Presentation by students of Chitkara Business School

1. CHITKARA UNIVERSITY

2.  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.

3. 3 SUCCESSIVE WAVES:
 First wave in the early to mid 1990s( South America)
 Second wave –mid 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.

4.  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, Shopper’s shop, Pantaloon Retail India
Ltd(PRIL).
 FDI in single brand retailers( Tommy Hilfiger, Louis Vuitton)
and cash & carry formats( Tesco, Wal-Mart, Metro).

5.  Department stores
 Discount stores
 Supermarket
 Warehouse stores
 Specialty stores
 Malls
 Retailers
 Dollar stores

6. 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.  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.

8. Country Retail Sector's share in GDP (in %)
 India 10 %
 USA 10%
 China 8%
 Brazil 6%

9.  Shoppers’ Stop
 Westside
 Pantaloon
 Lifestyle
 RPG Retail
 Crossword
 Wills Lifestyle
 Globus

12.  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

13. S.NO. COUNTRY REVENUE(IN
COMPANY NAME BILLIONS)
1. Walmart U.S. $404
2. Carrefour FRANCE $122
3. Metro AG GERMANY $91
4. Tesco U..K $90.43
5. Schwarz Unternehmens Treuhank GERMANY $77.22
KG
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

14.  Consumer debt levels are declining, but still remain high
compared to historic norms. Surveys show that consumers are
focused on paying down debts.
 High health care costs in America continue to be a major
challenge to consumers, thus reducing discretionary spending.
 A continuation of depressed conditions in the housing market
means low home equities and limits the ability of consumers
to sell or borrow against their houses.

15.  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 difficult
environment for job seekers reduces retail spending.
 Low consumer confidence reduces spending.

16.  Consumers will continue to be more conservative.
 Decline in sales growth is increasingly apparent.
 Led to tightening of credit markets.

17.  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.
 People’s lifestyle, rising income level and
encouraging conventions of demography are
proving favorable.
 More access to credit facilities.

18.  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

19.  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

20. THANK YOU…..