1

Mini Project - 2Report

On

“Emerging Technology in Retail Industry”

Submitted for the partial fulfillment of the Award

Of

Master of Business Administration

DEGRE
E
(Session : 2023 - 2024)

SUBMITTED BY
PRIYANSHU GAUR
2023M0701073

UNDER THE GUIDANCE OF

Dr. Bhawna Garg

ABES BUSINESS SHOOL, GHAZIABAD

AFFILIATED TO
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY (FORMERLY
UTTAR PRADESH TECHNICAL UNIVERSITY), LUCKNOW (FS-14)
 Student Declaration

I Priyanshu Gaur hereby declare that the work which is being presented in this report entitled
“Retail Industry”.is an authentic record of my own work carried out under the supervision of
Dr.
“Bhawna Garg”.

The matter embodied in this report has not been submitted by me for the award of any other
degree/ Diploma/ Certificate.

ABES Business School Priyanshu Gaur

Date :

Head of Department Certificate

This is to certify that the work which is being presented in this report entitled “Retail
Industry”is an authentic record of the student carried out under my supervision. The statements
made by the candidate are correct to the best of my knowledge.

Prof. (Dr.) Ajay Singh Name of Supervisor: Dr. Bhawna Garg

Director ABES Business School
ABES Business School Date:
Date:

(Seal of the Department/ College)

Acknowledgement
This Endeavour is the result of hard work whereby I am highly indebted to many
people who directly and indirectly helped me for its successful completion. First and
foremost I would like to place on record my ineffable indebtedness to my major
adviser Dr. Bhawna Garg for his conscientious guidance and constructive
 suggestions at every step and excellent suggestions by devoting his precious time in
the midst of his busy schedule and for kind sympathetic attitude during the Mini
Project Work. I thank him for his creative criticism and valuable suggestions for
improving the quality of this work during the Second semester MBA programme.

DATE: PRIYANSHU GAUR

 TABLE OF CONTENTS

Serial Number Topic Page No.

1. Introduction 01

2. Market Growth Rate 01

3. Market Structure 02

4. Major Players 02

5. Industry Indicators 03

6. Industry Drivers 05

7. SWOT 06

8. PESTLE 09

9. PORTER’S Five Force Model 11

10. Critical Issue 12

11. Business Trends 13

12. Emerging Technology 16

13. Impact of pandemic on industry 17

14. Conclusion 18
 INTRODUCTION
All companies that sell goods and services to consumers are part of the retail industry. Retail
sales include grocery, convenience, discounts, independents, department stores, DIY,
electrical, and specialty shops. There are a large number of workers in the retail industry
worldwide, which shows steady growth year after year. The industry is highly competitive,
fast-paced, and vital to the economy.
In an increasingly competitive landscape, retail industry players must compete in several
ways.
These days, consumers want first-rate customer service and an integrated shopping
experience. The rise in Omni channel retailing is a confirmation of this. Consumers want to
combine the benefits of traditional shopping with the convenience of using modern
technology. Consumers may now be shopping online using their tablets or smartphone. They
could also be on the high street in a bricks-and-mortar store. Consumer appetite for retail
sales has remained robust. As such, retailers must now provide a hassle-free, seamless
experience for the consumer to remain competitive.
As consumers protract to spend money in the retail sector, it is important to know that your
brands are competitive and that the quality is robust. Retail organizations must thus ensure
that the quality of products is maintained throughout the supply chain.
As it offers a wide range of services to provide you with the comprehensive retail industry
wringer and insights you should have to ensure that your visitor remains a top player. We will
alimony you well-informed of any important, current industry changes and insights so that
you can protract to stay competitive
 MARKET GROWTH RATE
As per Kearney Research, India’s retail industry is projected to grow at a slower pace of 9%
over 2019-2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and increasingly
than US$ 1.8 trillion by 2030.

Revenue of India’s offline retailers, moreover known as brick and mortar (B&M) retailers, is
expected to increase by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20. India’s
uncontrived selling industry would be valued at US$ 2.14 billion by the end of 2021.

According to the Retailers Undertone of India (RAI), the retail industry achieved 93% of pre-
COVID sales in February 2021; consumer durables and quick service restaurants (QSR)
increased by 15% and 18% respectively.

After an unprecedented, ripen of 19% in the January-March 2020 quarter, the FMCG industry
displayed signs of recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. The
growth witnessed in the fast-moving consumer goods (FMCG) sector was moreover a reflection
of positivity recorded in the overall macroeconomic scenario tween opening of the economy and
easing of lockdown restrictions.

E-Retail has been a boon during the pandemic and equal to a report by Bain & Company in
Undertone with Flipkart ‘How India Shops Online 2021’ the e-retail market is expected to grow to
US$ 120-140 billion by FY26, increasing at approximately 25-30% p.a. over the next 5 years.
India has the third-highest number of e-retail shoppers (only overdue China, the US). The new-
age logistics players are expected to unhook 2.5 billion Direct-to-Consumer (D2C) shipments by
2030. Online used car transaction penetration is expected to grow by nine in the next 10 years.
During the festival period in 2020, Amazon, Flipkart and various vertical players sold goods
worth US$ 9 billion despite the pandemic onslaught.
MARKET STRUCTURE
 MAJOR PLAYERS

1. Reliance retail limited: - India’s largest retailer by reach, scale, revenue, profitability, and
India’s biggest retail company. Established presence wideness key
consumption baskets and holds a leadership position in food, consumer electronics and maleate
retailing. 10,415 stores tent 22 million sq. ft. zone Reliance Retail operates the most
widestretching store network in the country. It is first among top retail visitor in India.

2. Future Retail Limited: -

Future Retail operates some of India’s most popular retail village serve millions of customers in
increasingly than 400 cities in every state of the country through digital platforms and over 2000
stores that imbricate over 16 million square feet of retail space.

Future retail is the second-largest top retail visitor in India without reliance retail. The
company’s presence through Big Bazaar hypermarkets and increasingly recently through Food
hall gourmet stores, allows it to target the unsharpened navigate section of customers. It is one of
the largest listed retail companies in India.

3. Avenue Supermarts Ltd: -

D-Mart is a one-stop supermarket uniting that aims to offer customers a wide range of vital home
and personal products under one roof. Each D-Mart store stocks home utility products –
including food, toiletries, eyeful products, garments, kitchenware, bed and suffuse linen, home
appliances and more.
Mr. Radha kishan Damani and his family to write the growing needs of the Indian family started
D-Mart. From the launch of its first store in Powai in 2002, D-Mart today has a well-established
presence in 188 locations wideness Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh,
Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.

4. Aditya Birla Fashion & Retail Ltd: -

Aditya Birla Maleate and Retail Ltd. (ABFRL) emerged without the consolidation of the branded
wardrobe businesses of Aditya Birla Group comprising ABNL’s Madura Maleate semester and
ABNL’s subsidiaries Pantaloons Maleate and Retail (PFRL) and Madura Maleate & Lifestyle
(MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Maleate and Retail
Ltd.

ABFRL is India’s No 1. Maleate Lifestyle entity with combined revenue of INR 8,118 crore for
FY 2019 and EBITDA of INR 619 crore for FY 2019. Birla Maleate is the largest Maleate listed
retail companies in India.
Established in 1991, Shoppers Stop is India’s pioneering retailer and effectively, the highest
benchmark in modern retail. Spread wideness 210 multi-format stores in 39 cities.
The Company’s Retail operations segment includes trading of apparels, non-apparels, such as
cosmetics, household items, supplies products, books and meaty discs (CDs). The Company’s
Other segment consists of the gaming business.

The Company offers a range of national and international brands wideness categories, such as
Maleate apparel, accessories, cosmetics, perfumes, homeware, and others.
 INDUSTRY INDICATORS
Foot Traffic:

Diving deeper into foot traffic is beneficial, as this important KPI sets the stage for numerous
salesrelated metrics inside the store. Maintaining an ongoing tally of foot traffic, or customers
who unquestionably walk through your door, helps you to gauge you marketing and razzmatazz
campaigns’ effectiveness. Door traffic can moreover provide clues on your window displays’
appeal.

Unit Per Transaction: -

Your store’s Units per Transaction (also known as Average Items per Transaction) is one of
retail’s most important key metrics It shows the average number of items customers buy in a
specific transaction. Higher Units per Transaction (UPT) means customers are piling more
items in their carts during each visit.

Sales Per Employee: -

Tracking your retail store’s Sales per Employee gives you a running snapshot of your sales
associates’ performance. This data can help you in planning work schedules and sales
incentives.
Sales Per Square Foot: -

Sales per square foot is exactly what it sounds like: it’s a measure of the revenue generated per
square foot of sales space in your store. To grasp this KPI’s full impact, think of your store’s
sales floor as a powerful engine that drives the business’ success. For the engine to run at
maximum efficiency, every square foot of sales space must pull its weight, or generate
unbearable revenue to enable you to meet present operational goals.

Conversion Rate: -

Whether you're a small merchant or an enterprise, your retail conversion rate is a key metric to
track. It measures the proportion of shoppers’ store visits compared to the number of shoppers
who unquestionably bought something. This number shows your store’s skill at turning
unstudied browsers into buyers who will bring in valuable sales dollars.

Gross Profit & Net Profit: -

If you’ve overly taken an Accounting 101 class, you’ll remember that gross profit and net profit
are key metrics for every business. Your gross profit shows your income without subtracting the
expenses involved in producing and selling your products. Your net profit includes those
expenses, withal with your merchant operations expenses. Examples include legalistic costs,
utilities, insurance, and others.

Year-over-Year Growth: -
Measuring year-over-year growth can provide you with the answer. Briefly compare your
current year’s results versus the same factors for the previous year. If experienced steady (or
rapid) merchant growth, unmistakably doing numerous things right. However, if your merchant
growth has stalled lately, some retooling is probably needed. Stock Turn / Inventory
Turnover: -
Stock Turn (or inventory turnover) refers to the number of times your joint inventory turns over
(or sells) during a specific time. By unceasingly monitoring this KPI, you can judge your sales
strategies’ effects on the store’s longer-term profitability. A low stock turn ways selling products
too slowly, and waning consumer interest can leave you stuck with unwanted inventory.

Sell-through Rate: -
Another one of those key metrics in retail, Sell-through Rate will indicate how well
merchandise moves through your store. A specific product’s sell-through rate is the
percentage of items sold compared to the number of items available for sale. Knowing a
product’s sellthrough rate enables you to revise your purchase decisions accordingly.

Gross Margin Return on Investment (GMROI):-

Gross Margin Return on Investment (GMROI) measures the amount of profit you receive
from the retail inventory you purchase. Essentially, this figure tells you whether your
merchandise has turned a profit.

Average Transaction Value: -

If you want to determine how much each customer spends in your store, on average, the
average transaction value will provide you with the answer. If it’s a high number, that
customer is either buying multiples of one or more products, or they’re springing for a
couple of higher-dollar items.
 INDUSTRY DRIVERS

Consumer: -

A. Brand Recognition: - A consumer with a greater purchasing power is now eyeing

quality products, which leads to brand recognition. Consumers are demanding
more products and convenient product and/or services which kirana & mom and
pop stores Are unable to fulfil primarily due to scale of business and cost.
B. Change In Mindset: - Due to rising incomes and urbanizations, the consumer
expects and demands a hassle free shopping environment. Retailers have also
taken a note about the extreme price-conscious attitude of customers. Hence, they
have started adopting strategies, which will help customers perceive them as
money savers. Thus, bringing more footfalls and sales.

Supply Side Evolution: -

A. New Entrants: - The market will see international retailers who will enter the
market while already existing one is top up their organizations with more
investments. In addition, the domestic players will continue to battle both
domestic & international players for the retail market pie, which is eventually
going to burden low margins and increase cost pressures. However, this a win-win
for the consumer as he/she will enjoy the best products & services at his/her
convenience while all retailers fight for his/her wallet. Pressure of existing & new
entrants will definitely lead to consolidation(s) in the industry in near future, as the
big sharks will continue to swallow small fishes in the ocean.
B. New Format: - Companies need to continuously reinvent keeping in mind their
target segment(s). They need to keep experimenting & be prepared for both
success and failures. A successful innovative format if found, can quickly increase
footfalls -> More conversions -> increased sales -> more cash flows for the
retailers. This concept can also be replicated easily anywhere in the country.

C. Differentiated Strategies: - Retailers need to understand their target customers be

very clear on what to chase or not. A clear differentiated strategy will help them to
develop and provide an unique experience to the customer. Retailer have to do
something special, something outside the box that impacts community in a special
way, and qualify them to become “purpose driven retailers”. It can lead to a better
and bigger chunk of customer’s basket for the retailer. It will the help the retailer,
further, in building brand loyalty and trust with customer.

Positive Regulatory Environment:

For international retailers such as Walmart, Amazon, Alibaba, Metro, etc…, this is one of
the most challenging bottlenecks they face in the country. These retailers are
committed/obsessed to serve and delight the customers by bringing them best products at
best prices through economies of scale, ruthless negotiations and more. These bottlenecks
hinder retailers in reaching their full potential which will increase the competition
manifolds in the market and lead to wide ranges of product offerings for the customer.
TOOLS USED TO ANALYZE SWOT OF RETAIL INDUSTRY

1. Strengths: -

• Location: -
Prime location plays a significant role in the growth and productivity of any business. If the
location of your retail store is at a crowded place where people come and go all the time.
Naturally, the sale of such retail stores is much higher and it would overdraw the income and
revenue stream.

Along with the main location of your store, the exhibit and well-lighted place would remoter
vamp the sustentation of customers. They would definitely visit your store plane if they don’t
have to buy anything. If they like it, then they would visit it then and again.

• Innovative Sales Techniques: -

The foot traffic on your store is just one type of random people visiting your establishment, and
some of them would buy anything there. Along with the traditional form of sale, the store is
using its reputation and reviews/testimonies of customers as a marketing technique to convince
them to buy your product or service. The big fonts, wink colors, and tricky slogans in the store
increase the company’s sales.

• Relationship Marketing: -

If the sales staff and the owner develop a positive and friendly professional relationship with
customers, then they can make them do the repetitive purchasing. It way sending them a
newsletter, informing them well night the latest offer, and promotional deals. However, when you
timely inform them well night your offers, then it would overdraw the sales.

• Supply Chain Agreement: -

If the retail store has an constructive relationship with its supply uniting and they would
make sure the timely availability of products and services at the store. It would be
differentiating factors and offer the store a unique competitive edge. Customers would be
confident that the product or service is misogynist there at the store.

2. Weakness: -

• Not Specific: -
Not specific ways that retail store is not focused on one category of product or service. The
store is offering a wide range of products and services to the end customers. However, we’re
living in world of specialization and niche marketing, and the consumer market is leaving
overdue the unstipulated offers.
• Limited Industry Experience: -
The well-experienced and knowledgeable workforce is a great asset to the company. They can
increase the company’s sales, growth, and productivity. The employees working at the
company’s retail store don’t have enough experience to properly deal with the customers and
increase the sale. Resultantly, the conversion rate and overall sale of the company is down to
great extent.

• Not Recognized Brand Name: -

Brand name matters and speaks on your behalf, and it ensures customers that the store is
trustworthy and offers quality products. If your retail store is new and doesn’t have a well-
known brand name, then customers would be reluctant to trust your offers and tryout
anything. Therefore, it would take a lot of time and consistency for the customers to trust
your products and services.

• Small Store Size: -

Along with brand name and reputation, the size of the store also matters. If the storage size is
small and could host only a few people and the other people would go to other shops and
stores nearby. However, it’s something that you can’t tackle and deal with because the bigger
store would cost more. It isn’t possible in some places.

3. Opportunities: -

• Demographic Increment: -
If your store is only targeting a young audience aged from 18 to 25, male, or female, then it’s
a very limited market demographic. You should consider offering a variety of products and
services to the customers. The variety and wide range would increase your market influence,
and it would attract more people and bring them to the store.

• E-commerce Trend: -
The pandemic has e-commerce business and online shopping trends. Businesses and
companies that had their e-commerce store in place, sales increased to a great extent. If the
retail store works on launching an e-commerce store and promoting it on social media, then it
would amplify the sale to a great extent.

• Geographic Expansion: -
Another benefit of an e-commerce store is that it would allow the retail store to expand
geographically. The geographic expansion would be a huge plus point and you can sell your
products/services anywhere from one place across the globe.
 You should also consider launching the same types of retail stores in the other cities, where
the market saturation rate is low. It’s a step-by-step process, and it would increase sales and
profitability.

• Backward Integration: -
Backward integration means acquiring the supply chain or the manufacturer in order to stabilize
their market position. Many successful companies follow the backward integration strategy, it would allow
them to gain control over the supply chain and make sure the availability of the product all the time in the
store.

4. Threats: -

• Location: -

It’s no doubt prime location points offer advantages to any business, but the cost of the prime
location is very high. Relocating your business to the new location would cost you a lot, and it
doesn’t guarantee that your business would make the same profit whatever competitors are
making it. All of your investment would go to dump if the store doesn’t make any profit.

• High Rental Cost: -

The rental cost is increasing for the past few years, and it has decreased the profit margin of
the store to a great extent. The store owner has got no other choice, but to pay it, because if it
doesn’t, then the other businesses would be willing to pay for the same spot.

• Exchange Rate: -
If your retail store has also got an online store and distributing its products/services in the
other countries. It means that the store is dealing with various types of currencies, and that’s
where the role of exchange rate comes into play. Different currency exchange rates on various
days would impact your profitability greatly.

• Changing Trends: -
The other uncontrollable factor is the changing market trends and customer preferences. For
instance, you’ve made a huge investment and filled your store with a product that the
customers either don’t want or it’s out of fashion. Your acquisition and investment in the store
would be a great loss.
 PESTEL OF RETAIL INDUSTRY

Political:-
The revenue and profitability of any retail store are affected by government policies. These
regulations impact the economy, consumer buying habits, and international trade laws. The
only thing left for the company to do about these changes is abide by them.

Each country must abide by their political regulations. The regulations affect which products
can be imported, exported, and sold in stores. Stores offering food products must comply
with health guidelines proposed by the government. If they don’t, not only will the food by
pulled from the shelves, but it could also lead to legal troubles for the company.

It’s not only physical retail stores under scrutiny. We’ve seen shifts in how e-commerce
retail leaders operate over the last few years. Antitrust issues and data breaches are causing
the government to look into how data is stored, used, and shared. This affects the retail
industry, particularly big names like Wal-Mart and Amazon, who provide products online.

When retail stores branch into other countries, they need to abide by the policies in that
country too. In some cases, this can be beneficial. But if the country’s political parties are
fickle, it can easily turn into a problem.

• Economic: -

A stronger economy allows consumers to buy products they want. Rather than just buying
products they only need. It also means more investors are becoming interested in the
profitability offered by retail stores. This is only possible when the economy is on the rise.
When it’s on the decline, the opposite is true. People save their money for products of
necessity. They’ll spend the bare minimum on food while the rest goes towards unpaid bills.
This can happen when unemployment rates spike. Or when a certain industry is hit harder
than others.

The retail industry was able to hold itself up even during the recession. It’s one of the few
industries who managed to scrape through. By 2020, the industry may see global sales
nearing $30 trillion. Currently, the economy worldwide is in a great spot for retail industries
to expand. Customers have more disposable income to spend on frivolous products.
However, if the economy is poor, it doesn’t matter how many products are offered. Because
no one can afford or justify the purchases. Unless the retail corporations react accordingly
(cutting prices), they’ll suffer profit loss.
 Social: -
Consumer preferences are the main social factors affecting the retail industry. For instance,
people enjoy buying products in bulk. This is the exact premise behind Costco, a Canadian
retailer. Here you can find food products, clothing, and electronics, in large quantities. Stores
other than Costco now mass stock various products to avoid running out quickly.

These products aren’t bought by retailers on a whim. They use market research to identify
buying trends and shifts in consumer behavior. Understanding these two things helps to find
items more likely to boost profits.
Retailers who offer products online can collect data provided by their customers. They can
easily see which products people are buying, leaning towards, or completely ignoring. Then,
they shape their offerings based on this data. It’s a never-ending process.

Companies set targeted ads to customers most likely to visit their stores and buy from them.
Larger retailers can achieve this easier than mom and pop shops. But even smaller shops can
benefit from offering discounts and sales on products. All consumers love a good deal.

Technology: -

Retail stores use a variety of technology every day. Like a point of sales system. As well as
cash registers to manage money after a sale. It’s standard for any store. As technology
advances, stores are adopting new systems, software, and hardware. For instance, smaller
stores are making the shift to computers or iPads at the register. It’s fast and easy to use.

The retail industry has greatly benefited because of the internet. Not only to streamline
services, but also to reach audiences worldwide. Most companies have a business website. It’s
basically a digital catalogue for their products. Big name companies are able to offer a
selection online. The products are either shipped to the customers’ home or the closest store
for pickup.

Amazon and Walmart are going head-to-head. Each company offers retail products online, to
be sold and shipped. Other small name companies can’t compete on the same scale. That
doesn’t mean they should avoid having a business website or showcase their products online.
It just means they don’t have the means to meet the same demands as the bigger retailers.

Environmental: -
More retail shops are offering food products. The state of the environment affects the quality
of the product and the selection. It also means having to abide by more economic and political
factors. For instance, corporations fear a “soda” tax; it’s an increased tax for selling soda in
stores. Likewise, some shops in other countries have to paya tax for offering fatty foods.

Legal: -
A retail store needs to meet legislative conditions before opening the shop. These conditions
are often standard. It includes abiding by taxation laws, labor laws, and more. Legal factors
become trickier once the company expands overseas or offers products online. Then the
international laws come into play. As does data and copyright laws.
 Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and
foreclosure. It’s important to understand the laws long before the store is open for business.
And as the retailer grows, new legislative laws come into effect.

PORTER’S FIVE FORCE MODEL

1. Buyer Power: -

The first important force is the bargaining ability of buyers, who can choose to push down
prices, not buy products, or switch retailers. In the case of the fashion industry, buyer power is
a relatively large force.
While clothes shoppers are typically individuals with little to none direct bargaining power
(as compared to huge companies, buying in bulk, who might be the main clients in other
industries), they have many alternative locations to shop for apparel and little incentive to stay
with one particular company, giving them plenty of indirect bargaining power.

2. Supplier Power: -

In the fashion retail industry, supplier power is a relatively small and insignificant force. Most
apparel companies source their products from third world manufacturers who receive just
fractions of the profit. Suppliers have little control over the fashion industry as, unfortunately,
they are dispensable and can always be swapped out.
As a result, input prices for this industry are relatively low and will stay there until the global
development gap closes up significantly.

3. Competitive Rivalry: -
The fashion industry is an interesting one when it comes to analyzing through the intensity of
competitive rivalry. There are large numbers of retailers who sell very similar products, but
there’s also the concept of brands, which allow some companies to sell apparel for ridiculous
rates. Nowadays there is little innovation in this space, so the market is quickly becoming
saturated with very similar products.

4. Threat of New Entries: -

As mentioned previously, there is little that is unique to bring to the table in this industry, so
this force is also somewhat small. However, new entries might find unique ways to popularize
their own products (which might not even be particularly special), and as such build novel
brands — perhaps through clever use of social media.

5. Threat of Substitution: -
Fortunately for those in the fashion retail industry, there is little to substitute clothes with. This
force is almost negligible — all ‘substitution’ in the fashion industry is really just competition. To
sum up, the fashion industry seems difficult to successfully dive into, and bleak for companies
already within this space.
This Five Forces analysis has shown that while there are few threats and little supplier
bargaining power, it is not good that the market is effectively nearing saturation. Buyers have
large amounts of indirect power to bargain with — i.e. plenty of choices — and lots of
competitors make it hard to sustain a place in the market.

CRITICAL ISSUE OF RETAIL INDUSTRY

1. Natural Catastrophes: -
For many insureds, property damage is one of the first issues that comes to mind after a
natural disaster. Buildings can flood, catch fire or succumb to heavy winds. In 2017, insurers
faced bills of $135 billion for damages caused by wildfires, hurricanes and earthquakes.

For retailers, damage to their warehouses and brick and mortar operations aren’t the only risk
they have to worry about when natural disaster strikes. They also have to worry about product
damage, business interruption and data loss.

As global climate change continues to increase the number of natural disasters that occur and
their severity, retailers should brace themselves for major losses caused by both product and
property damage.

2. Supply Chain: -

Mounting tensions caused by America’s trade war with China, the looming threat of a no-deal
Brevity and a rocky G7 summit are all causing global trade to seem increasingly unstable and
retailers are facing a lot of uncertainty when it comes to the supply chain.

3. Cyber Attacks: -

While recent media coverage of cyber-attacks has focused on tech companies, retail
companies remain a prime target for hackers.
Nearly every cyber security report released over the past few years has retail among the top
industries for attacked organizations, according to Forbes. With e-commerce accounting for
an ever-increasing amount of transactions, retailers are expected to become more vulnerable.

4. A Decline in Consumer Spending: -

With consumers shouldering the costs of President Modi’s trade war with China and political
pundits speculating that a recession may be on the horizon, retailers should add a decline in
consumer spending to the list of risks facing their businesses.
According to the Post, the latest round of tariffs will result in a price hike on everything from
clothing and footwear to televisions and other electronics.

5. Product Boycotts: -

“Cancelled culture” and the rapid spread of activist movements on Twitter have made product
boycotts a staple of modern American culture.
Target faced boycotts by the American Family Association after they announced that they
would allow transgender customers to use the restroom that aligns with their gender identity.
A Starbucks boycott was sparked after the company announced they would hire refugees.

6. Amazon: -

If you think online shopping is just a threat to brick and mortar stores, you’re wrong. Even big
name retailers are struggling to grow their clientele in the face of online shopping giants like
Amazon.
Nearly 74% of consumers turn to Amazon when they need to purchase a product and CNBC
warns that statistic should keep retailers “up at night.” Overall, Amazon accounts for around
52% of the e-commerce market.
Many people also bypass search engines when they’re looking for a product and instead head
directly to Amazon’s site.

The dominance of Amazon in the online shopping domain should be particularly concerning
to retailers who are trying to grow their online business.
 BUSINESS TRENDS OF RETAIL INDUSTRY

1. Consumer Sales Have Generally Been Strong, Despite the Pandemic: -

2021 has seen a gradual re-opening of the world economy. As Deloitte phrases it, "The high
street re-opens." With more non-essential stores now operating, many consumers have gone on
a shopping binge. They are spending money they would typically spend on travel on other
things, like home improvement and consumer goods. Many places are also loosening
restrictions on the hospitality sector. This consumer-led recovery is likely to continue into
2022 and beyond.

2. Still a Threat of Ongoing Store Closures: -

The last few years have seen an avalanche of store closures. This trend began long before
COVID and was inevitable once online shopping began to take hold. However, the pandemic
has accelerated the movement, particularly with shops closing for extended periods during
lockdowns.

However, a return to "normal" post-COVID life is unlikely to reverse this trend. Thus, while
the closure rate may decrease, there will still be many more closures yet to come.
Real estate data tracker Costar reported that 40 major retailers (presumably in the USA)
declared bankruptcy in 2020, and more than 11,000 store closures were announced. This was
on top of 9,300 store closures in 2019.

3. Move Towards Online Shopping: -

The obvious counterpoint to the closure of brick-and-mortar stores has been an increase in
sales made by their online counterparts. According to a Verizon Look Forward study reported
by Retail Customer Experience, 60% of adults stated that they shopped mainly in person pre-
pandemic. That figure has fallen to 37% now. In addition, 42% of the survey participants
anticipate that they will be shopping in person and online equally in a year's time.

The exception to this trend is the dollar store sector which is expanding. Dollar stories
accounted for half the store openings in the US in 2020, and Dollar General has announced it
will add 1,050 locations in 2021.

4. Free Shipping and Speedy Delivery are Expectations for Many Consumers: -

At the moment, there is a conflict between consumer expectations and the realities of COVID.
Consumers may be doing much more of their shopping online, yet they still want access to
their purchases as soon as possible. They expect quicker deliveries than ever, and many
online players, such as Amazon, have put much effort into expediting this.
Unfortunately, COVID has led to a colossal shipping crisis, with delivery delays around the
globe. As we move away from COVID lockdowns, there should be some improvement in
world logistics, and average delivery times should come down again.

5. Expansion of the "At Home" Economy: -

During the pandemic, the "at home" economy emerged, and it appears to be remaining,
despite a widespread loosening of restrictions. Consumers have shifted their spending
priorities into

areas such as home cooking, online shopping, and consuming digital products.

Fewer people may be now working from home than a year ago, but there are still many people
who have discovered they enjoy the absence of a commute and have continued to work from a
home office at least a couple of days a week.

6. Physical Stores Redesign Spaces to Make Customers Feel Safe: -

Brick-and-mortar stores have realized that they have had to redesign their spaces to keep
customers separated and feeling safe. While they will undoubtedly reverse some of these once
COVID disappears, many will remain in place for some time yet.
Many customers still want to go to brick-and-mortar stores; they love the in-store experience
and prefer to physically interact with products before buying them. However, they need to

feel safe before they enter a store.

7. Greater Use of In-Store Self Checkouts: -

One example of store redesign has been increased use of self-checkouts (often allied with
contactless payments). According to the Verizon Look Forward study, 23% of the
respondents now use self-checkout.

8. Increase in Contactless Payments: -

Contactless payments may not have been invented during the pandemic, but they have
expanded in popularity over 2020-2021. According to the Verizon Look Forward study, about
one in three adults either used or heard about contactless credit cards (36%), contactless
mobile payments (33%), and grocery delivery services (38%) for the first time during the
Coronavirus pandemic.
 9. Retailers Discover the Advantages of AI: -
Retailers are increasingly using AI in their operations. It took some time for the internet of
things to move from concept to reality, but it is now commonplace. Typical uses of AI in
retail include inventory management, adaptive homepage, dynamic outreach, interactive chat,
visual curation, guided discovery, conversational support, customer engagement, and more.

10. Increased Use of Voice Search and Personal Assistants: -

Another specialist application for AI is an increase in the use of voice search and personal

assistants.

Google reports that 27% of people on the internet now conduct voice searches on their mobile
devices. It is particularly popular with Millennials and Generation Z, who prefer to talk into
their phones rather than type.
 EMERGING TECHNOLOGIES OF RETAIL INDUSTRY

1. Omni channel Customer Engagement: -

Customers interact with businesses over various channels — online searches, social media,
phone calls, chats, etc. — making it difficult for a company to synchronize the channels to get
a consistent view of customers, not to mention tailoring a personalized experience with each.
Therefore, Omni channel customer engagement is necessary for any business dedicated to
intentional interactions with customers. Companies like Contact Pigeon have made it their
business to work with retailers to implement this trend effectively.

2. Integrated Customer Data: -

Unified view of customers is the first step towards delivering a coherent retail journey for
customers.

Customer data integration (CDI) keeps a current record of customer information across a
business’s platforms and channels. Integrated customer view has proven to improve sales and
customer service (as employees can use the stored data to understand a customer’s specific
concerns better).

For example, Domino’s Pizza created Any Ware to serve as a single point for tracking orders
from smartwatches and uses this information to improve overall business performance.

3. Virtual Fitting Rooms: -

Virtual fitting software allows retailers to create custom-sized charts enabling customers to
find sizes and style profiles that best fit the customer’s needs. This technology is especially
beneficial for apparel companies, granting customers the ability to “try on” and purchase
clothing without having to leave the comfort of their homes.

Big retailers like Macy’s and Adidas are taking advantage of it with positive results.
According to virtual fitting room software company Zee kit their services have effectively
reduced retailers’ return rates by 36%.

4. Live Streaming: -
In-person shopping is a valuable part of the shopping experience. Yet, with recent social
distancing guidelines and stay-at-home orders, buying products from brick-and-mortar
storefronts is not always possible. That is where live-streaming shined in 2020, with services
like Amazon Live and Popshop Live being perfect examples.

The Interactive Advertising Bureau predicted that Livestream-generated sales would reach
$120 billion worldwide in 2021.
5. Integrated Loyalty Program: -
Any business owner knows loyalty is key, and a loyalty program proves to be an effective
method of building relationships with customers.
Swimwear retailer Cup she is an example of a company that found success with an integrated
loyalty program. In just three months, the brand increased customers’ spending by 53% and
boosted the repeat purchase rate by 42%.
 IMPACT OF PANDEMIC ON RETAIL INDUSTRY

The changes in the external environment surrounding the retail industry greatly altered
conventional wisdom and just might create a new structure and circumstances (a “new
normal”), which will have a wide range of impacts on politics, economy, and our lifestyles,
including the digital technologies that support them. After the Japanese government
announced a state of emergency, essential retail business which handle food and daily
necessities received a business continuity request from the government, but many other types
of retail business were forced to close. The impacts on the economy have been hard enough
that some say it will take about two years to recover. The retail industry, in particular, has
been severely affected since the government asked people to quarantine themselves, which
greatly restricted face-to- face service in stores. Our lifestyles as consumers have also been
forced to change dramatically. Staying at home and not going out to the store made online
purchasing spread widely among those who had not used it before. And due to the change in
workstyles resulting from people being forced to work remotely from home, life via online
channels has become normal. The digital technology that supports the online lifestyle has
been popular for some time, but its spread has accelerated explosively since the onset of the
pandemic.

CONCLUSION
 1. The Retail Sector in India can be split up into two, the organized and the unorganized.
The organized sector whose size is expected to triple by 2010 can be further split up
into departmental stores, supermarkets, shopping malls etc.

2. In terms of value the size of the retail sector in India is $300 billion. The organized
sector contributes about 4.6% to the total trade.

3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to
the employment of the country.

4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail
relating to household care, confectionery etc., have lagged behind.
5. The foreign retail giants were initially restricted from making investments in India.
But now FDI of 51% is permitted in India only through single branded retail outlets.
Multi brand outlets are still beyond their reach. Again they can only enter the market
through franchises. This was how Wal-Mart had entered joining hands with Bharati
Enterprises.

6. On line retailing is still to leave a mark on the customers due to lacunae that we have
already mentioned.
In a nutshell we may conclude that the retail industry in India has a very bright future prospect.
It is expected to enrich the Indian Economy in terms of income and employment generation.
REFERENCES

https://www.ibm.com/cloud/architecture/architectures/retai l-industry/reference-architecture/
https://www.loginradius.com/industry-retail-and-ecommerce/ https://www.inwebo.com/en/industries/retail/