process of store operation

1. Process of Store Operation
Rajvi(69) Garima(34) Rujuta(63) Lekhank(41) Rahul(35)
Nikunj(84)

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. Inventory & Stock Management
Merchandise Buying Receiving Inventory Pricing
The Inventory & Stock Management covers different components as following:

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. 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. 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. 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. 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. 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

11. 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

13. 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

14. 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.

15. 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

16. 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

17. 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)

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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.”

24. 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

25. 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

26. Customer Service
Service Profit Chain

27. Thank You