Organized business practices is seen in larger format in developed countries catered into convenience stores and supermarkets.Era of organized retailing started with our aesthetics to become organized. It is a basic transformation of unorganized retailing store to organized.
Historical heritage of Spencer’s?
Just look at Spencers, a India based supermarket chain. Its history started with healing hand of John William Spencer in 1863 by opening Spencer store in Chennai. In 1980 Spencer’s becomes first supermarket chain in India.
In India you will find many stores like fruit and vegetable sellers, local kirana shops, general stores, apparel stores, footwear store, paan or beedi shops, convenience stores, hand cart and pavement vendors who maintain conventional methods of business practices and they are categorized under unorganized retailing.
What is Organized retailing?
Organized retail or modern retail is usually chain stores, all owned or franchised by a central entity, or a single store that is larger than some cut-off point. The relative uniformity and standardization of retailing is the key attribute of modern retail. The size of each unit can be small so that a chain of convenience stores is modern retail. A single large department store is also modern retail. (ICRIER)
If you look at the statistics you will be amazed. The total market share of organized retail trade in India accounts for just 4% of the total trade. So, 96% is unorganized.
In organized retail shops like supermarket, department store, speciality store, discount store, hypermarket, you will find a place where transaction occurs in exchange for goods or services i.e. POS – Point of Sale. Renaissance Business Systems, Inc. is a Cleveland Ohio point of sales solution provider who sells, installs, supports and maintains total point of sale software and hardware solutions at www.pointofsalesoftware1.com. Generally POS helps in increase customer flow and exchange for money—cash-in, speed up customer lines and tasks, control inventory and automate purchasing with integrated, scalable, Web-ready applications via Microsoft Retail Management System 2.0, Microsoft Point-of-sale 2009 through dedicated hardware.
So, transformation rate of unorganized retailing to organized is handsome by applying modern business rules and practices. Just look at the table.
Source: Impact of Organized Retailing on the Unorganized Sector Image Source: Image creator's user name: "Ambro" - "Woman Shopping In Store"