Fundamentals of Retail Management - MIT School of Distance Education 
                     MIT School of Distance Education
Fundamentals of Retail Management
 Retail entails to the process of selling goods to consumers in 
small quantities either for consumption or for further sale 
through assorted channels with an aim to gain high returns. 
The process of planning, implementing, monitoring and 
controlling different retail activities is termed as retail 
management. Since the retail sector is ever-rising, so every 
retail firm seeks a manager who can effectively handle all the 
retail activities. In such a scenario, pursuing MBA in retail 
management can promise a lucrative career.
 MIT School of Distance Education (MIT-SDE) offers distance 
MBA-equivalent PGDM courses in Retail Management to train 
the aspirants and make them industry-ready. The institute 
aims at enhancing the employability of candidates. So, if you 
wish to capitalize on the retail sector, then apply for the 
course right away.
 During the course, candidates gain knowledge about core 
concepts of retail management and its fundamentals. Here’s a 
look at some of the fundamentals of retail management.
Channels of Distribution in Retailing
 In present times, the connection between the consumers and 
the manufacturers has become complex than before. This is 
due to the multi-faceted channel of distribution which is 
complex because of the involvement of intermediaries. This 
leads to a hike in the value of goods and services until the 
time they reach the end-user in the cycle.
 There are different channels of distribution. Some channels 
involve the function of both wholesalers and retailers, while 
some involve only retailers. Furthermore, there are certain 
goods that are transported directly from the manufacturer to 
the consumer.
Basics of Retailing
There are different ways through which retailing is carried out:
1. Ownership
2. Merchandise
Ownership
 Independent Retailers: Businessmen such as grocers, 
booksellers, confectioners, etc, who handle their single 
shop/store fall under the category of self-regulating or 
independent retailers. Independent retailers have auxiliary 
benefits of creating their own policies and maintaining 
personal contact with the customers. The businesses of 
independent retailers can be carried forward by their 
upcoming generations.
 Franchises: Some businessmen open a store and carry their 
business under the name of big brands. This is termed asa 
franchisee. There are various stores which are undertaken 
by different franchisee following an agreement stating that 
brand will be represented by the franchiser. These include 
players like Titan, Tanishq Jewellers, JW Marriot, etc, whose 
franchises are spread across different regions.
 Chain Stores: Two or more retail stores of a single owner in 
a single region form a chain of stores. Chain stores keep 
selected merchandise in accordance with the customers’ 
preferences.
Merchandise
 Supermarkets: Supermarkets are constructed with the basic aim 
of providing high-level customer satisfaction along with earning 
marginal profits. The supermarkets are located in areas with large 
space and they mainly house daily household items such as 
groceries, cosmetics or toiletries. At supermarkets, almost 70 
percent of the total area is reserved for daily grocery items.
 Departmental Stores: Departmental stores are retail 
stores offering myriads of basic and daily use products 
such as household items, food as well as clothing.
 Catalogue Showrooms: These showrooms do not have 
products on the display but are occupied with varied 
catalogues. The interested customers can pick a product 
by browsing through different catalogues and select a 
product. Then, the customers have to provide product 
code at the counter and the desired product would be 
sent to the customer.
 Hypermarkets: The retail stores which offer every kind of 
product and are have the occupancy for thousands of 
customers are termed as hypermarkets. Usually, malls or 
shopping stores such as big bazaar are counted under 
this category. In addition to shopping, hypermarkets even 
have spaces for coffee shops and restaurants.
        
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