Retail Management - Meaning/Function and Type of Retail Store for BBA, MBA (part-1)

Define retail with its characteristics, functions and types of retailing.

The word retail comes from the Old French verb tailler, meaning "to cut off, clip, pare, divide in terms of tailoring" retailler meaning "a piece cut off, shred.
Retail is the selling goods or services directly to consumers for their personal use. It involves the sale of products or services from a business to an individual consumer, rather than selling in bulk to another business or intermediary. Retailers are the final link in the supply chain from producers to consumers.

Retail management refers to the process of overseeing the operations and activities of a retail business to ensure its smooth functioning and profitability. It encompasses a wide range of tasks aimed at effectively managing various aspects of a retail establishment, from inventory and sales to customer service and staff management.

In the dynamic world of retail, effective management is crucial for the success of any business. Retail management involves coordinating and supervising all the activities within a retail store or chain of stores to achieve organizational goals and objectives. This includes ensuring that products are available to meet customer demand, providing excellent customer service, maximizing sales, and controlling costs to ensure profitability.


Functions
• Merchandising: Selecting, purchasing, and displaying products to meet customer demand.
• Inventory Management: Maintaining optimal stock levels to meet demand while minimizing excess inventory.
• Customer Service: Providing assistance, guidance, and support to enhance the shopping experience.
• Store Operations: Managing day-to-day activities such as staffing, maintenance, and security.
• Marketing and Promotion: Creating awareness, attracting customers, and driving sales through advertising and promotions.
• Sales and Transactions: Processing purchases, handling payments, and ensuring smooth transactions.
• Supply Chain Management: Coordinating with suppliers and distributors to ensure timely delivery of products.
• Financial Management: Managing budgets, expenses, and profitability to achieve financial objectives.
• Market Research: Understanding customer preferences, trends, and competition to inform decision-making.

Types of Retails

Ownership Based Retailing
• Independent Retailers
• Chain stores- Chain stores in retail management refer to a group of retail outlets that are owned and operated by the same company, known as the parent company or chain store operator. These outlets typically share the same brand, products, services, and business model. Chain stores can range from small regional chains to large multinational corporations with thousands of locations
• Franchises- a franchise refers to a business arrangement in which an individual or entity (the franchisee) is granted the right to operate a retail outlet using the brand, products, and business model of another company (the franchisor) in exchange for fees and royalties. Franchising in retail management typically involves a well-established brand or concept granting licenses to independent operators to open and operate retail locations under the franchisor's brand name and business model.

Merchandise Based Retailing
• Convenience stores
• Supermarket- A supermarket is a large retail store that primarily sells groceries and household products.
• Hyper Market- A hypermarket is a large retail store that combines the features of a supermarket and a department store, offering a wide range of products under one roof. Example- Vishal Mega Market.
• Speciality store
• Departmental store
• Catalogue store- A catalogue store, also known as a catalogue store, is a type of retail establishment that primarily operates through catalogue sales. Catalogue stores provide customers with the convenience of shopping from the comfort of their own homes, without the need to visit a physical store. They often offer a wide selection of products across various categories, from clothing and electronics to home goods and appliances.
Non- Store base retailing
• Tele marketing
• Mail order