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EVOLUTION OF RETAIL FORMATS
PRESENTED BY
EMMANUAL JO
EVOLUTION :
• THE FIRST DEPARTMENT STORES “BON MARCHE” WAS SET UPIN 1852 IN PARIS.
• BORN MARCHE RVOLUTIONIZED RETAIL AT TIME BY RELYING ON VOLUME RATHER THAN
ON HIGH MARK UP.
• SUCCESS OF BORN MARCHE LET OTHER DEPARTMENT STORES UP IN EUROPE AND
AMERICA
• THE FIRST CHAIN STORE WASA&P (ATLANTIC & PACIFIC)-A GROCERY STORE FOUNDED IN
1859 BY GEORGE F FILMAN
• THE WORLD WITNESSED THE NEW FORM OF RETAIL WHEN MONTGOMERY WARD
LAUNCHED
THE FIRST MAIL ORDER CATALOGUE IN 1870
• ANOTHER IMPORTANT CHAIN STORE WAS FW WOOLWORTH SET UP IN 1879
EMERGENCE OF SELF SERVICE :
• RETAIL EVOLVED IN MANY WAYS OVER THE TWENTIETH CENTURY
• SELF SERVICE AS A CONCEPT STARTED IN 1916 WHEN CLARANCE SAUNDERS STARTED THEIR
FIRST SELF SERVICE STORE “PIGGLY WIGGLY” IN MEMPHIS, TENNESSEE
• THE CONCEPT OF SELF SERVICE HELPED THE RETAILER REDUCE COSTS, AS FEWER WORKERS
WERE REQUIRED TO SERVICE THE CUSTOMERS
SUPER MARKETS :
• 1930’S SAW THE EMERGENCE OF SUPERMARKETS
• THE FIRST HYPERMARKET THAT AS DEVELOPED WAS IN CARREFOUR FRANCE, IN 1963
• NEW FORMATS GAVE AN OPPORTUNITY TO PICK UP PRODUCTS, COMPARE WITH OTHERS AND
THEN TAKING A DECISION OF BUYING
• PROVIDING ALL INFORMATION REGARDING PRICE, WEIGHT, DATE OF MANUFACTURE AND
EXPIRY ON PACKAGES TO AID DECISION MAKING
SUPERMARKETS AND HYPERMARKETS :
The mass merchandisers worked on three principles, which have nowbecome the fundamental principles
of modern selling
• Theyfixed product prices before sale, and customers bought at the set prices
• Prices were determined on the basis of stock turns and the amountof profitthat would be generated from
the product
• They departmentalized the products Accounting systems were devised to determine the contributionof
various departments. This enabled them to dropunprofitable goods
SPECIALITY STORES, MALLS AND OTHER
FORMATS :
• THE NEEDS OF THE CUSTOMERS GREW AND CHANGED
• THIS ENSURED THE EMERGENCE OF COMMODITY SPECIALIZED MASS MERCHANDISERS IN 1970S
• SEVENTIES ALSO SAW THE USE OF TECHNOLOGY BY WAY OF INTRODUCTION OF THE “BARCODE”
• SPECIALTY CHAINS DEVELOPED I THE 1980S AS DID THE LARGE SHOPPING MALLS
• SHOPPING MALLS WERE CREATED O PROVIDE FOR ALL OF HE CONSUMER’S NEEDS IN A SINGLE
SELF CONTAINED SHOPPING AREA
RISE OF THE WEB :
• THE WORLD OF RETAIL CHANGED YET AGAIN WHEN IN 1995, AMAZON. COM OPENED ITS DOORS
TO A WORLD WIDE MARKET ON THE WEB
• EVOLUTION OF RETAIL FORMATS WORLDWIDE HAS BEEN LARGELY INFLUENCED BY A CONSTANTL
CHANGING SOCIAL AND ECONOMIC LANDSCAPE
• ONE OF THE MAIN REASONS FOR NEW FORMATS EMERGING IS THE CONSUMER HIMSELF
• TODAY'S CONSUMER IS MORE DEMANDING AND IS FOCUSED ON WHAT HE WANTS
• RETAILER ON THE OTHER HAND HAS BEEN INFLUENCED BY AVAILABILITY OF REAL ESTATE AND
ITS INCREASING PRICES HE IS FACING WITH
• HE IS FACED WITH THE CHALLENGE OF ADDING ON NEW SERVICES AND THE NEED FOR
DIFFERENTIATION
• THIS HAS LED TO SPECIALIZATION AND THE EMERGENCE OF SPECIALISTS
• SUPPLY CHAIN COMPLEXITIES AND INCREASING PRESSURE ON MARGINS HAS ALSO FORCED
THE RETAILERS TO LOOK AT NEW FORMATS
THANK YOU

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Evolution of retail formats

  • 1. EVOLUTION OF RETAIL FORMATS PRESENTED BY EMMANUAL JO
  • 2. EVOLUTION : • THE FIRST DEPARTMENT STORES “BON MARCHE” WAS SET UPIN 1852 IN PARIS. • BORN MARCHE RVOLUTIONIZED RETAIL AT TIME BY RELYING ON VOLUME RATHER THAN ON HIGH MARK UP. • SUCCESS OF BORN MARCHE LET OTHER DEPARTMENT STORES UP IN EUROPE AND AMERICA • THE FIRST CHAIN STORE WASA&P (ATLANTIC & PACIFIC)-A GROCERY STORE FOUNDED IN 1859 BY GEORGE F FILMAN • THE WORLD WITNESSED THE NEW FORM OF RETAIL WHEN MONTGOMERY WARD LAUNCHED THE FIRST MAIL ORDER CATALOGUE IN 1870 • ANOTHER IMPORTANT CHAIN STORE WAS FW WOOLWORTH SET UP IN 1879
  • 3. EMERGENCE OF SELF SERVICE : • RETAIL EVOLVED IN MANY WAYS OVER THE TWENTIETH CENTURY • SELF SERVICE AS A CONCEPT STARTED IN 1916 WHEN CLARANCE SAUNDERS STARTED THEIR FIRST SELF SERVICE STORE “PIGGLY WIGGLY” IN MEMPHIS, TENNESSEE • THE CONCEPT OF SELF SERVICE HELPED THE RETAILER REDUCE COSTS, AS FEWER WORKERS WERE REQUIRED TO SERVICE THE CUSTOMERS
  • 4. SUPER MARKETS : • 1930’S SAW THE EMERGENCE OF SUPERMARKETS • THE FIRST HYPERMARKET THAT AS DEVELOPED WAS IN CARREFOUR FRANCE, IN 1963 • NEW FORMATS GAVE AN OPPORTUNITY TO PICK UP PRODUCTS, COMPARE WITH OTHERS AND THEN TAKING A DECISION OF BUYING • PROVIDING ALL INFORMATION REGARDING PRICE, WEIGHT, DATE OF MANUFACTURE AND EXPIRY ON PACKAGES TO AID DECISION MAKING
  • 5. SUPERMARKETS AND HYPERMARKETS : The mass merchandisers worked on three principles, which have nowbecome the fundamental principles of modern selling • Theyfixed product prices before sale, and customers bought at the set prices • Prices were determined on the basis of stock turns and the amountof profitthat would be generated from the product • They departmentalized the products Accounting systems were devised to determine the contributionof various departments. This enabled them to dropunprofitable goods
  • 6. SPECIALITY STORES, MALLS AND OTHER FORMATS : • THE NEEDS OF THE CUSTOMERS GREW AND CHANGED • THIS ENSURED THE EMERGENCE OF COMMODITY SPECIALIZED MASS MERCHANDISERS IN 1970S • SEVENTIES ALSO SAW THE USE OF TECHNOLOGY BY WAY OF INTRODUCTION OF THE “BARCODE” • SPECIALTY CHAINS DEVELOPED I THE 1980S AS DID THE LARGE SHOPPING MALLS • SHOPPING MALLS WERE CREATED O PROVIDE FOR ALL OF HE CONSUMER’S NEEDS IN A SINGLE SELF CONTAINED SHOPPING AREA
  • 7. RISE OF THE WEB : • THE WORLD OF RETAIL CHANGED YET AGAIN WHEN IN 1995, AMAZON. COM OPENED ITS DOORS TO A WORLD WIDE MARKET ON THE WEB • EVOLUTION OF RETAIL FORMATS WORLDWIDE HAS BEEN LARGELY INFLUENCED BY A CONSTANTL CHANGING SOCIAL AND ECONOMIC LANDSCAPE • ONE OF THE MAIN REASONS FOR NEW FORMATS EMERGING IS THE CONSUMER HIMSELF • TODAY'S CONSUMER IS MORE DEMANDING AND IS FOCUSED ON WHAT HE WANTS • RETAILER ON THE OTHER HAND HAS BEEN INFLUENCED BY AVAILABILITY OF REAL ESTATE AND ITS INCREASING PRICES HE IS FACING WITH • HE IS FACED WITH THE CHALLENGE OF ADDING ON NEW SERVICES AND THE NEED FOR DIFFERENTIATION
  • 8. • THIS HAS LED TO SPECIALIZATION AND THE EMERGENCE OF SPECIALISTS • SUPPLY CHAIN COMPLEXITIES AND INCREASING PRESSURE ON MARGINS HAS ALSO FORCED THE RETAILERS TO LOOK AT NEW FORMATS