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Q1. What is retail project management? Explain its importance.

Project management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables),[1] undertaken to meet unique goals and objectives,[2] typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations),[3] which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies. The primary challenge of project management is to achieve all of the project goals[4] and objectives while honoring the preconceived constraints.[5] The primary constraints are scope, time, quality and budget.[6] The secondary and more ambitious challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives.

Planning and design

After the initiation stage, the project is planned to an appropriate level of detail (see example of a flow-chart).[24] The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. Project planning generally consists of determining how to plan (e.g. by level of detail or rolling wave); developing the scope statement; selecting the planning team; identifying deliverables and creating the work breakdown structure; identifying the activities needed to complete those deliverables and networking the activities in their logical sequence; estimating the resource requirements for the activities; estimating time and cost for activities; developing the schedule; developing the budget; risk planning; gaining formal approval to begin work. Additional processes, such as planning for communications and for scope management, identifying roles and responsibilities, determining what to purchase for the project and holding a kick-off meeting are also generally advisable.

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Monitoring and controlling

Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Monitoring and controlling includes: Measuring the ongoing project activities ('where we are'); Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be); Identify corrective actions to address issues and risks properly (How can we get on track again); Influencing the factors that could circumvent integrated change control so only approved changes are implemented.

Monitoring and controlling process group processes In multi-phase projects, the monitoring and control process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. Project maintenance is an ongoing process, and it includes: Continuing support of end-users Correction of errors Dheeraj kumar Roll No.-511121896

SEM-4 ML0018 Updates of the software over time

In this stage, auditors should pay attention to how effectively and quickly user problems are resolved.

Monitoring and controlling cycle

Over the course of any construction project, the work scope may change. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as change management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, as built. The requirement for providing them is a norm in construction contracts. Project controlling and project control systems Project controlling should be established as an independent function in project management. It implements verification and controlling function during the processing of a project in order to reinforce the defined performance and formal goals. The tasks of project controlling are also:

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SEM-4 ML0018 the creation of infrastructure for the supply of the right information and its update the establishment of a way to communicate disparities of project parameters the development of project information technology based on an intranet or the determination of a project key performance index system (KPI) divergence analyses and generation of proposals for potential project regulations the establishment of methods to accomplish an appropriate the project structure, project workflow organization, project control and governance creation of transparency among the project parameters Fulfillment and implementation of these tasks can be achieved by applying specific methods and instruments of project controlling. The following methods of project controlling can be applied: investment analysis costbenefit analyses value benefit Analysis expert surveys simulation calculations risk-profile analyses surcharge calculations milestone trend analysis cost trend analysis

Q2. Write a brief note on project identification.

Introduction During the Identification phase, and within the framework established by the Country Strategy Paper, the stress is on analysis of relevance of project ideas, which in-cludes an analysis of the stakeholders and of the likely target groups and beneficiar-ies (who they are: women and men from different socio-economic groups; assess-ment of their potentials, etc.) and of the situation, including an analysis of the prob-lems they face, and the identification of options to address these problems. Sectoral, thematic or pre-feasibility studies may be carried out (including consulta-tions with stakeholders) to help identify, select or investigate specific ideas, and to define what further studies may be needed to formulate a project or action. The out-come is a decision on whether or not the option(s) developed should be further stud-ied in detail. Overall responsibility for Identification is with EuropeAid who initiates missions, studies and related preparatory work (including consultations with others donors and potential co-financing) in order to define the activities (projects, pro-grammes, sectoral support, etc.) to be financed. A priority list is established by DG DEV/RELEX indicating which projects should be appraised immediately for a rapid start of implementation, in the following year and so on.

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SEM-4 ML0018 2.4.2. Expected Outcomes of Identification The expected outcomes of Identification are: Where required, a pre-feasibility study analysing a given situation, suggesting different options to address this situation and suggesting the one(s) to be further studied during appraisal to ensure these ideas are feasible. A Project Identification Sheet based, if possible, on the pre-feasibility study, and examining the coherence between the project / programme proposed and the objectives defined in the CSP/NIP, indicating relevant experience to be taken into account, determining the subsequent steps. A decision taken by the EC and the partner country to appraise the suggested option(s) in detail (priority list), to reject the project. In terms of Logical Framework, the pre-feasibility study should establish a rough project description covering basically the Intervention Logic and the Assumptions. This means that it should go through the Analysis Stage and parts of the Planning Stage of the LFA, establishing Stakeholder Analysis, Problem Analysis, Analysis of Objectives, Strategy Analysis. In most cases, it will be sufficient to roughly elaborate the Intervention Logic and the Assumptions for the preferred option, as well as give indications for possible Indicators, especially at the level of the Project Purpose and the Results. So the outcome would look as follows: In addition, the pre-feasibility study should provide a first draft for an implementationSchedule. Such a schedule should outline the timing for the major elements of fur-ther preparation and implementation. In cases where no pre-feasibility study is made, the Implementation Schedule should be prepared by the task manager. In both cases it will accompany the Project Identification Sheet and thus serve for de-cision by DG DEV/RELEX about the further timing of appraisal and implementation. It should regularly be updated by the task manager. During implementation, the pro-ject managers are responsible for updating the schedule and to submit it as part of the progress reports.

Major Tasks At the level of an individual project, Identification will usually involve the following major tasks: 1. Organising consultations with other donors throughout the phase. 2. Drafting TOR for the pre-feasibility study (Standard TOR are available on the Intranet of EuropeAid working tools), based on: the Overall Objectives of co-operation with the concerned partner country,

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SEM-4 ML0018 background information about the country, sector, region concerned, in-cluding overall sector strategies or sector support programmes, discussions with stakeholders likely to be concerned by the project, experience in the country in the same or comparable sectors or regions, lessons learnt through evaluation of similar projects . 3. Drafting tender documents for the pre-feasibility study according to the existing procedures and selecting contractor according to existing procedures. 4. Briefing contractor and parties involved and monitoring pre-feasibility study mis-sion. 5. Ensuring quality of outcome (reports) and feedback to parties involved, including assessment and improvement of the project ideas and decision whether or not further action is justified. If so, defining issues for a feasibility study and drawing up terms of reference. 6. Drafting the Project Identification Sheet and submitting it for priority listing. A typical pre-feasibility study mission would last several weeks in the partner country, followed by a shorter period outside this country. This mission is one of the most im-portant stages in the planning of new projects. During the mission the study team must work closely with the potential beneficiaries and target groups. The key focus for the mission is: 1. To consult with proposed beneficiaries and target groups to assess their strengths and weaknesses and to check their likely commitment to a project. This consulta-tion will take the form of individual and group meetings both with the potential partner institutions and the beneficiaries / target groups. It is recommended to hold a diagnosis workshop to run through the Analysis and parts of the Planning Phase of the LFA as described above. 2. To ensure that potential project options are coherently defined with a logical analysis of problems, achievable objectives linked to (sub-)sector objectives and the objectives in the indicative programme as well as to the overarching policy objectives. 3. To define the Overall Objectives, Project Purpose and Results which are ex-pected from project activities for the preferred option. 4. To identify assumptions on which the project would be based. 5. To identify those factors which will influence the projects sustainability and the likely partners arrangements for the post-project period. 6. To provide a first estimate of means and cost. 7. To identify those aspects of the project where further analysis and planning work will be required in order to ensure feasibility of the intervention, finalize planning and draft the financing proposal. 8. To ensure that the project has an appropriate size, taking into account the capac-ity of the likely partner institution and target groups. 2.4.4. Project Identification Criteria
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When assessing the quality of project ideas at the end of the Identification phase (i.e. the prefeasibility study report), it should mainly be ensured that these ideas are likely to be relevant and that they are as well likely to be feasible (most steps of the sustainability check will take place during Appraisal).

Q3. (a) What are the types of retail location?

Commercial retail locations are available in many different forms. Stop and think about the businesses in your town. Like most communities, there are probably older shopping areas, new bustling retail locations and some tucked away shops. Retailers have many store location factors to consider when choosing a place for their business. Here are a few of the more common types of retail locations.

Mall Space From kiosks to large anchor stores, a mall has many retailers competing with each other under one roof. There are generally 3 to 5 anchor stores, or large chain stores, and then dozens of smaller retail shops. Typically the rent in a mall location is much higher than other retail locations. This is due to the high amount of customer traffic a mall generates. Before selecting this type of store location, be sure the shopper demographic matches the description of your customers. Mall retailers will have to make some sacrifices in independence and adhere to a set of rules supplied by mall management.

Shopping Center Strip malls and other attached, adjoining retail locations will also have guidelines or rules for how they prefer their tenants to do business. These rules are probably more lenient than a mall, but make sure you can live with them before signing a lease. Your community probably has many shopping centers in various sizes. Some shopping centers may have as few as 3 units or as many as 20 stores. The types of retailers, and the goods or services they offer, in the strip mall will also vary. One area to investigate before choosing this type of store location is parking. Smaller shopping centers and strip malls may have a limited parking area for your customers.

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SEM-4 ML0018 Downtown Area Like the mall, this type of store location may be another premium choice. However, there may be more freedom and fewer rules for the business owner. Many communities are hard at work to revitalize their downtown areas and retailers can greatly benefit from this effort. However, the lack of parking is generally a big issue for downtown retailers. You'll find many older, wellestablished specialty stores in a downtown area. This type of store seems to thrive in the downtown setting.

Free Standing Locations This type of retail location is basically any stand-alone building. It can be tucked away in a neighborhood location or right off a busy highway. Depending on the landlord, there are generally no restrictions on how a retailer should operate his business. It will probably have ample parking and the cost per square foot will be reasonable. The price for all that freedom may be traffic. Unlike the attached retail locations where customers may wander in because they were shopping nearby, the retailer of a free standing location has to work at marketing to get the customer inside. Office Building The business park or office building may be another option for a retailer, especially when they cater to other businesses. Tenants share maintenance costs and the image of the building is usually upscale and professional. Home-based More and more retail businesses are getting a start at home. Some may eventually move to a commercial store location, while many remain in the business owner's spare room. This type of location is an inexpensive option, but growth may be limited. It is harder to separate business and personal life in this setup and the retailer may run into problems if there isn't a different address and/or phone number for the business.

(b) Explain the importance of retail location

Population and Your Customer If you are choosing a city or state to locate your retail store, research the area thoroughly before making a final decision. Read local papers and speak to other small businesses in the area. Obtain location demographics from the local library, chamber of commerce or the Census Bureau. Any of these sources should have information on the area's population, income and

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SEM-4 ML0018 age. You know who your customers are, so make sure you find a location where your customers live, work and shop.

Accessibility, Visibility and Traffic Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many shoppers but only if that shopper meets the definition of their target market. Small retail stores may benefit from the traffic of nearby larger stores. How many people walk or drive past the location. Is the area served by public transportation? Can customers and delivery trucks easily get in and out of the parking lot? Is there adequate parking? Depending on the type of business, it would be wise to have somewhere between 5 to 8 parking spaces per 1,000 square feet of retail space. When considering visibility, look at the location from the customer's view point. Can the store be seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better visibility your retail store has, the less advertising needed. A specialty retail store located six miles out of town in a free standing building will need more marketing than a shopping store located in a mall.

Signage, Zoning and Planning Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location. Contact the local city hall and zoning commission for information on regulations regarding signage. Ask about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction.

Competition and Neighbors Other area businesses in your prospective location can actually help or hurt your retail shop. Determine if the types of businesses nearby are compatible you're your store. For example, a high-end fashion boutique may not be successful next door to a discount variety store. Place it next to a nail or hair salon and it may do much more business.

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SEM-4 ML0018 Location Costs Besides the base rent, consider all costs involved when choosing a retail store location. Who pays for lawn care, building maintenance, utilities and security? Who pays for the upkeep and repair of the heating/air units? If the location is remote, how much additional marketing will it take for customers to find you? How much is the average utility bill? Will you need to make any repairs, do any painting or remodeling to have the location fit your needs? Will the retailer be responsible for property taxes? The location you can afford now and what you can afford in the future should vary. It is difficult to create sales projects on a new business, but one way to get help in determining how much rent you can pay is to find out what sales similar retail businesses are making and how much rent they're paying. Personal Factors If you plan to work in your store, think about your personality, the distance from the shop to home and other personal considerations. If you spend much of your time traveling to and from work, the commute may overshadow the exhilaration of being your own boss. Also, many restrictions placed on a tenant by a landlord, management company or community can hamper a retailer's independence.

Special Considerations Your retail shop may require special considerations. Make a list of any unique characteristic of your business that may need to be addressed. Will the store require special lighting, fixtures or other hardware installed? Are restrooms for staff and customers available? Is there adequate fire and police protection for the area? Is there sanitation service available? Does the parking lot and building exterior have adequate lighting? Does the building have a canopy that provides shelter if raining?

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SEM-4 ML0018 What is the crime rate in the area? Are there (blue laws) restrictions on Sunday sales? Don't feel rushed into making a decision on where to put your retail store. Take your time, research the area and have patience. If you have to change your schedule and push back the date of the store's opening, than do so. Waiting to find the perfect store location is better than just settling for the first place that comes along. The wrong location choice could be devastating to your retail business.

Q4. Give an overview of retail project life cycle.

Project management is a one-time carefully planned and organized effort to achieve a specific goal. Project management includes:Developing a project plan, which includes defining project goals and objectives, specifying tasks or how goals will be achieved, what resources are need, and associating budgets and timelines for completion Implementing the project plan, carefully to make sure the plan is being managed according to plan. Project management usually follows major phases: 1. Project Initiation Project Initiation is the opening point in the 5 steps Projelogic's Project development Cycle, (based on the PMBOK methodology) and in simple terms: starting up the project. We initiate a project by defining its reason, business goals, and scope. The reason for initiating it, and the propose solution to be implemented. We will also put together a project team, define early milestones, and early budget proposal. With the above information we can move on and perform an end of Phase study in order to get a GO No GO decision.

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2. Project Planning Once we define the project and assemble the project team, we are ready to enter the in depth Project Planning phase. This involves creating the "PMP", Project Management Plan, in order to guide the team during the project development and after. We will define the Required Skills of development team. Define Non-labor Resources, Risks plan, detailed action items and milestones. Project Execution: 3. Development 4. Implementation With a comprehensible characterization of the project and the full and detailed PMP, we are now ready to enter the Execution phase of the project. This is the stage in which the requirements are actually built and programmed. After the QA process the product will be presented to the customer for acceptance and full implementation. If the customer has accepted the final product, the project is complete and ready for closure. 5.Project Closure Project Closure involves releasing the final product to the customer, handing over project documentation, Manuals, Source code, and Network layouts. Last remaining step is to undertake a Post Implementation Review to identify the level of project success and note down any lessons learned.

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Q5. Analyse the role played by IT in retail project management.

The importance of information technology in retail stems from the importance of data. Data is nothing but information that aids decision making. The right data, in the right form to the right setoff people at the right time, is one of the greatest tools in the hands of the retailer. Information is always with reference to a particular time frame. Let us consider an example of a customer at a department store. After selecting some goods he proceeds towards the billing counter. Here the billing clerk scans each product at the POS (Point of sale) terminal the total number of items and the bill amount is added up. While doing so he has so checked with the customer if he is a member of the stores loyalty program. The customer confirms that he is, gives him the store card for entry makes the payment by way of credit card and exits the store with his purchases. While to the customer it is just a routine purchase, let us look at the information that the store has gathered from this transaction and how the information helps the retailer; Efficient Stocking of merchandise The items purchased provide information on merchandise sold in the store; this is the basis of sales analysis and decisions on replenishment re-ordering and merchandise planning. If this information is passed on to the manufacturer; it can help reduce production time. This is particularly true in case of fashion items, which have a very short life cycle. For example data gathered in this manner may indicate youngsters buying certain styles in Jeans or colors, in the tee shirts from the store. To service this section of the audience the retailer may need replenishments faster. The use of technology aids the collection and transmission of information. The trends in sales can be analyzed. This helps avoid situations of stock out helps spot merchandise or products timely markdowns and higher inventory turns. Collection of Data The use of technology aids data collection. Data can be collected about consumers, their purchases the frequency of their buying and the typical basket size. This information helps the retailer distinguish the customers who shops at his store frequently and also reward them. For example information gathered about a customer may reveal preferences for certain brands; this may be used for further communication with the customer regarding promotional offers etc. The data on purchase made is also passed on to the credit card organization for payment to the merchant establishment and also for billing the customer. Efficiency in Operations The use of information technology serves as a basis for integrating the functioning of various departments. When a retailer decides to use the power of technology to aid business, the

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SEM-4 ML0018 investment in terms of money is usually high. However the benefits of the use of information technology are many. As the process gets automated the time involved in particular task is reduced. For example, a person manually billing a customer for purchase made will take a longer time as compared to a person who is needed to scan in the items using the point of sale systems. Helps Communication Communication within the organization can be faster with the use of software like Lotus Notes. Retail stores can also communicate with each other and with the warehouses. This can be done 24 hours a day and seven days a week. Electronic Data Interchange (EDI) can also be used for communication with suppliers and vendors. The information needs of the retailer largely depend on the size and the spread of the organization. In most cases a small boutique operator or a small retailer like the baniya can do manual billing and gather a fair amount of information by making a phone cal or making a personal visit to the store. With an increase in the number of stores and /or an increase in the number of products sold in the store, gathering of information becomes crucial Technology plays a vital role in gathering this information and making it available to the right set of persons. How Information Technology involved in Retailing Operations * Forecasting: Forecasting is the process of estimation in unknown situations. Its an essential and very important process in any business organization. Business leaders and economists are continually involved in the process of trying to forecast, or predict, the future of business in the economy. Business leaders engage in this process because much of what happens in businesses today depends on what is going to happen in the future. 1. Retail Demand Forecasting: Modern demand-forecasting systems provide new opportunities to improve retail performance. Although the art of the individual merchant may never be replaced, it can be augmented by an efficient, objective and scientific approach to forecasting demand. Large-scale systems are now capable of handling the mass of retail transaction data organizing it, mining it and projecting it into future customer behavior. This new approach to demand forecasting in retail will contribute to the accuracy of future plans, the satisfaction of future customers and the overall efficiency and profitability of retail operations. * Inventory Management: Inventory can be either raw materials, finished items already available for sale, or goods in the process of being manufactured. Inventory is recorded as an asset on a companys balance sheet.

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SEM-4 ML0018 To optimize the deployment of inventory, retailers need to manage the uncertainties, constraints, and complexities across their global supply chain on continuous basis. This allows them to improve their inventory forecasting ability and accurately set inventory targets. An IT solution is a proven and market leading solution for determining optimal time-varying inventory targets for every item, at every location throughout supply chain. This allows retailers you to significantly reduce inventory without adversely affecting service levels. * Store Management: Another example where Information technology can be beneficial is a store management. That alerts out-of-place or stock-out items. A store, commonly a shop or stall for the retail sale of commodities, but also a place where wholesale supplies are kept, exhibited, or sold. A place where something is deposited for safekeeping is called store. The in-store system use magnetic strips or barcodes or RFID to monitor actual versus intended product location on the floor or in the stockroom. Retails Complexity: the Information Technology Solution Much of the retail operations functionality is driven by customized point solutions in areas such as merchandizing, supply chain management, in-store operations, seasonality and promotions planning. This means the underlying IT systems to drive operations are equally complex. IT systems are at the heart of retail operations and hence play a central role in alleviating pressure points in the retail sector. The converse also holds trueretailers who do not manage their IT landscape effectively will find that, in time, the IT systems become part of the problem rather than components of the solution. There are two critical areas where IT can reduce Complexity and improve results: FUNCTIONAL RETAIL AREAS Merchandizing systems impact top-line revenues and need to be configured, customized and managed effectively for the retailer to improve its top line. To achieve this, retailers need to effectively mine large amounts of data and leverage this data to carry out effective forecasting, assortment planning, and collaboration with its suppliers so that promotions and other merchandizing activities are effective and efficient. Supply chain systems are key from a bottom line point of view as they play a key role in getting the right product to the right place at the right timewhich in turn impacts the inventory levels and the rate of flow of products through the retailers stores, both of which are significant components of the retailers cost of doing business. DATA CLEANSING AND ARCHITECTURE IMPROVEMENT Data cleansing, and thereafter, effective mining (via large data warehouses) is fundamentally important in the retail space because so much decision-making is based on data. If the data is

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SEM-4 ML0018 bad, the effectiveness and efficiency of carrying out retail operations is hampered. This becomes particularly crucial when the retailer is implementing new systems and a large data conversion effort is requiredit becomes essential that the old data be effectively cleaned, rearchitect and made ready in the new system, so that the business functions can make decisions effectively. In challenges, place ever-greater demands on retailers. It systems are at the complexity of products, scale and processes, along with supply chain heart of retail operations and hence play a central role in alleviating pressure points in the retail sector.

Q6. Outline the emerging trends in retail sector. What is the scope for expansion of retail business in India?
Retail industry, being the fifth largest in the world, is one of the sunrise sectors with huge growth potential and accounts for 14-15% of the countrys GDP. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail. The recent announcement by the Indian government with Foreign Direct Investment (FDI) in retail, especially allowing 100% FDI in single brands and multi-brand FDI has created positive sentiments in the retail sector.

Emerging Areas Some sectors that occupy a prominent position with the retail industry are: Apparel Retail: Everybody understands the impact of fashion and textiles on the environment. Almost $19.5 billion were spent on online apparel shopping in the year 2009 and increasing since then. Fashion & Lifestyle Retail: In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail to grow faster. Food & Beverage Retail: Backed by huge potential and changing lifestyles, the food and beverage retail market is growing at a robust 30-35 per cent per year.

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SEM-4 ML0018 Pharmaceutical Retail: Driven by therapies like anti-diabetic, vitamin, anti-infectives and dermatology, it accounted for a robust 15% growth in 2011. E-commerce or E-tailing the next big revolution: With the advent of e-commerce in the retail industry, retail stores are facing stiff competition from e-stores. The rising demand for eshopping has lead to a new debate cropping up in the world.

Factors driving growth are: Emergence of nuclear families Falling real estate prices Growing trend of double-income households Increase in disposable income and customer aspiration Increase in expenditure for luxury items Large working population Low share of organized retailing Growing liberalization of the FDI policy in the past decade

Skill sets required are: The industry employs a staggering number of people, and given its rapid proliferation, this number is always on the rise. The backbone of the sector are the operations and supply chain management jobs but there are various other options as well, from sales executives and store managers to merchandise planners and buyers. Conceptual understanding Analytical skills Detail-orientation Fair understanding of customers psychology Observations skills Project Management Operational Skills In-depth product knowledge

Bottlenecks 1. A long way to meet international standardsLack of efficient supply-chain management

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SEM-4 ML0018 Lack of required retail space No fixed consumption pattern Shortage of trained manpower Lack of proper infrastructure and distribution channels Ratings agency Fitch has assigned a stable outlook to the retail sector for 2012 as factors like expected sales, growth-driven expansion and efficient working capital management are likely to benefit retail companies.

Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. Retailing today is not only about selling at the shop, but also about surveying the market, offering choice and experience to consumers, competitive prices and retaining consumers as well. The Indian retail industry is no more nascent today. There has been a significant change in retail trading over the years, from small kiranawalas in the vicinity to big super markets; a transition is happening from the traditional retail sector to organized retailing. The unorganized sector still holds a dominant position in this industry. The organized segment holds just about 1.2% of the current US$ 245 billion retail market, which is expected to reach about US $ 385 billion by the middle of this decade. With consumers looking at convenience with multiplicity of choice under one roof and expectations evolving over time, consumer demand is truly the driving force for organized retailing in the country. Food and beverages form the main chunk of the retail market. They are followed by apparel and footwear. The Indian textile industry, the backbone of the apparel segment, has a large share of the Indian economy, accounting for over 20% of industrial production as well as providing direct and indirect employment to around 65 million people. Despite retail store density in India with regard to population being the largest, it is estimated that over 90% of the stores are less than 500 sq. ft in size. Industry estimates put the number of retail outlets at 12 million. This is clearly indicative of small-shop ownership crowding the unorganized segment of retailing. While this

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SEM-4 ML0018 fragmented market structure does pose significant challenges for organized retailing, potential does exist if modern information and supply chain management system are deployed to support the development of convenience shops that match customer expectations.

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