Tasks performed at the store level

Store Administration and management of premises

Receiving &
Providing customer
displaying Recording sales
goods shopping Experience

Managing alliance and partnerships

 Significant Areas Of Retail Operations
1. Customer Service and Accommodation.

2. Retail selling Process.

3. Store Staffing & Scheduling.

4. Retail Floor & Shelf Management.

5. Stores Administration & Facilities Management.

6. Warehousing & Supply Chain Management.

7. Loss ( Shrinkage ) Prevention.

8. POS/ Cashiering Process.

9. Visual Merchandising and Displays.

 Areas of Retail Operation covered

• Check out Management

• Stores Administration & Facilities Management

• Loss ( Shrinkage ) Prevention.

• Visual Merchandising and Displays.

 Stores Operating Parameters

To Evaluate Day to day operations of Stores ,

Dip stick parameters are used to measure retail
performance.

They enable retailers to find out health of specific

area of operation.

Parameters

• Customer Transactions
• Stocks
• Space
• Employees
 Stores Operating Parameters - Customer
Transactions
• Customer Conversion Ratio
Number of Transactions
------------------------------- * 100
Customer Traffic
This reflects retailer’s ability to turn potential customers
into buyers .

• Returns to Net Sales

Total Return & Allowances
----------------------------------- * 100
Net Sales
This reflects customer’s satisfaction by showing value of returned
goods and allowances as a percentage of net sales
 Stores Operating Parameters- Customer
Transactions
• Transactions per hour
No. of transactions
-----------------------------------
No. of hours
This helps retailers to keep track of the no. of transactions they are
carrying out per hour , day ,week or season.

• Sales Per Transaction

Net Sales
-------------------------------------
No. of transactions

This measure gives the rupee value of average sales, net of

returns and allowances
 Stores Operating Parameters- Customer
Transactions
• Hourly customer traffic
Customer traffic in
-----------------------------------
No. of hours

This is used to track total customer traffic per hour, day,

week or season
 Stores Operating Parameters- Stocks
• Avg. Selling Price
Total value of goods sold ÷ Total Qty. Sold

• Avg. Stock Price

Total value of goods in stock ÷ Total Qty. in stock

• Stock Turnover/ Inventory Turnover Ratio

Net Sales ÷ Avg. Retail value of inventory

• Percentage Inventory Carrying Cost

(Inventory Carrying Cost ÷ Net Sales) * 100
 Stores Operating Parameters- Stocks
• Gross Margin Return on inventory
Gross Margin ÷ Avg. Value of Inventory

• Mark Down Goods Percentage

(Net Sales at Mark Down ÷ Total Net Sales) * 100

• Shrinkage to Net Sales

(Actual Inventory – Booked Inventory)
-------------------------------------------------- * 100
Net Sales
 Stores Operating Parameters- Space
• Occupancy Cost per Sq. Ft. Selling Space
Occupancy Cost ÷ Sq. ft. of Selling Space

• Sales Per Sq. Ft.

Net Sales ÷ Sq. ft. of Selling Space

• Stock Per Sq. Ft.

Net Stock ÷ Sq. ft. of Selling Space

• Percentage of selling space

(Selling space in sq. ft. ÷ Total space in sq. ft.) * 100
 Stores Operating Parameters- Employees
• Net Sales per full time employee
Net Sales ÷ Total no. of FT employees

• Space Covered/ Customers Saved per FT Employee

( Total Retailing Space /No. of customers served ) ÷ Total
no. of FT employees

• Labor Productivity
Total Labor Cost
----------------------- * 100
Net Sales
Stores Operating Parameters- Employees

• Gross Margin per full time employee

Total Gross Margin ÷ Total no. of FT employees

• Suppliers /Quantity or Value purchased per buyer

Total Suppliers /Quantity or Value purchased ÷ Total no. Buyers
 Check out Management
Traditional Methods

• Minimum Cash at cash counters

• Cash balance to be updated by Computer

• IT/Skill Management

• Keeping eye on cashier from distance

• No authority to cancel

• Change( Chiller) Management

Check out Management

New Methods
Check out Management
Cash Register Express

Cash Register Express (or CRE) is a

cost-effective computerized cash register
that keeps your inventory costs down,
reduces theft and makes more money!
CRE is Windows-based POS system
exclusively for retail and video stores.

Features :
Easy to use:
Fast lookups by barcode or name
Built-in help system Bar-code ready 
Credit card processing with IC Verify 
Built-in backup 

Salesperson tracking Time clock 

Handles multiple clerks 
Handles multiple cash drawers 
Password protection 
 Check out Management
    Broad compatibility 
      Microsoft Access compatible 
      Quickbooks compatible 

   Helps manage customer accounts

      Detailed customer history 
      Customer quick search 
Promotions for preferred customers
       Family memberships 
       Coupon plans 
       Gift certificates 
       Mailing labels

   Management flexibility 
      Flexible pricing 
      Flexible taxing 

   Sophisticated reporting 
      Detailed inventory reports 
      Management reports 
      Financial summaries
 Stores Administration & Facilities
Management
It includes

• Cleanliness of stores

• Maintenance of Store Facades & displays

• Time Keeping of staff

• Required Permission & Licenses

• Health & Safety Norms

• Store Security

• Insurance
 Stores Administration & Facilities
Management - Licenses
License Subject Issuing For Retail
Authority format
Registration Under Shops & BMC Ward Supermarket/
Certificate Establishments Office Department
Act Store
Trade License Edible Oil, Ready BMC Ward Supermarket
made ice creams , Office
sweets &
chocolates
Dairy License License for cow, Public Health Supermarket
buffalo milk Deptt of BMC
License for License for items Market & Supermarket
frozen items like fish, Slaughter Deptt
mutton,etc of BMC
 Stores Administration & Facilities
Management - Licenses
License Subject Issuing For Retail
Authority format
License for For retail sales of Deptt of Civil Supermarket
rationing pulses, food-grains, Supplies
sugar,etc

License for License for weighing Inspector- Supermarket/

Weights & machines Weights & Department
Measures Measures Store
Central Registration under Sales Tax Supermarket/
Sales Tax Central Sales Tax Office Department
Registration Store
VAT / Registration under Sec Sales Tax Supermarket/
Mumbai 22/22A of Mumbai Office Department
Sales Tax sales Tax Act Store
Registration
 Stores Administration & Facilities
Management- Insurance
Insurance against theft, fire, floods, riots, earthquake, etc.
Policy to be carefully formalized to cover all potential risks
Insurance – for 3 things

• Building & Infrastructure

• Inventory

• Cash ( In store & banking)

 Shrinkage Prevention
Categories of theft - worldwide
• Health & Beauty products
• Jewellery & Compact discs

Categories of theft - India

• Chocolates
• Cigarettes
• Blades
 Shrinkage Prevention
Proportion of shrinkage –

• International – 0.6 to 1.5%

• India- 0.7%
 Shrinkage Prevention
Ways to prevent

• Personal Monitoring by Security Personnel

• Cameras to monitor

• Use of source tagging –Small anti-theft labels are

hidden inside a product or packaging by
manufacturer
 Visual Merchandising & Displays

• Known as Silent Salesman

• Art of suggestive selling by display & presentation

 Visual Merchandising & Displays
Profits

In- store
Sales

20%
Big Spender

40%
Spender

Loyal Shopper
Browser 80%
15%

Passer by 100 %

The Customer stickiness Progression Model

 Visual Merchandising &
Displays- Role
• Planning the VM theme and creating displays

• Arranging props for displays

• Arranging display fixtures and lighting

• Setting up store before opening

• Working with floor plan and stores requirement

• Training personnel on sales floor to create display

• Organizing merchandising units such as racks and shelves

 Displays
• Window Displays-
 Exclusive windows (closed backdrop with a theme and seasonal
motif
 Open windows ( Without backdrop and passerby can see interior of
store) E.g. Apparel & Related accessories
 Displays
• In store Displays

 Live display-Live models used, e.g. Kids Kemp in Bangalore using

Cartoon characters to attract kids

 Marqee Display- Example –Gillette Mach 3 stalls at Malls

 Displays
• In store displays

 Free Standing/Island displays – Inside the store

at the entrance to announce new arrivals
/special offers –E.g. Pantaloons –Denims kept
at entrance

 Counter displays – For jewellery and watches

 Displays
 Brand Corners- For display of
exclusive brands or devoted
space in shelves or gondolas . Ex.
Arrow / Zodiac at Shopper’s Stop

 End Cap Displays – At terminal

side of gondolas – both at entry
and exit . Used in book stores

 Cascade & Waterfall display – Ex.

for Blazers, Jackets ,etc.
Thanks