy the customer, all is not lost. Depending on the store’s return policy, it may be possible to offer in-the store’s return policy, it may be possible to offer in-store credit or gift cards instead of a cash refund. If you store credit or gift cards instead of a cash refund. If you must provide a cash refund or credit card chargeback, must provide a cash refund or credit card chargeback, consider offering accessories or related items to the consider offering accessories or related items to the customer. Without being pushy, mention current customer. Without being pushy, mention current specials, best sellers or other products the customer may specials, best sellers or other products the customer may need. Is there an additional item he/she could use?need. Is there an additional item he/she could use?


Satisfy the Customer:Satisfy the Customer: Not all returns can be Not all returns can be exchanges. Many customers will only want their exchanges. Many customers will only want their money back. That’s okay. After you’ve exhausted the money back. That’s okay. After you’ve exhausted the above selling opportunities and you’ve satisfied the above selling opportunities and you’ve satisfied the customer, chances are good that he or she will return customer, chances are good that he or she will return to shop with you another day.to shop with you another day.


““An exchange is better than no sale, but An exchange is better than no sale, but a satisfied customer is more important a satisfied customer is more important

than a return policy”.than a return policy”.


How to Build Customer LoyaltyHow to Build Customer Loyalty


Satisfy the CustomerSatisfy the Customer Greet every person as they enter the storeGreet every person as they enter the store Let shoppers know you're available for help, if Let shoppers know you're available for help, if

neededneeded Offer your expert adviceOffer your expert advice Provide services beyond the customer's Provide services beyond the customer's

expectationsexpectations Thank every shopper as they exit the store.Thank every shopper as they exit the store.


Acknowledge the CustomerAcknowledge the Customer Introduce yourself to the customer. He/she Introduce yourself to the customer. He/she

may offer their name as a reply.may offer their name as a reply. Customers provide their name when writing a Customers provide their name when writing a

check, paying by credit or filling out forms.check, paying by credit or filling out forms.


Reward the CustomerReward the Customer discount certain itemsdiscount certain items free gifts with purchasefree gifts with purchase To some customers, a real reward may be a To some customers, a real reward may be a

simple gesture of appreciationsimple gesture of appreciation


Follow Up with the CustomerFollow Up with the Customer Send personalized mailingsSend personalized mailings Invite them to special in-store events as a VIP Invite them to special in-store events as a VIP

shoppershopper Ask about their family or events in their life.Ask about their family or events in their life.


15 Things Retailers Should 15 Things Retailers Should Never SayNever Say


I Don't KnowI Don't Know

"That's a good question. Let me find out for "That's a good question. Let me find out for you.“you.“

All Sales Are FinalAll Sales Are Final

"Let us know if you're not satisfied and we'll "Let us know if you're not satisfied and we'll make it right."make it right."


Calm DownCalm Down

"I apologize.“"I apologize.“ Did You See Any?Did You See Any?

"Yes, we stock that. I'll go see if we have any.“"Yes, we stock that. I'll go see if we have any.“ We're ClosedWe're Closed

"We close at __ o'clock and reopen at _ "We close at __ o'clock and reopen at _ o'clock. Is there something I can quickly help o'clock. Is there something I can quickly help you with now?"you with now?"


Will That Be All?Will That Be All?

"Did you see our __ that goes with this?" or "Did you see our __ that goes with this?" or "Have you tried __?“"Have you tried __?“

It's Over ThereIt's Over There

"Follow me, I'll show you right where it is.“"Follow me, I'll show you right where it is.“ I Can't Do ThatI Can't Do That

"What I can do is ___.""What I can do is ___."


That's Not My DepartmentThat's Not My Department

"I'll be happy to get you to the person who "I'll be happy to get you to the person who knows more about that department.“knows more about that department.“

We're Out of ThatWe're Out of That

"That item is currently out of stock but will be "That item is currently out of stock but will be back in on ___. Can I get your name/number back in on ___. Can I get your name/number and call you when it comes in?"and call you when it comes in?"


THANK YOU !!THANK YOU !!
