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 Page No 2.1

No.

Title 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 58

Percentage of people who purchase from the store

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. no

Title

1.

Page

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 Page no 1 79 2

No.

Title

Questionnaire for customers visiting the stores at the mall Questionnaire for the store managers of the stores at the mall

8

82 3 88

Reference

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: statusoriented 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/ nonperishable 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 longlasting 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.

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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

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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-andcarry 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 unusual 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 sqft.) 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 perimeterSuper-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 psychographic 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 Rs1,25,300/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 scaleddown 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 bigtime 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 32%

36-55 >55

32%

Table 5.1 The cross tabulated results for gender and age are tabulated and shown in table

65

Age SEX

Male Female

Total

Total

< 18 2

18-25 2

26-35 3

36-55 3

>55 0

10

1 3

8 8

4 8

1 4

1 2

15 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 SEX

Male Female

Total

Total

< 18 2

18-25 2

26-35 2

36-55 3

>55 0

09

1 3

9 11

4 6

1 4

1 1

16 25

Reliance Super

67

Figure 5.3 Male

7 18

Female

Reliance Super

12%

8% 20%

20%

<18 18-25 26-35 36-55 >55

40%

Table 5.3

68

Age SEX

Male Female

Total

Total

< 18 1

18-25 2

26-35 3

36-55 2

>55 2

10

1 2

3 5

7 10

3 5

1 3

15 25

Archies

Male

10 15

Female Fig 5.4

Archies

12%

4% 40%

<18 18-25 26-35 36-55

44%

69

SEX * AGE Crosstabulation Table 5.4

Age < 18

SEX

Male Female

Total

18-25

Total 26-35

5

2

5 10

9 11

36-55

3 3

>55

1 1

0

7

0 0

18 25

9 Male 16 Female

Reliance Footprint

Fig 5.5

70

Reliance Foot print

4%

12%

8% <18 18-25 26-35 36-55

40%

>55

36%

SEX * AGE Crosstabulation

Table 5.5 Age < 18 SEX

18-25

Male Female

Total

2

Total 26-35

36-55

>55

2

3

2

8 10

6 9

1 3

9 1 1

16 25

Nike

71

Fig 5.6

Male

25 0

Female

72

Nike

12%

20%

<18 18-25 26-35 36-55

36% 32%

SEX * AGE Crosstabulation Table 5.6

Age < 18

SEX

Total

18-25

Total 26-35

36-55

>55

Male

0

0

0

0

0

0

Female

3 3

9 9

8 8

5 5

0 0

25 25

Scullers

73

Fig 5.7

Male

25 0

Female

74

Scullers

4%

4%

20%

<18 40%

18-25 26-35 36-55 >55

32%

SEX * AGE Crosstabulation Table 5.7 Age < 18 SEX

Male

1

18-25 10

Total 26-35

36-55

Female Total

1

10

>55

8

8

5 5

1

20

1

5 25

Zodiac

75

Male

16 9

Female

Fig 5.8

Zodiac

4% 24%

4% 32%

<18 18-25 26-35 36-55 >55

36%

76

SEX * AGE Crosstabulation Table 5.8 Age < 18 SEX

18-25

Total 26-35

36-55

>55

Male

4

7

3

Female

4 8

2 9

3 6

Total

1

1

16

1

9 25

Table 5.9 Opinion re garding the first v isit First visit Categories of the stores

Apparels Footwear Supermarket Sportswear Bookstore Gifts

Total

yes

no

44 58.7% 14 56.0% 9 36.0% 17 68.0% 12 48.0% 14 56.0% 110 55.0%

31 41.3% 11 44.0% 16 64.0% 8 32.0% 13 52.0% 11 44.0% 90 45.0%

Total 75 100.0% 25 100.0% 25 100.0% 25 100.0% 25 100.0% 25 100.0% 200 100.0%

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

Categories of the stores

Apparels Footwear Supermarket Sportswear Bookstore Gifts

Total

Purchase yes no 47 28 62.7% 37.3% 13 12 52.0% 48.0% 21 4 84.0% 16.0% 16 8 66.7% 33.3% 17 8 68.0% 32.0% 13 12 52.0% 48.0% 127 72 63.8% 36.2%

Total 75 100.0% 25 100.0% 25 100.0% 24 100.0% 25 100.0% 25 100.0% 199 100.0%

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

Choice of products

Between Groups Within Groups Total Display of products Between Groups Within Groups Total Layout of the store Between Groups Within Groups Total Ambience of the store Between Groups Within Groups Total Price of the products Between Groups Within Groups Total Customer service Between Groups Within Groups Total

Sum of Squares 21.553 244.667 266.220 17.393 192.427 209.820 13.595 191.280 204.875 8.368 192.507 200.875 36.080 190.640 226.720 29.064 186.473 215.538

df 5 194 199 5 194 199 5 194 199 5 194 199 5 194 199 5 193 198

Mean Square 4.311 1.261

F 3.418

Sig. .006

3.479 .992

3.507

.005

2.719 .986

2.758

.020

1.674 .992

1.687

.140

7.216 .983

7.343

.000

5.813 .966

6.016

.000

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 H

Pearson Correlatio Sig. (2tailed) N

PURC

CHOIC

DISP

LAYOU

AMBIEN

PRICE

SERVIC

IMP

SALES

1.000

.711*

.623

.399

.578

.910**

.649

.

.721*

.

.001

.000

.004

.003

.000

.000

.

.001

25

25

25

25

25

25

25

10

25

80

CHOI CE

DISPL AY

LAYO UT

AMBI ENC

PRICE

SERVI CE

IMPUL SE

SALE SPRO

Pearson Correlatio Sig. (2tailed) N Pearson Correlatio Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio Sig. (2tailed)

.711

1.000

.622

.466

.190

.401

.264

-.312

.493

.001

.

.001

.019

.362

.047

.202

.380

.012

25 .623

25 .622

25 1.000

25 .616

25 .398

25 .612

25 .380

10 .609

25 .405

.000

.001

.

.001

.049

.001

.061

.133

.045

25 .399

25 .466

25 .616

25 1.000

25 .340

25 .802

25 .416

10 .218

25 .282

.000

.019

.001

.

.096

.000

.039

.545

.173

25 .578

25 .190

25 .398

25 .340

25 1.000

25 .477

25 .605

10 .218

25 .179

.003

.362

.049

.096

.

.016

.001

.545

.392

25 .910

25 .401

25 .612

25 .802

25 .477

25 1.000

25 .612

10 .429

25 .400

.000

.047

.001

.000

.016

.

.001

.217

.048

25 .649

25 .264

25 .380

25 .416

25 .605

25 .612

25 1.000

10 .488

25 .405

.000

.202

.061

.039

.001

.001

.

.153

.045

25 .

25 .112

25 .609*

25 .218

25 .218

25 .429

25 .488

10 1.00 0

25 .896**

.

.180

.133

.545

.545

.767

.153

.

.048

10 .721*

10 .493

10 .405

10 .282

10 .179

10 .400

10 .405

10 .896*

10 1.000

.002

.012

.045

.173

.392

.048

.045

.896

.048.

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

IMPULSE

SALESP

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

PURC 1.000

CHOICE .846**

DISP .750*

LAYOUT .349

AMBI .250

PRICE .765*

SERVICE .392

IMP .

.

.000

.000

.087

.228

.093

.052

.

25 .846

25 1.000

25 .640

25 .183

25 .533

25 .361

25 .009

20 .758

.000

.

.001

.380

.006

.076

.965

.808

25 .750

25 .640

25 1.000

25 -.027

25 .250

25 .496

25 .087

20 .397

.000

.001

.

.899

.228

.012

.679

.083

25 .349

25 .183

25 -.027

25 1.000

25 .000

25 -.298

25 .377

20 .174

.380

.899

.

1.000

.149

.063

.463

.087 25 .250

25 .533

25 .250

25 .000

25 1.000

25 .103

25 -.055

20 .247

.228

.006

.228

1.000

.

.623

.796

.293

25 .765

25 .361

25 .496

25 -.298

25 .103

25 1.000

25 -.485

20 .834

.093

.076

.012

.149

.623

.

.014

.573

25 .392

25 .009

25 .087

25 .377

25 .055

25 -.485

25 1.000

20 -.247

.052

.965

.679

.063

.796

.014

.

.293

25 .

25 .758

25 .397

25 .174

25 .247

25 .834

25 -.247

20 1.000

.

.083

.083

.463

.293

.573

.293

.

20 .704

20 .522

20 .102

20 -.022

20 .306

20 .489

20 -.196

20 .728

.328

.007

.627

.917

.137

.013

.348

.088

83

From the above correlation table it can be inferred that there is high correlation between purchase and choice (.846). Other significant correlations are between: Purchase and price(.765) Purchase and sales promotion (.704) But in the case of impulse purchasing the highest correlation is shown between 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 PURC

CHOIC

DISP

LAYOU T

AMBIE

PRICE

SERVI

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N

PUR C 1.000

CHOICE

DISPLAY

LAYOUT

AMBIEN

PRICE

SERVICE

IMPULSE

SLSPR

.829*

.630*

.610

.660

.770*

.556

.

.419

.

.000

.002

.002

.002

.000

.004

.

.037

25 .829

25 1.000

25 .595

25 .595

25 .595

25 .700

25 .549

13 .085

25 .499

.000

.

.002

.002

.002

.000

.004

.782

.011

25 .630

25 .595

25 1.000

25 1.000

25 1.000

25 .674

25 .750

13 .677

25 .389

.002

.002

.

.000

.000

.000

.000

.011

.055

25 .610

25 .595

25 1.000

25 1.000

25 1.000

25 .674

25 .750

13 .677

25 .389

.002

.002

.000

.

.000

.000

.000

.011

.055

25 .660

25 .595

25 1.000

25 1.000

25 1.000

25 .674

25 .750

13 .677

25 .389

.002

.002

.000

.000

.

.000

.000

.011

.055

25 .770

25 .700

25 .674

25 .674

25 .674

25 1.000

25 .616

13 .418

25 .656

.000

.000

.000

.000

.000

.

.001

.155

.000

25 .556

25 .549

25 .750

25 .750

25 .750

25 .616

25 1.000

13 .778

25 .245

.004

.004

.000

.000

.000

.001

.

.002

.238

25

25

25

25

25

25

25

13

25

85

IMPUL

SLSPR

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

.

.785*

.677*

.617

.607

.418

.678

1.000

.778*

.

.003

.011

.011

.011

.155

.002

.

.561

13 .419

13 .499

13 .389

13 .389

13 .389

13 .656

13 .245

13 .778

13 1.000

.037

.011

.055

.055

.055

.000

.238

.561

.

From the above correlation table it can be inferred that there is high correlation between purchase and choice (.829). Other significant correlations are between: Purchase and price (.770) Purchase and display. (.630) But in the case of impulse purchasing the highest correlation is shown between 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

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N

PURC 1.000

CHOICE .622*

DISP .579

LAYOUT .272

PRICE .692*

SERVICE .258

IMPULSE .

SALESP .860*

.188

AMBI .32 2 117

.

.001

.002

.012

.213

.

.004

25 .622

25 1.000

25 .533

25 .527

25 .373

25 .581

25 .288

17 .243

25 .348

.001

.

.006

.007

.066

.002

.162

.347

.088

25 .579

25 .533

25 1.000

25 .040

25 .438

25 .444

25 -.076

17 .486

25 .408

.002

.006

.

.848

.029

.026

.717

.048

.043

25 .272

25 .527

25 .040

25 1.000

25 .000

25 .369

25 .377

17 .103

25 .198

.188

.007

.848

.

1.000

.070

.063

.694

.344

25 .322

25 .373

25 .438

25 .000

25 1.000

25 .413

25 -.055

17 .212

25 .102

.117

.066

.029

1.000

.

.040

.796

.414

.627

25

25

25

25

25

25

25

17

25

87

PRICE

SERVICE

IMPLSE

SALESP

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

.692

.581

.444

.369

.413

1.000

-.079

.631

.573

.012

.002

.026

.070

.040

.

.706

.007

.003

25 .258

25 .288

25 -.076

25 .377

25 -.055

25 -.079

25 1.000

17 -.302

25 .071

.213

.162

.717

.063

.796

.706

.

.239

.735

25 .

25 .243

25 .486

25 .103

25 .212

25 .631*

25 -.302

17 1.000

25 .748*

.

.347

.048

.694

.414

.007

.239

.

.002

17 .860

17 .348

17 .408

17 .198

17 .102

17 .573

17 .071

17 .748*

17 1.000

.004

.088

.043

.344

.627

.003

.735

.005

.

From the above correlation table it can be inferred that there is high correlation between purchase and sales promotion(.860). Other significant correlations are between: Purchase and price(.690) Purchase and Choice. (.622) 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 H

CHOI CE

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N

PURC H .000

CHOICE

LAYOU T .685

AMBIENC E .630

PRICE

.721

DISPLA Y .683

.894

SERVIC ES .683

IMPU LSE .

SALESP RO .919

.

.117

.000

.000

.001

.000

.000

.

.000

25 .321

25 1.000

25 .366

25 .403

25 .256

25 .458

25 .366

17 .260

24 .415

.117

.

.072

.046

.216

.021

.072

.313

.044

25

25

25

25

25

25

25

17

24

89

DISPL AY

LAYO UT

AMBIE NCE

PRICE

SERVI CES

IMPUL SE

SALE SPRO

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

.683

.366

1.000

.937

.942

.627

1.000

.130

.544

.000

.072

.

.000

.000

.001

.000

.618

.006

25 .685

25 .403

25 .937

25 1.000

25 .879

25 .628

25 .937

17 .299

24 .616

.000

.046

.000

.

.000

.001

.000

.244

.001

25 .630

25 .256

25 .942

25 .879

25 1.000

25 .578

25 .942

17 -.146

24 .450

.001

.216

.000

.000

.

.002

.000

.577

.027

25 .894

25 .458

25 .627

25 .628

25 .578

25 1.000

25 .627

17 .169

24 .748

.000

021

.001

.001

.002

.

.001

.517

.000

25 683

25 .366

25 1.000

25 .937

25 .942

25 .627

25 1.000

17 .130

24 .544

.000

.072

.000

.000

.000

.001

.

.618

.006

25 .

25 .260

25 .130

25 .299

25 -.146

25 .769

25 .130

17 1.000

24 .920

.

.313

.618

.244

.577

.517

.618

.

.010

17 .919

17 .415

17 544

17 .616

17 .450

17 .748

17 .544

17 .620

16 1.000

.000

.044

006

.001

.027

.000

.006

.010

.

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: Purchase and price (.894) Purchase and Choice. (.721) In the case of impulse purchasing also the highest correlation is shown between sales promotions. (.920). Another significant correlation of impulse purchase is 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

P URC H

Pearson Correlati

PUR

CHOIC

DIPLA

LAYO

AMBIEN

PRICE

SERVIC

IMP

1.000

.863

.720

.241

.328

.660

-.298

.

91

SALES PR .583

CHOI CE

DIPL AY

LAYO UT

AMBI ENC

PRIC E

S ERVI CE

IMPU LSE

SALE SPR

Sig. (2tailed) N Pearson Correlati Sig. (2tailed) N Pearson Correlati Sig. (2tailed) N Pearson Correlati Sig. (2tailed) N Pearson Correlati on Sig. (2tailed) N Pearson Correlati on Sig. (2tailed) N Pearson Correlati on Sig. (2tailed) N Pearson Correlati on Sig. (2tailed) N Pearson Correlati on Sig. (2tailed)

.

.766

.119

.247

.109

.077

.147

.

.170

25 -.063

25 1.000

25 .165

25 -.035

25 .246

25 -.436

25 .038

25 .405

.766

.

.431

.869

.237

.029

.855

13 -.33 2 .268

25 .720

25 .165

25 1.000

25 .173

25 .534

25 .322

25 -.281

13 .277

25 .031

.119

.431

.

.407

.006

.116

.173

.360

.883

25 .241

25 -.035

25 .173

25 1.000

25 .376

25 -.146

25 -.243

13 .030

25 -.052

.247

.869

.407

.

.064

.485

.242

.921

.805

25 .328

25 .246

25 .534

25 .376

25 1.000

25 .277

25 -.462

13 .349

25 .179

.109

.237

.006

.064

.

.180

.020

.243

.392

25 .660

25 -.436

25 .322

25 -.146

25 .277

25 1.000

25 -.385

13 .359

25 -.015

.077

.029

.116

.485

.180

.

.057

.228

.942

25 -.298

25 .038

25 -.281

25 -.243

25 -.462

25 -.385

25 1.000

13 -.34 9

25 -.463

.147

.855

.173

.242

.020

.057

.

.243

.020

25 .

25 -.332

25 .877

25 .030

25 .349

25 .759

25 -.349

13 1.00 0

25 .578

.

.268

.360

.921

.243

.228

.243

.

.561

13 .583

13 .405

13 .031

13 -.052

13 .179

13 -.015

13 -.463

13 .178

13 1.000

.170

.045

.883

.805

.392

.942

.020

.561

.

From the above correlation table it can be inferred that there is high correlation between purchase and choice(.863). Other significant correlations are between:

92

.045

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 H

CHOI CE

DIPLA Y

LAYO UT

AMBIE NC

PRICE

SERVI CE

IMPUL SE

SALE SPR

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

PURC H 1.000

CHOICE

DIPLAY

AMBIENC

PRICE

.620

LAYOU T .241

.660

SERVIC E -.298

IMPU LSE .

.863

.328

.

.766

.119

.247

.109

.077

.147

.

25 .863

25 1.000

25 .165

25 -.035

25 .246

25 -.436

25 .038

13 -.332

.766

.

.431

.869

.237

.029

.855

.268

25 .620

25 .165

25 1.000

25 .173

25 .534

25 .322

25 -.281

13 .277

.119

.431

.

.407

.006

.116

.173

.360

25 .241

25 -.035

25 .173

25 1.000

25 .376

25 -.146

25 -.243

13 .030

.247

.869

.407

.

.064

.485

.242

.921

25 .328

25 .246

25 .534

25 .376

25 1.000

25 .277

25 -.462

13 .349

.109

.237

.006

.064

.

.180

.020

.243

25 .660

25 -.436

25 .322

25 -.146

25 .277

25 1.000

25 -.385

13 .359

.077

.029

.116

.485

.180

.

.057

.228

25 -.298

25 .038

25 -.281

25 -.243

25 -.462

25 -.385

25 1.000

13 -.349

.147

.855

.173

.242

.020

.057

.

.243

25 .

25 .793

25 .277

25 .030

25 .349

25 .759

25 -.349

13 1.000

.

.268

.360

.921

.243

.228

.243

.

13 .283

13 .405

13 .031

13 -.052

13 .179

13 -.015

13 -.463

13 .178

.170

.045

.883

.805

.392

.942

.020

.561

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 price (.660) 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

CHOI CE

DISP

LAYO UT

AMBI

PRICE

SERVI CE

IMPLS E

SALE SP

PURC

CHOICE

DISP

AMBI

.579

LAYOU T .272

Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

1.000

.794

.892

SERVIC E .258

IMPU LSE .

.

.001

.002

.188

117

.012

.213

.

25 .794

25 1.000

25 .533

25 .527

25 .373

25 .581

25 .288

17 .243

.001

.

.006

.007

.066

.002

.162

.347

25 .579

25 .533

25 1.000

25 .040

25 .438

25 .444

25 -.076

17 .486

.002

.006

.

.848

.029

.026

.717

.048

N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed) N Pearson Correlation Sig. (2tailed)

25 .272

25 .527

25 .040

25 1.000

25 .000

25 .369

25 .377

17 .103

.188

.007

.848

.

1.000

.070

.063

.694

25 .322

25 .373

25 .438

25 .000

25 1.000

25 .413

25 -.055

17 .212

.117

.066

.029

1.000

.

.040

.796

.414

25 .892

25 .581

25 .444

25 .369

25 .413

25 1.000

25 -.079

17 .631

.012

.002

.026

.070

.040

.

.706

.007

25 .258

25 .288

25 -.076

25 .377

25 -.055

25 -.079

25 1.000

17 -.302

.213

.162

.717

.063

.796

.706

.

.239

25 .

25 .243

25 .486

25 .103

25 .212

25 .681

25 .602

17 1.000

.

.347

.048

.694

.414

.007

.239

.

17 .860

17 .348

17 .408

17 .198

17 .102

17 .573

17 .071

17 .648

.004

.088

.043

.344

.627

.003

.735

.005

.322

PRICE

98

From the above correlation table it can be inferred that there is high correlation between purchase and price (.892). Other significant correlations are between: Purchase and Sales promotion (.860) Purchase and Choice. (.794) But in the case of impulse purchasing the highest correlation is shown between sales promotions. (.918). Another significant correlation of impulse purchase is 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

18%

1%

27%

Choice Display Price Salespro

37%

17%

Others

100

Table 5.20

Performance of stores Name of the store World of titanWrist Fashion

Expected sales 1,00,000

Actual Sales ( monthly) 90,000

Foot falls ( Monthly) 600 (.6%)

% of people who purchase 80

Nike-Sports Fashion Levis-Attire Fashion Zodiac-Attire Fashion Scullers, Urbana, Indigo Nation, John Miller-Attire Fashion Reliance SuperHypermarket NavigatorAttire Fashion

10,00,000

8,00,000

9000 (9.3%)

45

8,00,000

7,00,000

7000

(7.3%)

75

2,00,000

64,000

600

(.6%)

60

4,00,000

5,00,000

9,000 (9.4%)

70

90 lakhs

80 lakhs

18,000 (18.75%)

90

10 lakhs

10 lakhs

9000 (9.3%)

85

Identity-Attire Fashion Levis SignatureAttire Fashion Doc & MarkAttire Fashion Reliance Trends-Attire

2,00,000

1,00,000

1500 (1.5%)

60

9,00,000

6,00,000

3200 (3.3%)

70

10 lakhs

8 lakhs

1000 (1.04%)

60

2 crores

15000000

25,000( 26.04%)

75

101

Fashion Café Coffe day ArchiesLifestyle Fashion Reliance Time Out-Lifestyle Fashion Reliance Foot Print-Foot Fashion

30 lakhs

40 lakhs

100

4 lakhs

18,000(18.75% ) 2400 (2.5%)

6 lakhs 80 lakhs

90 lakhs

25,000(26.5%)

60

20 lakhs

15 lakhs

4000(4.1%)

55

35

(Source: Store managers of the corresponding stores) Approximate footfalls for the week from 12th jan to 18th jan 2009. Table 5.21 Days Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total(weekly)

Footfalls 2172 1924 2972 2102 3534 5292 6210 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 [ ]

c. 26-35

[]

e. > 55

[]

b. 18-25

d. 36-55

[]

[]

[]

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 8.

[]

b. No

[]

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

[]

c. Neither good nor bad [ ] e. Really bad

b. Good

[]

d. Bad

[]

[]

11. Is the layout of the store find attractive to you? a. Very attractive

[]

c. Neither attractive nor unattractive [ ] e. highly unattractive

b. Attractive

[]

d. 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 [ ] e. Much worse

[]

d. Worse

[]

[]

8. At the current volume of sales, how would you rate the profitability of your shop? a. Highly profitable [ ] []

e. Loss

[]

9.

c. Break even

b. Profitable

[]

d. Not profitable [ ]

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

[]

e. Least helpful

[]

d. Not 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

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