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Retailing 2

Retailing part2…


keener. Today customers are alert observers of what is offered in the market place and choose to shop where they believe they will get the most for their money. Therefore, it is imaginative for management to continue by reevaluate the wishes of customers and to keep themselves competitive in all areas..


Growth: –  It urges scale- fashion retailing in both department and specialty stores. Their early history was single unit, independent and family owned. In 1930’s the trend toward bigness and mergers began federated department stores, allied stores and other cooperate ownership groups were formed and began acquiring stores that had been independent.During the late 1920’s and early 1930’s, companies that had been mail order houses began opening store units. These retail units represented the entry of chain organization into the retail distribution network.

Mergers and Acquisition: -Companies merges into large cooperate organization for a multiple reasons. A store or company may become part of a corporation by being purchased, or acquired, by that corporation. Sometimes it is cheaper to acquire another company than to develop a new business from starting. Diversification to spread risk can be another motive for a merger or acquisition. There are mainly two kinds of mergers and acquitions. Vertical (to merge all levels in one corporation) Horizontal (merge to pool their resources)

Voluntary Association: – The purpose of this is to exchange information as well as to secure certain groups –buying advantage such as early delivery and sometimes lower prices. In voluntary association each store retains its own identity, and owners retain complete control of their stores. However, the heads of stores that are affiliated in this manner get together to compare methods and results. Affiliation of this type is called organized and guided by an accounting firm or by a management consultant firm that specializes in the retail field.

Chain Expansion: – To keep abreast of the new wants and needs of customers, stores move into fashion classifications they have never carried before, entering into new trading areas, and attempt to follow their customer into new areas of the country. Travelers will feel right at home when shopping the familiar stores in Europe, South America and Far East.

Branch Store Expansion: -One of the most significant changes in department stores retailing involves the growth and development of branch stores. Many stores are larger or, in some cases even larger than the present store, contributing in most cases more 50% of the firm’s total annual sales volume.Another current trend among branch owing stores is to saturate the market in a new trading areas by opening multiple branches. It is interesting to note that as branch stores proliferate, the parent store organization takes on many of the merchandising, operational and management characteristics of a chain organization.


Retail format is the type of retail mix that the retailer adopts, which includes the kind of merchandise and services offer, pricing policy, visual merchandising and designing of the store, choice of location and size of the store.
Convenience Store: They is open for 24 hours. Eg-7 to 11 stores.

  1. Specialty Store: The merchandise retail is narrow in product line but offers good depth in that area. E.g.- Barista, Archies, Swatch, Snow White office super store, U.S.I etc.
    Super Market: It is a self-service store and offers variety of goods, which basically deals in foodstuff items. E.g.- Sabka Bazaar, Safal etc.
    Departmental Store:It offers everything from appeal for her & him to toys and games, cosmetics, jewellery, footwear. This store belongs to an area of 15,000 to 50,000sq. Feet. E.g.- Life Style, Globus etc.
    Discount Store: It is based on EDLP (everyday low pricing) strategy. It is a self-service store. A retail institution that sells standards merchandise at lower prices by accepting lower margins and selling at higher volume. It is a store that retail less than 25 % MRP Discount.
    Factory Outlet: They are opened and operated by manufacturers. E.g.- Ginni and Jony selling at 60 % to 70 % less than MRP.
    Shopping Mall:A merchandise establishment consisting of a landscaped complex of shops representing leading merchandisers. It includes restaurants and a convenient parking area; a modern version of the traditional market place; “a good plaza also includes a movie house”. E.g.- Sahara and Metropolitan Malls of Gurgaon.
    Hyper Market: It is a very large self-service store. It is the combination of discount and super store. It consists of grocery general merchandising goods. E.g.- Big Bazaar (Gurgaon), Pharmacy, Flowerist etc.
    Direct Catalogue:It is the retailing without the presence of the physical store. In this you order the product, which you require through mail after preferring to the catalogue.

                         Seven forms of fashion retailing are emerging or have emerged as vital “new” businesses. Among them are Off-Pride Retailing, Factory Outlet Stores, Catalogue Showrooms, Video Shopping private labels, Direct Mail and its sub-category mail orders Catalogs.

    1. Off-Pricing Retailing: It is the selling of brand name and designer label merchandise at lower than normal retail prices, but still at the late rise or early peak of the fashion cycle. Off- Price retailers keep their selling expenses down to the discounter level by limiting services and maintaining simple surroundings in low rent areas. Off-Pricers benefit by getting garments for less than what regular retailers pay, and because of low over-head are able to buy garments for far less than they would sell for in department stores or specialty shops. In addition to the Off-Price specialized apparel retailers, there are general merchandise discounting chains, all of which sell large quantities of apparel and accessorize at prices lower than those of conventional department and chain stores. Off-Price retailers have taken a big portion of the brand name clothing market. The future of the Off-Price looks like very favorable.
    1. Factory Outlet Stores:This form of retailing began decades ago when a manufacturer would open a little store in one corner of the plant to sell company at reduced rates to the company’s employees. Like Discount and Off-Price Retailers, the factory outlet operates in simple surroundings with minimum service, and thus have low overhead. An outlet buys merchandise from the parent company at over 30 % off regular wholesale prices.The future route that will be taken by factory outlet stores is unpredictable. The majority of the factory outlets want to be located in areas with other Off-Price discounters since they realize that they would attract more customers if located near other retailers. Factory outlet generally does very little advertising.
    2. Catalog Showrooms: –A Catalog showroom retailer is an under selling company that sells from a catalog and also maintain a showroom where samples of the merchandise can be seen and ordered. There are no deliveries, but usually the purchases can be picked up immediately at the showroom or from an adjoining warehouse. Catalog showrooms are in low rent areas. Few scales people are needed, because customers select their items from samples and catalogs, then make out purchase slips and pick up their packages from the warehouse.

Video Shopping:This field is opened in the early 1980’s to video shopping, the ultimate in shop at home. Since over a third of all homes in the country are wired for cable TV, and more are being wired all the time, the potential audience for in home television shopping appears to be vast.
The success of sending videotaped catalogs to customers was provided in late 1982’s by an enterprising boutique in New York, called Votano, which now has twice a year videotape catalog.
The high cost per sale is still a problem of video shopping. However, as new technologies emerge, video shopping will be the wave of the future for direct marketing.

  1. Private Labels: Today the fashion business is dated with so many different labels and names that it had to know whether a specific name is that of a producer, a designer, or a store’s private label. Private label merchandise refers to goods that are produced for one retailer and it carries only the name of the store that sells it or a brand name that is owned by the store. To regain their and freedom from price competition, many large department and specialty stores increasingly developed and complete control, and a degree of profit control. And as many would say, they put the identity back where it belongs with the store.
    The private labels of retailers are progressing on many fronts and have without a doubt, added a new dimensions to the business of fashion whether or not a revulsion by customers against the “name game” will set in remains to be seen. When it comes to fashion, nothing is forever.
  2. Direct Mail:Direct mail is the avenue of sales promotion that can be aimed at an individual customer. Equality a price of direct mail, whether a catalog or a direct mail, or a statement insert, can provide the impact of full illustration and specify copy, along with an easy to use ordering coupon to persuade the customer to respond immediately. And because of the selective abilities of computer lists, promoted their own labeled fashion merchandise in men’s, women’s and children’s apparel and accessories.
    More and more brand name and designers label apparel was being sold by discounters and off prices retailers. The stores decided to take advantage of the value associated with their name in the minds of their customers by promoting products under their own private labels. Private labels belonging to a store allow the store an extra measure of quality control. Merchandisers can select their target audience by sex, age, economic status, education -even life styles and hobbies. With such a personalized means of presenting fashion merchandise to selected customers, it is no wonder that both retailers and manufacturers have come to think of direct mail as a major medium for merchandising of fashion.

    Mail Order Catalogs: From this catalog people can purchase everything from the latest fashion to foods and wines from sporting goods to furniture, from robots to vocation in far off lands.
    Today the catalogs content of the major mail order Houser areas little resemblance to those offerings to rural American fashion designers now create fashions for these catalogs. Mail order companies employ the most up to date testing laboratories to assure that the fit, fabric, color, workmanship, and wearing qualities of the merchandise they offer are the quality customers wants.
    Mail order has, in the 1980’s, achieved a highly available reputation as a means of selling even the most expensive and exotic merchandise. Goods and services are presented in glowing fair color mailing pieces from an ever growing group of sellers department and specialty store, credit card organizations, oil companies, museums, magazines, and music companies, museums, magazines and music companies.
    Catalogs represent companies shopping hours saved to be used for leisure pursuits. Business of mail orders is today a very big business indeed.
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