Retail Management Simulation

Simulation/Game Description Interactive Retail Management Simulation

• Help students understand the many inter-related theories and practices of retail management through an interactive, competitive game in which students manage their own retail operation

• Students establish their initial strategy and then manage their retail business – including pricing, inventory, promotion and floor space allocation – over multiple months

• Simulation/game is competitive – your store’s success is influenced by your classmates’ decisions and vice versa

Retail Management Simulation

Student Decision-Making Product/Quality Selection• Choose from an instructor-selected list of product/quality

options to carry in their store Vendor Selection• Choose between various vendors offering different pricing

and promotional support Inventory Management• Manage period-to-period inventory levels based on market

demand and prior period unit sales

Retail Management Simulation

Student Decision-Making Product Pricing• Manage initial and period-to-period markups and

markdowns Product Promotional Support• Determine monthly promotional support and manage

earned vendor allowances Floor Space Management• Establish share of floor space for selected products and

adjust, as necessary, on period-to-period basis

Retail Management Simulation

Student Decision StepsFirst, review “Pre-Market Reports”• Determine monthly unit sales estimates and determine

pricing, promotion, and floor space strategies

Second, complete “Planning Screen”• Complete all planning screens for each product

Third, complete “Pricing Screen”• Set price for first and subsequent periods including

deciding on any necessary markdowns

Retail Management Simulation

Student Decision StepsFourth, complete “Purchase Order Screen”• Determine how many units to purchase and over what

time period (i.e., buy one month at a time or purchase units in advance for future periods)

Fifth, complete “Promotion Screen”• Establish period promotion dollars including utilizing

vendor allowances

Sixth, complete “Floor Space Screen”• Decide on percentage share of floor space for each

product

Retail Management Simulation

Review and Adjust Key Steps in Simulation

• Review your period market reports that include:• Income Statement• Inventory Report• Performance Report• Market Report

• Determine what you are doing right and what you are doing wrong – then adjust as necessary for the next period

• Remember, you are competing against your classmates so the success of your decisions are impacted by their decisions

Retail Management Simulation

Student Resources(available at www.theretailworkshop.com)

Game User Guide• Description of all simulation screens and decisions

Game Fundamentals• Practical concepts underlying simulation exercise

Game Strategy• Basic strategies for increasing simulation performance

Game FAQs• Answers to common student questions

Retail Management Simulation

Signup Simulation Process

• You will receive a link via email for our class’ simulation. Copy and paste that link into a new browser where you will then signup with The Retail Workshop through Gmail (either use an existing or create an account with Google)

• Once you have registered and paid your registration fee, you will be associated to our class’ simulation

• Within a short period of time, you will be assigned a group. Once done, you will be able to login to your account via the home page of The Retail Workshop. The website is: www.theretailworkshop.com