PRESENTED BY:
S.MARY PREETHI
S.SHARON MONICA

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Why Spencer's
Spencer’s Retail, one of India’s largest multi-format retail chain, delights an astonishing 4 million customers a month by delivering on its brand promise ± Makes Fine Living Affordable. Since inception Spencer’s has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, they were the first grocery chain in India. In 1980, they became the first supermarket chain, and in 2001, they introduced India to the joys of hypermarket shopping. Today, their network of 200+ stores covers a retail trading area of 1million square feet. None of this would have been possible without the people. And they apply the same parameters of high quality and a 360° experience to career too.
RETAILING IN INDIA
Retailing is emerging as a sunrise industry in India and it’s presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Cores, which was only3% of the total retailing market.
The sunrise of the organized retailers in India creates a major turn in the retail industry. Top major organized retail players are increasing their market share day by day. Their main focus is based on FMCG and consumer durables. With modernization, Indian culture is aping the western dressing sense and lifestyle and these techniques are promoting by the Retailers and by this they are generating remarkable revenue from the Indian consumers.
Today’s Retail in India
Comprised of organized and traditional retail formats, Indian Retail market is estimated to be worth US$ 511 billion, and is poised to growth US$ 833 billion by 2013. The organized retail that currently accounts for less than 5 per cent of the total retail market is expected to register a compound annual growth rate (CAGR) of 40 per cent and swell to US$ 107 billion by 2013.
A report by global consultancy firm, AT Kearney said "The consumer spending in India has increased by an impressive 75 per cent in the last four years and will quadruple in the next 20 years." Moreover, India recently topped the Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company. The biannual report revealed that Indians are "the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months."
However the size of Organized Retail in India will exceed US$22bnmark from current level of about US$4bn with its space requirement touching over 220mn sq. ft., by 2010, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM). In paper brought out by ASSOCHAM on `Retail Scenario in India and Its Related Issues’, it has been stated that approx. 40mn sq. ft. is currently generating a business of about US$4bn in organized retail.
India’s vast middle-class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets and India provides for the ideal locations. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and smaller malls; roughly 600 new malls are coming up in other metropolis and large townships in which less than 35% of retail business is going to be transacted.
It is seen that over 1000 malls are in the pipelines for smaller townships in which the retail sector is projected to grow at over 60%because of ample availability of land and increased purchasing power of the folks living in those areas because of increased economic activities. Naturally, the large players will prefer to go there and put up their shops by sourcing their supplies from the places convenient to them.
Some of the key areas in which retail boom will prevail in towns beyond metros and even large cities will include food items, FMCGproducts, grocery, sportswear, outerwear, tailored clothing, eyewear, watches, footwear and accessories and the like. The retail business that will pre-dominantly stay with malls put up in metros and large cities will include apparel, pharmaceuticals, luxury goods and consumer durables.
Changes should be brought about in Agricultural Produce Marketing Committee (APMC) Act (a key contributor to the large number of intermediaries) such as the introduction of contract farming and allowing direct procurement from farmers by retail owners so that direct chain is established between the user and farmers for their equal benefits. It also highlights, pointing out that even in the case of non-agricultural products such as apparel, FMCG and general merchandise, the situation is far from ideal.
The key cause for inefficiency is the poor integration between the retailer and supplier. None of the retailers, in view of ASSOCHAM has so far an automated system for information exchange with their suppliers. In developed countries, retailers practice Vendor Management Inventory (VMI) systems, where the supplier has access to the point of sales data of the retailer and plans automatic replenishments responding to the stocks available at the retailer.
Key Points of Indian Organized Retail Industry
1. Potential to be the third largest economy in terms of GDP in next few years.
2. It ranks high amongst the top 10 FDI destinations of the world.
3. Fastest growing tourist market in Asia.
4. World bank states, India to be world’s second largest economy after China by the year 2050.
5. Stable and investor friendly Central Government at the helm of affairs.
6. Introduction of Value Added Tax or VAT and tax reforms.
7. High degree of professionalism and corporate ethics.
8. Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and high returns on investments.
9. To invest US $130 billion for the development of infrastructure, by year 2010.
10. Bullish stock markets.
11. Hordes of foreign investors are thronging in to invest in Indian retail markets.
12. Highly educated English speaking young workforce.
13. Vibrant and multi cultured cities.
14. Huge opportunity exists, especially in semi-rural and rural areas.
15. till date the second largest employer after agriculture sector, for the huge semi-skilled Indian population.
16. Offers highest shop density in the whole world.
17. Having almost 1, 20,000 shops, across the length and breadth of the country
Formats in Indian Organized Retail Sector
1. Supermarkets: A supermarket, also called a grocery store is as el f- service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has aider selection than a traditional grocery store and it is smaller than a hypermarket or superstore.
2. Hypermarkets: A hypermarket is a superstore which combines a supermarket and department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine weeklyshopping needs in one trip.
3. Department Stores: A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, Hardware, toiletries, cosmetics, photographic equipment jewelry, toys, and sporting goods.
Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of our tail chain of many stores situated around a country or several countries.
4. Shopping malls: A shopping mall or shopping centre is a building or set of buildings which contain retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit.
5. Specialty Chains: A Specialty Chains is numbers stores which arespecialized in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. They differ from department stores and supermarkets which carry a wide range of merchandise