evolution of retail

7/26/2019 Evolution of Retail

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-Gradual development of something into a more complex or better form.


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RETAILING


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Barter system

-is a system of transactions where people used to exchange, the valuables they usedto possess and has some value in the eyes of other persons

PHASE 1:


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Adoption of common means of currency

PHASE 2:

-the transactions became much easier.-retailing is limited to commodities that fulfill their basic needs.


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PHASE 3:

Small stores transforming to bigger size stores.

-retailers responded to the changing needs and shopping expectationsof the buyers.

-to take advantage of scale economy ang value-pricing to customers.


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RETAILING

IN THE U.S.A.


11/20

1!!"s

-Mass retailing in the united states began.

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- the first retailer to initiate mass retailing in the U.S. by marketing their products through general merchandise catalogues.ural areas

where largely reached.

-founded by !aron Montgomery "ard.

1,-!"s

-Ma#or economic activities shifted from agricultural to industrialmanufacturing.

-$he first shopping center was opened.%& and Sears expansion.-$he use of credit cards increased as ma#or retail chains began.


12/20

1,!"s

-opening of the first planned mall and franchised food restaurant in the U.S.

-was the beginning of the era of franchising in organi'ed retailing business in

the U.S.

-(arge suburban malls were created and anchored by traditional downtown

dept. Stores.

-sales of private automobiles grew.

-)iscount stores were born*+orvetta.

1,/!"s

-was the decade of the growth and enclosed shopping centers,with

dept. Stores and specialty retail chains.

-aby boomers reached their teenage years.

-"omen became the target consumers.


13/20

1,0!"s

-promotional pricing started to pick up the dept. Stores as off price retailersemerged.-the growth of retail space slowed down.-stiff competition led retailers to under-perform.

1,!"s-growth of off price retailing as a distinct,enduring retail format.-acuisitions and mergers became a choice for large players to support theirgrowth strategies.-retailers started developing private brands.

-offshore sourcing was developed.

-/t is this stiff competition in the U.S. $hat encouraged many retailers toconsider franchising as a strategic option for growth.


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RETAILING IN INDIA


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1,!"s

-organised retailing in /ndia slowly began.

-!mong the first companies were ombay )yeing, aymonds, S +umar0sand Grasim.

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-! maker of premium watches that successfully created anorganisedretailing concept in /ndia by establishing a series of elegant showrooms.

1,,1economic liberalisation

-Manufacturers saw a great value in integrating forward by investing intoretailing of their own manufactured goods.


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Some ssues:

-the average si'e of each of the retail outlets in /ndia in only 12 suare feetmaking it less competitive against large organi'ed retailers.

-the industry is also unorgani'ed, largely fragmented and has rural bias.

4norganized Business

-!n estimated of 34 to 35 million retail stores in /ndia are very small in si'eand family owned.!bout 467 of this stores are in rural locations.

8the unorgani'ed sector accounts for 9:; of the total retailing in /ndia.

evolution of retail

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