1. Define retailing.

Retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use.

2. Write the function of retailing?
The major functions of retailers in the delivering value to the end consumers are as follows:
a) Sorting
b) Breaking Bulk
c) Holding Stock
d) Additional Services
e) Channel of Communication
f) Transport and Advertising Functions
3. State the nature of retailing.
1) Direct Interaction with Customers. 2) Lower Average Amount of Sales Transaction. 3)
Point-of-purchase Display and Promotions. 4) Larger Number of Retail Business Units.

4. List the scope of retailing?
Retailing includes the activities in selling consumers goods to the ultimate consumer. It
focuses on ultimate, rather than industrial consumers. The scope of retailing includes the
following points.
a) Store Management
b) Supply Chain Management
c) Vendor Management
d) Inventory Management
e) Category Management
f) Customer Relationship Management
5. What is demographic environment?
Retailers are keenly interested in the size and growth rate of population in different cities,
regions, and nations; age distribution and ethnic mix; educational levels; household patterns;
and regional characteristics and movements. These are called the demographic envirnonment.

6. Write the opportunities of retailing?
The major areas of opportunities are as follows:
a) Retail Management Positions
b) Staff at all Levels of Retail
c) Operations
d) Market Research
e) Retail Design Consultants
f) Opportunities in Retailing
g) Franchising
h) Retail Advertising Retailing Software and
i) Consultancy Services
j) Retailing Equipment Suppliers
k) Retail Banking
l) Buying and Merchandising
7. Mention the factors influencing the retailing environment/
The retail industry is also affected by the external environmental elements. Major external and
uncontrollable factors that influence an organisations decision-making, and affect its
performance and strategies include following forces. They are a)Socio-Economic Environment
b)Technological Environment c)Demographic Environment d)Legal Environment e)Political
Environment f)Competitive Environment
8. State the importance of retailing in India economy.
The Indian retail industry is the largest among all the industries, accounting for over 10 per cent of
the countrys GDP and around 8 per cent of the employment. 1) Providing Employment. 2)
Providing Opportunities. 3) Infrastructure Development. 4)Transformation of the Retail Scenario in
India
9. Write about the retail trends in india?
a. New investments will happen in the backend enhanced focus on improving the supply
chain; process of storing and displaying food will be in focus.
b. Consumption will shift to lifestyle categories consumers shifting evaluation from MRP to
EMI.
c. Modern retail will benefit consumers and rural sector rural retailing formats will ensure
quality goods, easy accessibility, and low rates: typical monthly shopping bill will reduce by
atleast 10%.
d. There will be creation of large retailer brands (private labels) own label branding trend
on the rise, more in groceries, home care and clothing; provides profit margin advantage to
retailers
10. Mention any four challenges faced by retailing in INDIA?
1. Multiple and Complex Taxation System 2. Threat of New Entrants 3. Threat of Substitutes
4.Bargaining Power of Suppliers 5.Bargaining Power of Buyers 6.Intensity of Rivalry 7.Lack of
Data Integrity 8.Inability in Selecting a Right Location
9.Excessive Shrinkage 10.Poor Merchandise Mix
11. Write about the recent FDI policy in Indian retailing sector?

1) FDI up to 100% for Cash and Carry wholesale trading and export trading allowed under the
automatic route.
2) FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand
products, subject to Press Note 3 (2006 Series).
3) FDI is not permitted in Multi Brand Retailing in India.

12. Give the recent trend of FDI in single brand retail.
In single-brand retail, FDI up to 100% is allowed as per the report of Indian Ministry dated 13 Jan
2012, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the
conditions mentioned that
1) Only single brand products would be sold (i.e., retail of goods of multi-brand even if produced
by the same manufacturer would not be allowed),
2) Products should be sold under the same brand internationally,
3) Single-brand product retail would only cover products which are branded during
manufacturing and
4) Any addition to product categories to be sold under single-brand would require fresh
approval from the government.

13. Illustrate the size of retail in India.
The retail scenario in India is unique. Much of it is in the unorganised sector with over 12 million
retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500sq.ft.
in size, the per capita retail space in India being 2sq.ft. compared to the U.S. figure of 16sq.ft.
Indias per capita retailing space is thus the lowest in the world. With more than a outlets per
1,000 people, India has the largest number in the world. Most of them are independent and
contribute as much as 94% to total retail sales.

14. Give the recent trend of FDI in multi brand retail.
On 7 December 2012, the central government of India allowed 51% FDI in multi-brand retail in
India. The government managed to get the approval of multi-brand retail in the parliament
despite heavy uproar from the opposition. Some states will allow foreign supermarkets like
Walmart, Tesco and Carrefour to open while other states will not.
15. Define global retailing.
Retail internationalisation is the process of a retailer transferring its retail operations, concept,
management expertise, technology, and/or buying function across national borders.
International retail may be defined as the operations, by a single firm, of shops, or other forms
of retail distribution, in more than one country.
16. Mention any four factors affect the global retailing?
a. Transfer of Retail Concepts b. Employing Advance Technology c. Buying across National
Borders d. Internationalisation of Management Expertise
17. Write the reason for retail going global?
A retailer may have various reasons for going global in the present of liberalised and globalise
economies.
a. Saturation in the home market.
b. Recession or an economic problem in the home country
a. A retailer could be forced to go international because of planning restrictions in the home
country
b. A retailer may go international in order to capture an attractive market prospect.
18. What are the methods adopted by retailers to enter into a new market?
Retailers may enter new markets in a number of ways. Although various terms are used, the
basic choices are:
1) Acquisition: Taking over a retail company already established in the market
2) Joint Venture: Establishing a company with a partner, most usually one who is indigenous to
the market or who has experience of operating there.
3) Organic Growth: Opening new outlets using their existing brand/fascia or creating a new one
4) Shareholding: Acquiring shares of a retailer already operating in the chosen market
5) Franchise: Allowing entrepreneurs to open outlets under a single brand/fascia which are
operated under certain controlled conditions.

19. What are the Challenges Facing Global retailer?
Technology-Enabled Efficiencies: Technology has enabled businesses and consumers to build
efficiencies on the basis of the ability to receive and transmit data, at a fast speed.
Rise of the E-Age: The emergence of internet retailing or e-tailing as it is popularly known, has
been a key driver of change in retail.
Legislation and Regulation: There are a lot of variations in the country regulations from one
market to another market which can hamper the development of some forms of retailing.

20. How the technology influence in Retailing industry?
Technological advancements that have led to more efficient retail transactions include
computers, universal product coding (UPC), Optical scanning, electronic funds transfer (EFT),
electronic data interchange (EDI), Space management, Security and Shrinkage Control, Internet,
Multimedia.

21. Write the characteristics of retailing?
Retailing differs from other type of business on the basis of the following characteristic
features;
a. Sales to Final Consumers: Retailing involves selling of goods/services to the final
consumers.
b. Small Average Sales: The average amount of sales transaction for retailers is much less
than for the manufacturers.
c. Impulse Purchases: An impulse purchase is an unplanned or otherwise spontaneous
purchase.
22. What are the key issues facing the Indian retailers?
Indian retailers need to advantage of this growth and aiming to grow, diversify and
introduce new formats have to pay more attention to the brand building process.
23. Discuss the Factors Responsible for Changing Structure of Indian Retailing?
a. Advanced Education for Retailers is Critical for Growth
b. Changing Income Profiles
c. Workplace Challenge
d. Diminishing Difference between Rural and Urban India
e. Changes in Consumption Patterns
f. Improved Logistics and Better Infrastructure