Fundamentals of Retail Management - MIT School of Distance Education

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MIT School of Distance Education

• Fundamentals of Retail Management

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• Retail entails to the process of selling goods to
  consumers in small quantities either for
  consumption or for further sale through assorted
  channels with an aim to gain high returns. The
  process of planning, implementing, monitoring and
  controlling different retail activities is termed
  as retail management. Since the retail sector is
  ever-rising, so every retail firm seeks a manager
  who can effectively handle all the retail
  activities. In such a scenario, pursuing MBA in
  retail management can promise a lucrative career.

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• MIT School of Distance Education (MIT-SDE) offers
  distance MBA-equivalent PGDM courses in Retail
  Management to train the aspirants and make them
  industry-ready. The institute aims at enhancing
  the employability of candidates. So, if you wish
  to capitalize on the retail sector, then apply
  for the course right away.

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• During the course, candidates gain knowledge
  about core concepts of retail management and its
  fundamentals. Heres a look at some of the
  fundamentals of retail management.

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Channels of Distribution in Retailing

• In present times, the connection between the
  consumers and the manufacturers has become
  complex than before. This is due to the
  multi-faceted channel of distribution which is
  complex because of the involvement of
  intermediaries. This leads to a hike in the value
  of goods and services until the time they reach
  the end-user in the cycle.

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• There are different channels of distribution.
  Some channels involve the function of both
  wholesalers and retailers, while some involve
  only retailers. Furthermore, there are certain
  goods that are transported directly from the
  manufacturer to the consumer.

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Basics of Retailing

• There are different ways through which retailing
  is carried out
• Ownership
• Merchandise

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Ownership

• Independent Retailers Businessmen such as
  grocers, booksellers, confectioners, etc, who
  handle their single shop/store fall under the
  category of self-regulating or independent
  retailers. Independent retailers have auxiliary
  benefits of creating their own policies and
  maintaining personal contact with the customers.
  The businesses of independent retailers can be
  carried forward by their upcoming generations.

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• Franchises Some businessmen open a store and
  carry their business under the name of big
  brands. This is termed asa franchisee. There are
  various stores which are undertaken by different
  franchisee following an agreement stating that
  brand will be represented by the franchiser.
  These include players like Titan, Tanishq
  Jewellers, JW Marriot, etc, whose franchises are
  spread across different regions.

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• Chain Stores Two or more retail stores of a
  single owner in a single region form a chain of
  stores. Chain stores keep selected merchandise in
  accordance with the customers preferences.

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Merchandise

• Supermarkets Supermarkets are constructed with
  the basic aim of providing high-level customer
  satisfaction along with earning marginal profits.
  The supermarkets are located in areas with large
  space and they mainly house daily household items
  such as groceries, cosmetics or toiletries. At
  supermarkets, almost 70 percent of the total area
  is reserved for daily grocery items.

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• Departmental Stores Departmental stores are
  retail stores offering myriads of basic and daily
  use products such as household items, food as
  well as clothing.

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• Catalogue Showrooms These showrooms do not have
  products on the display but are occupied with
  varied catalogues. The interested customers can
  pick a product by browsing through different
  catalogues and select a product. Then, the
  customers have to provide product code at the
  counter and the desired product would be sent to
  the customer.

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• Hypermarkets The retail stores which offer
  every kind of product and are have the occupancy
  for thousands of customers are termed as
  hypermarkets. Usually, malls or shopping stores
  such as big bazaar are counted under this
  category. In addition to shopping, hypermarkets
  even have spaces for coffee shops and restaurants.

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