Retail is derived from the French word retaille which translates to a piece cut off and in the modern day is the sale to the smallest unit - the individual customer. The retail sector is currently worth 7 trillion dollars worldwide. India has the fifth largest retail sector in the world and accounts for about $833 billion of the retail sector. Various studies of the retail sector all show that in India the unorganized sector is larger than the organized sector. Almost 93 percent of all retail stores in the country still fall under the unorganized sector.
India is one of the fastest growing retail markets in the world, with almost 1.2 billion people.2 India's retailing industry is primarily small shops. New format convenience stores and supermarkets accounted for about 4 percent of the industry, and were present only in cities. India's retail industry employs about 40 million people roughly 3.3% of the population. Organized retailing, in India, means trading activities undertaken by licensed retailers. Unorganized retailing means conventional formats of low-cost retailing, for example, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.4 Organized retailing was miniscule in most rural and small towns of India in the early 2000s.
1.3 HISTORY, GROWTH OF RETAIL INDUSTRY & GLOBAL RETAIL SCENARIO: Global Retail Scenario It is no secret that Retail has a huge role to play in the global economy. That’s why it is not surprising that in developed countries retailing is one of the most important industries. In developed economies, modern retail or organized retail has a 75-80% share in total retail as compared with developing economies. Table: 1.1 Top 10 global retailers by revenue Retail Revenue Rank Name of the company Country of origin 2012 retail revenue (US $ mn) 2012 parent company/ group revenue (US $ mn) 2012 parent company/ group net income (US $ mn) No. of countries of operation 2007-2012 Retail revenue CAGR 01 Wal-Mart store U.S. 469,162 469,162 17,756 28 4.4 % 02 Tesco U.K. 101,269 102,889 190 13 6.2% 03 Costco Wholesale Corporation U.S. 99,137 99,137 1767 9 9.0% 04
Besides a lot of multinational foreign companies were attracted to and showed interest in India due to the organized retailing system. Therefore it shows that the retailing system in India is driven by economic growth and changing demographics of consumers. Functions of retailing As an overall international evolution of the global economy it says that retailing one of the most dynamic economic sector and it passes through changes and development in all areas such as forms of distributions and the methods of sales. As a fact retailing is the link between the consumer and the producer as it generates some certain functions in the movement of goods, according to (Patriche and Stanescu, 1999) these authors suggested that retailing has three main
This field provides you with diverse career opportunities. Working in the retail industry gives you a chance to communicate with people from different background. This offers opportunities to learn new thing on the job every day. By having conversation with people, you can learn about their taste, habits, lifestyle, and analyze their purchasing power. A career in retail management is right for you if you are good in communication, love to work with people, and are proficient in handling multiple tasks.
In organized retailing major workforce is of young talents. Young professionals are growth oriented so always keep searching for new opportunities in the market. Also stress, long working hours & lack of career growth leads to high attrition in Retail. Employee turnover has become the challenge that the organized retailers are facing tremendously. Thus, retention is more economic than recruiting new employees.
Walmart is a multinational retail company with large warehouses and superstores. It is considered among the top valuable companies with averagely over $300 billion sales a year. The company is the world’s biggest employer with over 1.2 million employees across the globe. Walmart has employed the low cost pricing strategy since its foundation. This strategy is inclined to the patterns of cost leadership.
During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.
Managing Trusting Relationships in Indian Organized Retailing Case Facts: 1) The Indian retail market is estimated to be $534 billion in 2013-14. It is expected to grow at a CAGR of 12-13 percent making it a $948 billion sector in 2018-19 (KPMG 2014). 2) Unorganized retailing accounts for over 92 percent of the business. On the other hand, organized retail is also expected to grow. It generated revenue of $41.4 billion in 2012 and is expected to generate $94.8 billion by 2019 (Crisil research estimates).
Food processing industry is a part of whole food market and it accounts for 32 per cent of the country’s total food market. o The recent food market of India is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate of 20 per cent every year. o The packaged food industry includes dairy products, baked goods, convenience food, cookies, and confectionaries. One of the most popular baked goods in India is cookies and the other is biscuits. o In the category of hot beverages tea is the most common beverage in India, especially in eastern, northern, western and regions.