1. RETAIL STORES
OPERATIONS
NAME ROLL NUMBER
ASHISH DHOBAL 12
GOPI KRISHNA 19
SHASHANK KAPDEO 23
NIRAJ MAKHE 30
JIGNESH MALKAN 31
ABHISHEK KUMAR 28
2. 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
3. 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.
4. Areas of Retail Operation covered
• Check out Management
• Stores Administration & Facilities Management
• Loss ( Shrinkage ) Prevention.
• Visual Merchandising and Displays.
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. 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
16. 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
17. 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
18. Radio Frequency Identification
(RFID)
• Short for radio frequency identification, a technology similar in
theory to bar code identification.
• With RFID, the electromagnetic or electrostatic coupling in the
RF portion of the electromagnetic spectrum is used to transmit
signals.
• An RFID system consists of an antenna and a transceiver,
which read the radio frequency and transfer the information to
a processing device, and a transponder, or tag, which is an
integrated circuit containing the RF circuitry and information to
be transmitted.
• Used for inventory management, IT asset tracking, race timing,
passports, mobile payments, transportation and logistics,
animal identification, museums, libraries etc.
19. Differences between RFID and
barcode
• It has for each individual product a
unique number, whereas barcode
labels have the same serial number for
all identical items.
• More than one RFID tag can be read at
a time and can be read from quite long
distance from the reader, whereas
barcodes can be read just one time for
each item and have a low reading
distance from the reader.
• Barcodes have fixed numbers and each
figure does not necessarily write to the
computer when scanned if the
computer loses this figure. Silicon chips
make the RFID system much more
flexible to be re-programmed when
necessary
20. Benefits of RFID
• For instance, Wal-Mart stores manage to save $600 million annually
by applying an RFID system.
• A recent study at Wal-Mart stores shows that the RFID system is
more successful in replenishing out-of-stocks by 63% than stores
without RFID . Furthermore, it is emphases the fact that there was a
reduction in out-of-stock by 16 percent in this period. Also, the study
shows important profit on investment by increasing the sales made.
• Increased focus on selling.
• It can reduce the waiting time of the shoppers inside a shopping
queue and allow goods to be checked immediately and
automatically
21. Benefits of RFID
• RFID tags can also be used to fight counterfeiting (Traditional
production devices such as holograms and chemical tags are now
being copied by counterfeiters.). The counterfeiting business makes
up 5-7% of world trade and costs retailers more than 500 billion Euros
a year. GlaxoSmith, is tagging some drugs like Trizivir to reduce fraud
• The smart tags allow retailers to monitor products’ availability on the
retail shelf especially during high selling seasons/perishable products.
Because the retail shelf space is limited, RFID tags assist the retailers
by enabling smart inventory management between the retail shelf and
backroom stock
• In addition, RFID tags are useful for retailers with smart shelves that
have inbuilt RFID scanners to organize the products that are placed on
the wrong shelf as well as satisfy customers demand
22. RFID- Challenges
• The cost of tags can be a barrier to retailers in adopting RFID
technology, particularly at the individual item level but the cost are
coming down . For example, in 2000, the price of tags cost from $1 to
$100 based on the type of the tag, but in 2006 they cost from 20 cents
to $20
• Lack of internationally agreed RFID standards-However, in June 2004
EPC global developed agreed protocols on the type of tag that
concentrated on the read rate and the frequency of tags.
• Privacy concerns from civil liberties groups - RFID could be used to
allow retailers to gather information from customers. This kind of
information allows the retailers to control the consumers’ behaviour
• A security concern : For example, when the RFID tag is designed to
read at a distance of one foot, attackers have the ability to read this
signal in the region of 100 feet with the use of this special equipment.
Solution for this is in attempting to kill the tag. A simple solution can
be making a small change in the information that is on the tag.
• Wrong billing of some previously purchased item
23. 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
24. 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
25. 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
26. 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)
27. Shrinkage Prevention
Categories of theft - worldwide
• Health & Beauty products
• Jewellery & Compact discs
Categories of theft - India
• Chocolates
• Cigarettes
• Blades
29. 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
30. Shrinkage Prevention- RFID
• RFID provides improvement of security. The
use of RFID tag to expensive items can
provide an outlet with increased security
and can drastically reduce shrinkage
through theft .
• It also helps to do a quick and exact
inventory account for the items and this
significantly reduces the time and labor
costs associated with inventory
• RFID tags can alert security guards if a
stock has been suddenly removed by
shoplifters
• Furthermore, security can be enhanced
through RFID readers that automatically
charge items in a customer trolley to a
credit or debit card, thus reducing theft
when items are concealed.
31. Visual Merchandising & Displays
• Known as Silent Salesman
• Art of suggestive selling by display & presentation
32. 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
33. 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
34. 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
35. 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
36. 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
37. 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.
