As we understand it, retailing involves all activities directly related to the sale of goods and services to the final consumer for personal, non-commercial use. Simple retail is maturing into a more microscopic and systematized process.

The era of the rural retail industry could be classified into two formats: weekly markets and village fairs. Mainly the weekly formats served the daily needs of the villagers. Village fairs were larger and sold a wide variety of products, from food, clothing, cosmetics, and small consumer durables. The traditional era saw the rise of the corner store ‘Kirana’ to cater to the needs of Indian consumers. The era of government support saw an indigenous franchise model of chain stores run by the Khadi & Village Industries Commission. The KVIC has a national chain of over 7,000 stores in India. This period also witnessed the emergence of shopping malls with car parking. The Modern era has a multitude of small and large formats with exclusive points of sale that show a complete range of products. Department stores and shopping malls aim to provide a complete destination experience for all segments of society. Hypermarkets and supermarkets constantly try to provide the customer with the 3 V’s. (Value, Variety and Volume)

In the last three years, this sector has experienced exorbitant growth due to the establishment of numerous international quality formats to follow Indian purchasing behavior, the improvement in retail processes, the development of specific properties for retailers and the emergence of formats both national and international. organizations

The retail sector is the second largest employer in the country with almost over 12 million retail outlets in India and only 4% of them are larger than 500 square feet. Although retailing in India is quite fragmented, organized retailing is gaining momentum with rapid growth of nearly 25-30% per annum and is forecast to reach Rs 1.50 billion by 2010 The economy is expected to grow by 8.1% in 2005-2006, having grown at a sustained rate of around 6% in the last 10 years.

Organized retailers are the contemporary formats through which shoppers have the advantage of a world-class shopping experience. Good examples of these formats are Pantaloon, Shoppers Stop and Trent. Organized retailing can be broadly classified into the following formats:

malls The largest form of organized recycling today. Shopping centers are mainly located in metropolitan cities, in the proximity of urban outskirts, this format varies from approximately 60,000 square feet to 7,00,000 square feet and more. They provide an ideal shopping experience with a combination of products, services and entertainment, all under one roof.

hypermarkets They are usually large, starting at 40,000 square feet. ft plus are generally outside the city limits. This format is made up of a multi-split design and usually has an “industrial look” interior. Hypermarkets generally provide basic necessities and groceries. The price is competitive and they also offer volume discounts.

MBO Multi-brand outlets, also known as Category Killers, offer multiple brands in a single product category. They generally work well in busy markets and Metros.

supermarkets Large self-service outlets, catering to the various needs of shoppers, are called Supermarkets. These are located on or near major residential streets. These stores today contribute 30% of all organized food and grocery retail sales. Supermarkets can be further classified into mini supermarkets, typically 1,000 square feet to 2,000 square feet, and full-size supermarkets ranging in size from 3,500 square feet to 5,000 square feet. having a strong focus on food and groceries and personal sales.

discount stores As the name suggests, discount stores or factory outlets offer MRP discounts through bulk selling by achieving economies of scale or seasonal overstocking. The product category can range from a variety of perishable/non-perishable items.

Convenience stores These are relatively small stores of 400-2,000 square feet. feet located near residential areas. They stock a limited range of fast moving convenience items and are generally open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

Department store Large blinds ranging from 20,000-50,000 square feet. ft, catering to a variety of consumer needs. Additionally, they are categorized into localized departments, such as clothing, toys, home, groceries, etc.

Exclusive Store From a size of 500 square feet to 5,000 square feet. and above, this format is owned/managed by the Company or through its franchisee. These can offer a single brand as well as multiple bands.

specialty shop These formats focus on a specific product category, mid-size design in a strategic location. Specialty stores offer a wide variety base for consumers to choose from.

Despite the presence of the basic ingredients necessary for the growth of the retail industry in India, it still faces significant obstacles that will delay and inhibit its future growth. One of the main impediments is the lack of FDI. This has largely resulted in limited capital investment in supply chain infrastructure, which is key to retail development and growth, and has also restricted access to world-class retail practices. The lack of adequate infrastructure and the relatively high cost of real estate are the other impediments to retail growth. While the industry and government are trying to remove many of these obstacles, some of the obstacles will remain and continue to affect the smooth growth of this industry.

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