7/28/2019 bhuve-gv

1/20

CHITKARA UNIVERSITY

7/28/2019 bhuve-gv

2/20

Inception dated back to times where stores were found in

village fares, melas etc.

Emergence of Kirana stores and mom & pop stores.

The first few companies to come up with retail chains were in

textile sector, for example, Bombay Dyeing, S Kumar's,

Raymonds, etc.

Titan, Foodworld in FMCG, Planet M & Music World in

music, Crossword in books.

7/28/2019 bhuve-gv

3/20

3 SUCCESSIVE WAVES:

First wave in the early to mid 1990s( South America)

Second wavemid to late 1990s( Mexico, Central America,

South-East Asia, South Central Europe).

Third wave- late 1990s & early 2000( China, India, Russia,

some parts of Africa and continues.

7/28/2019 bhuve-gv

4/20

Family-owned Mom & Pop stores.

Traditional retail chains like Nilgiri & Akbarallys .

Public Distribution System(PDS).

High streets like Linking Road & Fashion Street in Mumbai. Bombay Dyeing, Shoppers shop, Pantaloon Retail India

Ltd(PRIL).

FDI in single brand retailers( Tommy Hilfiger, Louis Vuitton)

and cash & carry formats( Tesco, Wal-Mart, Metro).

7/28/2019 bhuve-gv

5/20

Department stores

Discount stores

Supermarket

Warehouse stores Specialty stores

Malls

Retailers

Dollar stores

7/28/2019 bhuve-gv

6/20

No specific rules& regulations but certain laws

are their:

Shop and Establishment Act Standards of Weights and Measures Act

Provisions of the Contract Labour (Regulations and Abolition)

Act

The Income Tax Act

Customs Act

The Companies Act

7/28/2019 bhuve-gv

7/20

The present value of the Indian retail market is estimated to

be around Rs. 12,00,000 crore.

The annual growth rate is 5.7 percent.

Retail market for food and grocery with a worth of Rs.

7,43,900 crore is the largest of the different types of retail

industries present in India.

Around 15 million retail outlets help India win the crown of

having the highest retail outlet density in the world.

7/28/2019 bhuve-gv

8/20

Country Retail Sector's share in GDP (in %)

India 10 %

USA 10%

China 8%

Brazil 6%

7/28/2019 bhuve-gv

9/20

Shoppers Stop

Westside

Pantaloon

Lifestyle

RPG Retail

Crossword

Wills Lifestyle Globus

7/28/2019 bhuve-gv

10/20

7/28/2019 bhuve-gv

11/20

7/28/2019 bhuve-gv

12/20

Global economic slowdown

Competition from the unorganised sector

Retail sector has no recognition as an industry

High real-estate costs Lack of basic infrastructure

Supply-chain inefficiencies

Challenges with respect to human resources

Margin Pressure

Fraud in retail

Challenges with Infrastructure and Logistics

7/28/2019 bhuve-gv

13/20

S.NO.

COMPANY NAME

COUNTRY REVENUE(IN

BILLIONS)

1. Walmart U.S. $404

2. Carrefour FRANCE $122

3. Metro AG GERMANY $914. Tesco U..K $90.43

5. Schwarz Unternehmens Treuhank

KG

GERMANY $77.22

6. The Kroger co. U.S. $76.73

7. Costco Wholesale Corp. U.S. $71.42

8. Aldi Einkrup Gmbh& Co. GERMANY $67.70

9. The Home Depot U.S. $66.17

10. Target U.S. $65.35

7/28/2019 bhuve-gv

14/20

Consumer debt levels are declining, but still remain highcompared to historic norms. Surveys show that consumers arefocused on paying down debts.

High health care costs in America continue to be a majorchallenge to consumers, thus reducing discretionary spending.

A continuation of depressed conditions in the housing market

means low home equities and limits the ability of consumersto sell or borrow against their houses.

7/28/2019 bhuve-gv

15/20

A high level of home mortgage foreclosures continues in the

U.S., with more than 8% of all residential mortgages in

delinquency or foreclosure as of mid 2011.

Persistently high unemployment levels and difficultenvironment for job seekers reduces retail spending.

Low consumer confidence reduces spending.

7/28/2019 bhuve-gv

16/20

Consumers will continue to be more conservative.

Decline in sales growth is increasingly apparent.

Led to tightening of credit markets.

7/28/2019 bhuve-gv

17/20

The Infrastructure of retail sector will evolve

radically.

The shopping malls are increasing at fast pace in

metros.

The growth of organized retail sector is anticipated

to be heavier than the growth of GDP.

Peoples lifestyle, rising income level and

encouraging conventions of demography are

proving favorable.

More access to credit facilities.

7/28/2019 bhuve-gv

18/20

With Arrival of transnational companies, indian retail industry

will undergo a transformation.

No one single format can be assumed as there is a huge

difference in cultures regionally.

The most encouraging format now would be the hypermarts.

The hypermart format would be further encouraged with the

entry of the TNCs

7/28/2019 bhuve-gv

19/20

SHOPPERS STOP :Chandru Lachmandas Raheja

PANTALOON: Kishore Biyani

RPG GROUP: Rama Prasad Goenka

CROSSWORD :R. Sriram and Ms K. Anita

GLOBUS: Vinay Nadkarni

LIFESTYLE: Y.C. Deveshwar

7/28/2019 bhuve-gv

20/20

THANK YOU..