Store Operation in releance

8/8/2019 Store Operation in releance

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A Report On

Institute of Management

and Information Science,

Bhubaneswar

STORE OPERATION

OF ITC (LRBD)

Prepared by: Alok ranjanBehura

Under the guidance of

Prof: V.T. Thomas


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INTRODUCTION

ITCs Lifestyle Retailing Business Division has established a nationwide retailing presence

through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, offers a tempting

choice of Designer wear, Relax Wear, Evening Wear, Work Wear, Accessories and exclusive

range of fine fragrances and bath &body care product for men and women.

The ITC group provides various businesses like hotels, cigarettes, paperboards and specialty

papers, agri-business, information technology, greeting cards, safety matches and other FMCG

products.

Wills Lifestyle was named Super brand 2009 by the Super brands Council of India recently.

Wills Lifestyle has been twice declared'The Most Admired Exclusive Brand Retail Chain of the

year at the Images Fashion Awards in 2001 & 2003 as well as 'Most Admired Fashion Brand ofthe year - Fashion Forward' in 2009. Wills Lifestylehas partnered with several leadingdesigners

including Manish Arora, Rohit Bal, Shantanu & Nikhil, Rohit Gandhi & RahulKhanna whosenew edition of Designer wear is now available atWills Lifestylestores.


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STORE OPERATION

(Store) Operations are about efficiency and attractiveness off the store for consumers andemployees. And it is about maximizing sales by using traditional and new electronic channels.

1. Consumer Experience

ITC (lrbd) creates positive customer experience through four basic parameter like

1. Store Ambience

2. Merchandise Mix.

3. Customer Engagement

4. after sale contact

1.1 Preparation For The Day

1. Designated staffs /Housekeeping & Security staff to report at the store an hour prior to

the store opening for customer entry.

2. Daily briefing to be conducted by the store manager- DPS review of last day, target for

the day, customer requirement, club will enrollment

3. Mettining conducted on weekly basis, team building, skill enhancement exercise,

competition analysis, inventory feedback and knows your big customer.

4. Stores notice board and productivity board needs to be checked and updated.

1.2 Consumer Engagement

To provide all the facilities like entry into store and shopping experience from customer side

should be comfortable.

1.2.1Customer Entry Process

The guard at the gate has to acknowledge and directs for parking (in case of any vehicle)


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The guard at the entrance directs the customer to belonging counter for deposit extra things with

his /her (except ladies handbags, money bags, cameras and laptops) and open the door for

customer and greet.

1.2.2 Customer Buying Process

From the time, the customer enters the store till the time he exits the premises

Objective

To ensure customer experience is comfortable and feel himself Its My Store

Process

CA has to acknowledge the customer with a smile and verbal greeting and helping then find themerchandise that he is looking for.

If merchandise is not available then CA note down that and call up the customer within 24 hours,

on the order status.

It is mandatory to ensure that no merchandise on the floor is without price tag.

CA also has to constantly replace the floor with the merchandise that has been sold, from the

back stock for that section.

1.2.3 Cashiering Process

An efficient cashier is one who knows how to manage customer lines, so that no one

customer is waiting too long in line to pay for their items.

Process

1. Once the customer is in front of the cashier, the cashier to make eye contact with the

customer and greet him.

2. He scans the price tag of products, if the tag does not get scanned; he would manually

enter the SKU no.

3. Payment can be either by cash /credit /debit card /GV /discount coupons /credit notes.

4. Once the payment has confirmed, then cashier should hand over the cash memo /credit

card /club will card /balance cash in customer hand.

1.2.4: Exchange


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Objective: To make exchange process a convenient and experience for the customers.

Process:

Customer wants to

exchange the product

Floor CCA takes the alterationmeasurement and fills up the slip.

Then customer goes for exchange one

with respect defective one.

CCA asks the customer for the cash

memo & verify the purchase.

The customer pick up the new

purchase, then CCA matches the

product amount with previous

Send the defective product to the RDC

packed separately.

Identify the reason for return


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At last all defective merchandise needs to be send back to the RDC from the store on monthly

basis, the RDC will send them to HO packed at store level, in the condition it is received back

from the store.

2. Inventory Management at the store

2.1Stock Management

Objective-

Its all about customer satisfaction; the store must ensure that the customer sees what they

want to buy at the store.

2.1.1Responsibility of the manager

Analyze trends at the store and fix base label for all stocks on a seasonal basis .Trackavailability of stock and fulfill of order raised by the store. Stock control are carried out

efficiently and economically by those employed in the Store.

2.1.2 Responsibility of customer Associates

To assist in planning orders, setting stock levels allocating storage space. Ordering ofmerchandise (customer requirement). After receipting of inventory proper documentation done

on the basis of receipt and return (defect).

If the new purchase is more amount,

then CCA demand extra amount, if

less then return the rest amount.

CCA hand over the new

product to customer


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2.1.3Stock Supply

Stock supply to a store depend on SQB/Base stock define for the store. Movesautomatically generate DOPS (Distribution Order Proposal) for the item sold out from the base

stock on MRP on daily basis.

-Retail space to stock inventory in required mix.

-Backroom Area in store and transit time from warehouse to store.

2.1.3.2: Ordering and replenishment of stock

Replenishment from the back room- If replenishment is required, CF to make all list in areplacement sheet that must be replenished.

It is to ensure that each garment has the product tag and the RFID tag attached to it .If either is

missing, make sure that it is attached before being put on the shelf again.

Automation Replenishment System (ARS)-Ones style wise stock is fixed in Moves ARS system of replenishment takes over with on

daily basis during MRP run. If additional quantity is require then store manager prepare manual

Do (dom) in the system once he receives an approval from the Regional Manager.

Replenishment of stock from warehouse

Based on the order generated in the system in the store and as per stock availability thewarehouse will dispatch stock to the store.

2.1.3.3 Procedure for receiving the stocks at the store

The stocks are come to the store in sealed cartons, along with a DO/DN document which

has been dispatched by the warehouse.-In case of matches of stocks in sealed carton with DO/DN send by the warehouse,

then the subject to physical certification given to transporter.

-In case of carton tamper, any discrepancies/shortages must be mention on the

courier note, obtaining the signature of transporter/couriers on the document. The store shallforward the discrepancy report to the Warehouse Manager /RM /Finance Manager Retail Ops

within 24 hours of verification of the shipment.

i) Precautions to be observed the time of receiving the stockThe security tag should be present on goods and it will be in a saleable condition. The

goods should only be dispatched from the warehouse. If the goods are defective, the goodsshould be put in the defective section.

ii) Receiving Merchandise at Store (GRN)At the time of receiving the merchandise at the store, following procedure be followed:


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Barcode of incoming material shall be scanned.

Store level inventory can stored in salable, repair and defective / discard location.

iii) Mismatch /Discrepancies Resolutions-ExpectationsMismatch and discrepancies can occur on account of the following issues

a) A mismatch will occur when the total quantities received at the store are the same but theitems are different than given in the DO/DN.

b) A mismatch occurs when the actual numbers of the items received at the store are excess

or short as compared to the DO/DN.

2.1.4 Stock Returns

Procedure of stock return-

-If product is defective then the customer feedback form should also be send to the RM.

-Stocks have received that have the wrong identification or which are withoutidentification tags-in these cases a stock return note must be send with the stocks to the

warehouse manager.

2.1.5 Stock trancerfeers back to the RDC

a) Movement of Reject /processing good from Store to Mandoli: Customer return or storespoil at the store needs to sent to Mandoli as rejected material.

b) After EOSS: Garment left over after EOSS needs to be sending to the Mandoli.

c) Unidentified, untagged items need to be sending to Mandoli on a monthly basis in s

grid statement as prescribed.

2.1.6 Stock checks

Store team will be able to ensure that all stocks leaving the store have been billed for. As

a control measure, a physical verification of inventory lying at the store counted on a

monthly basis.

Half yearly stock audit shall be carried out at store by external audit team.


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3. Store Operations

3.1.1 Store Ops and VM Audit:

SM conducts this activity for his own store on a monthly basis.RM to audit the store

during the store visit and mail the same to NSM and SM. Once in a quarter a regional score card

to be mailed by the RM to all stores. Also refer to the VIP Visit Checklist in the store facilities inplace during VIP visit to the store.

3.2 Security Tag Handling

Objective

To ensure that the security tags attached to merchandise is collected from cash point and

recycle.

Process:

At the time of billing the cashier remove the security tags attached to the merchandise (Soft tags

with scissor /Hard tags with the help of a de-tagger) being put in the bin. The tags are handed tothe security and the security sends the collected tags backs to the DC thrice a week on Tuesday,

Thursday and Friday.

3.3 End of Season Sale

Merchandise

3.3.1 Identification of merchandise

Unsold merchandise is looked for only those styles that are no longer part of the core

staple due to change of style or either fabric.

3.3.2 Deployment of merchandise

Identified merchandise is to be deployed to RDCs as per quantities finalized by the RM/MPE.

Store wise segregation of quantity on the basis of RMs allocation.

3.3.3 Display of Merchandise


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Merchandise is to be displayed in the store in areas allocated; the shelf talkers and poster would

be strategically placed so as to clearly define the EOSS area.

3.3.4 Man Power

Increase of Security and Housekeeping personnel to cater to the additional traffic at the store.

The house keeping and security can help in merchandise handling.

3.3.5 Billing/Delivery Counters

1. Additional POS Machines:Additional POS machines may be hired locally and configured by MIS executive of the region

in case of existing POS is not sufficient.

2. Delivery Counter:A delivery Counter is to be set up which will be manned by the security staff for delivering billedgarments.

3. Billing /Invoice Procedures

4. Billing Stationary

The computer and manual billing stationary will remain the same; however, the footer

message on the invoice would be changed/modified to incorporate EOSS specific terms &

condition.

5. Process for checkout:

The process to be followed would be as listed below:i. A customers selected garments billed as the cashier prepare an invoice through Retail Pro in

Triplicate.

ii. First copy of the invoice would be handed over to the customer; the second copy will beattached to the carry bag, while the third is kept with the Cashier as a reference copy. The

customer copy will be stamped as paid.

6. Material Required:

WLS provides carry bags and security tag require thats why SM needs to tie up with RM to get

his estimated requirement.

7. Facilitation Levels:

The person try to facilitate all facility to consumer even if communicate discounts to consumer

and help should be extended to provide them the right merchandise. The service standard should

be maintained and situations of confrontation and discomfort to consumer should be avoided.


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8. Store Layout- The store should be divided in 2 departments i.e. Men & Women. Eachdepartment will be divided in 3 areas each for one discount slab (20%,40% and 50%).The slab of

the back of the store to reduce clutter near the cash counter.

.

3.4 Business Planning

3.4.1 Measurement of KPIs

3.4.1.1 Footfalls

Exclude of kid under the age of 12 yrs, Housekeeping staff/store CA /Tailor, all other

person who enter the store should be counted as eligible footfall.

Data to be captured on gender basis/group basis.

3.4.1.2 ConversionNumber of fresh invoice / total footfall for the day (Fresh invoice = Total invoice Returnof exchange invoice)

3.4.1.3 ATVNet sale for the day / Number of fresh invoice (Net sale = Total sales Return or

exchange sales)

4. Cross functional processes

A managers role is to efficiently train his team member in becoming champions in handling

responsibility of the Marketing, HR,IT, Finance, Logistics etc area within the store on a rotation

basis and such team member can be groomed on fast track basis as future store manager.

4.1 Marketing

4.1.1 Visual Merchandising

Some of basic guidelines pertaining to VM are listed below

a) The store should have an appropriate balance of hang vs. stack (old store 50:50, fresh store80:20)-VM in charge to provide the same.

b) A store should portraying either the color /style /mood/co-ordinate of the season

c) All merchandise should be stacked /hung size wise in ascending order.d) Window display should have a cluster of mannequins and the theme blending with the

marketing campaign of the season.


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Lifestyle Benefits

ITC Hotel Welcome Awards Gold membershipRoom Upgrade at ITC Welcome Group Hotels

Airport Lounge access

Travel House OfferInvites to Fashion events

Store Processes for Club wills:

a. Customer eligible for silver /gold /platinum card will receive the same within 21 days of

registrationb. Redemption is only possible if the customer is carrying the permanent card.

c. The store to take the request for lost /damaged card from the customer and inform it to

customer care immediately.

Collaterals for Store:Minimum reorder level

Temp Card Docket Gold: 10Temp Card Silver: 25

Privilege Card Docket: 200

Customer Request Book: 5Redemption Form: 20

Take One Stand: 1

Visitor Book: 1

4.1.2. Voice of Consumer (VOC)VOC is used to capture consumer feedback on the parameter like range, price, customer service,

quality etc. Store to send a minimum of 20% of invoices billed over any given period of time.

VOCs should be sending to the customer care.

4.1.3 Micro Marketing

Objective-Channeling quality foot fall/ consumer traffic in a catchment area in store. It is

mutually rewarding partnership with local establishment.

Cross Promotional activity should rewarding both partner.Footfall quality & Customer profile must share between two outlets.

.

High social sensitivity must be avoided to ensure that no controversial associations are evermade. For e.g. Religious / communal bodies, gender biased activists etc.

4.2 Finance


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4.2.1 Cash Deposit

As a store manager you are required to deposit cash sales every day without fail and no

exceptions on the same.

DOs1. Check identification of cash pick of personal.

2. Cash tally to be done by the cashier only.3. Cash to be tallied at the interval of the day by the cashier: 1.00p.m, 5.00p.m, 8.00p.m,

end of the day.

4. Remark to be written on cash closing sheet for any difference, excess in credit card, cash

of the day.

DONTs1. Taking out cash from daily cash sales.

2. Postponing cash deposit to the nest day.3. Handing over cash to cash pick up agent without checking his identification.

4.2.2 Gift Vouchers

Gift voucher are procured by LRBD HO Marketing Services and dispatched as per

requirement given by store.

The gift voucher procured by LRBD fall in two categories:1. Normal gift voucher- These are approved denomination and sold through store/ HO .e.g.

Occasion, Welcome Award, Sodexho etc.

2. Promotional gift voucher-Which are either scheme linked (EOSS) or other sale promotion

scheme during launch /festival /other.

Other sale promotion activities .e.g. DM gift voucher, MM GV, Fashion Reward GV, Essenza

GVs etc.Store manager shall ensure that necessary approval are obtained for sale

1. Scheme GVs are issued strictly as per scheme announced and have fixed validity period.

Stores are required to follow the terms and condition of the scheme for issue and alsomaintain record of GV issued and redeemed.

2. On expiry of sale promotion scheme- remaining GVs are required to destroy with

intimation to the retail/ RO.3. Any sale beyond Rs.20000 for individual customer shall be through Credit /Debit Card.

No personal cheques shall be accepted from individual customers.

4.2.3 Petty Cash Management1. All bills and statement to be signed by the SM, he is responsible for the impress given

to the store for day to day operation.2. Any expense above 5000 needs to be authorized by the RM and purchase order to be

raised through three quotations.

3. All bills for expenses incurred are to be attached with the expense statement.


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4.2.4 Manual Invoices

1. Store to make manual invoice only in case of emergency like system break down.2. All manuals to be also available in a soft copy with all detail of manual invoice with EAN

nos.,

3. In case of manual invoice is cancelled or not used for whatever reason, both original andduplicate copies of the manual invoice marked CANCELLED and retained in the manual

invoice book.

4. While issuing a manual invoice to a customer, the staff shall ensure that following detailclearly and correctly recorded:

Customer name and ID

Signature of the cashier5. No multiple manual invoice books to be used simultaneously at any point of time.

5. Roles and Responsibilities

5.1Role of a Store Manager

5.1.2 Principal Accountabilities:

1. Develop and implement the Sales & Service plan for the store to meet business

objectives.2. Target fixation & forecasting at SKU level and ensure that VM is of required quality.

3. Provide accurate and timely information pertaining to sales, industry and competition in

the area for periodic review.

5.2 Role of a Customer Associate

5.2.1Principal Accountabilities:

1. Present product in the desired manner for excellent visual merchandising, recording and

replenishment of stocks in the assigned area.2. Provide information on product/fashion consultancy to help the consumer make the right

choice and facilitate sale.

3. Delivering pleasant shopping experience to consumer like solve problems and answerqueries effectively.

4. Collect and give consumer feedback.


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CONCLUSION

Finally it can be concluded that during preparation of this report

I have acquired good knowledge about retail and its function

regarding store operation.ITC believes in creating value and

appreciates creativity and passion, it gave me a complete pictureof the branded show room. I would really thankful to Prof. V.T.

Thomas for his guidance to preparing this report.

Store Operation in releance

Documents

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