The Performance of Stores at Oberon Mall

THE PER FO RM AN CE O F STORES AT
OB ER ON MA LL
Project report
Submitted to the Cochin University of Science and
Technology in Partial Fulfilment of the
Requirements for the Award of the Degree
of
MASTER OF INTERNATIONAL BUSINESS
By
SREE RAJ S.
(Reg No. 85470026)
Under the Guidance of
Dr. SAR AD A S.
Reader
SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
KOCHI- 682022, KERALA
APRIL 2009
Declaration
I Sreeraj S, hereby declare that this project report on “A study on the Performance of
stores at Oberon Mall, Ernakulam” is an authentic record of the work I have done at
Oberon Mall Ernakulam, submitted in partial fulfilment of the requirement for the
award of the degree of Master of International Business by the Cochin University of
Science and Technology, under the guidance of Dr. Sarada S. I have not undertaken
or submitted this work elsewhere in connection with any other academic course or
for the award of any other degree by other Universities or Institutions.
Place: Kochi
Date: Sreeraj
S
2
CERTIFICATE
This is to certify that I have guided Mr. Sreeraj S, fourth semester M.I.B. student of
the School of Management Studies who submits the project report on “The
Performance of Stores at Oberon Mall” done at Oberon Mall, Ernakulam in partial
fulfilment of the requirements for the award of the degree of Master of International
Business to the Cochin University of Science and Technology in 2009.
Dr. Sarada S. Prof. Dr. K B

Pavithran
Reader Director
Place: Kochi-22
3
Date
ACKNOWLEDGMENT
I am indebted to all those respected people for sparing their valuable time with
me for the realization of the Project work. This small space is insufficient to thank all
of them.
I thank God Almighty who blessed me with this wonderful opportunity to do
the study and enabled me to complete it successfully.
I am extremely thankful to Prof. Dr. K.B. Pavithran, Director, School of
Management Studies, who lend me this opportunity to do this study.
I express my heartfelt thanks to Dr.Sarada S. who provided me with timely
instructions and guidance for the successful completion of this study.
I am extremely grateful to Mr. Nishanth V K. Marketing Manager , Oberon
Mall., for her tireless effort and cooperation that helped me reach my destination.
I remember with gratitude all the teaching staff, colleagues and friends whose
cooperation and support helped me a lot to reach a fruitful stage.
4
Sreeraj S
CONTENTS
List of tables
List of figures
Annexure
Chapter Title PageNo
1. INTRODUCTION………………………………………………………...07
2. INDUSTRY PROFILE-A REVIEW…………………………………….10
5
3. COMPANY PROFILE …………………………………………………..37
4. RESEARCH METHODOLOGY……….……………………………….44
5. DATA ANALYSIS AND INTERPRETATION…………………………48
6. FINDINGS AND SUGGESTIONS…………………………………84
LIST OF TABLES
Table No. Title

Page No
2.1 Operational Malls/Shopping Centres in India as on 31st May, 2008
31
6
5.1- 5.8 The cross tabulated results for gender and age
49-57
5.9 Opinion regarding the first visit
57
5.10 Percentage of people who purchase from the store

58
5.11 Anova Table
59
5.12 – 5.19 Correlation table
60-75
5.20 Performance of stores
77
5.21 Approximate footfalls for the week from 12th jan to 18th jan 2009
78
7
LIST OF FIGURES
Figure No. Title Page

no
1. The GCDA shopping complex at Marine Drive in Kochi

38
5.1-5.8 Age classification of the respondents at different stores
49-57
Annexure
Annexure No. Title

Page no
1 Questionnaire for customers visiting the stores at the mall

79
2 Questionnaire for the store managers of the stores at the mall
8
82
3 Reference
88
CHAPTER 1
9
INTRODUCTION
INTRODUCTION:-
Retailing is the largest private sector industry in the world economy with the
global industry size exceeding $6.6 trillion, according to Euro monitor. The industry
is also one of the largest sources of organized employment generation, even though it
employs the latest technology in developed economies thereby reducing dependence
on human resources.
THE INDIAN RETAIL SCENE
10
India, like Britain, is also a nation of shopkeepers.India is the country having the
most unorganized retail market. Traditionally it is a family livelihood, where they run
their shop in front and the house at the back. With over 12 million retail outlets, India
has one of the highest densities of retail outlets in the world with one retail outlet for
every 90 persons. So retailing forms one of the pillars of the economy in India and
accounts for 35% of GDP. The Indian retail sector is estimated at around Rs13,30,000
crore, of which the organized sector accounts for a mere 8 per cent indicating a huge
potential market opportunity that is lying in the waiting for the consumer-savvy
organized retailer.
According to the India Retail Report 2009, the spiralling income and rising
economic growth retail is expected to constitute about 13 per cent of the total market
to reach Rs 2,30,000 crore. The modernisation of the retail sector would engage
around 15 million people in various activities by 2010.
Purchasing power of Indian urban consumer is growing and branded
merchandise in categories like apparels, cosmetics, shoes, watches, beverages, food
and even jewellery are slowly becoming lifestyle products that are widely accepted
by the urban Indian consumer. Indian retailers need to take advantage of this growth
and aim at growth, diversify and introduction of new formats have to pay more
attention to the brand building process. The emphasis here is on retail as a brand
rather than retailers selling the brands. The focus should be on branding the retail
business itself. In their preparation to face fierce competitive pressure, Indian
retailers must come to recognize the value of building their own stores as brands to
reinforce their marketing positioning and to communicate quality as well as value for
money. Sustainable competitive advantage will be dependent on translating core
values combining products, image and reputation into a coherent retail brand
strategy.
There is no doubt that the Indian retail scene is booming. A number of large
11
corporate houses Tata, Raheja, Piramals, Goenka have already made their foray into
this arena, with beauty and health stores, supermarkets, self-service music stores,
newage book stores, every-day-low-price stores, computers and peripherals stores,
office equipment stores and home/building construction stores. Today the organized
players have attacked every retail category. The Indian retail scene is witnessing
many players in too short a time, crowding several categories without looking at their
core competencies, or having a well thought out branding strategy.
12
CH AP
TE R 2
IN DUS TRY
PR OFI LE
13
INDUSTRY EVOLUTION
Traditionally retailing in India can be traced to
• The emergence of the neighbourhood Kirana stores catering to the

convenience of the consumers
• Era of government support for rural retail: Indigenous franchise model of

store chains run by Khadi & Village Industries Commission
The 1980s experienced slow change as India began to open up economy. At first
the textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim saw the emergence of retail chains. Later Titan successfully created an
organized retailing concept and established a series of showrooms for its premium
14
watches. The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to pure retailers. For e.g. Food World, Subhiksha and Nilgiris in food
and FMCG; Planet M and Music World in music; Crossword and Fountainhead in
books. Post 1995 onwards saw an emergence of shopping centers mainly in urban
areas, with facilities like car parking. It targeted to provide a complete destination
experience for all segments of society. The emergence of hyper and super markets
trying to provide customer with 3 V’s - Value, Variety and Volume.
GROWTH OF RETAIL SECTOR IN INDIA
Retail and real estate are the two booming sectors in India today. If the industry
experts are to be believed, the prospects of both the sectors are mutually dependent
on the other. Retail, one of India’s largest industries, has presently emerged as one of
the most dynamic and fast paced industries of our times with several players entering
the market.
Even though India's three-year reign as the most attractive

emerging market destination for retail investment has ended with the
Vietnam vaulting to the number one position in the seventh annual
Global Retail Development Index (GRDI)( a study of retail investment
attractiveness among 30 emerging markets conducted by management
consulting firm A.T. Kearney.). The Indian retail report says that
at present, the 13,30,000 crore Indian retail market is growing at
10.8 per cent of which the organised retail sector's contribution is
5.9 per cent at Rs 78,300 crore constituting roughly 13 per cent of
the total retail market.
Food and grocery dominated the retail segment with 59.5
per cent share valued at Rs 7,92,000 crore, followed by clothing and
15
accessories with a 9.9 per cent share at Rs 1,31,300 crore.The
report also says that the organized retail market in India is
expected to reach US$ 50 Billion mark by 2011.
RETAIL SALES IN INDIA
With over 1,000 hypermarkets and 3,000 supermarkets

projected to come up by 2011, India will need additional retail
space of 700,000,000 sq ft (65,000,000 m2) as compared to the present
day. Current projections on construction, point to a supply of just
200,000,000 sq ft (19,000,000 m2), leaving a gap of 500,000,000 sq ft
(46,000,000 m2) that needs to be filled, at a cost of US$15-18
billion.
According to the Icrier report, the retail business in

India is estimated to grow at 13% from $322 billion in 2006-07 to
$590 billion in 2011-12. The unorganized retail sector is expected
to grow at about 10% per annum with sales expected to rise from $
309 billion in 2006-07 to $ 496 billion in 2011-12.
Indian market has high complexities in terms of a wide

geographic spread and distinct consumer preferences varying in each
region necessitating a need for localization even within the
geographic zones. India has highest number of outlets per person (7
per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/
person is lowest in the world Indian retail density of 6 percent is
highest in the world. 1.8 million households in India have an annual
16
income of over 45 lakh Delving further into consumer buying habits,
purchase decisions can be separated into two categories: status-
oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing
machines, dishwashers, microwave ovens and DVD players fall in the
status category. Indulgence-oriented products include plasma TVs,
state-of-the-art home theatre systems, iPods, high-end digital
cameras, camcorders, and gaming consoles. Consumers in the status
category buy because they need to maintain a position in their
social group. Indulgence-oriented buying happens for those who want
to enjoy life better with products that meet their requirements.
When it comes to the festival shopping season, it is primarily the
status-oriented segment that contributes largely to the retailer’s
cash register.
The break-up of organized retailing sales into various

product categories as follows:
Books, Music & Gifts: 3%, Mobile Handsets: 3%, Clothing &
Textile: 39%, Food & Grocery: 11%, Consumer Durables: 9%, Footwear:
9%, Furniture & Furnishings: 8%, Catering Services: 7%, Jewellery &
Watches: 7%, Others: 4%
The trends that are driving the growth of the retail sector in
India are
• Low share of organized retailing
• Falling real estate prices
17
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items (CHART)
Another credible factor in the prospects of the retail sector in India is the
increase in the young working population. In India, hefty pay packets, nuclear
families in urban areas, along with increasing working-women population, and
emerging opportunities in the services sector helps in these process. These key
factors have been the growth drivers of the organized retail sector in India which now
boast of retailing almost all the preferences of life - apparel & accessories,
appliances, electronics, cosmetics and toiletries, home & office products, travel and
leisure and many more. With this the retail sector in India is witnessing rejuvenation
as traditional markets make way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores.
Figure 2.1
Retail space distribution in Delhi, NCR (As on December 2008)
18
India is being seen as a potential goldmine for retail investors from over the
world and latest research has rated India as the top destination for retailers for an
attractive emerging retail market. India’s vast middle class and its almost untapped
retail industry are the key attractions for global retail giants wanting to enter newer
markets. Even though India has well over 5 million retail outlets, the country sorely
lacks anything that can resemble a retailing industry in the modern sense of the term.
This presents the international retailing specialists with a great opportunity. The
organized retail sector is expected to grow stronger than GDP growth in the next five
years driven by changing lifestyles, burgeoning income and favorable demographic
outline.
RETAILING FORMAT IN INDIA
Malls:
This is the largest form of organized retailing today. It is located mainly in metro
cities, in proximity to urban outskirts. The size ranges from 60,000 sq ft to 7, 00,000
sq ft and above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof. Example includes
Shoppers Stop, Pyramid, and Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
19
Crossword, RPG's Music World and the Times Group's music chain Planet M, are
focusing on specific market segments and have established themselves strongly in
their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over at
the season. The product category can range from a variety of perishable/ non-
perishable goods.
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer
needs. Further classified into localized departments such as clothing, toys, home,
groceries, etc.
Departmental Stores are expected to take over the apparel business from
exclusive brand showrooms. Among these, the biggest success is K Raheja's
Shoppers Stop, which started in Mumbai and now has more than seven large stores
(over 30,000 sq. ft) across India and even has its own in store brand for clothes called
Stop.
Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These stores today
contribute to 30% of all food & grocery organized retail sales. Super Markets can
further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and
large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus
on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential
areas. They stock a limited range of high-turnover convenience products and are
usually open for extended periods during the day, seven days a week. Prices are
20
slightly higher due to the convenience premium
MBO:
Multi Brand outlets, also known as Category Killers, offer several brands
across a single product category. They usually do well in busy market places and
metros.
INDIA’S NUMBER OF DOMESTIC GROCERY CHAINS AND EARLY

FOREIGN ENTRANTS
Major Indian Retailers
Indian apparel retailers are increasing their brand

presence overseas, particularly in the developed markets. While most
have identified a gap in countries in West Asia and Africa, some
majors are also looking at the US and Europe. Arvind Brands, Madura
Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking
out foreign expansion plans through the distribution route and
standalone stores as well. Another denim wear brand, Spykar, which
is now moving towards becoming a casual wear lifestyle brand, has
launched its store in Melbourne recently.
The low-intensity entry of the diversified Mahindra Group

into retail is unique because it plans to focus on lifestyle
products. The Mahindra group is the fourth large Indian business
group to enter the business of retail after the Reliance Industries
21
Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other
three groups are focusing either on perishables and groceries, or a
range of products, or both.
Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre,

Viveks Safe Deposit Lockers
• REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super
• RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,

Spencer’s Super, Daily & Fresh
• Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central,

Fashion Station, Brand Factory, Depot, ALL, E-Zone.
• The Tata Group-Formats: Westside, Star India Bazaar, Steel Junction,

Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets,
Chroma.
• K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City,

Inorbit
• Lifestyle International-Lifestyle, Home Centre, Max, Fun City and

International Franchise brand stores
• Pyramid Retail-Formats: Pyramid Megastore, TruMart
• Nilgiri’s-Formats: Nilgiris’ supermarket chain
• Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount

chain
• Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket

chain
• Vishal Retail Group-Formats: Vishal Mega Mart
22
• BPCL-Formats: In & Out
• Reliance Retail-Formats: Reliance Fresh, Super, Timeout, Trendz
• Reliance ADAG Retail-Format: Reliance World
• German Metro Cash & Carry
• Shoprite Holdings-Formats: Shoprite Hyper
• Paritala stores bazar: honey shine stores
• Aditya Birla Group - more Outlets
RECENT TRENDS
• India is rated the fifth most attractive emerging retail market: a potential
goldmine
• Estimated to be US$ 200 billion, of which organized retailing (i.e. modern

trade) makes up 3 percent or US$ 6.4 billion
• As per a report by KPMG the annual growth of department stores is estimated

at 24%.
• India ranked second in a Global Retail Development Index of 30 developing

countries drawn up by AT Kearney
• Multiple drivers leading to a consumption boom:
o Favourable demographics
o Growth in income
o Increasing population of working class women
o Raising aspirations: Value added goods sales
23
• Food and apparel retailing key drivers of growth
• Organized retailing in India has been largely in urban areas
• Phenomenon of affluent classes and growing number of double-income

households
• More successful in cities in the south and west of India with reasons range
from differences in consumer buying behaviour to cost of real estate and
taxation laws
• Rural markets emerging as a huge opportunity for retailers reflected in the

share of the rural market across most categories of consumption
o ITC is experimenting with retailing through its e-Choupal and

Choupal Sagar rural hypermarkets
o HLL is using its Project Shakti initiative leveraging women self-help

groups to explore the rural market.
o Mahamaza is leveraging technology and network marketing concept

to act as an aggregator to serve the rural markets.
• IT is a tool that has been used by retailers ranging from Amazon.com to eBay
to radically change buying behaviour across the globe
• E-tailing slowly making its presence felt
CHALLENGES & OPPORTUNITIES
Retailing has seen such a transformation over the past

decade that its very definition has undergone a sea change. No
longer can a manufacturer rely on sales to take place by ensuring
24
mere availability of one’s product. Today, retailing is about so
much more than mere merchandising. It’s about casting customers in
a story, reflecting their desires and aspirations, and forging long-
lasting relationships. As the Indian consumer evolves they expect
more and more, every time when they steps into a store. Retail
today, has changed from selling a product or a service to selling a
hope, an aspiration and above all an experience that a consumer
would like to repeat.
For manufacturers and service providers the emerging
opportunities in urban markets seem to lie in capturing and
delivering better value to the customers through retail. For
instance, CavinKare, LimeLite, Maricos Kaya Skin Clinic and Apollo
Hospitals, Apollo Pharmacies in Chennai are examples, to name a few,
where the manufacturers/service providers combine their own
manufactured products and services with those of others to generate
value hitherto unknown. The last mile connect seems to be
increasingly lively and experiential. Also, manufacturers and
service providers face an exploding rural market which is only
marginally tapped due to difficulties in rural retailing. Only
innovative concepts and models may survive the test of time and
investments.
However, manufacturers and service providers will also increasingly
face a host of specialist retailers, who are characterized by the
use of modern management techniques, backed with seemingly unlimited
financial resources. Organized retail appears to be inevitable.
25
Challenges
To become a truly flourishing industry, retailing needs to

cross the following hurdles:
• Automatic approval is not allowed for foreign investment in retail
• Regulations restricting real estate purchases, and cumbersome local laws
• Taxation, which favours small retail businesses
• Absence of developed supply chain and integrated IT management
• Lack of trained work force
• Low skill level for retailing management
• Intrinsic complexity of retailing – rapid price changes, constant threat of

product
• Obsolescence and low margins
It was hailed as the "great Indian retail revolution," but a slowing economy
and over-ambitious expansion have left many retailers struggling with what analysts
now say were hyped expectations.
In long term there's massive potential but a lot of

economic development has to take place, before India can sustain
this surge in retail development
Opportunities
26
Despite the global economic slowdown, Indian retailers
are still optimistic about the India growth story. With the 30-40
per cent drop in retail rentals, Indian retailers are a happy lot.
In fact, retailers are also foreseeing further drops in rentals in
2009 and they are optimistic about their expansion plans for this
year.
Retailers such as Spencer's Retail, Future Group,

Shoppers Stop, Westside, Wills Lifestyle, Bata India, and Raymond,
have plenty of expansion plans for 2009.
• The Future Group will focus on launching private labels with high profit
margins in segments like toothpaste, shampoo, and butter amongst others.
According to Kishore Biyani, MD and CEO of the Future Group, "Another
thrust area will be entering into new segments like rural retail and telecom
products distribution. Through 'Aadhar' we can ramp up rural retail, which is
outside the 20 per cent of the population we have been targeting so far."
• Aggressive marketing efforts by leading retailers are on. Tanishq is planning a

marketing effort for plain gold along with the World Gold Council during the
last quarter of 2008-09. Similarly, Brandhouse Retails is planning a joint
venture with a European private apparel label for the next financial year,
along with the introduction of a few more international brands.
• In West Bengal, leading retailers like the Future Group and Spencer's Retail,
are expanding and upgrading their present stores in 2009. Others like Wills
Lifestyle, Turtle Ltd, and Bisk Farm, are planning to set up new stores,
particularly in the suburbs.
• Auto company Mahindra & Mahindra (M&M) has made a quiet foray into the
27
retail sector with the soft launch of its specialty format Mom & Me to sell
infant care and maternity products. The company has launched two outlets in
Ludhiana and Ahmedabad.
India has one of the largest number of retail outlets in

the world. A report by Images Retail estimates the number of
operational malls to grow more than two-fold, to cross 412, with 205
million square feet by 2010, and a further 715 malls to be added by
2015, with major retail developments even in tier-II and tier-III
cities in India.
Even as the organized retail market is starting to take

off, there is an associated surge in branded discount outlets in
India. Top realtors and local retail chains are developing malls in
regional boroughs, specifically to sell premium branded goods.
Rural Retail
Led by the rising purchasing power, changing consumption

patterns, increased access to information and communication
technology and improving infrastructure, the rural retail market is
estimated to cross US$ 45.32 billion mark by 2010 and US$ 60.43
billion by 2015, according to a study by Confederation of Indian
Industry (CII) and YES Bank.
As per the National Council of Applied Economic Research
28
(NCAER) reports, there are 720 million consumers across 6, 27,000
villages in rural India.
According to a report—India Retail Report 2009— by

Images FR Research, "India's rural markets offer a sea of
opportunity for the retail sector. The urban-retail split in
consumer spending stands at 9:11, with rural India accounting for 55
per cent of private retail consumption." Rural India accounted for
almost half of the Indian retail market, which was worth about US$
273.64 billion in September 2008. With most of the retail markets
getting saturated in tier-I and tier-II cities, the next phase of
growth is likely to be seen in the rural markets.
Major domestic retailers like AV Birla, ITC, Godrej,

Reliance and many others have already set up farm linkages. Hariyali
Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej JV), Choupal
Sagars (ITC), Kisan Sansars (Tata), Reliance Fresh, and Naya Yug
Bazaar, are established rural retail hubs. Retail giants like
Reliance, Spencer's and Subhiksha are also expanding in semi-urban
and rural areas.
Luxury Retail
By the next four to five years, India is expected to

become a manufacturing hub for global luxury brands, according to a
FICCI-Yes Bank report on luxury brands. The report states that India
has the most rapidly growing high-net worth individuals (HNI)
population in the world, and the income level of consumers is
29
expected to grow three times by 2025. The active age group (25–45
years) is likely to rise to a third of the population.
India's vast middle class with its expanding

purchasing power and its rapidly growing retail industry are key
attractions for global retail giants wanting to enter newer markets.
• Impact Retail Private Ltd is planning to invest US$ 41.16 million for
launching 30 Xcite consumer electronics retail showrooms in Indian metros
by December 2009.
• Pyramis India (retailers of branded kitchen accessories), is planning to launch

215 exclusive showrooms with an investment of US$ 4.11 million, over the
next four months.
• German lifestyle brand Puma is getting into a joint venture with Knowledge
Fire to sell Puma products ranging from apparel to shoes and accessories.
Puma will hold 51 per cent stake in the joint venture. The joint venture targets
to open 40 retail stores in India in 2009 and take it up to 140 by 2015.
• Indian ethnic wear chain, Fabindia has picked up a 25 per cent stake in the
UK-based womens' wear retailer EAST. The amount was not disclosed and
Fabindia has the choice to buy out the remaining stake in the next three years.
• Footwear retail company Pavers England Footprint, will be investing US$ 10

million to set up 1,000 stores across India by 2013. Presently, the company
has 25 stores in India. The company is also looking at setting up R&D
facility in Chennai for designing footwear, with an investment of US$ 3
million.
• In partnership with the Future Group, Axiom Telecom (a mobile retail
30
company from West Asia) will be forming a joint venture company called
Future Axiom Telecom Ltd. The 50:50 joint venture plans an initial
investment of around US$ 40 million, and targets setting up of 1,500-outlets
by the end of December 2009.
• Mumbai-based retail food and grocery player Wadhawan Food Retail

(WFRL) plans to invest US$ 308.90 million to set up 1,300 stores across
India during 2008-2012. The retail chain currently has 200 stores, managed
through four branded formats - 'Spinach', 'Sabka Bazaar', 'The Home Store'
and 'Smart Retail'.
• Spencer's Retail will be establishing 300 additional stores by 2010 with an

investment of US$ 102.88 million. Presently, Spencer's has 700 stores, which
account for a retail space of 2.5 million, which will increase by another 1.3
million sq ft by 2010.
• Similarly, ITC's Wills Lifestyle and John Players plan to expand their
presence in tier II & III cities, increasing their retail space around 15-20 per
cent. Currently, there are over 50 Wills Lifestyle stores in India.
• Shopper's Stop is also planning to invest US$ 205.78 million for increasing its
present store space of 1.3 million square feet to 2.7 million square feet over
the coming 3-4 years.
• Leading footwear retailer Bata India is planning to establish 60 stores in 2009

across the country.
• Leading garments retailer Raymonds is planning to establish 50 additional

stores in tier II & III cities across the country. According to Aniruddha
Deshmukh, President, Retail and FMCG, Raymond, its retail stores have
witnessed revenue growth of 12 per cent in recent months, despite the
31
ongoing economic slump.
• Tata Group's Trent, (which operates Westside), is planning to add 8-10 stores
every year to its present 31 stores in India.
• The Future Group will be investing US$ 30.86 per sq ft and US$ 41.15 per sq
ft respectively for an additional 3.5 lakh sq ft for Big Bazaar and 50,000 sq ft
for Pantaloons stores over the next one year in eastern India.
• Bisk Farm, the US$ 41.16 million biscuit brand promoted by Saj Industries,
will be launching a bakery retail chain called ‘Bisk Farm, Just Baked'. The
company plans to open 100 franchise stores in different parts of the country
soon.
Government Initiatives
The government has taken various measures to promote and

encourage investment in the Indian retail industry. The Government
allows 100 per cent FDI in cash and carry through the automatic
route and 51 per cent in single brands. Besides, the franchise route
is available for big operators. To further attract global retailers,
the economic survey 2007–08 has suggested a share for foreign
equity in all retail trade and 100 per cent in respect of luxury
brands and other specialized retail chains.
However, many industry experts feel that the Indian

tariff structure has to be streamlined as India levies one of the
highest duties and taxes on imported luxury goods. This fuels the
growth of the grey market and duty-free purchases, even as the
stringent regulatory environment encumbers investment by foreign
32
brands
Entry of MNC’s
The world's largest retailer by sales, Wal-Mart Stores

Inc and Sunil Mittal’s Bharti Enterprises has entered into a joint
venture agreement and they are planning to open 10 to 15 cash-and-
carry facilities over seven years. The first of the stores, which
will sell groceries, consumer appliances and fruits and vegetables
to retailers and small businesses, is slated to open in north India
by the end of 2008. (15) Carrefour, the world’s second largest
retailer by sales, is planning to setup two business entities in the
country one for its cash-and-carry business and the other a master
franchisee which will lend its banner, technical services and know
how to an Indian company for direct-to-consumer retail.
The world’s fifth largest retailer by sales, Costco

Wholesale Corp (Costco) known for its warehouse club model is also
interested in coming to India and waiting for the right opportunity.
Opposition to the retailers' plans have argued that

livelihoods of small scale and rural vendors would be threatened.
However, studies have found that only a limited number of small
vendors will be affected and that the benefits of market expansion
far outweigh the impact of the new stores.
Shopping Malls
“I don't go to the malls to shop. Sure I might buy something, but it's not
33
opportunity or need thus brings me to a mail: it's the glitter and glitz, the chance to
mingle. A good mall is like a good man: It offers entertainment, excitement and
enlightenment. (Gresham, 1988, p.43)
Why are we here?

We are here to buy stuff, We are here because we are bored.
We are here because its pouring, we are here because our daughter made us come,
We are here for no reason whatsoever. We don't know why we are here, We are here
to find.... Something. We are here because we 're here. (Paco Underhill, -Call of the
Mall", 2004)
A shopping center, shopping mall, or shopping plaza is the modern adaptation

of the historical marketplace. The mall is a collection of independent retail stores,
services, and a parking area, which is conceived, constructed, and maintained by a
separate management firm as a unit. They may also contain restaurants, banks,
theatres, professional offices, service stations.
The mall was originally conceived as a community centre where people would
converge for shopping, cultural activity and social interaction (Gruen and Smith,
1960).
Birth of Shopping Malls
Shopping centre had their birth in the 1920's in California where

supermarkets serve as a magnet for a strip of smaller storey. First enclosed mall was
developed in the sub' Minneapolis in 1956, which was designed to help the shopper
out of the harsh weather, crime and trouble.
Shopping centers have existed in some form for more than 1,000 years as
ancient market squares, bazaars and seaport commercial districts. The modern
shopping center, which includes everything from small suburban strip centers to the
34
million-square-foot super-regional malls, has its genesis in the 1920s. The concept of
developing a shopping district away from a downtown is generally attributed to J.C.
Nichols of Kansas City, Mo. His Country Club Plaza, which opened in 1922, was
constructed as the business district for a large-scale residential development. It
featured unified architecture, paved and lighted parking lots, and was managed and
operated as a single unit. In the later half of the 1920s, as automobiles began to clog
the central business districts of large cities, small strip centers were built on the
outskirts. The centers were usually anchored by a supermarket and a drug store,
supplemented by other convenience-type shops. The typical design was a straight line
of stores with space tor parking in front. Grandview Avenue Shopping Center in
Columbus, Ohio, which opened in 1928, included 30 shops and parking for 400 cars.
But many experts consider Highland Park Shopping Village in Dallas, Tex.,
developed by Hugh Prather in 1931, to be the first planned shopping center. Like
Country Club Plaza its stores were built with a unified image and managed under the
control of a single owner, but Highland Park occupied a single site and was not
bisected by public streets. And its storefronts faced inward/ away from the streets, a
revolutionary design.
In the 1930s and 1940s, Sears Roebuck & Co. and Montgomery Ward
set up large, freestanding stores with on-site parking, away from the centres of big
cities. Night time shopping was inaugurated at Town & Country Shopping Centre in
Columbus, Ohio, when developer Don Casto hired Grandma Carver (a woman who
dived from a 90-foot perch into a 4-foot pool of flaming water), to perform her act in
the lighted parking lot, bringing shopping centre promotion to a new level. The early
1950s marked the opening of the first two shopping centres anchored by full-line
branches of downtown department stores. Northgate in Seattle, Wash (two strip
centres face-to-face with a pedestrian walkway in between) opened in 1950, and
Shoppers World in Framingham, Mass (the first two-level centre), debuted the
following year. The concept was improved upon in 1954 when Northland Centre in
35
Detroit, used a "cluster layout" with a single deportment store at the centre and a ring
of stores around it. The parking lot completely surrounded the centre. Northland was
also the first centre to hove central air-conditioning as well as heating, in 1 956,
South dale Centre in Edina, Minn, outside of Minneapolis, opened as the first fully
enclosed mall with a two-level design. Southdaie is considered by most industry
professionals to be the first modern regional mall-By 1964 there were 7,600 shopping
centres in the United States, Suburban development and population growth after
World War II created the need for more housing and more convenient retail shopping.
Most of the centres built in the 1950s and 1960s were strip centres serving new
housing developments.
Entertainment quickly became on industry buzzword in the early 1 990s as

technological advances allowed shopping centre developments to foster the same
magical experiences were once only seen in national amusement parks such as
Disney World. Since the start of the entertainment wove, retailers hove focused on
keeping their presentations exciting and shopping centre owners have striven to
obtain tenant mixes that draw traffic from the widest audience possible. Under one
roof or in on outdoor retail format, consumers enjoy children's ploys capes, virtual
reality games, live shows, movies in multiplex cinemas/ a variety of food in either the
food court or themed restaurants, visually stunning merchandising techniques,
robotic animal displays, and interactive demonstrations. Many shopping centres arc
also focused on added tenants, which offer today's busy consumer on opportunity to
complete weekly errands or to engage in a variety of other activities. Among the
many services found in today's malls are churches, schools, postal branches,
municipal offices, libraries, and museums. As we enter into the 21st century,
shopping centers continue to evolve and serve communitie’s social and economic
needs- with the combination of fashion/ food, entertainment, and services, Shopping
centers have greatly expanded their role in the communities they serve. Over the last
36
2-3 years, the Indian consumer market has seen a significant growth in the number of
modern-day shopping centers, popularly known as 'malls'. There is on increased
demand for quality retail space from a varied segment of large-format retailers and
brands, which include food and apparel chains, consumer durables and multiplex
operators. Shopping-centre development has attracted real-estate developers and
corporate houses across cities in India. As a result, from just 3 molls in 2000, India is
all set to have over 220 molls by 2005. Today, the expected demand for qualify retail
space in 2006 is estimated to be around 40 million square feet. While previously the
large, organised retailers - with their modern, up-market outlets, and direct consumer
interface had been a key factor driving the growth of organized retail in the country
but now it is the malls which is playing the role.
Malls in these years have become the retail, social and community centres
which are the centre of rejuvenation of urban centres across the globe (Feinberg,
Meoli, 1991).
Malls house retailing, but they are not owned, developed

or built by retailers. Malls are made by real estate development
companies which then lease out the space to various retailers,
restaurants and Cineplex's. (Pace Uderhill. 2004).
TYPES OF MALLS
Basic Configurations and Types
As a general rule, the main determinants in classifying a center role its
merchandise orientation (types of goods/services sold) and its size. It is not always
possible to precisely classify every center. A hybrid center may combine elements
from two or more basic classifications/ or a center's concept may be sufficiently un-
usual as to preclude it from fitting into one of the eight generalized definitions
presented here. There are other types of centers that ore not separately defined here
37
but nonetheless are a part of the industry- Some can be considered sub-segments of
one of the larger, defined groups, perhaps created to satisfy a particular niche market.
One example would be the convenience center, among the smallest of centers, whose
tenants provide a narrow mix of goods and personal services to a very limited trade
area. A typical anchor would be a convenience store like 7-Eleven or other mini-mart.
At the other end of the size spectrum are super off-price malls that consist of a large
variety of value-oriented retailers, including factory outlet stores, department store
close-out outlets, and category killers in on enclosed mega mall (up to 2 million sq-
ft.) complex. Other smaller sub-segments of the industry include vertical, downtown,
off-price, home improvement. The trend towards differentiation and segmentation
will continue to add new terminology as the industry matures.
Basic Configurations
Malls typically are enclosed with a climate-controlled walkway between two
facing strips of stores. The term represents the most common design mode for
regional and super-regional and thus becoming an informal term for these types of
centers.
A strip center is an attached row of stores or service outlets managed as a
coherent retail entity, with on-site parking usually located in front of the stores. Open
canopies may connect the store fronts. But a strip center does not have enclosed
walkways linking the stores. A strip center may be configured in a straight line, or
have an "L" or "U" shape.
Shopping Center Types

Neighborhood Centre
This centre is designed to provide convenience shopping for the day-today

needs of consumers in the immediate neighbourhood. According to ICSC's SCORE
publication, roughly half of these centre’s are anchored by a supermarket, while
38
about A third have a drugstore anchor - these anchors are supported by stores offering
drugs, sundries, snacks and personal services. A neighbourhood centre is usually
configured as a straight-line strip with no enclosed walkway or mall area, although a
canopy may connect the storefronts-Community Centre.
A community centre typically offers a wider range of apparel and other soft
goods than the neighbourhood centre does. Among the more common anchors are
supermarkets, super drugstores, and discount department. stores. Community centre
tenants sometimes contain off-price retailers selling such items as apparel, home
improvement/furnishings, toys, sporting goods. The centre is usually configured as a
strip in a straight line or L or U shape. Of the eight centre types, community centre’s
encompass the widest range of formats. For example, certain centre’s that are
anchored by a large discount department store refer to themselves as discount
center’s. Others with a high percentage of square footage allocated to off-price
retailers can be termed off-price centre’s.
Regional Centre:
This type of center provides general merchandise (a large percentage of which
is apparel) and services in full depth and variety. Its main attractions are its anchors:
traditional, mass merchant, or discount department stores or fashion specialty stores.
A typical regional center is usually enclosed with an inward orientation o[ the stores
connected by a common walkway and parking surrounds the outside perimeter-
Super-regional Center:
Similar to a regional center, but because of its larger size, a super-regional
center has more anchors, a deeper selection of merchandise, and draws from a larger
population base. As with regional centers, the typical configuration is as an enclosed
mail, frequently with multi-levels.
Fashion/Specialty Center;
A center composed mainly of upscale apparel shops, boutiques and craft
shops carrying selected fashion or unique merchandise of high quality and price.
39
These centers need not be anchored, although sometimes restaurants or entertainment
can provide the draw of anchors. The physical design of the center is very
sophisticated, emphasizing a rich decor and high quality landscaping. These centers
are usually found in trade areas having high income levels.
Power Centre:
A center dominated by several large anchors, including discount department
stores, off-price stores, warehouse clubs, or "category killers," i.e., stores that offer
tremendous selection in a particular merchandise category at low prices. The center
typically consists of several freestanding (unconnected) anchors and only o minimum
amount of small specialty tenants.
Theme/Festival Center
These centers typically employ a unifying theme that is carried out by the
individual shops in their architectural design and/ to an extent, in their merchandise.
The biggest appeal of these centers is to tourists; they can be anchored by restaurants
and entertainment facilities. These centers, generally located in urban areas, tend to
be adapted from older sometimes historic buildings, and can be part of mixed use
projects.
Outlet Center:
Usually located in rural or occasionally in tourist locations. Outlet centers
consist mostly of manufacturers' outlet stores selling their own brands at a discount.
These centers are typically not anchored. A strip configuration is most common,
although some are enclosed malls, and others can be arranged in a "village" cluster.
The Evolution of Malls in India
The capital city of India, New Delhi saw its first shopping mail Ansil Plaza
way back in 1996. Players like Shoppers' Slop, Big Bazaar and many others are
teaming up wilh real estate developers to set up second-generation shopping malls
aimed at this vast market. The malls, being set up in areas where rentals are lower by
30 - 40 % compared to existing ones, are expected to cater to the middle class, which
40
constitutes over 70% of the total market for retailers.
GROWTH OF MALLS IN INDIA: PRESENT & FUTURE
With organized retailing spreading its wings throughout the country, newer
retail formats came into existence. One such format that has attracted great deal of
attention in the recent past is the Shopping Mall. The first Shopping Mall in India
was Spencer's Plaza in Chennai, which came into being in 1998. Crossroads in
Mumbai and Ansal's Plaza in Delhi soon followed.
India continues to shine with the economy slated to grow at a rate of over 7%
per annum over the next new years, in tandem with the economic boom, the psycho-
graphic profile of the Indian consumer had changed. Consumer spending is on the
rise backed by easy availability of credit and the low interest rate regime. This has
been reinforced by the proliferation of shopping centres in all major urban
agglomerations offering the consumer a great deal of choice at locations not too far
away from home. Large format malls replete with entertainment, retail and leisure
components have sprung up in all major cities in India. A study done by Knight Frank
India indicates that by 2007, approximately 75 mn. sq-ft. of mail space would be
available in India. Within this, Mumbai, Pune, NCR (including Gurgaon, Noida,
Greater Noida, Faridabad & Ghaziabad) Bangalore & Hyderabad will have a 74%
shore. The balance 26% will be made up by the cities like Kolkata, Chennai,
Ahmedabad, Jaipur, Nagpur, Lucknow, Indore, Ludhiana and Chandigarh.
Table 2.1
41
Operational Malls/Shopping Centres in India as on 31st May, 2008
Built-up Area in sq.ft. No. of Malls
Delhi - NCR 9,442,271 41

Mumbai, Navi Mumbai & Thane 7,492,111 33
Kolkata 777,447 5
Chennai 2,950,000 9.
Bangalore 2,320,000 11
Pune 1,430,000 7
Hyderabad 1,290,000 13
Others 21,279,830 39
Total 32,010,319 148
Figure 2.2
Outlined Below Is The Future Scenario Of Retail Sector In India:
42
The concept of destination shopping still remains popular in Delhi with
Connaught Place and South Delhi (Greater Kailash, South Extension & Lajpat
Nagar) still being the hub of retail activity. Rentals in these locations range from Rs-
1,25,300/sq.ft. per month, depending on location, visibility and size brought on by
the increase in income for the 20-25 year age group and which has altered the
expenditure and consumption patterns of the city. Malls have emerged as a preferred
development option for property developers due to better returns on their real estate
investment. Also, mixed-use developments ensure better land use, diversification of
risks and better rotes for adjoining residential and commercial developments. With
such quantum of new format retail space in the pipeline, innovation, striking the right
tenant mix, effective mail management and provision of ample parking space are
components that wil decide the future success of mall developments- With
approximately 15 mn.sq.ft. on new retail space on the anvil, the demand for new
retail space is equally strong with most retail chains like Pantaloons and Shoppers'
Stop having aggressive expansion plans.
43
Hypermarkets have emerged as the biggest crowd pullers due to the fact that
regular repeat purchases are a norm at such outlets. The lifestyle of the city residents
directly affects the retail scenario in the city. Large format retail space is not readily
available in Connaught Place, South Extension, Greater Kailash and no new malls are
being planned in these locations. North West Delhi is also undergoing considerable
change in retail activity. DLF Group has proposed a 0.95 mn.sq.ft. mall in Vasant
Kunj that will house an 1 1-screen multiplex besides having retail and F&B
segments. Unitech, in a joint venture with Appu Ghar, is developing the 0-50
mn.sq.ft.
Bangalore is one of the fastest growing cities in the country recording a high
annual population growth rote. Most of the new addition to population has resulted
from immigration from other parts of the country on account of increased job
creation in the city. The new population is characterized by double income, upper
class families with high purchasing power. Their discerning tastes have opened
avenues for new-age retailing in the city. The food retailing sector, starting with
Nilgiris & Foodworld grocery stores, was the first truly organized retailing format in
Bangolore. Other chain like Monday to Sunday. Fabmall, Pantaloon's Big Bazaar and
Subhiksha have also made a foray in the food retailing segment in the city. Till 2003,
the concept of large format, standalone (15,000-50,000 sq.rt.) retail stores was
popular in Bangalore. This included stores fike Big Bazaar, Globus, Lifestyle,
Westside, Shoppers' Stop which together accounted for about 0.6 mn.sq.ft- of retail
space.
Since 2003, Bangolore has seen a trend towards the establishment of
hypermarkets and urban malls which range between 0.1 -0.5 mn.sq-ft. in area. A
significant addition to the Bangalore retail scene has been the Forum Mall at
Koramangala- A 350,000 sq.ft. development, this may incorporates a 1 1-screen PVR
multiplex and houses some of the best retail and F&B brands. Another noticeable
feature about the Bangalore retail scenario has been the proliferation of specialty
44
retail outlets which include healthcare stores/ pharmacies like Health & Glow and
Pill & Powder, fast food chains like Pizza Hut and KFC and coffee chains like Cafe
Coffee Day, Barista, Java. and Qwicky's. The traditional retail/ shopping districts of
Bangalore, i.e.. Brigade Rood, Commercial Street and the Residency/Richmond Road
area continue to witness high demand with the stand alone stores of brands such as
Planet M, Praline, KFC etc. occupying space at rental rates of Rs- 85-250/sq-ft. per
month.
As the contemporary retail sector in India is reflected

in sprawling shopping centers, multiplex- malls, and huge complexes
offer shopping, entertainment and food all under one roof, the
concept of shopping has altered in terms of format and consumer
buying behavior, ushering in a revolution in shopping in India. This
has also contributed to large-scale investments in the real estate
sector with major national and global players investing in
developing the infrastructure and construction of the retailing
business.
The following figure shows the predicted mall distribution space in

India
The retailing configuration in India is fast developing as shopping malls are
45
increasingly becoming familiar in large cities. When it comes to development of
retail space specially the malls, the Tier II cities are no longer behind in the race. If
development plans till 2007 is studied it shows the projection of 220 shopping malls,
with 139 malls in metros and the remaining 81 in the Tier II cities. The government
of states like Delhi and National Capital Region (NCR) are very upbeat about
permitting the use of land for commercial development thus, thereby increasing the
availability of land for retail space, and making NCR render to 50% of the malls in
India.
The number of shopping malls is expected to increase at a

CAGR of more than 18.9% from 2009 to 2015. The enormous growth of the
retail industry has created a huge demand for real estate. The
property developers are creating retail real estate at an aggressive
pace and by 2010, 300 malls are estimated to be operational in the
country.
MALL MANAGEMENT TERMINOLOGY

The commonly used mall terminologies are:
Anchor stores:
The largest retail outlets, usually located at the ends or corners of shopping
centres, and chosen as part for their potential to attract customers to the shopping
centre generally are called anchor stores. The departmental stores are usually anchor
regional and super-regional malls and supermarkets are typical anchors in community
centres
Arcade :
It is an entertainment area offering coin-operated computer games and other
amusements
Back of the house :
The office, stock room, and other non-retail areas of a store is the back of the
46
house.
Big box :
A large stand-alone store that specializes in a single line of products, such as
home improvements, toys, or office supplies; no-frills .discount stores that sell in
volume and category killers are often big box stores.
Cart :
A wheeled display from which merchandise is sold in pedestrian areas of a
mall, often fitted out with shelves, display racks, and the like are called cart.
Cash wrap:
The front counter with the cash register and often a wrapping or packing area
is called cash wrap.
Category Killers:
National chain store specializing in one lins of products, such as home
improvements/ office supplies, or toys, that can overwhelm both smaller and more
diverse competitors because of its size, variety of merchandise, and prices are called
category killers.
Community room:
One area available for public use, ranging from a bare meeting room that can
accommodate folding chairs and tables to a more elaborate hall with stage, adjacent
kitchen and other services
Double dumbbell shape :
A cross-shaped shopping center with anchor stores at the end of each cross is
called double dumbbell shape.
Draw tenant :
A store that attracts a large number of potential customers to a shopping
center, often an anchor store is called draw tenant.
Dumbbell:
A linear shopping centre with anchors stores on each end is called dumbbell.
47
Factory outlet :
A retail store that sells merchandise direct from the manufacturer usually at
reduced prices is called factory outlet.
Food court :
A separate area of a shopping center containing fast-food outlets and a
common seating area is called food court.
Free-standing store :
A retail outlet hot associated with a shopping center, especially those at a
distance from congested shopping areas is called a frees tanding store.
Gross Lease able area (GLA):
Total floor space available for retail sales, usually in square feet is called
gross leas able area.
Irregulars:
Sailable merchandise with minor imperfections sold at a reduced price is
called irregulars.
Junior department store :
A small department store offering a limited selection of goods and a scaled-
down version of a full-sized department store.
Kiosk :
A semi-permanent booth placed in pedestrian areas of a shaping center and
used to sell small items or to offer specific services, such as jewellery or repair.
L shaped :
It is a shopping center with two linear strips of stores connected at right
angles, forming the Setter L; anchors are typically located on the two ends or at the
apex, with parking inside the apex; L-shaped is a common design for community-
48
sized centers.
Mall manager:
The person employed by the owner or a management company to supervise
daily operations of a shopping center is called mall manager.
Mall mayor:
The retailer who acts as the informal spokesperson for the tenants of a
shopping center is called mall mayor.
Mall walker:
The person who walks in a shopping center for exercise especially during a
period set aside for this purpose before stores have opened in the mornings is called
mall walker.
Market area:
The geographical area from which a shopping center draws its customers is
called market area.
Off-price center:
A retail store what sells brand-name clothing or other goods (often with labels
removed) at reduced prices.
49
CH APT ER 3
CO MPA NY P RO FIL E
Huge shopping malls are an essential part of modern
50
cities. They contribute to the making of the city's identity. Kochi,
despite its reputation of being the commercial hub of Kerala, is
home only to modest shopping complexes, rather than malls. Huge
shopping centres have become the inevitable ingredients of a growing
mega city.
Despite all the busy commercial activities in the

city, the concept of large shopping malls is yet to take off in
Kochi in a significant way. Nowhere in Kochi, you can find a big-
time place that matches all the definitions of a shopping malls,
except the newly started Oberon Mall.
The Commercial Complex run by the Greater Cochin

Development Authority (GCDA) along the Marine Drive, could have been
the first such place in Kochi, one that combined a large number of
business establishments and eateries under one roof, enabling people
to take a stroll amidst the glittering shops and enjoy the sea
breeze blowing from the backwaters. So far, it is perhaps the only
shop and stroll place in the city. Though a few attempts at setting
up big-time shopping complexes qualifying as malls had been made
here, none of them seem to have proven quite successful.
Figure 3.1
NEIGHBOURHOOD MALL: The GCDA shopping complex on Marine

Drive in Kochi
51
.
Forthcoming venture
Kochi is all set to enter the era of big shopping malls.

The new shopping trends which have caught on in a big way in other
cities such as Delhi, Mumbai, Chennai and Bangalore will form a part
of city life in Kochi too. The trends were visible as shopping
complexes became bigger and bigger and supermarkets began to
increasingly dot the city centres.
While Mahatma Gandhi Road perhaps, has the most footfalls

in the city on any working day, the big shopping malls that are
going to dot the National Highway 47 bypass will definitely create a
change in the manner in which one goes shopping. New entertainment
options will open up.
Shopping malls in metro cities have completely changed the

lifestyle of the urban folk, who flock the malls with multiplexes
and food courts to spend an evening. A one-stop shopping place with
most of the leading brands available under one roof is one of the
major attraction of the big shopping malls.
One of the major projects that has started at the National
52
Highway is the Lulu Shopping Mall. Lulu is a well-known name in the
State, what with a strong NRI population familiar with the malls
promoted by the Dubai-based M.K. Group. It willbe one of the largest
malls here. Spread over about 17 acres of land, the shopping plaza
will have five-star hotels too in the 15 lakh square feet area
spread over the ground, first and second floors at Edappally.
A 12-kitchen food court with an expected seating capacity

of 3000 people and a seven-screen multiplex to accommodate more than
1,500 people will, perhaps, be a big lure for customers. There will
be small halls with a seating capacity of 50, as also halls with a
larger capacity.
Lulu is expected to open its own hypermarket with about

two lakh square feet area, besides catering to five anchor shops
that will be at least 30,000 sq. ft in area. Some of the big brand
names are likely to pick up space in the mall, which will be able to
accommodate 3,000 cars in its parking space on the surface and
basement areas.
Atkins, a U.K.-based company, is said to be the

architects of the commercial space that will have more than an
escalator and an elevator. A travellator or a moving walkway that
can carry a shopping cart will be a new facility at this mall.
Another mall on which work has already begun is the Gold

Souk, again on the bypass road. This shopping bonanza from a
53
Gurgaon-based company, Aerens Gold Souk International Ltd., is
expected to be opened towards the end of next year. The company is
planning to open 100 gold souks in 100 cities across the country in
100 months. Thiruvananthapuram, Thrissur and Kozhikode will be among
the cities.
A number of other malls are also being planned here. Some

of the major among them are the ones promoted by DLF and the Peevees
group.Lots of malls are coming up in Calicut and most of them hosts multiplexes
and global brands. Some of them are:
1.Focus Mall -Rajai Road -opposite to moffusil bus station -2.5 LSF
2.Meezan mega mall -Coming up - 4LFT
3.Reliance shopping mall -Mavoor road junction -14 floors
4.Marina mall -YMCA cross raod
5.Space mall - Mavoor road by galaxy builders-1,30,000sq.ft
Oberon Mall is the first lifestyle mall in Kerala. It

aims to redefine the shopping habits of Keralites and set a trend in
shopping- an entertainment rich experience in tune with the changing
cultural ethos. Oberon MALL has been designed along world class parameters of
luxury, quality and safety. A unique concept of user movement patterns has dictated
the placement and positioning of passageways, ramps, escalators and stairways to
ensure utmost comfort for pedestrian, parcel and personnel conveyance within the
Mall.
Heralding a paradigm shift in culture and consciousness, Oberon Mall
provides the perfect mix of branded merchandise and retail products delivering to the
young and vibrant ethos of an upwardly mobile community. With glittering exterior
facades and signages, an auto walk system on the ground floor, ATM's at entry points,
54
barrier free access to all levels, a whole floor dedicated to recreation, food and
entertainment for the entire family, Oberon Mall is the place to be.
It is located on the NH bye pass road, just a kilometer
from the Edapally Junction, Oberon Mall is built over 350,000 square
feet and the building stands on about two acres of land.Oberon, with
a proposed financial outlay of Rs. 1 million, has adhered to all
parameters of security and safety while designing the luxurious and
ultra modern shopping complex.
It is fully conceptualized, developed and promoted by the

Oberon Group of Companies, India and Flora Group of Dubai, created
as the ultimate shopping and entertainment-Shoppertainment
opportunity for the visitor. The Chief Managing Director of Oberon Group
is Mr. M. A. Mohammed.
Oberon mall is a launch-pad for the Reliance group for

its specialty store. The group have taken up 84,000 sq. feet of the
area on three floors out of the 3,50,000 sq. ft available in the
complex. A central glass atrium is the focal point of the mall,
where most of the promotional events are taking place. All the
floors have a view into the atrium.
There are 14 escalators and five elevators in the mall to

walk across a total of five floors, including the ground, with a
spread of about 50,000 sq. ft on each floor. Safe parking spaces are
one of the major facilities that attract people to shopping malls.
At Oberon Mall there is space to park 450 cars in two basement
55
sections.
A crowd of customers at the food courts in the malls

spell the success of the shopping malls. It will definitely be the
main attraction, as the idea is to tap the urban lifestyle of
combining shopping and eating out.
The following list shows the list of stores at Oberon

mall. Many of the stores are not yet operational zed.
Level :0
1. Laura Saloon-Beauty
2. Parakkat Ocean & Pearls-Jewel Fashion
3. SBI ATM-Cash Centre
Level : 1
1. Pepe- Attire Fashion
2. VIP-Travel Fashion
3. Rado-Wrist Fashion
4. Samsonite-Travel Fashion
5. Waik in M & B-Foot Fashion
6. Woodlands-Foot Fashion
7. Planet Fashion- Attire Fashion
8. World of Titan-Wrist Fashion
9. Nike-Sports Fashion
10. Brandz-Jewel Fashion
11. Levis-Attire Fashion
12. Zodiac-Attire Fashion
13. Scullers, Urbana, Indigo Nation, John Miller-Attire Fashion
14. Reliance Super-Hypermarket
56
15. Coffee Beanz-Eat outs
16. Candy Treats- Eat outs
17. Baskin & Robbins- Eat outs
18. Cookie Man- Eat outs
19. Juicy Bites-Eat outs
20. Sketch Me-Lifestyle Fashion
Level:2
1. Navigator-Attire Fashion
2. Smart Optical-Eye Fashion
3. Identity-Attire Fashion
4. Ted Lapidez-Attire Fashion
5. Levis Signature-Attire Fashion
6. Doc & Mark-Attire Fashion
7. Time Factory-Wrist Fashion
8. Reliance Trends-Attire Fashion
9. Mystique Perfumes-Lifestyle Fashion
Level:3
1. Yavonne-Attire Fashion
2. InExcess & Twills-Attire Fashion
3. Soles-Foot Fashion
4. Fashion Point-Jewel Fashion
5. Sylcon-Foot Fashion
6. Archies-Lifestyle Fashion
7. Reliance Foot Print-Foot Fashion
8. Reliance Time Out-Lifestyle Fashion
Level:4
1. H & A: Attire Fashion
57
2. Bits India: Attire Fashion
3. Pixetra: Photography
4. Scary House: Entertainment
5. Anarkali: Attire Fashion
6. Jockey: Attire Fashion
Level: 5
OFFICE
58
CHAPTER 4
Research Methodology
OBJECTIVES OF THE STUDY:

The study was conducted to identify
59
 Expectation of stores with regard to their sales performance at the store
 Actual sales performance of the store at the mall
 The number of customers visiting the store
 Among the customers who visit the store what percentage actually make
purchase from the store
 Identifying customer’s response to the product mix, price, layout, display and
ambience of the store
LIMITATIONS OF THE STUDY:-
 The period allotted for the study was not sufficient to study all the aspects of
customer behaviour.
 It was very difficult to get sales details from the store managers because of its
confidentiality.
RESEARCH METHODOLOGY:
SOURCE OF DATA COLLECTED.

Primary data:
Mainly the data is collected directly from the store managers at different stores at
the mall.
Secondary data:
The rest of the data is collected from secondary sources such as magazines, news
papers and other retail journals.
Sampling method:
The data was collected using a structured questionnaire. The samples were
selected randomly. The sample size was 200.
60
Sample unit:
The samples were selected from the customers visiting Oberon mall and the
store managers of various stores at the mall.
Analysis method:
The data was collected using a structured questionnaire and the interpretation was
done with the help of various tests like Annova, Correlation and Percentage analysis.
61
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
62
DATA ANALYSIS & INTERPRETATION:-
Sample for the study was taken randomly from the customers visiting the mall.Eight
stores in the mall were selected for study and they are
• Reliance Trendz
• Reliance Timeout
• Reliance Super
• Scullers
• Archies
• Nike
• Footprint
• Zodiac
The sample size for each store is 25 and thus the total sample size is 200.
63
10
Male
15
Female
Sample profile for various stores

Reliance trendz
The following table and pie diagram shows the gender wise and age wise
classification of the respondents from Reliance Trendz .
Figure 5.1
64
Reliance Trendz
8% 12%
16% <18
18-25
26-35
36-55
32%
>55
32%
Table 5.1
The cross tabulated results for gender and age are tabulated and shown in
table
65
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 2 2 3 3 0 10
Female 1 8 4 1 1 15
Total 3 8 8 4 2 25
Reliance Time out

The table and pie diagram for sex wise and age wise classification of the sample are
Male 9
16
Female
given below.
Figure 5.2
66
Time out
4% 4% 16%
20%
less than 18
18-25
26-35
36-55
>55
56%
Table 5.2
SEX * AGE Crosstabulation
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 2 2 2 3 0 09
Female 1 9 4 1 1 16
Total 3 11 6 4 1 25
Reliance Super
67
Figure 5.3
Male 7
18
Female
Reliance Super
12% 8%
20% <18
20%
18-25
26-35
36-55
>55
40%
Table 5.3
68
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 1 2 3 2 2 10
Female 1 3 7 3 1 15
Total 2 5 10 5 3 25
Archies
Male 10
15
Female
Fig
5.4
Archies
4%
12%
40% <18
18-25
26-35
36-55
44%
69
Table 5.4
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 5 2 0 7
Female 5 9 3 1 0 18
Total 10 11 3 1 0 25
9
Male
16
Female
Reliance Footprint
Fig 5.5
70
Reliance Foot print
4% 8%
12%
<18
18-25
26-35
36-55
40%
36% >55
SEX * AGE
Crosstabulation
Table 5.5
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 2 3 2 9
Female 8 6 1 1 16
Total 2 10 9 3 1 25
Nike
71
Fig 5.6
Male 25
0
Female
72
Nike
20% 12%
<18
18-25
26-35
36% 36-55
32%
Table 5.6
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 0 0 0 0 0 0
Female 3 9 8 5 0 25
Total 3 9 8 5 0 25
Scullers
73
Fig
Male 25
5.7
0
Female
74
Scullers
4% 4%
20%
<18
40% 18-25
26-35
36-55
>55
32%
Table 5.7
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 1 10 8 1 20
Female 5 5
Total 1 10 8 5 1 25
Zodiac
75
Male 16
9
Female
Fig 5.8
Zodiac
4% 4%
24% <18
32%
18-25
26-35
36-55
>55
36%
76
Table 5.8
Age Total
< 18 18-25 26-35 36-55 >55
SEX Male 4 7 3 1 16
Female 4 2 3 9
Total 1 8 9 6 1 25
Table 5.9
Opinion re garding the first v isit
First visit
yes no Total
Categories Apparels 44 31 75
of the 58.7% 41.3% 100.0%
stores Footwear 14 11 25
56.0% 44.0% 100.0%
Supermarket 9 16 25
36.0% 64.0% 100.0%
Sportswear 17 8 25
68.0% 32.0% 100.0%
Bookstore 12 13 25
48.0% 52.0% 100.0%
Gifts 14 11 25
56.0% 44.0% 100.0%
Total 110 90 200
55.0% 45.0% 100.0%
Opinion of the respondents regarding their first visit to the different stores is
given in the table 1. Among the total respondents, the opinion ‘yes’ is expressed by
55% and ‘no’ by 45%. It is noted that the former category is expressed mainly by the
respondents belong to the category of apparels( 58.7%), Footwear ( 56%), Sports
wear ( 68%) and gift( 56%). However the latter opinion is mainly expressed by the
77
respondents belonging to supermarket and bookstore.
Fig 4.9
First visit
45% Yes
55% No
Table 5.10
Percentage of people who purchase from the store
78
Purchase from the store
Purchase
yes no Total
Categories Apparels 47 28 75
of the 62.7% 37.3% 100.0%
stores Footwear 13 12 25
52.0% 48.0% 100.0%
Supermarket 21 4 25
84.0% 16.0% 100.0%
Sportswear 16 8 24
66.7% 33.3% 100.0%
Bookstore 17 8 25
68.0% 32.0% 100.0%
Gifts 13 12 25
52.0% 48.0% 100.0%
Total 127 72 199
63.8% 36.2% 100.0%
The table shows that 62.7% people purchase from the apparel stores, 52% from
the foot wear stores, 84% from the super market,66.7% from the sports wear, 68%
from the book store and 13% from the gifts stores.
Anova Test
H0: Opinion of the respondents on different factors such as choice of products,

display of products, layout of the store, ambience of the store, price of the products
and customer service is same among different categories of stores.
H1: Opinion of the respondents on different factors such as choice of products,

display of products, layout of the store, ambience of the store, price of the products
and customer service is different among different categories of stores.
Table 5.11
79
ANOVA
Sum of
Squares df Mean Square F Sig.
Choice of products Between Groups 21.553 5 4.311 3.418 .006
Within Groups 244.667 194 1.261
Total 266.220 199
Display of products Between Groups 17.393 5 3.479 3.507 .005
Within Groups 192.427 194 .992
Total 209.820 199
Layout of the store Between Groups 13.595 5 2.719 2.758 .020
Total 204.875 199
Ambience of the store Between Groups 8.368 5 1.674 1.687 .140
Total 200.875 199
Price of the products Between Groups 36.080 5 7.216 7.343 .000
Total 226.720 199
Customer service Between Groups 29.064 5 5.813 6.016 .000
Total 215.538 198
Anova table shows that opinion on different factors such as choice of products,
display of products, layout of the store, price of the products and customer service is
different among different stores. This is because the p value is less than the
significant value .05. However in the other case the p value is greater than the
significant value so the opinion is the same among different stores.
Correlation Analysis
Zodiac
Table 5.12
PURC CHOIC DISP LAYOU AMBIEN PRICE SERVIC IMP SALES
PURC Pearson 1.000 .711* .623 .399 .578 .910** .649 . .721*
H Correlatio
Sig. (2- . .001 .000 .004 .003 .000 .000 . .001
tailed)
N 25 25 25 25 25 25 25 10 25
80
CHOI Pearson .711 1.000 .622 .466 .190 .401 .264 -.312 .493
CE Correlatio
Sig. (2- .001 . .001 .019 .362 .047 .202 .380 .012
tailed)
N 25 25 25 25 25 25 25 10 25
DISPL Pearson .623 .622 1.000 .616 .398 .612 .380 .609 .405
AY Correlatio
Sig. (2- .000 .001 . .001 .049 .001 .061 .133 .045
tailed)
N 25 25 25 25 25 25 25 10 25
LAYO Pearson .399 .466 .616 1.000 .340 .802 .416 .218 .282
UT Correlatio
n
Sig. (2- .000 .019 .001 . .096 .000 .039 .545 .173
tailed)
N 25 25 25 25 25 25 25 10 25
AMBI Pearson .578 .190 .398 .340 1.000 .477 .605 .218 .179
ENC Correlatio
n
Sig. (2- .003 .362 .049 .096 . .016 .001 .545 .392
tailed)
N 25 25 25 25 25 25 25 10 25
PRICE Pearson .910 .401 .612 .802 .477 1.000 .612 .429 .400
Correlatio
n
Sig. (2- .000 .047 .001 .000 .016 . .001 .217 .048
tailed)
N 25 25 25 25 25 25 25 10 25
SERVI Pearson .649 .264 .380 .416 .605 .612 1.000 .488 .405
CE Correlatio
n
Sig. (2- .000 .202 .061 .039 .001 .001 . .153 .045
tailed)
N 25 25 25 25 25 25 25 10 25
IMPUL Pearson . .112 .609* .218 .218 .429 .488 1.00 .896**
SE Correlatio 0
n
Sig. (2- . .180 .133 .545 .545 .767 .153 . .048
tailed)
N 10 10 10 10 10 10 10 10 10
SALE Pearson .721* .493 .405 .282 .179 .400 .405 .896* 1.000
SPRO Correlatio
Sig. (2- .002 .012 .045 .173 .392 .048 .045 .896 .048.
tailed)
From the above correlation table it can be inferred that there is high correlation
between purchase and price (.910). Other significant correlations are between:
Purchase and Sales promotion (.721)
81
Purchase and Choice. (.711)
But in the case of impulse purchasing the highest correlation is shown between
sales promotions. (.896). Another significant correlation of impulse purchase is
between the display of the products.(.609)
So the customers those who are visiting this store is giving prior importance to
price of the products, sales promotional activities like offers and choice of the
products.
In the case of impulse purchasing the most significant factor is sales promotion and
display of the products.
82
Reliance Trendz
Table 5.13
PURC CHOICE DISP LAYOUT AMBI PRICE SERVICE IMP

PURC Pearson 1.000 .846** .750* .349 .250 .765* .392 .
Correlation
Sig. (2- . .000 .000 .087 .228 .093 .052 .
tailed)
N 25 25 25 25 25 25 25 20
CHOICE Pearson .846 1.000 .640 .183 .533 .361 .009 .758
Correlation
Sig. (2- .000 . .001 .380 .006 .076 .965 .808
tailed)
N 25 25 25 25 25 25 25 20
DISP Pearson .750 .640 1.000 -.027 .250 .496 .087 .397
Correlation
Sig. (2- .000 .001 . .899 .228 .012 .679 .083
tailed)
N 25 25 25 25 25 25 25 20
LAYOUT Pearson .349 .183 -.027 1.000 .000 -.298 .377 .174
Correlation
Sig. (2- .380 .899 . 1.000 .149 .063 .463
tailed)
.087
N 25 25 25 25 25 25 25 20
AMBI Pearson .250 .533 .250 .000 1.000 .103 -.055 .247
Correlation
Sig. (2- .228 .006 .228 1.000 . .623 .796 .293
tailed)
N 25 25 25 25 25 25 25 20
PRICE Pearson .765 .361 .496 -.298 .103 1.000 -.485 .834
Correlation
Sig. (2- .093 .076 .012 .149 .623 . .014 .573
tailed)
N 25 25 25 25 25 25 25 20
SERVICE Pearson .392 .009 .087 .377 .055 -.485 1.000 -.247
Correlation
Sig. (2- .052 .965 .679 .063 .796 .014 . .293
tailed)
N 25 25 25 25 25 25 25 20
IMPULSE Pearson . .758 .397 .174 .247 .834 -.247 1.000
Correlation
Sig. (2- . .083 .083 .463 .293 .573 .293 .
tailed)
N 20 20 20 20 20 20 20 20
SALESP Pearson .704 .522 .102 -.022 .306 .489 -.196 .728
Correlation
Sig. (2- .328 .007 .627 .917 .137 .013 .348 .088
tailed)
83
between purchase and choice (.846). Other significant correlations are between:
Purchase and price(.765)
Purchase and sales promotion (.704)
sales and price. (.834). Another significant correlation of impulse purchase is
between the choice of the products.(758)
So the customers those who are visiting at this store is giving prior importance
to price of the products, choice of the products and sales promotion activities.
In the case of impulse purchasing the most significant factor is price and choice of
the products.
84
Reliance Footprint
Table 5.14
Correlations
PUR CHOICE DISPLAY LAYOUT AMBIEN PRICE SERVICE IMPULSE SLSPR
C
PURC Pearson 1.000 .829* .630* .610 .660 .770* .556 . .419
Correlation
Sig. (2- . .000 .002 .002 .002 .000 .004 . .037
tailed)
N 25 25 25 25 25 25 25 13 25
CHOIC Pearson .829 1.000 .595 .595 .595 .700 .549 .085 .499
Correlation
Sig. (2- .000 . .002 .002 .002 .000 .004 .782 .011
tailed)
N 25 25 25 25 25 25 25 13 25
DISP Pearson .630 .595 1.000 1.000 1.000 .674 .750 .677 .389
Correlation
Sig. (2- .002 .002 . .000 .000 .000 .000 .011 .055
tailed)
N 25 25 25 25 25 25 25 13 25
LAYOU Pearson .610 .595 1.000 1.000 1.000 .674 .750 .677 .389
T Correlation
Sig. (2- .002 .002 .000 . .000 .000 .000 .011 .055
tailed)
N 25 25 25 25 25 25 25 13 25
AMBIE Pearson .660 .595 1.000 1.000 1.000 .674 .750 .677 .389
Correlation
Sig. (2- .002 .002 .000 .000 . .000 .000 .011 .055
tailed)
N 25 25 25 25 25 25 25 13 25
PRICE Pearson .770 .700 .674 .674 .674 1.000 .616 .418 .656
Correlation
Sig. (2- .000 .000 .000 .000 .000 . .001 .155 .000
tailed)
N 25 25 25 25 25 25 25 13 25
SERVI Pearson .556 .549 .750 .750 .750 .616 1.000 .778 .245
Correlation
Sig. (2- .004 .004 .000 .000 .000 .001 . .002 .238
tailed)
N 25 25 25 25 25 25 25 13 25
85
IMPUL Pearson . .785* .677* .617 .607 .418 .678 1.000 .778*
Correlation
Sig. (2- . .003 .011 .011 .011 .155 .002 . .561
tailed)
N 13 13 13 13 13 13 13 13 13
SLSPR Pearson .419 .499 .389 .389 .389 .656 .245 .778 1.000
Correlation
Sig. (2- .037 .011 .055 .055 .055 .000 .238 .561 .
tailed)
between purchase and choice (.829). Other significant correlations are between:
Purchase and price (.770)
Purchase and display. (.630)
choice. (.896). Another significant correlation of impulse purchase is between sales
promotions and the display of the products.(.609)
So the customers those who are visiting this store is giving prior importance to
choice of the products, price and display of the products.
In the case of impulse purchasing the most significant factors are choice and sales
promotion.
86
Reliance Timeout
Table 5.15
PURC CHOICE DISP LAYOUT AMBI PRICE SERVICE IMPULSE SALESP

PURC Pearson 1.000 .622* .579 .272 .32 .692* .258 . .860*
Correlation 2
Sig. (2- . .001 .002 .188 117 .012 .213 . .004
tailed)
N 25 25 25 25 25 25 25 17 25
CHOICE Pearson .622 1.000 .533 .527 .373 .581 .288 .243 .348
Correlation
Sig. (2- .001 . .006 .007 .066 .002 .162 .347 .088
tailed)
N 25 25 25 25 25 25 25 17 25
DISP Pearson .579 .533 1.000 .040 .438 .444 -.076 .486 .408
Correlation
Sig. (2- .002 .006 . .848 .029 .026 .717 .048 .043
tailed)
N 25 25 25 25 25 25 25 17 25
LAYOUT Pearson .272 .527 .040 1.000 .000 .369 .377 .103 .198
Correlation
Sig. (2- .188 .007 .848 . 1.000 .070 .063 .694 .344
tailed)
N 25 25 25 25 25 25 25 17 25
AMBI Pearson .322 .373 .438 .000 1.000 .413 -.055 .212 .102
Correlation
Sig. (2- .117 .066 .029 1.000 . .040 .796 .414 .627
tailed)
N 25 25 25 25 25 25 25 17 25
87
PRICE Pearson .692 .581 .444 .369 .413 1.000 -.079 .631 .573
Correlation
Sig. (2- .012 .002 .026 .070 .040 . .706 .007 .003
tailed)
N 25 25 25 25 25 25 25 17 25
SERVICE Pearson .258 .288 -.076 .377 -.055 -.079 1.000 -.302 .071
Correlation
Sig. (2- .213 .162 .717 .063 .796 .706 . .239 .735
tailed)
N 25 25 25 25 25 25 25 17 25
IMPLSE Pearson . .243 .486 .103 .212 .631* -.302 1.000 .748*
Correlation
Sig. (2- . .347 .048 .694 .414 .007 .239 . .002
tailed)
N 17 17 17 17 17 17 17 17 17
SALESP Pearson .860 .348 .408 .198 .102 .573 .071 .748* 1.000
Correlation
Sig. (2- .004 .088 .043 .344 .627 .003 .735 .005 .
tailed)
between purchase and sales promotion(.860). Other significant correlations are
between:
Purchase and price(.690)
In the case of impulse purchasing the highest correlation is shown between
sales promotions (.748) and price of the products( .631)
So the customers those who are visiting this store gives prior importance to the price
of the products, sales promotional activities like offers.
In the case of impulse purchasing also the most significant factor is sales
promotion and price of the products.
88
Scullers
Table 5.16
Correlations
PURC CHOICE DISPLA LAYOU AMBIENC PRICE SERVIC IMPU SALESP
H Y T E ES LSE RO
PURC Pearson .000 .721 .683 .685 .630 .894 .683 . .919
H Correlation
Sig. (2- . .117 .000 .000 .001 .000 .000 . .000
tailed)
N 25 25 25 25 25 25 25 17 24
CHOI Pearson .321 1.000 .366 .403 .256 .458 .366 .260 .415
CE Correlation
Sig. (2- .117 . .072 .046 .216 .021 .072 .313 .044
tailed)
N 25 25 25 25 25 25 25 17 24
89
DISPL Pearson .683 .366 1.000 .937 .942 .627 1.000 .130 .544
AY Correlation
Sig. (2- .000 .072 . .000 .000 .001 .000 .618 .006
tailed)
N 25 25 25 25 25 25 25 17 24
LAYO Pearson .685 .403 .937 1.000 .879 .628 .937 .299 .616
UT Correlation
Sig. (2- .000 .046 .000 . .000 .001 .000 .244 .001
tailed)
N 25 25 25 25 25 25 25 17 24
AMBIE Pearson .630 .256 .942 .879 1.000 .578 .942 -.146 .450
NCE Correlation
Sig. (2- .001 .216 .000 .000 . .002 .000 .577 .027
tailed)
N 25 25 25 25 25 25 25 17 24
PRICE Pearson .894 .458 .627 .628 .578 1.000 .627 .169 .748
Correlation
Sig. (2- .000 021 .001 .001 .002 . .001 .517 .000
tailed)
N 25 25 25 25 25 25 25 17 24
SERVI Pearson 683 .366 1.000 .937 .942 .627 1.000 .130 .544
CES Correlation
Sig. (2- .000 .072 .000 .000 .000 .001 . .618 .006
tailed)
N 25 25 25 25 25 25 25 17 24
IMPUL Pearson . .260 .130 .299 -.146 .769 .130 1.000 .920
SE Correlation
Sig. (2- . .313 .618 .244 .577 .517 .618 . .010
tailed)
N 17 17 17 17 17 17 17 17 16
SALE Pearson .919 .415 544 .616 .450 .748 .544 .620 1.000
SPRO Correlation
Sig. (2- .000 .044 006 .001 .027 .000 .006 .010 .
tailed)
From the above correlation table it can be inferred that there is very high
correlation between purchase and sales promotions (.919). Other significant
correlations are between:
In the case of impulse purchasing also the highest correlation is shown between
between the price of the products. (.769)
90
So the customers those who visit this store is giving prior importance to price of
the products, sales promotional activities like offers.
In the case of impulse purchasing the most significant factor is sales promotion.
Archies
Table 5.17
PUR CHOIC DIPLA LAYO AMBIEN PRICE SERVIC IMP SALES

PR
P Pearson 1.000 .863 .720 .241 .328 .660 -.298 . .583
URC Correlati
H
91
Sig. (2- . .766 .119 .247 .109 .077 .147 . .170
tailed)
N 25 25 25 25 25 25 25 13 25
CHOI Pearson -.063 1.000 .165 -.035 .246 -.436 .038 -.33 .405
CE Correlati 2
Sig. (2- .766 . .431 .869 .237 .029 .855 .268 .045
tailed)
N 25 25 25 25 25 25 25 13 25
DIPL Pearson .720 .165 1.000 .173 .534 .322 -.281 .277 .031
AY Correlati
Sig. (2- .119 .431 . .407 .006 .116 .173 .360 .883
tailed)
N 25 25 25 25 25 25 25 13 25
LAYO Pearson .241 -.035 .173 1.000 .376 -.146 -.243 .030 -.052
UT Correlati
Sig. (2- .247 .869 .407 . .064 .485 .242 .921 .805
tailed)
N 25 25 25 25 25 25 25 13 25
AMBI Pearson .328 .246 .534 .376 1.000 .277 -.462 .349 .179
ENC Correlati
on
Sig. (2- .109 .237 .006 .064 . .180 .020 .243 .392
tailed)
N 25 25 25 25 25 25 25 13 25
PRIC Pearson .660 -.436 .322 -.146 .277 1.000 -.385 .359 -.015
E Correlati
on
Sig. (2- .077 .029 .116 .485 .180 . .057 .228 .942
tailed)
N 25 25 25 25 25 25 25 13 25
S Pearson -.298 .038 -.281 -.243 -.462 -.385 1.000 -.34 -.463
ERVI Correlati 9
CE on
Sig. (2- .147 .855 .173 .242 .020 .057 . .243 .020
tailed)
N 25 25 25 25 25 25 25 13 25
IMPU Pearson . -.332 .877 .030 .349 .759 -.349 1.00 .578
LSE Correlati 0
on
Sig. (2- . .268 .360 .921 .243 .228 .243 . .561
tailed)
N 13 13 13 13 13 13 13 13 13
SALE Pearson .583 .405 .031 -.052 .179 -.015 -.463 .178 1.000
SPR Correlati
on
Sig. (2- .170 .045 .883 .805 .392 .942 .020 .561 .
tailed)
between purchase and choice(.863). Other significant correlations are between:
92
Purchase and display (.720)
Purchase and price. (.660)
In the case of impulse purchasing the highest correlation is shown between the
choice of the products (.877). Another significant correlation of impulse purchase is
between the display of the products. (.609)
So the customers who are visiting this store gives prior importance to choice
of the products and price of the products.
In the case of impulse purchasing also the most significant factor is choice of the
products.
93
Nike
Table 5.18
94
PURC CHOICE DIPLAY LAYOU AMBIENC PRICE SERVIC IMPU
H T E LSE
PURC Pearson 1.000 .863 .620 .241 .328 .660 -.298 .
H Correlation
Sig. (2- . .766 .119 .247 .109 .077 .147 .
tailed)
N 25 25 25 25 25 25 25 13
CHOI Pearson .863 1.000 .165 -.035 .246 -.436 .038 -.332
CE Correlation
Sig. (2- .766 . .431 .869 .237 .029 .855 .268
tailed)
N 25 25 25 25 25 25 25 13
DIPLA Pearson .620 .165 1.000 .173 .534 .322 -.281 .277
Y Correlation
Sig. (2- .119 .431 . .407 .006 .116 .173 .360
tailed)
N 25 25 25 25 25 25 25 13
LAYO Pearson .241 -.035 .173 1.000 .376 -.146 -.243 .030
UT Correlation
Sig. (2- .247 .869 .407 . .064 .485 .242 .921
tailed)
N 25 25 25 25 25 25 25 13
AMBIE Pearson .328 .246 .534 .376 1.000 .277 -.462 .349
NC Correlation
Sig. (2- .109 .237 .006 .064 . .180 .020 .243
tailed)
N 25 25 25 25 25 25 25 13
PRICE Pearson .660 -.436 .322 -.146 .277 1.000 -.385 .359
Correlation
Sig. (2- .077 .029 .116 .485 .180 . .057 .228
tailed)
N 25 25 25 25 25 25 25 13
SERVI Pearson -.298 .038 -.281 -.243 -.462 -.385 1.000 -.349
CE Correlation
Sig. (2- .147 .855 .173 .242 .020 .057 . .243
tailed)
N 25 25 25 25 25 25 25 13
IMPUL Pearson . .793 .277 .030 .349 .759 -.349 1.000
SE Correlation
Sig. (2- . .268 .360 .921 .243 .228 .243 .
tailed)
N 13 13 13 13 13 13 13 13
SALE Pearson .283 .405 .031 -.052 .179 -.015 -.463 .178
SPR Correlation
Sig. (2- .170 .045 .883 .805 .392 .942 .020 .561
tailed)
95
From the above correlation table it can be inferred that there is high
correlation between purchase and choice (.863). Other significant correlations are
between:
Purchase and display. (.620)
In the case of impulse purchasing the highest correlation is shown between
choice and price. (.793 and .759 respectively). Another significant correlation of
impulse purchase is between display of the products.(.609)
So the customers who visit this store is giving prior importance to price of the
products and choice of the products.
In the case of impulse purchasing, the most significant factors are choice of
the products and price of the products.
96
Super
Table 5.19
97
PURC CHOICE DISP LAYOU AMBI PRICE SERVIC IMPU
T E LSE
PURC Pearson 1.000 .794 .579 .272 .322 .892 .258 .
Correlation
Sig. (2- . .001 .002 .188 117 .012 .213 .
tailed)
N 25 25 25 25 25 25 25 17
CHOI Pearson .794 1.000 .533 .527 .373 .581 .288 .243
CE Correlation
Sig. (2- .001 . .006 .007 .066 .002 .162 .347
tailed)
N 25 25 25 25 25 25 25 17
DISP Pearson .579 .533 1.000 .040 .438 .444 -.076 .486
Correlation
Sig. (2- .002 .006 . .848 .029 .026 .717 .048
tailed)
N 25 25 25 25 25 25 25 17
LAYO Pearson .272 .527 .040 1.000 .000 .369 .377 .103
UT Correlation
Sig. (2- .188 .007 .848 . 1.000 .070 .063 .694
tailed)
N 25 25 25 25 25 25 25 17
AMBI Pearson .322 .373 .438 .000 1.000 .413 -.055 .212
Correlation
Sig. (2- .117 .066 .029 1.000 . .040 .796 .414
tailed)
N 25 25 25 25 25 25 25 17
PRICE Pearson .892 .581 .444 .369 .413 1.000 -.079 .631
Correlation
Sig. (2- .012 .002 .026 .070 .040 . .706 .007
tailed)
N 25 25 25 25 25 25 25 17
SERVI Pearson .258 .288 -.076 .377 -.055 -.079 1.000 -.302
CE Correlation
Sig. (2- .213 .162 .717 .063 .796 .706 . .239
tailed)
N 25 25 25 25 25 25 25 17
IMPLS Pearson . .243 .486 .103 .212 .681 .602 1.000
E Correlation
Sig. (2- . .347 .048 .694 .414 .007 .239 .
tailed)
N 17 17 17 17 17 17 17 17
SALE Pearson .860 .348 .408 .198 .102 .573 .071 .648
SP Correlation
Sig. (2- .004 .088 .043 .344 .627 .003 .735 .005
tailed)
98
between purchase and price (.892). Other significant correlations are between:
Purchase and Sales promotion (.860)
between price of the products. (.609)
So the customers those who visit this store gives prior importance to price of
the products, choice of the products Sales promotional activities like offers .
In the case of impulse purchasing the most significant factor is sales promotion.
99
The following figure shows the response from the customers regarding the
factors which affect the purchase from the store
Important factors which affect purchase
1%
18%
27%
Choice
Display
Price
Salespro
17% Others
37%
100
Table 5.20
Performance of stores
Name of the Expected sales Actual Sales Foot falls % of people
store ( monthly) ( Monthly) who purchase
World of titan- 1,00,000 90,000 600 (.6%) 80
Wrist Fashion
Nike-Sports 10,00,000 8,00,000 9000 (9.3%) 45

Fashion
Levis-Attire 8,00,000 7,00,000 7000 (7.3%) 75
Fashion
Zodiac-Attire 2,00,000 64,000 600 (.6%) 60
Fashion
Scullers, 4,00,000 5,00,000 9,000 70
Urbana, Indigo (9.4%)
Nation, John
Miller-Attire
Fashion
Reliance 90 lakhs 80 lakhs 18,000 90
Super- (18.75%)
Hypermarket
Navigator- 10 lakhs 10 lakhs 9000 (9.3%) 85
Attire Fashion
Identity-Attire 2,00,000 1,00,000 1500 (1.5%) 60

Fashion
Levis 9,00,000 6,00,000 3200 (3.3%) 70
Signature-
Attire Fashion
Doc & Mark- 10 lakhs 8 lakhs 1000 (1.04%) 60
Attire Fashion
Reliance 2 crores 15000000 25,000( 75
Trends-Attire 26.04%)
101
Fashion
Café Coffe day 30 lakhs 40 lakhs 18,000(18.75% 100
)
Archies- 6 lakhs 4 lakhs 2400 (2.5%) 35
Lifestyle
Fashion
Reliance Time 80 lakhs 90 lakhs 25,000(26.5%) 60
Out-Lifestyle
Fashion
Reliance Foot 20 lakhs 15 lakhs 4000(4.1%) 55
Print-Foot
Fashion
(Source: Store managers of the corresponding stores)
Approximate footfalls for the week from 12th jan to 18th jan 2009.
Table 5.21
Days Footfalls
Monday 2172
Tuesday 1924
Wednesday 2972
Thursday 2102
Friday 3534
Saturday 5292
Sunday 6210
Total(weekly) 24205
So considering 24,000 as the weekly footfalls the monthly footfalls could be

approximately 96,000
102
Questionnaire
Two set of questionnaire were prepared: one for store managers and the
other for the customers visiting the store.
A study on the Customer perception about stores at the Oberon mall
(Questionnaire for customers visiting the store at the mall)
Name of the Store:
1. Gender: Male [ ] Female []
2. Age group: a. Under 18 [ ] b. 18-25 []
c. 26-35 [] d. 36-55 []
e. > 55 []
103
3. Place of the residence.....................
4. Is this the first time you are visiting the store?
a. Yes [] b. No []
5. How many times you have visited this store?________________________
6. Did you make any purchase from the store?
a. Yes [] b. No []
7. Have you visited any other store in the mall?
a. Yes [] b. No []
8. If yes, name some of these stores:
1.
2.
3.
4.
5.
9. Are you satisfied with choice of products available at this store?
a. Highly satisfied [] b. Satisfied []
c. .Neutral [] d. Dissatisfied []
e. Highly dissatisfied []
104
10. How do you feel about the display of the store?
a. Really good [] b. Good []
c. Neither good nor bad [ ] d. Bad []
e. Really bad []
11. Is the layout of the store find attractive to you?
a. Very attractive [] b. Attractive []
c. Neither attractive nor unattractive [ ] d. Unattractive [ ]
e. highly unattractive []
12. How do you feel about the ambience of the store?
a. Very good [] b. Good []
c. Average [] d. Poor []
e. Bad []
13. Rate the general price level of the products at the store?
a. Very low [] b. Low []
c. neither high nor low [] d. High []
e. Very High []
14. How do you rate the services offered by employees of the store?
105
a. Highly satisfied [] b. Satisfied []
c. .Neutral [] d. Dissatisfied []
e. Highly dissatisfied []
15. Did you make any unplanned purchase from the store?
a. Yes [] b. No []
16. Does the store offer any attractive sales promotion schemes?
a. Yes [] b. No []
17. How do you rate this store when compared with other stores in the mall?
a. Very good [] b. Good []
c. Average [] d. Poor []
e. Bad []
18. Which factor affects your purchasing decision most?( Rate )
a. Choice of the products b. Brand image of the store / product
c. Competitive price d. Sales promotion
e. Others
18. Do you have any suggestions to improve the performance of stores
a.___________________
106
b.____________________
c.____________________
A study on the performance of tenants at the Oberon Mall
(Questionnaire for tenants at the mall)
1. Name of the store:
2. Major product categories:
3. What is the average [approximate] no of customers visiting the store per week? …
……
4. Among the customers who visit the store, what percentage actually buy from the
store?
Approximate % ………………..
5. What was the approximate weekly sale (in Rupees) you had expected? Rs ………
……
6. What is the approximate weekly sale you have achieved? Rs ……………
7. Is your average weekly sales greater than your expected sales?
107
a. Much greater [] b. Greater []
c. About the same [ ] d. Worse []
e. Much worse []
8. At the current volume of sales, how would you rate the profitability of your shop?
a. Highly profitable [ ] b. Profitable []
c. Break even [] d. Not profitable [ ]
e. Loss []
9. What do you think about the trend in sales performance, whether it is

increasing or decreasing?
a. Rapidly increasing [] b. Increasing []
c. About the same [] d. Decreasing []
e. Rapidly decreasing []
10. How do you rate the overall performance of the store at the mall when compared
to your outside stores?
a. Much better [] b. Better []
c. About the same [] d. Worse []
e. Much worse []
11. Do you think that the current tenant mix is complementary and helping the store?
a. Most helpful [] b. Helpful []
108
c. About the same [] d. Not helpful []
e. Least helpful []
12. Are there too many competitors for the store at the mall?
a. Yes [] b. No []
13. List the kind of promotional activities you are expecting from the mall:
1)
2)
3)
4)
5)
14. Do you think the mall will have good growth?
a. Yes [] b. No []
15. Please give reasons for your opinion:
1)
2)
3)
109
CHAPTER 6
FINDINGS, SUGGESSIONS
& CONCLUSION
110
FINDINGS:
• Approximate footfalls for the week from 12th January to 18th January 2009 at
the mall were 24,000. So the approximate monthly footfalls may be around
96,000.
• From the data collected from store managers of various stores only few
people are visiting their stores when compared to the total footfalls at the
mall. But in the case of anchor stores like Reliance Trendz, Timeout and
Super this is not the case. These anchor stores were able to get a large number
of footfalls when compared to other stores.
• Among these three stores Reliance trendz tops the list with around 30,000
footfalls which accounts for nearly 30% of the total footfalls.
• Reliance Super comes second in the list with around 28,000 footfalls which
accounts for nearly 28% of the total footfalls.
• Reliance Timeout comes third in the list with around 26,000 footfalls which
accounts for nearly 26% of the total footfalls.
• Some other stores like Zodiac is having monthly footfalls of just around 600.
It accounts for just .6% of the total footfalls. So there is huge gap in the
performance of the stores at the mall.
• Among the different factors which affect the purchasing decision 30% of the
customers rated competitive price as the most important factor, 28% as the
choice of the products available at the store, 23% as the brand image of the
store and products, 15% as the attractive sales promotions offered by the
stores and the remaining 4% on different factors such as design and ambience
of the store .
• Among the 200 samples selected the people who make purchase from any of
111
the stores were just 58%. That means almost 52 % are not making any
purchase from the store. So lot of people are viewing the mall as a hangout
with their friends.
• Another interesting finding is that the food kiosk of Café Coffe Day at the
Reliance Timeout is having a high customer turnover. It has an approximate
monthly foot fall of 22,000 that means nearly 23 % of the total falls.
• Out of the 200 respondents 74% of the people are between the age group of
18-35.
• Level of satisfaction of customers at the stores like Reliance Trendz, Timeout
and Super were very high when compared to other stores at the mall.
SUGGESTIONS:
 More sales promotional activities must come from the stores. Since 15 % of the
customers value sales promotional activities as the important factor for purchase
giving the customers additional promotional activities will be a great advantage
for the stores. For instance when the store of Scullers offered an offer of ‘buy 3
get 2 free the sales increased by 100 % to reach 8 lakh monthly sales.
 While conducting the analysis, an interesting factor which came up was regarding
the customer service. Majority of the respondents suggested that the services
offered by the sales personnel were not an important factor in their purchasing
decision. The majority of the customers were not influenced by the sales
personnel in their purchasing decision. So by providing aggressive services like
providing more assistance to the customers by the sales personnel stores can
improve their sales.
 The large number of people visiting the café coffeday is a strong indication of
customer’s positive responses to the food kiosks. So if there is an increase in the
112
number of food stores it will be helpful for the stores.
 By keeping advertisements about the store in different places of the mall like the
atrium, and near the elevators will help the stores to promote their products and to
get noticed by the customers.
CONCLUSION:-
The study on the “Performance of the stores at the Oberon Mall” helped to
understand the performance of different stores at the mall and to identify the
significant factors which affect the performance of the stores. The study helped to
understand the customers perception about the mall in general and the stores in
specific. Being the first life style mall in kerala it is realised that the Oberon mall has
got lot of opportunities as well as challenges infront of it. Based on the study it is
understood that people of Kerala are not that much accustomed to the mall culture.
So the main efforts of the mall management may be to propagate the concept of
“shoppentertainment”. Inorder to attain such an objective the management might be
able to attract and retain the best performing stores and world class brands at the
mall. Lot of malls are coming in and around Kochi, so the management should
develop, implement and revise the appropriate marketing strategies. To the researcher
the project has provided immense experience in learning about the practical aspects
113
of mall management.
References
1. Mall management, Second edition 2008,

Abhijith Shaw
2. Indian Retail report 2008
3. www.retailimages.com
4. www.economictimes.com
5. www.emerald.com
114
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THE PER FO RM AN CE O F STORES AT

Under the Guidance of

SCHOOL OF MANAGEMENT STUDIES

Dr. Sarada S. Prof. Dr. K B

Chapter Title PageNo

2. INDUSTRY PROFILE-A REVIEW…………………………………….10

5. DATA ANALYSIS AND INTERPRETATION…………………………48

6. FINDINGS AND SUGGESTIONS…………………………………84

Table No. Title

5.9 Opinion regarding the first visit

5.10 Percentage of people who purchase from the store

5.11 Anova Table

5.12 – 5.19 Correlation table

5.20 Performance of stores

Figure No. Title Page

1. The GCDA shopping complex at Marine Drive in Kochi

5.1-5.8 Age classification of the respondents at different stores

Annexure No. Title

1 Questionnaire for customers visiting the stores at the mall

THE INDIAN RETAIL SCENE

Traditionally retailing in India can be traced to

• The emergence of the neighbourhood Kirana stores catering to the

• Era of government support for rural retail: Indigenous franchise model of

GROWTH OF RETAIL SECTOR IN INDIA

Even though India's three-year reign as the most attractive

RETAIL SALES IN INDIA

With over 1,000 hypermarkets and 3,000 supermarkets

According to the Icrier report, the retail business in

Indian market has high complexities in terms of a wide

The break-up of organized retailing sales into various

• Low share of organized retailing

• Falling real estate prices

• Increase in expenditure for luxury items (CHART)

RETAILING FORMAT IN INDIA

INDIA’S NUMBER OF DOMESTIC GROCERY CHAINS AND EARLY

Major Indian Retailers

Indian apparel retailers are increasing their brand

The low-intensity entry of the diversified Mahindra Group

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre,

• REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super

• RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,

• Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central,

• The Tata Group-Formats: Westside, Star India Bazaar, Steel Junction,

• K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City,

• Lifestyle International-Lifestyle, Home Centre, Max, Fun City and

• Pyramid Retail-Formats: Pyramid Megastore, TruMart

• Nilgiri’s-Formats: Nilgiris’ supermarket chain

• Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount

• Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket

• Vishal Retail Group-Formats: Vishal Mega Mart

• Reliance Retail-Formats: Reliance Fresh, Super, Timeout, Trendz

• Reliance ADAG Retail-Format: Reliance World

• German Metro Cash & Carry

• Shoprite Holdings-Formats: Shoprite Hyper

• Paritala stores bazar: honey shine stores

• Aditya Birla Group - more Outlets

• Estimated to be US$ 200 billion, of which organized retailing (i.e. modern

• As per a report by KPMG the annual growth of department stores is estimated

• India ranked second in a Global Retail Development Index of 30 developing

• Multiple drivers leading to a consumption boom:

o Increasing population of working class women

o Raising aspirations: Value added goods sales

• Organized retailing in India has been largely in urban areas