AIBS

Amity International Business

School
MBA, Semester 4

International Retail Management

Shalini Gautam
1
 AIBS

Top 10 retailers in the

world

2
WalMart AIBS

Wal-Mart (United States )

The world's largest retail company, Wal-

Mart was founded by Sam Walton in 1962.
Incorporated on October 31, 1969,
Walmart is operating in 28 countries.

Sales in 2012: $469,162 m

CAGR 2007-12: 4.4%

3
Tesco AIBS

Tesco (United Kingdom)

Tesco plc is a global grocery and general

merchandise retailer headquartered in
Cheshunt, United Kingdom.
Founded in 1919, it has stores in 13
countries across Asia, Europe and North
America.
Sales in 2012: $102,889 m
CAGR 2007-12: 6.2%

4
Costco AIBS

Costco (US)

Costco Wholesale Corporation is the

largest membership warehouse club chain
in the United States. Costco is also one of
the largest retailers of fine wine.

Sales in 2012: $99,137 m

CAGR 2007-12: 9%

5
Carrefour AIBS

Carrefour (France )

Carrefour S.A. headquartered in Levallois-

Perret, France opened on January 1, 1958,
in suburban Annecy.

The group was built by Marcel Fournier,

Denis Defforey and Jacques Defforey. In
1995 it merged with Promodes, known as
Continent, one of its major competitors in
the French market.
Sales in 2012: $100,906 m
CAGR 2007-12: -1.3%

6
The Kroger AIBS

The Kroger Co (US)

Founded in 1883, The Kroger Co is an

American supermarket chain founded by
Bernard Kroger in 1883 in Cincinnati, Ohio.
As of 2010, Kroger has 3,619 stores.

Sales in 2012: $96,751 m

CAGR 2007-12: 6.6%

7
Lidl Stiftung & Co AIBS

Lidl Stiftung & Co (Germany)

Founded in the 1930s by a member of the

Schwarz family, Lidl stores are present
across 20 countries in Europe.
Sales in 2012: $87,236 m
CAGR 2007-12: 6.6%

8
Metro AIBS

Metro (Germany)

Founded in 1964, Metro AG is a diversified

retail and wholesale/cash and carry group
based in Dusseldorf, Germany. It has the
largest market share in its home market.
Sales in 2012: $85,832 m
CAGR 2007-12: 0.7%

9
Home Depot AIBS

Home Depot (United States)

The Home Depot is an American retailer of

home improvement and construction
products and services. It has stores in
2,248 locations.
Sales in 2012: $74,753 m
CAGR 2007-12: -0.7%

10
Aldi AIBS

Aldi (Germany)

Albrecht Discount (Aldi), is a discount

supermarket chain based in Germany
started by brothers Karl Albrecht and Theo
Albrecht.
Sales in 2012: $73,035 m
CAGR 2007-12: 6%

11
Target AIBS

Target(United States)

Target Corporation is an American retailing

company, founded in 1902 and
headquartered in Minneapolis, Minnesota.

Sales in 2012: $73,301 m

CAGR 2007-12: 3.2%

12
 Quick Stats about top 250 AIBS

Global Retailers
• $4.29 trillion- Aggregate retail revenue of top 250
• $17.15 billion- Average retail revenue of top 250 retailers
• $3.8 billion- Minimum sales required to be on top 250
• 4.9%- year on year retail sales growth
• 3.1%- Composite net profit margin
• 24.3%- Percent of top 250 retail sales from foreign
operations
• 10- Average number of countries in which top 250 have
retail operations

13
 Challenges of International AIBS

Retailers
• Product Innovation & Product mix
• Service Quality
• Merchandising Methods
• Pricing of products
• Logistics
• Ethical Issues

14
 Various aspects of AIBS

International Retailing
• Financial Investments
• Transfer of knowledge
• Transfer of processes
• Alignment of customer management
policies
• Central sourcing & vendor management

15
 Functions performed AIBS

by retailers
• Providing Assortments
• Breaking Bulk
• Holding Inventory
• Providing Services

16
 AIBS

Retailing

Sale of goods and services to the

ultimate consumer for personal,
family or household use

17
 The Marketing-Retail Equation AIBS

Manufacturer Manufacturer Manufacturer

Wholesaler

Retailer
Feedback

Retailer

Consumer Consumer Consumer

 Characteristics of Retailing AIBS

• Direct end-user Interaction in Retailing

• Sales at the retail level are generally in
small lots
• Location is a critical factor
• In most retail businesses, services are as
important as core products

19
 Evolution of Retail in India AIBS

Traditional Established Emerging

Formats formats Formats
Itinerant Salesman Kirana shops Exclusive retail outlets
Haats Convenience/ Hypermarket
Melas department stores Malls / Specialty Malls
Mandis etc. PDS/ Multiplexes
CSD Fast food outlets
 Categories of Traditional AIBS

Retailers
• Fruit & vegetable sellers – Sells fruits and vegetables.
• Food stores - Result of bakery products. Also sells dairy and
processed food and beverages.
• Non-Vegetable Store - Sells chicken and mutton.
• Kirana I - Sells bakery products, dairy and processed food, home and
personal care and beverages.
• Kirana II - Sells categories available at a kirana – I store plus cereals,
pulses, spices and edible oils.
• Apparel - Sells men’s wear, women’s wear, innerwear, kinds & infant
wear.
• Footwear - Sells men’s wear, women’s wear, kid’s wear
• Customer durables & IT- Sells electronics, durables & IT products.
• Furnishing - Sells home lines & upholstery.
• Hardware - Sells sanitary ware, door fitting, tiles.
• General mechanize - Includes lighting, stationery, toys, gifts &
crockery. 21
 Facts about Indian AIBS

Retail Sector
• Size of Indian Retail Market is $520 billion
• The market share of organized retail is
only 7%
• Over the next 10 years, the growth of
organised sector is expected at 25% vis-à-
vis the growth rate of 5% in traditional
sector
• Retail sector contributes 22% in the GDP
of India
22
 Drivers of Retail Change AIBS

in India
• Changing Income profiles
• Changes in Consumption Patterns
(Increase in discretionary spending)
• Emergence of young earning India
• Emergence of Double Income households
• Increased credit friendliness

23
 Prominent Sectors in AIBS

Indian Retail
1. Food & Grocery (69%)
2. Apparel (8%)
3. Jewellery (6%)
4. Consumer Durables & IT(6%)
5. Pharmacy (2%)