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process of store operation

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process of store operation

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process of store operation

  1. 1. Process of Store Operation Rajvi(69) Garima(34) Rujuta(63) Lekhank(41) Rahul(35) Nikunj(84)
  2. 2. Process of Store Operation Defined as principles, processes and procedure of operating a store. Inventory & Stock Management Transaction Handling & Administration Store Atmosphere & Space Management Customer Service
  3. 3. Inventory & Stock Management Merchandise Buying Receiving Inventory Pricing The Inventory & Stock Management covers different components as following:
  4. 4. Inventory & Stock Management Merchandise Types: Staple Goods: items that are constantly in demand by customers. Examples are toothpaste, milk, or bread • Used consistently and replaced on a regular basis • Sales are easily predictable because they are bought on a consistent basis Convenience Goods: small, inexpensive items that customers purchase frequently. Examples are gum, bottled water, or magazines • Found in convenience stores, grocery stores or gas stations Fashion Goods: items that are popular at a certain time. An example is clothing • Includes any item that comes in or out of style • Retailer will maximize sales by acquiring the product as it is gaining popularity Seasonal Goods: products that are popular only at a certain time of year. Examples are swimsuits, boxed chocolates, or snow skis
  5. 5. Inventory & Stock Management Merchandise Mix: Businesses must pay close attention to their target market and must obtain, develop, maintain, and continually improve upon their merchandise mix. Merchandise Mix Strategies • Development: Develop new products to bolster the company’s image or to expand their market share • Expansion: businesses can choose to add either new product items or new product lines. • Modification: Altering a company’s existing product • Deletion: May occur when a product is no longer useful, obsolete, not fashionable, or room is needed for another product
  6. 6. Inventory & Stock Management Buying Activities The role of a buyer in a retail setting is to purchase goods for resale to the customer. Their activities include planning, research, and evaluation. Merchandise planning: includes four elements – planned sales, a beginning-of-the-month inventory, planned purchases, and planned deductions such as employee discounts and markdowns. Research: helps buyers choose the best vendor for the needed products. In choosing a vendor for the products the following factors should be considered: • Production capabilities • Past experience • Product and buying arrangements • Special services • Discounts • Payment arrangements Evaluating: of both the products that were purchased and the vendor that supplied the product.
  7. 7. Inventory & Stock Management Receiving Process The steps in the receiving process are Receiving Merchandise: the process a business uses to receive merchandise at their store. Receiving Record: a form used to describe the goods received Checking Merchandise: verifies that the correct merchandise and quantities were delivered. • Blind Check Method: One of the most accurate, yet time consuming, methods for checking merchandise. Employees open boxes and make a list of items sent. This list is then compared with the invoice • Direct Check Method: The most frequent used one. Involves checking off the merchandise on the invoice • Dummy Invoice Method: Combines the best features of both the blind check method and the direct check method. Employees take an invoice without the quantities and records the amount of each item in the shipment • Spot Check Method: takes the least amount of time, but is the least accurate method. Involves spot checking a certain number of boxes Preparing Merchandise: involves getting the merchandise ready to sell. Steps include • Unpacking Merchandise • Ticketing Merchandise • Security Tags to protect against theft • Presentation
  8. 8. Inventory & Stock Management Inventory Methods Inventory – the amount of goods stored by a business. • Perpetual Inventory: a method of tracking inventory on a constant basis. The information required to maintain a perpetual inventory system can be collected either manually or electronically through a point-of-sale system – which is a computerized method of collecting inventory data • Physical Inventory: system where stock is visually inspected or counted to determine the quantity on hand. Is usually conducted only periodically • Visual Inspection: involves placing a card in a bin of merchandise stating what the product is and the quantity that should be on hand • Combined System: involves using both the perpetual and physical inventory systems to insure an accurate count of the inventory
  9. 9. Inventory & Stock Management Pricing Strategies When determining the price of a product, it is important not only to maximize profits but also to provide value to the customer. Steps for product pricing: Determine Objectives: the business must determine what profit they want to earn and what strategy suites their style Study Costs: the business should understand all costs involved in offering a product Estimate Demand: the business should determine the demand for the product and set prices accordingly Study Competition: the business should know the competition and the competition’s prices Select Strategy: the business must choose the pricing strategy for the business • Cost-oriented pricing • Markup: the difference between the cost of the product and its selling price • Demand-oriented pricing: is based on demand for the product. When demand is high, customers will be willing to pay more for the product. • Competition-oriented pricing: setting prices based on the competition’s prices Set Price
  10. 10. Store Atmosphere Store Atmosphere Store atmosphere is the physical characteristics of a retail store used to create an image in order to attract customers Four dimensions of store atmosphere are: • Visual • Sound • Fragrance • Touch
  11. 11. Shopping Comfort •Customers will decide in first few minutes if they are comfortable in a retail store •Comfortable customers shop for a long time and may spend more • Ease of Stock Accessibility • Adequate choice of items • Comfortable space • Lighting in store Visual Merchandising •Section wise presentation •Color Presentation •Music •Lighting •Fixtures
  12. 12. Transaction Handling & Administration Transaction Handling- Cash Handling • One of the most important aspects of retailing is cash handling. • It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the store. • Cash Registers, electronic cash management system or an elaborate computerized point of sale (POS) system help the retailer to manage the daily sales and the revenue generated.
  13. 13. Transaction Handling & Administration Transaction Handling Handling Returns to Customers • Return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund in the original form of payment, exchange for another item (identical or different), or a store credit • Retailers have to cope with all kinds of returns, from apparel that just didn't suit the customer, to expired products that are no longer saleable, to recalls endangering public safety
  14. 14. Transaction Handling & Administration Transaction Handling Handling Returns to Vendors Reasons for Returns • An item may have been received that was not ordered • An order may have been cancelled after it already shipped • Too many items were shipped • Merchandise arrived too late • Unsold merchandise may be returned for credit Procedures for Handling Returns – vary according to vendors Credit memorandum – notification to the business that its account with the vendor has been credited for the return
  15. 15. Transaction Handling & Administration Customer Returns – Examples : • E-commerce major Flipkart: Instant refund mechanism facility, a move that will help its customers get refunds as early as within 24 hours of returning the product. (Previously, the refund process used to take three to five business days) • Nordstrom: There is no time limit on returns or exchanges, and Nordstrom’s return policy does not have any hard-and-fast rules against returning items without a receipt, without tags or that have been worn (special occasion dresses excluded). Nordstrom’s online return policy is similarly generous, and return shipping is free • Pantaloons: 30 days return policy or a cash credit(should be in saleable conditions)
  16. 16. Transaction Handling & Administration Administration: Staffing & Training: It is really important to find the right people to work for stores which depends on Finding and Hiring Great Talent: First step is developing a criteria for hiring, which includes • Daily duties and responsibilities • Personality Traits • Physical Requirements • Qualifications or Experience Level Training for Steller Performance: Teaching the necessary "hard skills" and conditioning the behavior or "soft-skills" of the employees Retention: Creating roadmap, providing feedback and creating trust and transparency to retain employees Learning From Mistakes: Understanding of what you could do differently to improve results
  17. 17. Transaction Handling & Administration Administration: Prevent Shoplifting Safety and Security: • Staying alert at all times • Greeting all customers • Asking lingering customers if they need help • Knowing where shoplifting is most likely to occur in the location • Using a log to share suspicions about shoplifters among employees • Displaying signs that “Shoplifters will be prosecuted.” • Use of CCTV • Stock Tracking (RFID) • Installation of Fire Extinguishers • Installation of Smoke Detectors
  18. 18. Customer Service All activities that an organization does to meet with it’s customer’s expectations and produce customer satisfaction, involving • Right Product • Right Place • Right Quantity • Right Time • Right Price
  19. 19. Customer Service Customer ‘touch points’ in a store PARKING -Safe -Spacious -Well Marked SECURITY -Courteous -Professional -Trained LAYOUT -Wide Aisles -Convenient -Trial Rooms AMBIENCE -Music -Smell -Colors/Mood SIGNAGE -Direction -Location -Security TALKERS -Price -Promo -Size ASSOCIATES -Trained -Knowledgeable -Attitude to help HYGIENE -Clean Toilets -Clean Fixtures -Clean CSA’s MERCHANDISE -No Stock Outs -Well Organized SERVICES -Valet -Home Delivery -Free Gift wraps etc. EXTRA SERVICES -Drop box -ATM PAYMENT -Credit Cards -Cash -Meal Voucher CHECK OUT -Express Tills COMPLAINTS -Clear Guidelines -Courteous CLAIMS -No questions -Attitude REFUNDS -Prompt Cash Cancellations LANGUAGE -Clear -Honest CAFE -Economic -Variety
  20. 20. Customer Service G.U.E.S.T. Greetings • Acknowledge the customer as soon as they enter • Smile, enthusiasm • Title • Welcome • Introduction and opening statement Understanding • Ask open ended questions • Gaining clarity • Customer Profiling Educating • Explain the products • Match with customer needs • Suggest alternatives • Talking about the ongoing offers discounts or promotions
  21. 21. Customer Service G.U.E.S.T. Selling • Suggestive selling • Up selling • Cross selling • Closing the sale Thanking • Capturing customer data • Smooth and pleasant transition from POS to exit • Thanking the customer • Endorsing the brand • “We look forward to seeing you again. Have a great day Sir.”
  22. 22. Customer Service Importance of Customer Service in a Retail Store • Generating or increasing sale • Return visit of customer • Word of mouth and referrals to potential customers • Controlling shrink • Constant feedback Types of Customers • Loyal Customers-20% providing 50% business • Discount Customers • Impulse Customers • Need based Customers • Wandering Customers
  23. 23. Customer Service Commandments of Customer Service • Know that the customer is the boss • Be a good listener • Make customer feel important • Help customers understand where is what • Give more than expected • Get regular feedback APOLOGIZE ACCEPTACT
  24. 24. Customer Service Service Profit Chain
  25. 25. Thank You

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