chain store ppt

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CHAIN STORES PROJECT: CHAIN STORES

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WHAT ARE CHAIN STORES? Chain stores are a range of retail outlets which share a brand and central management, usually with standardized business methods and practices. Such stores may be branhces owned by one company or owned by local individuals or firms and operated under contract with the parent corporation .

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THE A&P TEA COMPANY The first chain store that ever came into existence was the Great Atlantic and Pacific Tea Company established in 1859. It was started by George Huntington Hartford and George Gilman. They dealt with tea as their business.

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Opened 10,000th store in 1923 . By the end of 1930 they peaked with 15,737 stores all over North America. In 1930, their annual sales had reached $1.07 billion. But due to conversion to supermarkets, the store count reduced to 4150 by 1955.

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Centrally located and easily accessible. Economies of scale. Lower costs. Higher profits. Centralized management of branches by head offices. Diffusion of risk. FEATURES OF CHAIN STORES

CLASSIFICATION OF CHAIN STORES: 

CLASSIFICATION OF CHAIN STORES

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Wal-Mart Stores, Inc. is an American public corporation, currently one of the world's largest corporations. It was founded by Sam Walton in 1962, and incorporated on October 31, 1969. It operates in Mexico ,United Kingdom and Japan, Argentina, Brazil, Canada, Puerto Rico and Germany.

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Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business. It is also the largest toy seller in the U.S., with an estimated 45% of the retail toy business.

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BHARTI-WALMART IN INDIA Congress President Sonia Gandhi advises caution to Prime Minister Manmohan Singh on allowing U.S. retail giant, Wal-mart’s joint venturing with the Bharti Group. Gandhi feels this can threaten millions of neighborhood's mom and pop stores. The joint venture company proposes to open hundreds of supermarkets and hyper markets.

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MCDONALD’S-I’M LOVIN IT! McDonald's Corporation is the world's largest chain of fast-food restaurants. McDonald’s was opened on 15th May,1940 in San Bernardino, California. It was founded by Dick and Mac McDonald. There are as many as 31,000 restaurants worldwide. It sells products such as Hamburgers, Chicken products, French Fries etc. The Net Income by 2005 had reached $2.602 Billion USD.

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BENEFITS OF RETAIL CHAINS Losses faced by one shop may be covered by profits in other shops. There is a direct contact between retailers and the ultimate consumers. All sales are made on cash basis and there is no credit given. Stores are centrally managed.

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LIMITATIONS OF RETAIL CHAINS Limited variety of goods. Store managers and salesmen have to look up to the head office for guidance on all matters taking away their initiative to use their creativity. Quick changes in trend leads to difficulty in quick change of stock which may lead to major losses.

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FUTURE OF CHAIN STORES IN INDIA Inflation and price rise have long been the causes of worry among the Indian consumers. Retail sale is being encouraged in India by launching counters and shops. Multiple brands’ retailers may operate via a wholesale model ‘cash-and-carry’ or a franchise.

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OUR VIEWS CONCLUSION Indian retail industry is gradually progressing towards a boom. The concept of chain stores has come across a revolutionary change. This change is reflected in terms of marketing formats and buying patterns of consumers. India has the highest density of retail in the world. Presently, there is one retail outlet per 100 people. Thus the retail chains sector is gearing up to revolutionize the retailing industry in India.