UNIT 29 UNDERSTANDING RETAILING

1.0 IntroductionAs a business specialist consultant we have been given a role to find out about the

retailing industry and the structure surrounding it. Our team is analysing each organisation in the region of north end Croydon. These organisation’s provide

either goods or services to the customers of the high street. There aim is to make a profit and expand there business. Croydon is packed full of shops and centres

containing luxury items ranging from smart phones to designer clothes. The main point is are any of these businesses actually expanding or are they declining over

the next 8/9 weeks we will be finding out for you and getting the latest information from who’s gone bankrupt to who’s controlling the market.

DEFINITION OF RETAILINGRetail origin-1375-1425, late middle english-angalo French-a

cutting derivative(copied or adopted by others in there own way), of retailer to cut, (equivalent to cut).

Retailing Definition- To sell in small quantities directly to consumers.

Place of retailing in the chain of production- Retailing in the chain of production focuses on the consumers, and what they want or need. Certain items are a must e.g.

OrganisationThe types of stores , our team has visited has shown us how the organisation is set

up and it is developed. The online versus physical store, shows us that although being online a website you can look at what you want but you can’t test it until you are in the shop looking at the quality of the item and how good it is for the value of money overall.

Emerging stores for example: primark,sportsdirect, these are emerging stores because they sell cheap clothes and footwear for very reasonable price and that is why the structure of the business is vastly expanding day by day. On the other hand if you look at house of Fraser, they are not moving that fast due to the luxury items and valued clothes which most people can not afford compared to these small outlets

Hybrid stores are stores that contain one outlet within another for e.g. Whsmith, has got a post office inside this is a hybrid store. Allders is one which had many different outlets, selling paintings, pasties, pillows etc.

Services versus product retailing- services provide the basic goods to us, whilst product retailing gives us an idea of how much to spend on a certain item, or what it would look like.

Classification of retailersTypes of activities, that businesses are based on is being

able to sell the goods or services to the final consumers for personal, non business use.

An example would be a discount store or retail warehouse etc. JD Sports: The store size is 300 stores throughout the uk. The total number of employee’s is about 10,000. There enterprise, of the JD Sports business remains very large with a number of businesses across the uk. The turnover of JD Sports is 1059.5million this year’s latest figure.

JD Sports turnoverThis shows this year’s profit and loss margin explaining how jd sports has made it’s biggest profit this year.

This shows the shareholders which have invested money into the business to make a profit and achieve a higher percentage return of money.

LOCATIONThe local retailers in the area are shops such as, JD Sports, Sportsdirect, JJB,

Whsimth, Office, Footasylum, Barclays, Nationwide, Allders(only for limited time), Primark, McDonalds, Pc World, River Island, Sainsbury, Next, Marks and Spencer, Superdry, Debenems, TKMAX, Hmv, Oxygen Red and house of fraser. These retailers are the main distributors which account for all the products, goods or services that we buy on a daily basis.

In the town shopping centre, there are a lot of shops featuring different brands and different items. The shopping centre is very close to east Croydon and south Croydon in particular. The benefits of being near Croydon centre is that you get very quick access to shops without waiting a long time in another location. The whitgift centre contains many inner outlets inside it, like boots, JD Sports, Superdry etc.

Out of town retail parks and regional centres- Out of town retail parks are places that contain retail warehouses and superstores, which also accommodate car parks for people travelling by car, instead of consisting for any other public transport. Regional centres are centres containing different aspects of shops within the chain of high street shops.

Map of Croydon north end

These were just some of the shops in the Croydon North End area.

Map of Croydon north end

The map shows the in and out roads leading to Croydon North End and other various routes.

ownershipExamples of independent stores in Croydon are antiques shops, art

shops, Croydon park hotel, markets, place of worship etc. Multiple Chain’s in Croydon Consist of shops such as Allders, whitgift

centre, Central shopping centre. Voluntary chain’s in Croydon are Scope Charity Shop, Oxfam, British

heart foundation. Franchise’s in Croydon consist of stores such as McDonald's, Subway,

Domino's Pizza, pizza hut etc.Not for profit organisation’s are mainly the charity’s consisting of

Oxfam, British heart foundation and Scope charity shop. They all raise money to help less fortunate people with difficult upbringings, and provide them with shelter and a source of food.

STRUCTUREIn August 2012 retail sales were estimated to have increased compared with August last

year. Compared with August 2011, in August 2012 the amount of goods bought in the retail sector was estimated to have increased by 2.7 per cent.

Trend in sales in the Croydon Area- The pattern of sales indicated in Croydon represent’s the consumer market is willing to purchase specific goods and services at a reasonable price level. If items are to pricy then consumers will opt out and buy item’s just below that price range.

Trends in Profitability- For example Allders is a main attraction due to the different outlets based within the store, but as the recession has hit the business, there has not been much room for development.

Trends in Employment- Their has been a decline in employment recently, which is good for the Croydon area, and the government, although it remains at 5.9% it is fairly stable. The Croydon area has recently been hit by the recession these past couple of years but due to the Olympics and festivals the area has seemed to look more positive in the department of money attained from these situations.

This is an indication of how many people are unemployed, in the region of North Croydon.

ConclusionThe conclusion of the Croydon area suggests to me

and my team members, that Croydon has a good way of extracting money and paying out money. Overall the shops are very good, and kept in an orderly way. In order to maintain the businesses running smoothly, shops will have to have discount’s on items now and again. If lower costs were kept more outlets and markets would be able to keep up with the competitive market’s.

CREDITS

1. Herschel Pandit – Creator and Researcher2. Zain Ahmed Ilyas – Team leader, Coordinator

3. Bianca Solomon – Presenter4. Kehinde Gbolagade and Manish Sharma –

mapping and transecting

References

maps.google.com.www.redmayne.co.ukuk.ask.comGoogle.co.ukBusiness book 2 level 3Clip art- images and pictureswww.statistics.gov.ukww.bbc.co.uk