RETAIL STORES OPERATIONS

NAME
ASHISH DHOBAL GOPI KRISHNA SHASHANK KAPDEO

ROLL NUMBER
12 19 23

NIRAJ MAKHE
JIGNESH MALKAN ABHISHEK KUMAR

30
31 28

Tasks performed at the store level

Store Administration and management of premises

Receiving & displaying goods

Providing customer shopping Experience

Recording sales

Managing alliance and partnerships

Significant Areas Of Retail Operations

1. 2. 3. 4. Customer Service and Accommodation. Retail selling Process. Store Staffing & Scheduling. Retail Floor & Shelf Management.

5.
6. 7. 8. 9.

Stores Administration & Facilities Management.

Warehousing & Supply Chain Management. Loss ( Shrinkage ) Prevention. POS/ Cashiering Process. 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 retailers ability to turn potential customers into buyers . Returns to Net Sales Total Return & Allowances ----------------------------------- * 100 Net Sales This reflects customers 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 returns and allowances average sales, net of

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

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.

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

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

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

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

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 Registration Certificate Subject Under Shops & Establishments Act Issuing Authority BMC Ward Office For Retail format Supermarket/ Department Store

Trade License

Edible Oil, Ready BMC Ward made ice creams , Office sweets & chocolates
License for cow, buffalo milk License for items like fish, mutton,etc Public Health Deptt of BMC Market & Slaughter Deptt of BMC

Supermarket

Dairy License License for frozen items

Supermarket Supermarket

Stores Administration & Facilities Management - Licenses

License License for rationing License for Weights & Measures Central Sales Tax Registration VAT / Mumbai Sales Tax Registration Subject For retail sales of pulses, food-grains, sugar,etc License for weighing machines Registration under Central Sales Tax Issuing Authority Deptt of Civil Supplies InspectorWeights & Measures Sales Tax Office For Retail format Supermarket

Supermarket/ Department Store Supermarket/ Department Store Supermarket/ Department Store

Registration under Sec Sales Tax 22/22A of Mumbai Office sales Tax Act

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

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.

Visual Merchandising & Displays

Known as Silent Salesman

Art of suggestive selling by display & presentation

Visual Merchandising & Displays

Profits

Sales Big Spender

20%

In- store

Spender Loyal Shopper

40%

Browser
15%

80%

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 Shoppers 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