Attempt all the problems.
Section-A
problem1) Describe Non store retailing. What are various formats of Non Store retailing? Compare benefits of Non store retailing to a Retailer and to a Customer. Give appropriate exs
problem2) Describe different Theories of Retail Evolution and give appropriate exs for each Retail Theory.
problem3) Do you agree that there are three keys to success in retailing – Location, Location and Location? What factors must a retailer consider while selecting the location for his stores? Discuss with appropriate exs.
problem4) How could small, independent retailers compete against large national chains?
Section-B
Case Study
Carrefour SA, France-based world’s second largest retailer, that clocked global revenues of E 97.8 billion in 2008, has according to the announcement, decided to foray into the country’s retail sector by opening its first Cash & Carry store in the National Capital Region (NCR) in mid-2009 or early 2010.
Europe’s largest retailer has been looking for opportunities to enter country’s fast growing retail sector since 2006 as its sales in its home market France, which accounts for nearly one-half of its global sales, have been stagnating for some time. Last year (2008), sales in France grew by a mere one per cent.
Despite adverse impact of global economic slowdown, sales in nascent organised retail sector of India still grew at the healthy pace of around 15 per cent in 2008. This growth though was slower than previous years when business grew at around 30 to 35 per cent per annum.
In order to give the fillip to its India plans and finalise sourcing arrangements, the European retail giant recently organised the meeting of food and non-food vendors in Delhi.
“Every market we enter, we work closely with local producers, farmers, agricultural cooperatives and manufacturers. In most Carrefour stores, around 90 per cent of the sold items are locally sourced,” said Carrefour in a statement.
“This meeting had three objectives: to introduce Carrefour Group and its project in India, to return on the concept of the cash-and-carry store and to present the working specifications and the mode of collaboration with suppliers.”
Apart from introducing group and its India plans, according to Herve Clec’h, Managing Director, Carrefour India, meet was also organised to build relationships and open business opportunities for suppliers in a company’s global sourcing network. While, world’s largest retailer Wal-Mart has recently opened its first Cash & Carry store in India in partnership with telecom giant Bharti Enterprises, world’s fourth largest retailer Metro AG of Germany is is already present on its own in the Cash & Carry segment with 5 C&C stores operating across large metro cities of Bangalore, Hyderabad, Mumbai, and Kolkata in India.
Two other Europerean retail giants Carrefour SA of France (world’s second largest) and Tesco plc of UK (world’s third largest) are now preparing blueprints for setting up their C&C format stores in India. While Tesco plc has joined hands with Star Bazaar retail chain of Tata group retail arm Trent Limited, Carrefour is believed to be in talks with the country’s largest retailer Fututure group for a possible tie-up.
All the main Indian retail players, who were earlier planning to foray into Cash & Carry wholesale retail, including Reliance Retail, Future group, Videocon, Indiabulls, appear to have withdrawn from race to enter this segment that apart from heavy cash investment requires long gestation period to make operations viable.
problem5) Case problems:
a) What is cash and carry format? Describe in detail, its advantages and disadvantages.
b) Why are global retailer look at investment opportunities in India?
c) Why is it significant for the retailer to have a in-depth knowledge of local vendors?