Retail Store Operations at Brand Factory Pune

A PROJECT REPORT
ON
RETAIL STORE OPERATIONS IN BRAND FACTORY PUNE
FOR
BRAND FACTORY
CAMP, PUNE
(VENTURE OF PANTALOONS RETAIL INDIA LTD)
BY
KHANDADE SANJAY
UNDER THE GUIDANCE OF
DR. JYOTI MISRHA
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FULLFILMENT OF THE DEGREE OF
MASTERS OF MARKETING MANAGEMENT
( MMM )
THROUGH
VISHWAKARMA INSTITUTE OF MANAGEMENT
KONDHAWA BUDRUK, PUNE-411048.

ACKNOWLEDGEMENT
With great pleasure I express my gratitude to the management of BRAND
FACTORY CAMP, PUNE (VENTURE OF PANTALOONS RETAIL INDIA LTD) for
giving me this golden opportunity to work as a trainee in their company.
The guidance and support provided by the company have really made the training
a learning experience for me. This short period was full of rich experience, which will
definitely help me in my future career.
First of all, I would like thanking Mr. Dhairyashil Pradhan (Store Manager), Mr.
Manoj singh (Operation Manager), Mr. Sanjay Hunje, Ms. Drhiti (H.R.) and other staff
members for their valuable guidance and encouragement.
I would also like to thank for our honorable Director and college, project guide
for the motivation and guidance give to me.
Last but not least, I am grateful to Mr.Rajesh P. and all my friends for their help
and encouragement.
Pune
khandade sanjay
COMPANYS
NAME, ADRESS,PH.NO.,FAX NO,LOGO.
Ref. no.
date-
TO WHOM OVER IT MAY CONCERN

This is certified that Mr.Khandade Sanjay an MMM student of Vishwkarma Institute of
Managemnet have undergone and completed a project on RETAIL STORE
OPERATIONS CARRIED OUT IN RETAIL STORES in pune.
He has carried out this project for BRAND FACTORY (Venture of Pantloons Retail
India Limited) from 01/06/07 to 31/07/07.
In this span of project duration his candidature was found to be very
sincere&hardworking.
We wish him a bright future.
SIGN.
MANAGER
SEAL
TITLE INDEXSR.NO
TOPIC
Page no
EXECUTIVE SUMMARY
COMPANY PROFILE
6 37
OBJECTIVE & SCOPE OF PROJECT
38 39
RESEARCH METHODOLGY
40 41
DATA ANALYSIS
42 56
LIMITATIONS
57 58
FINDINGS
59 60
CONCLUSIONS
61 63
RECOMMENDATIONS
64 65
BIBLIGROPHY
66 67
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ANNEXURE
68 70
EXECUTIVE SUMMARY
The objective behind making this project is to know how the Retail Store
operations are carried out in the retail industry.
It takes care of daily store operations like Visual Merchandising, Display
(Manuqueen,Dumy,etc.) Colour blocking, Stacking, Signages, Shelf talker, Grooming of
sales person, Brand name and advertisement, Cleaning, Price and Security Tag, Racking
capacity, Brand feedback, Requirments, Replenishment, Option plan(weekly bases),
which are done to allure the customers to come to the store and increase the bill size of
the organization. There are various strategies, discount offers and other activities, which
are used as a part of the store operations aspect of retail.
During my internship I was assigned on:
Retail Store Operation carried out in Brand Factory.
Title:
RETAIL STORE OPERATIONS CARRIED OUT IN BRAND FACTORY (VENTURE
OF PANTALOONS RETAIL INDIA LTD)TYPES OF RETAIL STORES
COMPANY PROFILE
COMPANY PROFILE
Pantaloon Retail India Ltd.
Brand Factory
Pantaloon Retail (India)
Limited, is India's leading
retail company with presence
across multiple lines of
businesses. The company
owns and manages multiple
retail formats that cater to a wide cross-section of the Indian society and is able to
capture almost the entire consumption basket of the Indian consumer. Headquartered
in Mumbai ( Bombay), the company operates through 4 million square feet of retail
space, has over 140 stores across 32 cities in India and employs over 14,000 people.
The company registered a turnover of Rs 2019 crore for FY 2005-06.
Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion
retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket
chain that combines the look and feel of Indian bazaars, with aspects of modern retail,
like choice, convenience and hygiene. This was followed by Food Bazaar, food and
grocery chain and launch Central, a first of its kind seamless mall located in the heart
of major Indian cities. Some of it's other formats include, Collection i (home
improvement products), E-Zone (consumer electronics), Depot (books, music, gifts
and stationary), aLL (fashion apparel for plus-size individuals), Shoe Factory
(footwear) and Blue Sky (fashion accessories). It has recently launched its etailing
venture,
futurebazaar.com.
The group's subsidiary companies include, Home Solutions Retail India Ltd,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. The
group also has joint venture companies with a number of partners including French
retailer Etam group, Lee Cooper, Manipal Healthcare, Talwalkar's, Gini & Jony and
Liberty Shoes. Planet Retail, a group company owns the franchisee of international
brands like Marks & Spencer, Debenhams, Next and Guess in India.
FUTURE GROUP
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to
cater to the entire Indian consumption space. The Future Group operates through six
verticals: Future Retail (encompassing all retail businesses), Future Capital (financial
products and services), Future Brands (management of all brands owned or managed by
group companies), Future Space (management of retail real estate), Future Logistics
(management of supply chain and distribution) and Future Media (development and
management of retail media).
Future Capital Holdings, the group's financial arm, focuses on asset management and
consumer finance. It manages two real estate investment funds (Horizon and Kshitij)
and consumer-related private equity fund, Indivision. It also plans to get into
insurance, consumer credit and other consumer-related financial products and services
in the near future.
Future Group's vision is to, "Deliver Everything, Everywhere, Everytime to Every
Indian Consumer in the most profitable manner." One of the core values at Future
Group is, 'Indianess' and its corporate credo is Rewrite rules, Retain values.
GROUP WEBSITES:
Futurebazaar.com
Futuregroup.in
Kshitijfund.com
FUTURE GROUP MANIFESTO
Futurethe word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write
rules yet unwritten; create new opportunities and new successes. To strive for a
glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our
ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because
consumption is development. Thereby, we will effect socio-economic
development for our customers, employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how
and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it. We
will not just spot trends, we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow. It is this understanding that has
helped us succeed. And it is this that will help us succeed in the Future. We shall
keep relearning. And in this process, do just one thing.
Group Vision
Future Group shall deliver Everything, Everywhere, Everytime for Every Indian
Consumer in the most profitable manner.
Group Mission
We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading to
economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition. We shall be
efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
CORE VALUES
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
PARTNER COMPANIES
Pantaloon Industries Ltd.
Pantaloon Industries Limited was incorporated in 1987 and its shares are listed on the
Bombay Stock Exchange. The main activities of PIL are to set up textile units and
manufacturing and marketing of fabrics and readymade garments.
Home Solutions Retail (India) Ltd.
Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home
improvement and consumer electronics retailing segment. It caters to home
management requirements and products, including furnishings and textiles, furniture,
consumer electronics, home electronics and home services. It operates retail formats
like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got
It.
Future Capital Holdings

Future Capital is the financial arm of the group and is involved in asset management
(both private equity and real estate funds) with plans to get into other financial
services including insurance, credit and other consumer related financial services. Its
associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment
Advisers Ltd., and Ambit Investment Advisory Co. Ltd.
CovergeM Retail (India) Ltd.
ConvergeM Retail (India) Ltd., leads the groups foray into the communication and IT
products segment. It operates formats like M-Port, MBazaar and Gen M.
Indus League Clothing Ltd.
Pantaloon Industries Ltd.
Pantaloon Industries Limited was incorporated in 1987 and its shares are listed on the
Bombay Stock Exchange. The main activities of PIL are to set up textile units and
manufacturing and marketing of fabrics and readymade garments.
Home Solutions Retail (India) Ltd.
Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home
improvement and consumer electronics retailing segment. It caters to home
management requirements and products, including furnishings and textiles, furniture,
consumer electronics, home electronics and home services. It operates retail formats
like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got
It.
Future Capital Holdings
Future Capital is the financial arm of the group and is involved in asset management
(both private equity and real estate funds) with plans to get into other financial
services including insurance, credit and other consumer related financial services. Its
associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment
Advisers Ltd., and Ambit Investment Advisory Co. Ltd.
CovergeM Retail (India) Ltd.
ConvergeM Retail (India) Ltd., leads the groups foray into the communication and IT
products segment. It operates formats like M-Port, MBazaar and Gen M.
Indus League Clothing Ltd.
The group owns a majority stake in Indus League Clothing Ltd., one of the leading
apparel manufacturers and marketers in India. Some of its leading brands include
Indigo Nation, Scullers, Urbana, Urban Yoga and Jealous.
Galaxy Entertainment Corporate Ltd.
The group owns a stake in Galaxy Entertainment Corporate Ltd., that operates chains
like Bowling Company, Sports Bar and Brew Bar.
JOINT VENTURES COMPANIES

Planet Retail Holdings Ltd.
The group is a joint venture partner in Planet Retail Holdings Ltd., which operates
sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution
rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.
Footmart Retail
Footmart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of
footwear products in India.
GJ Future Fashions
GJ Future Fashions is a joint venture with kids apparel manufacturer - Gini & Jony.
CapitaLand Retail India
The group is a joint venture partner in CapitaLand Retail India, along with Singaporebased CapitaLand Limited. The company provides retail management services to retail
properties owned or managed by various group companies and investment funds.
ETAM Future Fashions India Pvt. Ltd.
ETAM Future Fashions India Pvt. Ltd., is a joint venture with French-retailer, ETAM
and the group. The company is involved in manufacturing and distribution of womens
fashion and lingerie products.
Pantaloon is not just an organisationit is an institution, a centre of learning &
development. We believe that knowledge is the only weapon at our disposal and our
quest for it is focused, systematic and unwavering.
At Pantaloon, we take pride in challenging conventions and thinking out of the box, in
travelling on the road less traveled. Our corporate doctrine Rewrite Rules, Retain
Values is derived from this spirit.
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Over the years, the company has accelerated growth through its ability to lead change.
A number of its pioneering concepts have now emerged as industry standards. For
instance, the company integrated backwards into garment manufacturing even as it
expanded its retail presence at the front end, well before any other Indian retail
company attempted this. It was the first to introduce the concept of the retail
departmental store for the entire family through Pantaloons in 1997. The company was
the first to launch a hypermarket in India with Big Bazaar, a large discount store that it
commissioned in Kolkata in October 2001. And the company introduced the country
to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in
July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in
July 2005 in Mumbai, making us the first retailer in India to open a fashion store for
plus size men and women.
Today we are the fastest growing retail company in India. The number of stores are
going to increase many folds year on year along with the new formats coming up.
The way we work is distinctly "Pantaloon". Our courage to dream and to turn our
dreams into reality that change peoples lives, is our biggest advantage. Pantaloon is
an invitation to join a place where there are no boundaries to what you can achieve. It
means never having to stop asking questions; it means never having to stop raising the
bar. It is an opportunity to take risks, and it is this passion that makes our dreams a
reality.
Come enter a world where we promise you good days and bad days, but never a dull
moment!
RETAIL MANAGEMENT COURSE

India is one of the youngest nations in the world with more than half the nations
population below the age of 25 years! High aspiration levels and optimism of this
young India has been a key driver for consumption in India today. At Pantaloon, we
believe that the next phase of economic development in India will be consumption led.
With the sustained and strong rates of economic growth, retail sales is expected to
cross USD 400 billion by 2010, turning India into the biggest retail market in the
world!
Today, Pantaloon is one of the leading multi format retailer in India with presence in
food, fashion, home solutions and consumer electronics, books and music, health,
wellness and beauty, general merchandise, communication products, E-tailing and
leisure and entertainment. As per our projections, our businesses would grow
manifolds in the next few years, both in terms of new formats as well as the new
locations that we are planning to venture into. Hence, we are looking for bright, young
people like you to partner us in our growth journey.
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The two-year full time Post Graduate Retail Management program has been designed
with the intention of inspiring and preparing young graduates to be leaders in the field
of modern retail. This course will combine the best of academic excellence and the
necessary practical training and corporate exposure that Pantaloon will provide. We
are proud to be associated with this venture and wish the program all the success.
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BRAND FACTORY
The area alotted to floors is as follows:
Basement 5916
Ground Floor7273
First Floor4948
Second Floor5232
Total23369
Categories
BasementJewellery, Watches, Eye ware, Kids, Infant Accessories, Ladies Ethnic, Toys,
Ladies Westerns, Cosmetics, Perfums, Adipa.
Ground FloorFootware, Mobiles, Planet Sport, Knits, Denims.
1st FloorMens Semi formals, Mens Semi Casuals,
2nd FloorMens Formals, Ethnics, Accessories.
Vendors and their Brands
Pantloons:
John Miller, Lombard, Akkriti, Rig, All, Bare Leisure, Basics, JM Sports, T-2000, F
Factor, Knighthood, Bare Denim, UMM, Chalk, Bare Kids, All Ladies, Honey, Ajile,
Ladies Etnic.
Indus League:
Indigo Nation, Scullers, Scullers for Her, Urbana, Urbana Yoga.
Madura Garments:
Allen Solley, Louis Phillipe, Van Huesen, SF, Peter England, VDot.
Raymonds:
Color Plus, Parx, Park Avenue, Zapp.
Primus:
Levis, MTv, Dockers.
Arvind Mills:
Excalibur, Flying Machine.
Brand Factory at Pune was started on 1st April, 2007 at Camp.
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Its main motto is to give discount through out the year (365 days) from 20 to 50%
discounts. Its punch line is Best Brands Smart Prices. Its CEO is Mr. Vishnu Prasad
(Brand Factory, Central). Brand Factory is the value added concept which helps to
provide garments even to the middle class people by offering them huge discounts. Most
of the Brand Factory outlets are situated 40 to 50 Kms away form the city except Pune. It
has 4 outlets at Banglore, and one each at Hyedrabad, Ahmedabad and Pune. They are
also planning to open two more in Pune. Its targeted sales turnover is about 40 45
crores of rupees upto March 2008. As it is a value added concept they concentrate more
on basic services and stock and staff.
It is divided into four categories1stLadies and kids, 2ndLadies and gents casuals,
3rdMens semi formals and casuals, 4thMens Formals.
Addresses of Brand Factory
Ahmedabad
Address : 10 Acre Mall, Raipur - Kankaria Road, Ahmedabad - 380 022, Gujarat
Phone : 079 - 3028 2838
Bangalore
Address : 228,229, 231 & 232, Marathanalli Mali Rd, Bangalore - 560 037, Karnataka
Phone : 080 - 4013 9200
Hyderabad
Address : 4-1-1001, Atria Mall, Abids, Hyderabad - 500 001, Andhra Pradesh
Phone : 040 - 4431 0000
Pune
Address : 1978 Convent Street, Opp. St Anne's School, Nxt to Shivaji Market Camp,
Pune
411
001,
Maharashtra
Phone : 020 - 6628 3800
BrandFactory
Brand Factory brings to the Indian consumers the promise of revolutionizing value
shopping by offering the best Indian and International brands at Smart Prices
Brand Factory promises its customers that value shopping is not about seconds
experience, its not about a garage sale environment and its not about buying cheap.
Instead, its all about an amazing experience of Buying Smart.
The thought behind Brand Factory is to raise the bar of expectation and experience
when it comes to Brand + Bargain Shopping. Over the years Factory Outlets have
become distinct shopping destinations with distinct audiences. With fashion cycles
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reducing, larger quantities of stocks are reaching factory outlets. But then what gets
compromised in the process is the brand and its image.
The emphasis at Brand Factory is to offer the customer the widest range of brands and
categories possible at absolutely great prices, in an ambience that befits the brand. Brand
Factory presents the brands in a fully air-conditioned, slick environment varying
between 70,000 to 1,50,00 square feet.
The stores offers a wide range of products including apparels for men and women; infant
wear; accessories; cosmetics; footwear; sportswear, luggage; home linen and much more.
Brand Factory hosts several Indian and International fashion brands including Levis,
Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip,
Allen Solly, Reid and Taylor, Gini and Jony amongst others.
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INDIA RETAIL SCENARIO

Retailing in India is the largest employer after agriculture. It employs almost 7% of the total
work force in India and has a contribution of 14% to the national GDP. In the year 2004 , the
size of Indian organized retail industry was Rs 28000 Crore, which was only 3% of the total
retailing market. Organized retailing is projected to grow at the rate of 25%-30% p.a. and is
estimated to reach an astounding Rs 1,00,000 Crore by 2010. The contribution of organized
retail is expected to rise from 3% to 9% by the end of the decade. The projection for the year
2005 is Rs 35000 Crore.
Though with a population of a billion and a middle class of 300 million (upper middle class=
40, Middle class =150 & lower middle class = 110), organized retailing is still at its infancy in
India. The great Indian middle class is estimated to grow to over 60 Crore by 2010 making
India one of the largest consumer markets of the world. It is projected that by the year 2010,
65% of the Indian population will be in the age group of 10-49 years, which makes the
scenario even more attractive. India has the largest retail network with 1.2 Crore outlets but
only 4% of them are larger than 500 sq. feet in size. USA on the other hand has 9 Lakh outlets
catering to more than 13 times the total retail market size of India. Thus India has the highest
number of outlets per capita in the world with a widely spread retail network but with the
lowest per capita retail space (@ 2 sq.ft. per person). AT Kearney has ranked India as the 2nd
most attractive retail market after Russia, in its Global Retail Development Index 2004 report.
Retailing, one of the largest sectors in the global economy, is going through a transition phase
in India. For a long time, the corner grocery store was the only choice available to the
consumer, especially in the urban areas. This is slowly giving way to international formats of
retailing.
Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-KSA
report says that the last few years have seen rapid transformation in many areas and the setting
of scalable and profitable retail models across categories. Indian consumers are rapidly
evolving and accepting modern formats overwhelmingly. Retail Space is no more a constraint
for growth. India is on the radar of Global Retailers and suppliers / brands worldwide are
willing to partner with retailers here. Further, large Indian corporate groups like Tata, Reliance,
Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc and also foreign investors
and private equity players are firming up plans to identify investment opportunities in the
Indian retail sector. The quantum of investments is likely to skyrocket as the inherent
attractiveness of the segment lures more and more investors to earn large profits. Investments
into the sector are estimated at INR 2000 - 2500 Crore in the next 2-3 years, and over INR
20,000 Crore by end of 2010.
Few of India's top retailers are:
1. Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is already
India's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31 crores & by 2010; it is
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targeting revenue of Rs 8,800 Crore.

2. Food World : Food World in India is an alliance between the RPG group in India with Dairy
Farm International of the Jardine Matheson Group.
3. Trinethra : It is a supermarket chain that has predominant presence in the southern state of
Andhra Pradesh. Their turnover was Rs 78.8 Crore for the year 2002-03.
4. Apna Bazaar : It is a Rs 140-crore consumer co-operative society with a customer base of
over 12 lakh, plans to cater to an upwardly mobile urban population.
5. Margin Free : It is a Kerala based discount store, which is uniformly spread across 240
Margin Free franchisees in Kerala, Tamil Nadu and Karnataka.
Wholesale trading is another area, which has potential for rapid growth. German giant Metro
AG and South African Shoprite Holdings have already made headway in this segment by
setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai
respectively. These new-format cash-and-carry stores attract large volumes from a sizeable
number of retailers who do not have to maintain relationships with multiple suppliers for all
their needs.
OPENING RETAIL TRADE FOR FDI IN INDIA

Retail sector has undergone significant changes and is fast emerging. Inviting forign
investments to enter into retail trade in India is a progressive measure. India is currently
the ninth largest retail market in the world. This sector witnessed transformation of
unorganized family owned retail formats to organized retailing. The retail revolution will
restructure the Indian economy and would be benificial to the consumers, small and
medium scale business and farmers. The emergence of organized retailing will help
accelerate productivity growth, improve competitveness, provide better job opportunites,
offer more product variety and develop the agriculture and processed food industries.
The retail industryis ready to grow as foreign investors show much intrest in the
emerging Indian market. The growth of FDI in the retail sector will be benificial to the
Indian economy in the long run. Retail sector liberalization leads to easier availability of
quality products in the country. The entry of foreign investment in retail sector indicates
that the economic reforms are on the right path and like china, we can see a number of
foreign retail giants in India. In India the total size of the retail market is Rs. 5,88,000cr,
out of which Rs. 5,83,000 constitute the unorganized market and Rs. 5,000 cr constitute
the organized market. After agricultural sector, retail sector is the largest employer in
India. Indias vast middle class and untapped retail industry are the most important
factors which attract Foreign Direct Investment (FDI). Opening up of the retail sector to
FDI will lead new economic benefits and will create more employment opportunites.
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Modern retail will be a win- win strategy for the consumer, the domestic trader and the
multinational giants.
Retail industry is the worlds largest private industry with sales over $6 tn. India
emerged as the worlds second largest market after China and its growth is expected to
grow from $394 bn to $608 bn by 2009. in India, nearly96% of the retail shops occupy
floor space of less than 500 sq ft. Modern retailing helps to integrate shopping centers
multi- storied malls and huge complexes offering shopping, entertainment and food
under one roof. The retail sector in India is at a critical point where the growth of
organized retailing, growth of organized retailing, growth in the consumption and
purchasing power parity by the Indian population are going to reach new hieghts.
Till January 2006, the retailers entered the market through the franchising is a form of
licensing. Under franchising, an independent organization called the franchiser. The
franchiser pays fee to the franchiser. In January 2006, the Indian Government decided to
allow single- brand retailers to have up to a 51% stake in a local subsidiary. At present,
multiple brands are not allowed to put in FDI, but these rules are expected to be relaxed
within a few years. Sony and Nokia are some of the examples of single brand retailers.
Haryana based company, Moja Shoes Private ltd. Had frist propsed to set up single
brand retail store with FDI in the year 1995. This proposals approved by the Finance
Minister, involving FDI worth Rs. 371.84 cr in various sectors. The Moja-Tano joint
venture would be setting up an exclusive retail outlet for Nike products which include
foot wear, sportwear, boots, slippers, sandals, athletic shoes etc.
Organized retail sector play a significant role in the growth of the retail sector in India.
More than 10% of the Gross Domestic Product(GDP) is generated by the Indian retail
industry which is considered as the largest source of employment. FDI in retailing helps
the growth of the Fast Moving Consumer Goods sector(FMCG), HLL and Dabur to
name a few.
The retail sector, on account of its seperated structure, faces the problems of limited
availabilty of capital, manpower and suitable real estate options. India has around 70
million small stores and a few major shopping malls are becoming common.
Departmental stores are growing at the rate of 24%; 150 new shopping malls are
expected to be opened by 2008, as projected by the development plans. Ninety seven
percent of the nations business is owned by many family- run, street corner stores. The
retail sector in India has been prospering and numerous local and multinational
companies have entered the organized segment ( modern retail ). The increase of double
income families in cities and metros has resulted in a substantial increase in the level of
disposable incomes; this has created the need for the adoption of most efficient and cost
effective logestic operations. Third party logestics (3PL) service providers play a vital
role in such a situation and are expected to receive a huge reputation from the retail
sector. Salary hike also helps to increase the spending power of the consumers.
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CHINA AND FDI

In 1992, China allowed FDI and now Chinas retail industry is worth $580 mn and has
14 global mega retailers.
Restristions involved are :
China allowed FDI in six major cities namely Beijing, Shanghi, Guangzhou,
Tianjin, Dalian, Qungdao and Special Economic Zones (SEZs).
Initialy foreign ownership was restricted to 49% of joint ventures.
Foreign retailer that operate large retail shops will have a limit of 50 units.
VARIOUS LESSIONS FROM CHINA
Strong proof in favor of FDI
FDI improves the entire size of the industry
After allowing FDI inflow, retailing in China has grown at a compound rate of
15% per annum
Helps in employment potantial
Helps in the development of modern formats
Local players can survive and even beat foreign competition
Scale is the key to success for local retailers.
Carrefore, the largest foreign player and the fifth- largest retailer in China, has
opened its 51 mainland outlat. Wal-Mart now has over 43 stores in 19 Chinese cities.
It includes thirty supermarkets, three Sams Clubs and two community stores, has
started building a second store in Beijing. In July 2004, Tesco, the largest UK
based retail chain, acquired a 50% stake in the 25- store Hymall chain from its
Taiwnese owner. In December 2004, China opened up its retail sector completely.
The success of China in retailing has come through FDI. i.e.,
In 1996, Wal-Mart entered Chinese market.

It has 43 stores in 19 cities.
In 2003, it had sales of US$ 704 mn.
It has employed more than 20,000 people.
It has paid taxes of US$111mn in total.
RETAIL INDUSTRY IN INDIA

Retail industry in India accounts for 10% of its GDP and 8% of the employment to reach
$17 bn by 2010. About 300 new malls, 1,500 supermarlets and 325 departmental stores
are being built in the cities and metropoli. India has undergone a shopping revolution
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and a large population between 20-34 age groups in the urban regions, was boosting
demand by 11.1% in 2004-05. This has led to larger foreign retail investment and a more
liberal policy in foreign direct investment.
Retail sector is the fastest growing sector in the Indian economy. Traditional markets are
making way for new formats such as departmental stores, hypermarkets, books,
supermarkets and specialty stores. Modern style malls have begun apearing in metros
and would take care of the supply chain, logestics and other back end operations.
International players like Tesco and Carrefore are expected to enter India vary soon.
MUMBAIS HYPER CITY :
It is spread over 1,00,000 sq.ft. In spite of being surrounded by three popular shopping
malls, it saw 12,500 daily footfalls by its second week against expectations of 3,500
footfalls a day. The K Raheja group, originally a construction company, operates Hyper
City and the Shoppers Stop chain, and plans to open 55 hypermarkets by 2015.
PANTALOON RETAIL
Pantaloon retail, now part of the Future Group, is the biggest mover in the sector. Started
as an apparel chain, it has quickly expanded into lifestyle shopping malls, food malls,
retail estates, general merchandise and the like. In the year 2005, it had a turnover of
US$ 245 mn, and unaudited results for nine months up to march 2006 saw turnover
increse even further to US$ 292 mn. It has aggressive growth plans in the retail sector
and plans to reach a monthly run rate of Rs. 2500 cr by june 2010. it is expected to open
100 stores by December, 2007.
RELIANCE INDUSTRIES
Reliance Industries, with the initial investment of US$750 mn, is planning to luanch a
nationwide chain of hypermarkets, supermarkets, discount stores, departmental stores,
convenience stores and specialty stores. Indias biggest industrial conglomerate also plans
to invest US$5,6 bn in its subsidary, Reliance Retail. With an equity capital of US$2.24
bn, it plans to set up a mixture of convenience stores and supermarkets around the
country.
BHARTI GROUP
Bharti Group ( one of the largest private telcom service providers in India ) is also
planning to enter the retail business. Global luxuary brands have also begun investing in
the Indian retail market. It is joint venture with global major Wal- Mart and the group is
expected to have an estimated 6 million surface by 2008.
GLOBUS
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Globus has 28 stores. Will add 6 Westside stores, 5 landmark book stores and one
hypermarket. Income from operations in 2006 was Rs. 2500 cr and growth rate was
40%.
TRENT
Trent has 100 numbers of stores. It has aggressive growth plans in the retail sector, plans
to reach a monthly run rate of Rs. 2500 cr by June 2010.
It is expected that by 2015, Indias retail sector could be grow to $600 bn. According to
Confederation of indian Industry ( CII ) the Indian retail industry has the potential to
grow from $300 bn to $600 bn by 2015. According to Maureen Johnson of Global Media
Group, Organized retailing in India can be achieved if greater emphasis is laid on
customer relationship management. With skilled workforce and systematic approach,
India will transform the traditional marketing landscape seamlessly. The organized
retail sector is expected to grow at 6% by 2010 and touch a retail business of $17 bn as
against the current growth of $6 bn.
Mumbai, Delhi, Chennai, kolkata, Banglore and Kanpur are the main cities and
metropoli which show prospects in retail business. International franchising in retailing
will emerge as a popular mode of retailing as there will be growing availabilityof brands
of both foreign and domestic companies acquiring strong brand equity for their products
in near future. The retail boom in India is likely to have an important effect on the
commercial real estate sector because the large metropoli and cities will have sizable
retail construction projects underway. Rent Contral Act, Urban Land Ceiling Act and
Land Acquistion Act untill amended, will continue to pull property markets, which
would ultimately lead to high property pricec.
FOOD RETAIL
In India, food retail is the main player in the shopping scenario. Indian food industry
forms 44% of the entire FMCG sales, is growing at 9% and has set the growth agenda
for modern trade formats. The branded food industry is converting indian consumers to
branded food and 60% of the average Indian grocery basket comprises non- branded
items. Hence, food retail also plays a vital role in the development of the Indian
economy.
The various arguments gives in support for FDI in retail are
FDI helps to improve competition in the retail sector

Offers quality products at reasonable prices
Develop the market potantial
Increase market share
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Greater exports as the global players will start sourcing products from Indian
companies
Employment opportunites, with possibly higher wages
Lower prices for consumers, multiple choices and higher spending by
consumers
Development of Tourism
Helps and development of agriculture and processed foo sector in India
Helps to increase tax collection
Provides global market for Indian producers
Cold storage chains solve the perennial problem of wastage
Greater investment in the food processing sector technology
Better operation in production cycle and distribution channels
FUTURE PROSPECTS IN RETAIL BUSINESS

FDI helps to knit the global economies, societies and domestic players to a
closely integrative traditional village i.e., one is for all and all for one.
By the end of 2007, 68 million sq ft of mall space is expected to be available,
which might lead to over capacity of malls
Divson of labor, specialization, enhancement of productivity, developments,
competition, challenges and innovations lead to the overall economic growth of
the nations.
Deregulation of various ndustries, liberalization of trade, joint ventures and
cross-border mergers and acquisitions have become a driving force for increased
FDI.
Technology, management expertise, market intelligence and product
developments are some of the opportunities and challenges to domestic business.
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RETAIL STORE OPERATIONS

The retail store is the place where customers take a decision on the purchase of the
products offered by the retailer. The store is also influences the perceptions that
customers form in their minds about the store, the products, services and staff. From the
management's point of view, operations of the store are a major element of the cost. As a
consequence, the store itself becomes a critical asset of the retail business and it is
imperative that the operations are managed well to achieve and sustain customer
satisfaction and be cost effective.
Managing store operations for a retail business of any size or complexity, from the
neighborhood grocer to the national retail chain, is a challenging task. It requires
integration among various functions within the store. When all functions are performed in
an integrated manner, the store operations run smooth y.
KEY ROLES IN A STORE ENVIRONMENT

The retail store is of prime importance to the retail organization, for two reasons. The first
reason is that the retail store is the primary source of revenue for the retailer and the
second reason is that it is the point where the customer actually interacts with the retail
store lies with the Store Manager.
The Store Manager has to play a dual role in a retail environment. On the one hand, he is
responsible for the various members of the staff and team who report to him and enable
the smooth functioning of the day-to-day operations of the store. On the other hand, he
also has to ensure that the policies and the guidelines as laid down by the management
are adhered to by the store and all the employees within the store. The people-intensive
and customer interactive nature of their work means that store manager play a critical role
in ensuring that the store supports the overall mission of the company. Typically, the store
manager is responsible for all the activities that are conducted within the environs of the
store and would include the opening of the store on time, scheduling of staff, cleanliness
grievances and complaints.
While a store manager may not personally perform all these functions, he would be
responsible for the tasks being performed. Thus, there may be other individuals who
handle these tasks, but the overall responsibility of ensuring that they are performed as
per the guidelines laid down by the company, rests with the store manager. Thus, if one
were to enlist the responsibility of a store manager, they would include:
CUSTOMER SERVICE
Install in the employee, the meaning and importance of customer service as
outlined retail philosophy.
Promote and monitor the quality of service among the staff through training
and by acting as a positive role model.
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Be personally available to all customers to communicate and identify their

needs and to address their questions or concerns.
BUDGETING AND PLANNING

Ensure that goals will be met through appropriate planning and organization
of staff, inventory and expenses, for short and long term success.
Develop and monitor the capital expense budget to ensure that the store is
properly maintained and upgraded so as to meet the high maintenance
standards that reflects the GPIW image.
Monitor a loss prevention program to protect the company's inventory and

assets.
PERSONNEL
Hire the right people for the right job.

Inspire employees so that each person contributes to the productivity of the
store.
Delegate the work load appropriately and effectively.
Write performance evaluations and goal assessments for the Assistant Store
Manager.
With the Assistant Store Manager, evaluate all store employees; ensure that
reviews are given on schedule and documentation is received by the Human
Resources Departments according to the guidelines outlined by it.
When necessary, discipline employees according to the company's

disciplinary policies.
COMMUNICATION
Communicate with the regional office/ head office as per the requirements laid
by the organization with reference to sales, targets, customer service, events
and local issues.
Hold staff meetings to boost employee morale and drive for achieving the
results needed.
Ensure that company policy and procedures are communicated in a timely

manner and adhered to strictly.
Motivate and develop staff in order to encourage their professional

development.
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LEGAL COMPLIANCE
Ensure that the store is in compliance with all employment laws, including
those regarding wage and hour, human rights and equal employment
opportunities.
Maintain safe working conditions for employees; resolve safety concerns
quickly.
Ensure store security from internal and external theft and get to know the
proper apprehension and prosecution for your State.
Depending on the size and the structure of the organization, there may be levels of
Assistant Manager, etc.
the other important position within the retail store environment is that of a Cashier. The
cashier in a retail store is a person who basically, is responsible for transacting the
exchange of money or credit with customers in return for merchandise or services. The
cashier in a retail store is responsible for billing, collection of cash, credit card, foreign
currency, travelers cheques or gift vouchers, as may be applicable. The necessary due
diligence and precautions need to be taken when accepting the different forms of
payment.
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ELEMENTS/ COMPONANTS OF RETAIL OPERATIONS

In order to ensure a smooth flow of operations at the store level, it is necessary that the
management defines processes and has the people and the resources to important them.
The tasks to be performed and the processes are usually defined in a Store Operations
Manual. This document lists the tasks which needs to be carried out at the store level; it
states the responsibility and the time period in which these tasks need to be performed. A
well-prepared operations manual or blue print is the starting point of efficient store
operations.
Typically in a retail store, the following tasks need to be performed:
1. Store Administration and Management of the premises:
2. Managing inventory and display:
3. Managing Receipts:
4. Customer service: and
5. Managing Promotions, Events, Alliances and Partnership
STORE ADMINISTRATION
PREMISES
AND
MANAGEMENT
OF
THE
MANAGEMENT OF THE PREMISES

managing the operations of a retail store starts by determining how the tasks pertaining to
the premises are to be performed. Firstly, the duration of the hours for business need to be
determined. It is also necessary to specify with whom the responsibility of opening and
closing the store lies with.
Some consideration which need to be taken into account while determining the business
hours are: the target audience for the store and the kind of products which are to be
retailed. For example, a supermarket selling groceries will need to have early opening
hours as compared to a lifestyle store, which may open a little late in the day and remain
open for longer hours in the evening. The second factor which affects the working hour
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of a retail store, is the store location. A free standing store can operate at hours that it
chooses to, while a store which is a part of a shopping center or mall will need to follow
the hours decided upon by the management of the mall.
Security of the store premises and of the merchandise in the store is equally important.
the size of retail store and the level of operations determine the level of security required.
A small independent retailer may not really need security for his premises, but a large
department store may consider it necessary. Security of the premises is necessary in order
to ensure that miscreants do not spoil the retail. Store security of merchandise is needed
to ensure that pilferage of merchandise or shrinkage as it is commonly termed is minimal.
Inventory shrinkage may arise due to theft to buy employees, customers or by error on
the part of store at the time of receiving merchandise.
A large numbers of retailers across the world use specially designed tags, which are
attached to products. these tags are sensed by the electronic devices specially designed to
detect them and are usually placed at the store entrances and exists. If an attempt is made
to take the product out of the store without removing these tags, an alarm goes off , thus
alerting the store personnel. The other device used for monitoring the movement of
customers and staff, so that they can be checked each time they leave and enter the store
premises
STORE ADMINISTRATION
Store administration deals with various aspects like the cleanliness of the store premises,
maintenance of the store facade and the display windows, etc. Administration is also be
responsible for utilizing the store personnel effectively. Time-keeping for the store staff is
important. It is also necessary to keep track of holidays and the shifts that the staff may
be required to work for.
The premises of the store need to be maintained as per the standards decided upon by the
management. This involves the task of cleaning the store and arranging the merchandise
before the first customer can walk into the store.
An important task of administration involves ensuring that all the required permissions
and licenses to run a retail establishment are procured from the right authorities.
MANAGING INVENTORY AND DISPLAY

The task of allocating the merchandise to the various stores usually rests with the
merchandise management team or the category manager, as the case may be. At the store
the store staff managers this inventory. To enable them to work efficiently, complete
procedure for the handling of merchandise at store level needs to be documented.
Responsibilities with respect to merchandise at the store level involve receiving and in
warding the goods. Once the merchandise is received at the store, the quantity and other
details like color, style and size have to be checked with the document accompanying the
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goods, to detect any discrepancies. In the case of most large retailer, using a hand held
scanner, the merchandise is scanned and the system updated for the stocks received.
Merchandise may be received at the store from a Central Warehouse, a Regional
Distribution Center, from a supplier or from another store. Proper documentation also
needs to be done when returning goods to the various locations as and when required.
The procedure to be followed for shop soiled goods and customer returns also needs to be
clear.
An integral part of managing inventory at the store level is displaying it correctly. The
best merchandise may lie unsold if it is not displayed in a manner that is appealing and
convenient for the customer. For example, in a supermarket, if 5ltr packs of vegetable oil
are placed on the topmost shelf, it may be inconvenient for the customer to pick one up
and carry, considering the fact that most of the customers at a supermarket would be
women. In case the retailer is running any theme promotion or campaign, the products on
offer need to be displayed correctly, and replenished once sold.
MANAGING RECEIPTS
Managing receipts involves defining the manner in which the retailer is going to receive
payment for the sales. The most common method for receiving payments for goods sold
in India, is by cash or by credit card. While most of the large retail store would accept
either of the above forms of payment, a small local retail store may accept only cash
payments. Other modes of receiving payment are by way of cheque or a debit card. Some
store also have a co-branded cards, which can be used for payments.
The use of credit cards in India is largely an urban phenomenon. Most large department
stores have started accepting credit cards as a mode of payment. The credit card charges
paid by the retailer depend on the volume of business transacted by the retailer and the
rate negotiated on the basis of the future business that can be offered by the retailer. The
procedure for accepting payment by way of credit cards and collecting payment from the
bank needs to be clearly understood by the staff responsible for this function.
CUSTOMER SERVICE
The customer service policy to be adopted by the retailer is decided upon by the top
management. This is actually put into practice by every person working within the retail
store. Customer service does not have to begin and at the customer service counter in the
retail store. Each person on the floor of the retail store can ensure that the customer who
comes in contact with him or her, is comfortable and has a pleasant shopping experience.
This is something which has to be imbibed in them, and this has to be a top down
approach.
An important aspect which affects a customer's perceptions of the retail store. Is the
experience that he has while billing the purchased by him. While a customer may spend
hours choosing the product that he likes, he does not like waiting for a long time at the
time of payment. Long queues may result in some disgruntled customers. Store
28
operations need to be geared to handle such a situation. Many stores, infact, train each
member of the staff to handle the cash counter. Many supermarkets and other retailer
have also introduced express checkouts for customer's who have bought a limited number
of products does not have to wait in the same queue as a person buying a large number of
items.
Retailer in India need to be sensitive to the issue of efficiency of billing at times when the
number of people buying from the store increases substantially. Specific days of the week
may show a trend of increased billing. This may also happen during a discount sale,
Diwali, Durga Puja, Christmas, New Year and other such occasions. Mobile cashiering
and the concept of fast lanes for billing is a concept yet to be explored by most of the
retailer.
MANAGING PROMOTIONS,
PARTNERSHIP
EVENTS,
ALLIANCES
AND
Events and promotions are vary much a part of the retail marketing scene. In order to
enable the success of an event or a promotion, it is necessary that the store where the
action is to take place be geared for the same. This may require hiring of additional staff,
working existing staff in shifts and running a short training programme on the features of
the promotion, the hours and the specialty of the merchandise.
Many a times, a retail store may have tie up with a local partner to promote certain
products or services. This has to be managed at store level. Managing alliances and
partnerships with local partners is also an important part of retail store operations.
Display of merchandise and point of purchase material has to be managed at the store
level.
The complexities of managing a retail store also depends on the type of retail store and
the products retailed. While the merchandise sold in a department store or a high fashion
boutique changes from season to season, the expertise required for the operations of a a
supermarket is very different. An integral part of managing a supermarket comprises of
understanding fresh produce, its storage needs and replacing it when needed. It also
involves understanding the temperatures at which meat needs to be frozen, stored and
displayed. Control of perishable and sanitation are two important aspects of the
operations of a supermarket.
Managing the operations of a retail store is a challenging task. Efficient operations
management is necessary to archive the retailer's objectives and long term success.
The store is an important aspect of a retail business. Purchase decisions and the
perception and image of the store are made here. From the management's point of view,
operations of the retail business and it is imperative that the operations are managed well
to achieve and sustain customer satisfaction and be cost effective.
29
Processes, people and tasks need to be defined by the management to ensure the smooth
flow of operations. The Store Operations Manual is a document that lists the tasks, the
responsibilities and the time period in which these tasks need to be performed. A wellprepared operations manual or blue print is the starting point of efficient store operations.
The chief aspects of store operations include store administration and management of the
premises, managing inventory, display and receipts. Customer service and managing
promotions, events, alliances and partnership are also integral to operations.
CRM IN RETAILINGCRM, or Customer Relationship Management, is the business strategies designed to

optimize profitability, revenue, retention and customer satisfaction. When used to
describe software, rather than business processes, CRM application are those that focus
on relationship, rather than transactions.
Process/ Procedure of Relationship management
The Relationship marketing process is usually defined as series of stages, and there are
many different names given to these states, depending on the marketing perspective and
the type of business. For example, working from the relationship beginning to the end.
Interaction > Communication > Valuation > Termination
Awareness > Comparison > Transaction > Reinforcement > Advocacy
Suspect > Prospect > Customer > Partner > Advocate > Former Customer
Using relationship marketing approach, you customize programmes for individual
consumer groups and the stages of the process they are going through as opposed to some
forms of database marketing where everybody would get virtually the same promotions,
with perhaps a change in offer. The stage in customer Life cycle determines the
marketing approach used with customer.
The process of relationship marketing is about having an indirect conversation with the
customer through analysis their behavior over time. The process of relationship
marketing uses the event- driver tactics of customers retention marketing, but treats
marketing as a process over time rather than single unconnected events.
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CASHIERING PROCESS IN RETAILING:

Individual accounting includes the concept that transaction amounts processed by each
individual, including each check handling and depositing processes. Therefore, if the
stamp that is used to restrictively endorse the back of a check is not unique to the cashier,
for example, when a cashier either shares an endorsement stamp with other or uses a
generic endorsement stamp, it is preferable that the cashier initial the back of the check.
Several campus units have two people who share cashiering duties and use the same cash
drawer. In this situation, individual accountability does not exit
Therefore, the unit manager needs to track the daily deposit reconciliation so if shortages
occur frequently, additional controls are put in place. When cash, checks and other
negotiable instruments are transferred from one person to another, there should always be
a document signed by both individuals that identifies each amount transferred by
category, i.e. currency, coin check or any other negotiable instrument. The two signatures
on the transfer form indicate that each person has counted and totaled the amounts and
both parties agree that the amount listed on the form is the amount actually transferred at
every step in the process.
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TYPES OF RETAIL STORES

SPECIALITY STORES: Specialty stores, as the name implies, are ones that carry a
narrow product line with a deep assortment within that line. Typical examples are
jewellery stores like Ranka Jewelers, P. N. Gadgil, watch stores like Titan, sporting goods
stores like Shakti Sports, Book stores like Crossword, and so on. These stores can be
further sub-classified on the basis of the degree of narrowness in their product lines.
Consider the example of garments.
A Shoppers Stop that retails readymade garments for the family is called single line
stores. A Raymonds showroom that retail only mens clothing and accessories is known
as a limited line store, and stores that retail designers clothes for men like Chirag Din,
Louis Phillipe, and Van Huesen are known as Super Speciality Stores.
DEPARTMENT STORES: A department store carries several product lines, invariably all
that is required by a typical household. These lines include food, clothing, appliances and
other household goods, home furnishings, and gifts and curios. In a typical department
store each product line is managed independently by specialist buyers or merchandisers.
In India, these stores are still at the introduction phase and they are mainly located in
metros like Mumbai, Delhi, and Chennai and other cities like Bangalore and Hyderabad.
SUPERMARKET: This is a large, low cost, low margin, high volume, self service
operation designed to serve the customers needs for food, laundry, and household
maintenance products. Once again, one doesnt see these supermarkets in the true sense
of the term in India. However, we believe that much of the future development is likely to
take place in this type of retail outlet. This is largely because customers will have very
little time to shop around. With more women being employed, shopping around or even
just buying from corner shop is going to reduce. Another reason is that the customer is
more aroused of product quality and freshness when he or she buys his or her
requirements from a store like Food land. Moreover, the wide range of product mix
carried by these stores makes them a favorites retail outlet.
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CONVENIENCE STORES: These are generally food stores that are much smaller in size
than supermarkets. They are conveniently located near residential areas and have long
hours of operations, seven days a week, and carry a limited line of high turnover
convenience products. In the Indian context, the old and faithful street corner grocery
store or cold storage or food store are the ones that can be called convenience stores.
These stores serve a very useful purpose. Due to a high degree of personalized service
and home delivery by store clerks, these store fill in a very important need of a housewife
that of not having to carry her purchases back home and also of not having to wait at
the store. Typically, she hands over her weekly or monthly requirements list to the owner,
who then organizes the delivery. Since these stores are open long hoursaround 10 to 12
hourseveryday of the week and are used mainly for fill in purchases, they occupy a
niche position in retail marketing. In India, convenience stores have been in existence for
the longest time.
DISCOUNT STORES: As the name implies, discount stores are the ones that sell
standard merchandise at lower prices than conventional merchants or stores by accepting
lower margins but pushing for higher sales volume. A true discount store has four
characteristics:
1. It regularly sells its goods at a discounted price
2. It carries national or reputed brands to enhance its image
3. It keeps its operational costs to the minimum by emphasizing on self-service and
no frills interiors
4. Its location tends to be in low rent areas, and it draws customers from even distant
locations.
Today, Big Bazaar and several other hypermarkets are delivering merchandise to
consumers at low prices. In fact, Big Bazaars strategy is to deliver best-value at the
lowest price in the region in which its store is located.
Again, we see the growth of these stores in India because more and more
customers are going to be price conscious and look for discount sales. As a matter of fact,
these stores serve the middle class and lower middle class consumers need to buy
national brands, but at a lower brands. Hence, the future in the Indian market belongs to
the discount stores.
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NON-STORE RETAILERS
Although more than 80 percent of retail marketing is done through retail stores, nonstore retailing is also now just round the corner, and gradually gaining popularity in the
Indian market. Some of these non-store retailing options are:
1. Automatic Vending Machines: These are very common in Europe and North
America for selling food products, soft drinks, newspapers, candy and cigarettes.
These are coin-operated machines and are found in all those areas that have a high
density of consumer traffic. An extension of these is automatic tellers in the banks
which allow customers to perform any banking transaction, 24 hours a day and
seven days a week. Today we see automatic vending machines selling hot
beverages, soups, soft drinks, chocolates at major airports and commercial centers
in the country. Automatic tellers are being used by major foreign banks like Honk
Kong and Shanghai Banking Corporation and Citibank and many of the Indian
banks as well.
2. Direct Selling: Direct selling is another form which is going to re-emerge. The
predecessors to modern direct selling are the itinerant peddlers who sold their
goods at the customers doorstep. Today, direct selling is taking goods like
cosmetics and personal hygiene products to homes and offices. In India, the
originator of this concept is Eureka Forbes, who was the first to sell its vacuum
cleaner on a door-to-door basis. Though this is an expensive alternative, it has
been preferred to store retailing primarily because the firm is able to compete
more effectively in the market-place without having to give into the trades
demands.
3. Buying Services: A buying is a scoreless retailer serving specific client groups,
usually employees of large organizations like companies, governments,
universities, hospitals, etc. the organizations members become members of the
buying service and are entitled to buy form a selective list of retailers who have
agreed to give discounts to the buying service members. Several consumer
durables companies like TVS-Whirlpool, Sony Orson, Bajaj Electricals and auto
dealers like Autoriders have had such arrangements with major industrial groups
and universities
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RETAIL MERCHANDISING
Primary objective of any retail organization is to ensure sale of its merchandise.
Merchandise are the different variety of goods which retailer brings for saleing the same
to the end user or ultimate customer. The success of retailing organization mainly
depends on the decisions retailer has taken about what is to be bought?, in what
quantity ?, and at what time? It is said that goods well bought are half sold. Thus,
selection and presentation of merchandise is the key source of difference which allows
one retail store to differentiate itself from others. The different variety of merchandise
bought by the retail organization has to reflect different market segment needs and wants.
Retail Merchandise Management focuses on planning and controlling of the retail
inventories. What to buy, in what quantity and at what time are three important factors,
merchandise management has to take into consideration. The complex role of
merchandise management can be defined as under:
Planning and implementation of the acquistation, handling and monitoring of
merchandise categories for an identified retail organization is called as merchandise
management.
From the above definition, it is clear that retail merchandise management involves
following activities:
(1) Planning for merchandise acquisitation, from wholesaler or manufacturer.
This requires investment decisions because retailer has to invest his funds
in various merchandise. Availability of funds decides variety and quantity
of material to be acquired or purchased. Marketing considerations,
merchandise strategy options.
(2) Quantity of material to be purchased is decided on the basis of inventory
stock level, maximum stock level, re-ordering level are the important
levels indicating stock of material to be held. These levels are decided
after considering factors like demand in the market, time required for the
replenish the stocks, funds to be locked up etc. Maximum care is taken to
ensure that the goods are always available for supply. At the same time
unwanted material is not stocked.
35
(3) In total merchandise planning, planning is made for acquisition plan is

based on (A) understanding the target market group, (B) collecting
information on competitors and any new branch plan, (C) Taking into
consideration branding and corporate policy, (D) Budget for merchandise
acquisition, (E) Negotiations with wholesaler, material distribution
planning is based on (a) Understanding selection process of consumer, (b)
deciding upon core and seasonal merchandise, (c) Considering sale to
stock level and finalizing different stock level.
It is observed that merchandise management is vary complex procedure and it

require vary systematic approach with due considerations to the concept of
marketing. For successful merchandise management optimal levels of stocks are
to be ensured to improve cash flow and profitability.
FACTORS AFFECTING STORE LAYOUT

SPACE: The layout of store should be such that it provides the optimum space for
circulation around the store. Space must be used very effectively, with territorial
areas planned to break up the store into logical sales sections and functional areas
such as changing rooms, restaurants and pay-points etc.
CLEAR AND STYLISH SINGNAGE: The retail store layout should be such
that, it can be easily comprehensible so that the potential customer quickly
understands and assimilates the route they can negotiate past the merchandise.
This is often successful achieved by the use of different floor coverings or clear
and stylish signage which acts as clues to the customers.
MUSIC: Music can be changed to suit the type of shopper in the store such as
playing younger back ground music, when the customer is of younger youth
generation. Faster or Slower music will affect the speed at which the shopping
occurs. Varying the tempo of the music, at different times of day or in different
areas, to influences the pace of the store traffic movement.
Fragrance and scents of perfumes, leatherwear, houseplants, and so on may
influence the customers to purchase.
LIGHTING: Lightning is an important mood setter and very useful in the
production of a desired ambiance. Lightning can be soft, bright or produce colour
washes. Different types of lightning can be used in combinations to create
intrusting contrasts throughout a display area. The use of sophisticated lighting
systems allows the retailer to adopt the ambience at regular intervals. This can
36
alter perceptions of the size of different areas, complement the merchandise by

bringing out its colours and direct the attention of the customers gaze.

1. To find out the details of the operations carried out in the store.
2. To know what are the strategies used by the company to make the store attractive
to the customers.
3. To know the incentive schemes given to the employees.
4. To know how the sales reports are prepared and what strategies are used to
increase it.
37
5. To know how the effeciency reports are prepared.

6. To know how the targets are set.
7. To know how the weekly rankings are set.
8. To know how the MIS reports are prepared.
9. To know how the roasters are prepared.
10. To know what is the discount structure.
11. To know the inventory management of the store.
12. To know the how the displays are created to attract customer.
RESEARCH DESIGN
METHOD OF DATA COLLECTION:

PRIMARY SOURCES
Observing the daily operations carried out in the store.
38
Studying the store operation like inventory and display, customer service, daily
sales targets achivements and managing promotions and events
SECONDARY SOURCES
Periodicals like Retailer, Business Today, Business World, Books.
Various sites on the internet that give an in-depth analysis of retail status,
operations in retailing, display, etc.
SAMPLE:
The sample would consist of people accustomed to shop in mall. Ideally the
people forming the sample would be the customers actually shopping at Brand Factory.
SAMPLE SIZE:
The sample size would be at least 100 people.
TOOL FOR DATA COLLECTION:

Observation and study: Observation of the daily store operation carried out in the Brand
Factory like visual merchindising and display, distribution of daily targets achivements,
requirment of the new stock to each floor, arrenging the lunch break and tea breaks of the
employee etc. Study of these daily operation which carried out in Brand Factory helps in
determining the main functions of store operations.
Questionnaire: For consumers. This questionnaire is very critical in this research as it
measures the guest satisfaction level which is the ultimate aim of any company. This
questionnaire will also help in determining what the consumers are looking for when they
shop at Brand Factory.
DATA ANALYSIS
39
QUESTIONNAIRE
( customers response to the store operations carried out at Brand Factory
Q-1) Through which medium you know about Brand factory?

a) News paper b) Radio c) Hoardings d) Friends e) Any Other Source
Q-2) which thing attracts you towards Brand Factory for shopping?
a) Quantity of brands
b) Quality of brands
c) Discount offer
d) Prices of products
Q-3) Are you like the location of Brand Factory ?
a) Yes
b) No
Q-4) Which section do you like more ?
a) kids and women
40
b) casual
c) semiformals
d) formal
Q-5) Are you like the interior decoration of the brand Factory?
a) Yes
b) No
Q-6) Are you satisfied with service given by :1) Sales persons
a) Yes
b) No
2) Cash counter
a) Yes
b) No
3) Alteration desk
a) Yes
b) No
4) Exchange counter
a) Yes
b) No
Q-7) What do you want to add in Brand Factory?

_______________________________________________
_______________________________________________
Q-8) Are you satisfied with the range of brands in Brand Factory?
a) Yes
b) No
Q-9) Any other brand do you like to add in Brand Factory?
_______________________________________________
_______________________________________________
Q-10) Any problem you have face during shopping at Brand Factory?
_______________________________________________
_______________________________________________
Q-11) Do you want to shop at Brand factory again?
a) Definitely yes
b) Probably yes
c) Definitely not
d) Probably not
Q-12) Any other suggestions:
_______________________________________________
41
_______________________________________________
______________________________________________.
Personal information:
Name: __________________________________________.
Age: ________. Sex: (Male / Female)
Address: __________________________________________
_________________________________________.
Contact no. : ________________. Mobile: _____________.
THANK YOU

a) News
paper
30
b)
Radio
30
c) Hoardings
20
d)
Friends
10
42
e) Any Other
Source
10
Interpretation:
From the above data it is concluded that from 100 people 60% of the customers come to
the Brand Factory by the medium Redio and News paper 20% by Hordings, 10% by
Friends and 10% by other sources.
43
Q-2) Which thing attracts you towards Brand Factory for shopping?
c) Discount offer
a)Quantity
45
b)Quality
15
c) Discount
30
d)Prices
10
Interpretation:
44
From above data it is concluded that 45% of the customer come to Brand Factory for
shopping for quantity of the brands, 30% of customer for the discount offer, 15% for the
quality and remaining 10% for the prices.
Q-3) Do you like the location of Brand Factory ?

a) Yes
b) No
a) Yes
70
b) No
30
Interpretation:
45
70% of the customers are not like the location of the Brand Factory the customer wants it
at better location

a) kids and women
b) casual
c) semiformals
d) formal
a)Kids &
women
15
b)Casual c) Semiformals d)Formal

45
25
15
46
Interpretation:
From the above the data it is concluded that 45% of the customer most like the casual
section then after semiformal section ie 25% , 15% of the customer like the kids and
women section, only 10% of the customer like the formal section in Brand Factory.
Q-5) Do you like the interior decoration of the brand Factory?

a) Yes
a) Yes
b) No
b) No
47
55
45
Interpretation:
55% of the customer like the interior decoration of the Brand Factory while 45% of the
customer didnt lite it the suggest some changes in it.
48
a) Yes
1) Sales persons
a)Yes
b)No
55
45
49
b) No
2) Cash counter
a) Yes
1) Cash counter
a)Yes
b)No
65
35
50
b) No
3) Alternation Desk
a) Yes
1) Alternation Desk
a)Yes
b)No
60
40
51
b) No
52
4) Exchange counter
a) Yes
b) No
1) Exchange Counter
a)Yes
b)No
62
38
Interpretation:
From the above data it is concluded that 55% of the customer satisfied with the Sales
persons of the Brand Factory and 45% of the customer are not satisfied by the Sales
persons. 65% of the customers are stisfied with the Cash counter while 35% are not, 60%
of the customers are like the Alteration desk 40% of the customer are not like it, and 62%
of the customer who came to the Brand Factory are satisfied with the Exchange counter
and 38% are not satisfied with it.
53
a) Yes
b) No
1) Range of Brands
a)Yes
b)No
80
20
Interpretation:
54
80% of the customer come to the Brand Factory are satisfied with the product range of
the Brand Factory and 20% of the customer are want to add some more brands on to the
Brand Factory.

a) Probably
Yes
40
b)Definitely
Yes
9
c) Probably
Not
35
55
d)Definitely
Not
16
Interpretation:
From above data it is concluded that 35% of the customer probably want to shop again in
Brand Factory while 25% wants definetly to shop and 20% each to probably and
definatly not to shop again at Brand Factory.
56

1. Zodiac
2. New Port
3. Omega
4. Taig Heiur
5. Apple
1. Location
2. Drinking Water
3. Alteration Desk
4. Less Cash Counters
5. Sales Persons less Trained
6. Lifts, air conditioners not working
7. Parking Space
8. Exchange Counter
9. No fair pricing
1. Add more brands
2. Drinking water
3. Air conditioners
4. Trained sales persons
5. More cash counters
6. Alternation Desks
1. Party wares
2. Shoes
3. Food Bazaar
57
4. More Variety
LIMITATIONS
The research is based primarily on Brand Factory in Pune and hence is not a
picture of the retail industry of India as a whole.
This research is dependent upon the responses of the people surveyed hence the
authenticity of the information is questionable.
The research was to be completed in a given time frame and hence it was difficult
to cover all aspects of the topic.
The sample on basis of which the data was collected was a small part which was
assumed to designate the whole.
The research is carried out in Brand Factory which is only one store in Pune so
the it is not possible to easy to study all the aspects of the research.
Time constraints were definitely there, because of allotted time to do the project
58
FINDINGS
59
From the above data analysis a number of facts can be found out:
From above analysis I have find here the store operations carried out in the Brand
Factory are required to carried it properly.
Most of the customer come to the Brand Factory for shopping are not stisfied with
the customer service given to the customer so there is need to improvement in
customer service.
Many problems are created in the daily store operations carried out in Brand
Factory like merchanising and planning.
Store operation also include the marketing and promotional activities but there is
vary less promotional activities carried in Brand Factory.
There is need of well trained employees to carried out best store operations in
Brand Factory
Daily planning is necessary to operate store operation effectively.
60
There is not proper motivation to the employee to operate store operation

effectvely.
CONCLUSION
From start to end store operations play a significant role in any mall. Store operation is
important for efficient and effective sales of any retail store. Store operations teach us
61
how to keep merchandise (Display, color blocking, Stacking, Hanging, etc).Most of the
activities carried out on the store are very important to attract customers, make pleasant
environment, make the shopping experience satisfactory, Incease the footfall.
At Brand Factory
I came to know that how much the store operations are
important in retail industry and by which way the Indian consumers have accepted the
Retail Culture. Retail store operations are vary important part of retail industry. The main
store operation which carried out in Brand Factory are merchandising and display,
regularly cleaning of the floor, adding new stock regularly to attract the more customers.
Regular inventory and display of the latest fashionable merchandise is also vary
important part store operation which are carried out in Brand Factory. Indian consumer
being price sensetive and reluctant to accept changescan be attracted towards malls only
if they are served well.Hence, managers must concentrate that when the consumers enters
the mall he should feel familier to the atmosphere.At Brand Factory they stress on this
issue and keep the environment acceptable, pleasant, and familier by using best store
operations like proper customer care by providing them various services like Alteration
fascility, Exchange Counter and suitable parking place for their veicals . They keep 120
best brands and give heavy discounts throughout the year so that customers feel eagee to
enter the mall.
In Brand Factory I could learn how to carried out various retail store operations in
the store like inventory and display, arrenging the lunch and tea breaks of the employee,
distribution of daily targets and the achivements to the sales to the sales persons to
increase the sell of the store. Store operation also includes prepration of the stock
efficiency and oter reports, how to select brands, how to select light, music, how to
manage crowd flow, importance of cleanliness, service provided by CSA. I learnt a lot
more from this actual reaserch for the product of your company.
I had carried out the reserch to know how the store operations are carried out. I could
learn all the related operations with the help of the managers and the staff of the store.The
work given to me was carried out sincerely and at the best efforts by me. I came to know
all the activities in detail as mentioned in the objectives. All over it was a great
experience.
62
63
RECOMMENDATIONS
From the analysis of the data I collected during the study I present following
Recommendations:
At the Brand Factory there is need to use the best store operations to attract more
customers towards Brand factory.
Customers response to the store operations like customer service is not so good so
it is necessary to provide best customer service.
Motivate properly to the employee to provide good customer service to the

customers specially sales persons.
The main problem faced by the customer at Brand Factory are parking place and
good drinking water so it is necessary to solve this problem frist.
Proper display of each and every brand in every section is vary important for
customers attraction.
To arrange customer flow in systamatic way by which the all floors and sections
are are covered.
64
Display of the discounts offer on every brand is shown systematicaly to attract

customer.
More cash counters and alteration desk are need to added to the Brand Factory for
better customer service.
Motivate to the employee to restrict them from internal theft which is major
problem in each store.
More new ideas should applied for display of the merchandise to attract the
customer
Recruit well trained candidates as sales person for better customer service.
Keep the environment suitable to the store by good ac facilitys,light music and
enough space for customer circulation in the store.
Cleanliness in the store is vary important to attract to the customers towards the
store.
BIBLIOGRAPHY
65
BOOKS:
international retail marketing
- margaret bruce,
christoper moore,
GRATE BRISTWISTLE
RETAIL MANAGEMENT
- CHETAN BAJAJ,
RAJNISH TULI,
NIDHI .V. SHRIVASTWA.
RETAIL MANGEMENT A STRATEGIC APPROACH BERMON, EVONS

RETAIL MANEGMENT
- ICFAI
JOURENALS:
RETAIL BUZZ
RETAILER
WEBSITES:
www.bigbazar.com
www.pantaloonretail.com
www.futuregroup.com
www.retailindia.com
66
ANNEXURE
QUESTIONNAIRE
( customers response to the store operations carried out at Brand Factory
67

Q-2) which thing attracts you towards Brand Factory for shopping?
c) Discount offer
Q-3) Are you like the location of Brand Factory ?
a) Yes
b) No
a) kids and women
b) casual
c) semiformals
d) formal
Q-5) Are you like the interior decoration of the brand Factory?
a) Yes
b) No
a) Yes
b) No
2) Cash counter
a) Yes
b) No
3) Alteration desk
a) Yes
b) No
4) Exchange counter
a) Yes
b) No

_______________________________________________
_______________________________________________
a) Yes
b) No
68

_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
a) Definitely yes
b) Probably yes
c) Definitely not
d) Probably not
_______________________________________________
_______________________________________________
______________________________________________.
Personal information:
Name: __________________________________________.
Age: ________. Sex: (Male / Female)
Address: __________________________________________
_________________________________________.
Contact no. : ________________. Mobile: _____________.
THANK YOU
69

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A PROJECT REPORT

KONDHAWA BUDRUK, PUNE-411048.

TO WHOM OVER IT MAY CONCERN

OBJECTIVE & SCOPE OF PROJECT

Future Capital Holdings

JOINT VENTURES COMPANIES

RETAIL MANAGEMENT COURSE

INDIA RETAIL SCENARIO

targeting revenue of Rs 8,800 Crore.

OPENING RETAIL TRADE FOR FDI IN INDIA

CHINA AND FDI

In 1996, Wal-Mart entered Chinese market.

RETAIL INDUSTRY IN INDIA

FDI helps to improve competition in the retail sector

FUTURE PROSPECTS IN RETAIL BUSINESS

RETAIL STORE OPERATIONS

KEY ROLES IN A STORE ENVIRONMENT

Be personally available to all customers to communicate and identify their

BUDGETING AND PLANNING

Monitor a loss prevention program to protect the company's inventory and

Hire the right people for the right job.

Delegate the work load appropriately and effectively.

When necessary, discipline employees according to the company's

Ensure that company policy and procedures are communicated in a timely

Motivate and develop staff in order to encourage their professional

ELEMENTS/ COMPONANTS OF RETAIL OPERATIONS

MANAGEMENT OF THE PREMISES

MANAGING INVENTORY AND DISPLAY

CRM IN RETAILINGCRM, or Customer Relationship Management, is the business strategies designed to

CASHIERING PROCESS IN RETAILING:

TYPES OF RETAIL STORES

(3) In total merchandise planning, planning is made for acquisition plan is

It is observed that merchandise management is vary complex procedure and it

FACTORS AFFECTING STORE LAYOUT

alter perceptions of the size of different areas, complement the merchandise by

OBJECTIVE & SCOPE OF PROJECT

OBJECTIVE & SCOPE OF PROJECT

5. To know how the effeciency reports are prepared.

METHOD OF DATA COLLECTION:

TOOL FOR DATA COLLECTION:

Q-1) Through which medium you know about Brand factory?

Q-7) What do you want to add in Brand Factory?

Q-1) Through which medium you know about Brand factory?

Q-3) Do you like the location of Brand Factory ?

Q-4) Which section do you like more ?

b)Casual c) Semiformals d)Formal

Q-5) Do you like the interior decoration of the brand Factory?

Q-8) Do you want to shop at Brand factory again?

Q-9) Any other brand do you like to add in Brand Factory?

Daily planning is necessary to operate store operation effectively.

There is not proper motivation to the employee to operate store operation

I came to know that how much the store operations are

Motivate properly to the employee to provide good customer service to the

Display of the discounts offer on every brand is shown systematicaly to attract

RETAIL MANGEMENT A STRATEGIC APPROACH BERMON, EVONS

Q-1) Through which medium you know about Brand factory?

Q-7) What do you want to add in Brand Factory?

Q-9) Any other brand do you like to add in Brand Factory?

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