retail operations management

1. W A Q A S Y O U N U S P A R A C H A
RETAIL OPERATIONS
MANAGEMENT

2. What is Retailing?
 Retailing – a set of business activities that adds
value to the products and services sold to
consumers for their personal or family use.
 A retailer is a business that sells products and/or
services to consumers for personal or family use.

3. How Retailers Add Value
 Breaking Bulk
-Buy it in quantities customers want
 Holding Inventory
-Buy it at a convenient place when you want it
 Providing Assortment
-Buy other products at the same time
 Offering Services
-See it before you buy, get credit, layaway

4. Accounting Finance
MISOperations
Marketing
Human Resources
Retailers are a Business Like Manufacturers

5. Retail Operations
 Retail operations involves managing the day to day
functions of retail establishment
 Retail operation professionals manage retail
establishment on a day to day basis and are
responsible for maximizing store profits

6. A Typical Retail Mix
Retail Strategy
Customer
Service
Location
Merchandise
Assortment
PricingCommunication
Mix
Store Design
And Display

7. Retail Business Processes

8. SAMPLE NEW STORE OPENING ACTIVITY

9. Components of Store Operations
 Administration
 Visual merchandising
 IT
 HR – talent search, recruiting, training, retention and
skill enhancement.
 Security
 Merchandising/stocking/shelving
 Maintenance/cleanliness
 POS/Check out
 Inventory
 Sales

10. Important aspects of Store Operations
 Customer Service
 Leads to Loyalty
 On Shelf Availability
 Revenue
 In Store Processes
 Reduce Costs
 Staff Planning
 Staff Motivation

11. Operations Manager Responsibility
 Human resource specifically recruiting, hiring, training and
development, performance management, payroll and schedule
workplace scheduling
 Store business operations including managing profit and loss,
facility management, safety and security, loss prevention (also
called shrinking) and banking
 Product management including ordering, receiving, price changes,
handling damaged products and returns
 Team development, facilitating staff learning and development.
 Problem solving and handling of unusual circumstances
 Sales generation
 Safety and security
 Division of responsibility
 Hiring, training and development
 Visual merchandising and inventory control

12. Retail KPIs
 Sales/square feet
 Sales/employee
 Average transaction (sales/ number of transactions)
 Inventory/stock/merchandise
 Inventory shrinkage/sales
 Items per ticket (total items sold/total transactions)
 Conversion rate (Total transaction/total traffic)
 Total sales
 Sales compared to last year (or any other period)
 Wage cost
 Average sales per customer/transaction
 Sales per hour (selling hours only)
 Sales per hour (labour hours only)
 Average sale
 Inventory turn
 Average gross margin
 Customers per day/week
 Items per customer

13. Timelines (Project Charter)
Establishing
Vision,
Mission and
Goals
Allocating
Resources
Strategic
Planning
Execution
Management
and
continuous
Improvement

14. THANK YOU