Retail Store Operations

Elements of Retail Operations• In order to ensure smooth flow of operations at

the store level, it is necessary that the management defines processes and has people and the resources to implement them.

• The task to be performed and processes are usually defined in a store operations manual.

• This document lists tasks to be carried out at the store level, it states the responsibility and time period in which these tasks to be carried out.

• A well prepared manual or a blue print is the starting point of efficient store operations.

Tasks to be performed in Retail store

• Store administration and management of premises.

• Managing inventory and Display• Managing receipts• Customer service• Managing promotions, events

Management of Premises• Managing the operations of a store starts by

determining how the tasks pertaining to the premises are to be performed.

• Durations of the hours for business needs to be determined.

• It also needs to be specified with whom the responsibility of opening and closing the store lies with.

• Some considerations to be taken into account while determining the business hours like target audience, store location.

Contd.• Security of the store premises and the

merchandise in the store is equally important.• Security of the premises is necessary to in order

ensure miscreants do not spoil the store.• Security of merchandise is needed to ensure that

the shrinkage is minimal.• Inventory shrinkage may arise due to theft by

employee, customers or by error on the part the store at the time of receiving merchandise.

Store Administration• Store administration deals with various aspects like store

premises, maintenance of the store frontage, and the display windows etc.

• It is also responsible for the store personnel effectively.• Time – keeping for staff, keeping track of holidays, and

shifts that the staff may require to work for.• House keeping practice to be maintained as per the

standard decided by the management. • It involves the task of cleaning the store and arranging the

merchandise before the first customer can walk into the store.

• It is also important to maintain high standards of house keeping during operating hours, it is responsibility of the respective department head and frontline employees

Permissions and Licenses to run retail establishment

• Registration certificate to be issued by municipal corporation

• Dairy license for milk and milk products by public health department

• License for rationing for food grains , pulses from department of food and civil supplies

• License for weights and measures from Inspector of weights and measures, state government

• VAT registration• Etc etc etc

Managing Inventory and Display

• Responsibility with respect to merchandise at the store level involve receiving and inwarding the goods.

• In case of large retailers it is done using hand held scanners.

• Delivery challan, invoice copy, modvat copy should be checked received along with goods

• Procedure to be followed for shop soiled goods and customer returns also needs to be clear.

Contd.

• Integral part of managing inventory at store level is displaying it correctly.

• The best merchandise may lie unsold if it is not displayed in a manner that is appealing and convenient for the customer.

• SKU replenishment should be done timely so that the product is always on display.

Managing Receipts

• It involves defining the manner in which the retailer is going to receive payment

• Most common method of receiving payment in India is through cash or credit card.

• Some stores have co branded cards which can be used for payments.

• Billing should be fast, convenient and easy for the customers

Customer service• Customer service policy to be adopted by store is

decided by the top management.• CS does not have to begin and end at the customer

service counter in the store.• Each person on the floor can ensure that the every

customer who comes in contact with him or her, is comfortable and has a pleasant shopping experience.

• More no of billing counters and when required or concept of express check out needs to be adopted for customers who have bought limited no of products

• Mobile cashiering and fast lanes concept are still to catch up in India.

Managing promotions and events

• Events and promotions are very much part of the retail marketing scene.

• This may require hiring additional staff, running short term training programme on features and the promotion, the hours and the merchandise.

• Many times retail store may have to tie up with local partners to promote the store and organize an event.

• POP/ POS display has to be managed at store level.