The document summarizes a research report on the retail management of a grocery store called "Cornerstore" or "Murdulloev". The research examined various aspects of the store's operations including its trade area, customer profile, space usage, and employee management. Key findings include that the store's primary trade area is 0.7 km and its location near a market and bus stop is favorable. The typical customer has a low-middle income and improvements like hiring female employees and expanding hours were recommended. The store's design and limited space were issues, and expanding the premises was suggested. Employees were competent but could improve politeness and empowerment would increase motivation and efficiency.

1. WIUT  Retail Management
Retail Management of the “Cornerstore” or “Murdulloev” private enterprise.
Introduction
The purpose of the following report is to show the comprehension of the principal theories and
conceptions studied and acquired by students in “Retail Management” module at Westminster
International University in Tashkent. This should be done by displaying the main causes and
factors related to proper positioning of the retail outlet in terms of consumers characteristics, and
satisfying them via the mix of correct space usage and design, as well as employee management
and trading area analysis. To be specific, the report was done according to the coursework 1
requirements of this module, based on the investigation that studied the chosen retail outlet, in
addition to creating the portfolio of recommendations suggested to this entity.
However, there were a number of restrictions to make the all-inclusive analysis of the processes
related to any of the store, as Duke (1993) notes. This was partly due to the level of cooperation
of the retail store’s staff, in addition to the limits of collecting primary data about the customers
and trade area analysis. Though, such type of researches is very important because it helps to
understand and take advantage of using in practice the gained knowledge related to retail
management science (Sinha and Banerjee, 2004).
The research was made on the retail management mix of the “Cornerstore” or “Murdulloev”
private enterprise.
Procedure
Different research methods were employed, including observation, surveying, interviewing, in
addition to searching information in special literature and journals, as well as web-sources,
according to the suggestions of Newman and Cullen (2002)
The process of research itself was divided into three main stages. The first one was dedicated to
the collection of the information about how to make the research, the methods and techniques
that can be used, as well as the theoretical knowledge about the subject of investigation. Within
this stage the critical mass of information was obtained to understand how to conduct the
research and which retail outlet would be the most suitable object. The second step was the
division of the fields of work and collection of the primary data related to the chosen retail
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outlet. Pending this period the staff and ordinary customers were surveyed, interviewed. To add,
the collected information was analysed through the prism of the academic articles and business
literature on the topic of retail management. During the last stage all the collected data
information was presented in the format of report and then proofread several times.
Findings and analysis
Retail outlet profile
The “Cornerstore” or “Murdulloev” (hereinafter referred to as the Cornerstore) is the grocery
retail outlet, which is located at Mashinosozlar market on the Botkina Street, Khamza district. It
offers the wide array of grocery goods, in addition to some other products. The price policy of
the retail outlet, which consisted in offering the lowest prices for the grocery products because of
the good relationships with suppliers and proper inventory control, made it possible to become
the most successful shop in its primary trading area. In spite of the small areas of the retail outlet,
the average number of the customer per hour varies from 50 to 200 people. Therefore, the store
outlet is considered to be successful enterprise with the large amount of revenue comparing to
the size of enterprise.
Trade area analysis
It is important to mention that trade area analysis, as well as mapping provides the retail outlet
with the information that assist in defining the characteristics that can impacts its performance,
specifically the demographic traits of possible customers, strength and weaknesses of
competition transportation access (Caputo and Mininno, 1998; Yavas and Tuncalp, 1993; Wood
and Browne, 2007; Hood, 1969). Clarkson et al. (1996) states that store’s location is considered
to be the most important factor retail organization has to make, and therefore location is seen as a
critical factor of success
The location of the store is considered to be quite favourable. Firstly, the store is located at the
local market; therefore the market visitors create the additional traffic to the store. In addition,
the store is located nearby the busy bus stop, which is proved to be an important factor for
generating traffic, particularly in Tashkent. Thirdly, there are no powerful competitors in
neighbouring the store outlet, though it is mainly the result if the price policy of the enterprise.
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As the result of the research the group conducted, it can be concluded that the primary trading
area for the Cornerstore reaches about 0.7 kilometres, while the secondary trading area comes up
to nearly 1.7 kilometres. Moreover, this is the only destination retailer in its primary area,
generating trading areas larger than competitors, as the outcomes of customer surveys suggest.
Therefore, all the other retail outlets and grocery shops in this radius can be qualified as mostly
convenience and parasite stores or narrowly-focused ones. According to the results of customer
survey, the average distance that the customers travel is about 400 metres, and it is relatively
high number, particularly comparing it with the ones of competitors. However, it also should be
noted that the Cornerstore benefits from its location within the market, since the majority of the
clients are going for shopping to market and then the retail outlet.
Therefore, the analysis of trading area was also important for understanding the demographic
characteristics of the possible customers, the competitors available, and the regulation and
restriction that the Cornerstore could face as the result of the relationships with local authorities
(Berman and Evans, 2001; O'Malley et al, 1995)
The most obvious suggestion that could be made is improvement of the parking facilities. The
only vehicles that the administration admits are “Damas” cars with the products, which should be
delivered to the inventory of the retail store. The availability of parking will attract more solvent
customers that are concerned with the parking facilities.
There is also an issue that is not considered to be as a crucial problem, but mostly as a
challenging chance. To be specific, it is the opportunity to eliminate through the competition the
two convenience stores, which are situated at the bus stop. They are mostly considered as the
parasite stores, since the do not create own traffic, but steal it from the Cornerstore itself and
Stop-n-Shop, its main competitor. The only activity should be done is showing the people
passing by that there is a shop which is only several meters from the bus stop. However, the
fence installed around the market increases drastically the perception of the distance. Therefore,
the results of the trading analysis also suggest the elimination of the fence nearby the
Cornerstore, though it requires the endorsements of both market administration and local
authorities.
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Customer profile
The study of the customer profile is an important part of this investigation because it helps the
retail outlet understand and identify the social, demographic and other characteristics of their
customers (Broadbridge and Calderwood, 2002; Clarke, 2002; Walters and Knee, 1993;
Griffiths, 1993; Rogers, 1993). Thus, customer profiling provides the researches with the
possible ways of increasing the loyalty and satisfaction of clients (Paddison and Calderwood,
2007; Wagner, 2007; Duffy, 1998).
One fact that should be notes is that the customers profile research was closely tied with the
research made on the trade area analysis and job analysis, in addition to the space usage, as
Carter (1993) states. This is because the appeals of the customers are the most important for the
stores, because the only factor that generates revenues for them is customer, therefore he or she
should be satisfied with the provided service, facilities, prices and quality of the products sold
(Mitchell and Kiral, 1998). Moreover, the most important suggestions in all these areas were
expressed during the surveying and informal customer interviewing. Thus, it can be concluded
that customer profiling was probably the most important component of the investigation.
During the customer profiling research the data related to the both demographists and lifestyles
of the clients was gathered and processed. The results of the surveys show that the majority of
the customer considers themselves as one with low of “low-middle” income. About quarter of
the surveyed said that they considered themselves the persons with middle-income, and only one
responded answered that he is the person with the high level of income. However, it also should
be noted that because of the low level of incomes in this country, compared to the developed
ones, those who reckoned themselves as middle-income cannot be considered as the
representatives of middle-class in most of the cases. Therefore, the income distribution of the
customers suggests that the enterprises adhere to the correct price policy, because prices of the
products, especially quality-prices ratio are probably the most important factor for the
overwhelming majority of the customers. Another recommendation that is related to the income
of the majority of the customers is creating the proper system of booking and registering the
debtors, as well as the amount of their debts. Currently, the salespersons are allowed to trade in
debt to regular customers; however, there is a disorder in this field. In terms of the age and
occupation, the prevalent group of the customers are female pensioners, and female middle-aged
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public and private workers. Many of the female respondents suggested that hiring female
salesperson would increase their trust in the store; therefore this measure can be implemented to
increase the loyalty of the huge number of customers. The majority of the respondents are from
big families, with the considerable of amount of children, they suggested increasing the number
of items oriented to children. The students and unemployed are in minority, comparing with
those who are working. In the light of this fact, it can be recommended to increase the range of
working hours from 9am-8pm to 8am-10pm. It addition, it is suggested to start working on
Sunday. The reason is that the majority of the complaints of the customer related to the working
period were concerned with the fact that the store is not working on Sunday.
To sum up, the process of identifying the main socio-demographic characteristics of the
customers was very important for suggesting the improvement that will surely increase their
loyalty and satisfaction.
Space usage, design of the outlet
The space usage, as well as the design of the outlet, is an important part of retail mix, it
influences the satisfaction of the customer and the efficiency of retail’s performance (Kent,
2007; Stoltman and Anglin, 1999; Davies and Ward, 2000)
The Cornerstore, as a retail outlet, can be divided on tree parts as the parts in terms of the
location and the assortment of goods that are offered.
The inner part of the store is considered to be the main one, the majority of groceries are offered
here, including the dairy products, sweetmeats, delicatessen. So, the inner part itself is consisting
of the two parts. The left one is mainly focused on trading the sweeties, snacks, and an array of
products that are usually qualified as convenience goods. The right part is intended to the diary
products, tinned food, sausage goods and delicatessen, etc. Interestingly that the range of grocery
assortment, in terms of the number of items and their availability, that is offered to the customers
of the Cornerstore’s inner part is equal to the one in Turkuaz, in spite of the small size of the
outlet.
The exterior part is divided into two sections too. The one, which is situated to the left of the
main entrance, is engaged with vending the drinks and convenience foods, three refrigerating
systems are installed there for them. The right part is targeted to trading the sweeties and pastry.
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6. WIUT  Retail Management
The kiosk, which is situated on the opposite side of the store, sells some of the convenience
goods, such as cigarettes, in addition to the baked goods.
During research, it was found that the design of the outlet, both exterior and interior one, is
considered to be very poor by the majority of customers. Therefore, the decorative appearance of
the shop averts many possible customers from buying the goods; it also misrepresents the
assortment of the goods, because it looks like there is a narrow range of the assortment according
to subjective perception of the surveyed respondents who are not the regular customers of the
Cornerstore. In addition, many customers, both regular and casual, have to ask whether the
required item is available or not, because of the congestion of the items and the fact that many
items are placed in the stock behind the store.
Thus, another remarkable problem related to the space usage and design is the heavy shortage of
the space for both presenting the products and comfort for the customers. The retail outlet
permanently faces the problem of overcrowding, especially after 17:00, when the majority of the
customers come. This problem does not concern the inventory, because the retail outlet has two
storehouses in another part of the market, and the stock inventory is proved to be on a good
level. The space shortage decreases the efficiency and quickness of employees work, as well as
the level of the satisfaction of the customers, according to Dion (2004), Aylott and Mitchell
(1998).
Therefore, there are two main areas for improvement that can be suggested to the management of
the retail store. First is the amelioration of the design of outlet, in other words, its outside and
interior appearance. This improvement does not require the huge amount of recourses, so it can
be easily implemented, as Morganosky (1997) notes. However, these activities should not
interrupt the trade process; therefore night hours are the best time for this renovation, he adds.
The second recommendation is related to the increase of the space area. There is a good
opportunity to do this, because of the presence of the waste plot of land to the right of the store.
The research has shown that the retail outlet, because of the great revenue and profit it generates,
can afford the construction of another retail premises. Although, such type of construction
requires the agreement with the local authorities, as Howe (1998) recommends.
Job analysis
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7. WIUT  Retail Management
The retail industry is the one where the employees, their efficiency and competence, in addition
to skilfulness and experience play significant role in the successful performance of the company.
The Cornerstore is not an exception to the rule.
There are currently 7 employees and 1 manager, (who is operating as salesperson) working for
the enterprises, 5 of them are full-time and 3 of them are part-timer workers. From 2 to 4
employees are usually working inside the retail outlet, the same range of employees are working
outside, and the one is working at the kiosk nearby. Interestingly that none of the workers have
the degree of higher education, because the manager considers the successful experience in retail
and personal traits as the main factor for employing, in addition to organizing and retail
mathematical skills, finding information to solve problems, which is quite reasonable , as Howse
et al. (1993), Commins and Preston (1997) say.
According to the results of the research interviews and surveys, the employees in general are
considered to be quite competent and experienced. The majority of the respondents said that the
salespersons are always ready to assist in the selection of the products, they are also perceptive in
the situations related to the merchandise return (though, it should be noted that this is because of
the policy of the whole retail outlet). However, many of the customers said that the salespersons
in general are not polite enough, so the manager should work out this issue. Another amendment
that should be implemented is the increase of the level of employees’ empowerment, as Tschohl
(1998) states. The common situation, which was noticed during the observation, was the incident
when the inspection of the goods, delivered to the inventory was delayed because of the manager
being busy; therefore it decreased the effectiveness of retailing. Evidently, empowerment is a
powerful tool, especially in retailing industry; it can increase both motivation and efficiency of
the outlet’s operation. Another suggestion is hiring a female salesperson, which was discussed
previously. The results of interviewing the staff show that the employees are generally satisfied
with the salaries paid. Although, the incentives tied with the level of the sales reached by each of
the salesperson is suggested to increase the motivation of the workers.
To sum up, the jobs analysis was powerful tool as the part of the research made, because of the
importance of employee performance in terms of its influence of the performance of the retail
outlet.
Conclusion
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8. WIUT  Retail Management
In conclusion, the research helped to understand how the concepts and theories of retail
management can be applied in real life. The suggested recommendations are quite realistic and
will evidently affect the satisfaction level of the customers. However, it should be noted, that
some of them require building strong and friendly relationships with the local authorities.
Appendix:
The Mashinosozlar market
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9. WIUT  Retail Management
Examples of convenience/parasite shops nearby
The interior of the retail outlet
The outside parts of the shop
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The kiosk
“Stop-n-Shop” retail outlet
Two parasite shops at the bus stop
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