Responsibilities of a store manager:
- Functions-six categories
- Managing employees
- Controlling costs
- Complying with legislation
- Store maintenance & upkeep
- Managing merchandise presentation
- Providing customer service
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Role of the store manager:
Customer service:
- Instilling in employees importance of customer service
- Promote and monitor quality of service
- Being approachable and available
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Budgeting and planning:
- Ensure that department goals are met through appropriate planning
- Develop and monitor capital expense budget
- Protect company's assets and inventory
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ROLE OF A STORE MANAGER
Personnel
- Hires the right people for the job
- Inspires employees
- Delegate workload appropriately and effectively
- Performance Evaluation
- Communication:
- Communicate with management
- Company policies and procedures to staff
- Hold meetings, trainings and motivate.
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Legal compliance
Compliant with all employment laws such as wage and hour, human rights, equal employment
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Safe working conditions
Ensure store security from internal and external theft
5 S of retail operations
- Stock
- Space
- Staff
- Systems: procedures on how things are done by the retailer
- Standards: standards set by the retailer in terms of service
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Tasks to be performed in retail
Administration-
- Store opening
- Store closing
- Handling Payments-Cash and Credit
- Events and Promotions
- Management of premises
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Merchandising:
- Tally, order, Replenish, Return, Display
Customer – service, advise, returns, complaints
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Store security
Store security involves two basic issues :
- Personal security
- Merchandise security
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Personal security:
Stores dealing with hazardous chemicals-pos
- Customer security-security, metal detectors
- Bright lights in parking lots, TV cameras
- Deposit of money in banks
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Merchandise Shrinkage
Shrinkage is the difference between the recorded value of merchandise bought and received and the value of and distribution centres divided by retail sales during
- Indian retailers -highest shrinkage (3.10%)
- Of the external shrinkage losses
- 23.7%-employee theft
- 23.2%-administrative errors
- 27.8% -internal fraud
- Cash, coupons, vouchers, or gift cards -32.0% internal
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- Highest average rates of shrinkage -apparel, clothing (1.71%)
- Vehicle, auto parts, hardware, building material (1.6%)
- Cosmetics/perfumes, beauty supply pharmacy (1.6%)
- Lowest -footwear/sports/shoes and sporting goods (0.83%)
Causes of invisible shrinkages include:
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- Shoplifting articles by consumers and customers
- Pilferage of merchandise and articles by employees
- Burglary and robbery during nights and off hours
Shoplifting
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- Computer manipulations and mistakes. Credit card
- Wrong reporting by purchase section
- Most common causes of shrinkage-shoplifting by customers and employees
- Screen employees before recruitment
- Guards checking belongings of employees
- Locks are changed periodically and keys are maintained by personnel.
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Preventive Shoplifting
- Design of store and effective placement of shoplifting effectively
- Costly small merchandise-near store exits
- Hidden surveillance equipment such a close
- EAS-Electronic article surveillance
- Adequately staffed with staff
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Parking Space
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Amount of parking space is measured in two
Total area devoted to parking by net retail area
Compute number of parking spaces per 1000 space
Problems related to parking space
- Parking by Non shoppers
- Parking space used by store employees
- Inadequate parking space
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Factors considered in allocating
- Total quantity of parking
- Size of the Parking area
- Parking area Location
- Single or multiple level parking
- Walking distance
- Parking of its operation; most common one is 60 degree
- and exit in a sound traffic lane.
- The 90 degree angle provides the most parking area by
- entry and exit in the stall.
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Parking Space
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- Parking turnover-Number of automobiles that given period of time.
- Analyse based on type of stores present.
- Parking ratio: real relationship that exists and gross floor area
Store records
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There are four sections in the process of store
- (a) Receiving section,
- (b) Storage section,
- (c) Accounting section, and
- (d) Issue section.
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Has to store receipts, sales records, loan statements, information and past tax data
Following procedure is followed in receiving these
- (i) Receiving these incoming materials in stores.
- (ii) Checking and inspection of these incoming materials
- (iii) Recording the incoming materials in goods receiving
- (iv) Preparing and forwarding goods inwards note to
- (v) Informing the purchase department about damaged surplus or deficit supplies etc. along with rejection form
- (vi) Returning damaged or defective goods to the supplier the instructions of the purchase department.
- (vii) Forwarding the materials to respective stores and to be stored or preserved.
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Bin cards
- It is an individual stock-keeping record that holds information lot number or batch number. Every item in that lot will
- bin is a place, i.e., a rack, a shelf, almirahs and other equipment purpose where goods are stored.
- Bin cards-or systematic storing, each type of material - almirahs, etc.
- For each bin a card is maintained containing the material store-keeper. One card is attached to each bin and the keeper.
- A bin card is a quantitative record of receipts, issues, and
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- It enables to know the quantity of material
- Bin card maintained by the store-keeper.
- This card is used not only for recording receipts also assists the store-keeper to control the stock.
- A bin card the store-keeper to prepare purchase replenish the exhausted material.
- It also helps in locating the discrepancy when verification; undertaken and the balance correct
- It contains particulars such as number, description code number of material, maximum, minimum levels.
- Bin cards contain valuable information with issue of materials, which is greatly helpful in inventory control. These cards are further helpful various levels of materials viz., maximum, minimum level.
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Benefits of a Bin Card
Bin card has the following benefits or utilities:
- (i) As the most important store record it gives up-to closes balances of items of stores.
- (ii) It is helpful in placing requisitions for replenishment ordering quantity is also available in this card.
- (iii) It makes Perpetual Inventory system meaningful stock with balance shown in the bin card.
- (iv) It helps to control material cost with minimum inventory store-keeper keeps the stocks within the prescribed
- (v) It discloses at a glance to any one in the stores and stock. It helps in a system of internal check as many store keeping is available from bin card.
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Store ledger
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- A stores ledger is a record of materials showings receipts in quantities and value.
- It is maintained by the Costing Department and is outside ledger is maintained in order to ensure correct stores account
- This ledger is usually of loose leaf or card type and each a materials. The sheets are numbered serially and initiated by avoid the risk of removal or loss.
- ,the stores ledger is maintained in bound volumes so as to folios.
- This ledger is maintained in order to ensure correct store
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Entries are posted after the transactions take place.
Entries are posted periodically.
Entries are supported by material received note and material
Benefits of Stores Ledger
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The benefits of stores ledger are given below:
- (i) It is an account record which provides information balances both in quantity and value.
- (ii) It is maintained centrally in cost office from where information may be made available.
- (iii) It constitutes a. check on the quantity recorded
- (iv) Frequent overall review of stores balances may the help of stores ledger.
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Stock control cards
It is an individual stock-keeping record information about all the lots of a single
- Similar to bin cards
- Maintain quantitative records of stores
- Stock on order
- Cabinets or trays
- The inventory control card may be a summary many bin cards for a particular product
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Techniques for recording stock
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- Periodic verification-quarterly, half early -1 or 2
- Continuous, automatic or perpetual stock verification known as "the automatic inventory system", this means constant track of the quantity and value of each stock
Many wholesale distributors leverage a combination of Planning (ERP) or Warehouse Management System ( an Inventory Optimization solution, such as EazyStock balances.
.A-quarterly,b-twice, c-thrice
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Techniques for recording stock
- Spot checks
- Stock out store verification-Particular inventory
- Storekeeper keeps record of such verification
- Annual stock checking
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LIFO
This method assumes that inventory purchased last is sold recieved lot until all units from this lot has been issued and lot received is used for pricing
Purpose of assigning costs and not physical flow of goods
Example
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Bike LTD purchased 10 bikes during January and sold 6 bikes
- January 1 Purchased 5 bikes @ $50 each
- January 5 Sold 2 bikes
- January 10 Sold 1 bike
- January 15 Purchased 5 bikes @ 70 each
- January 25 Sold 3 bikes
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BZU uses perpetual inventory system to record LIFO method to valuate its inventories. The company following information about commodity DX-13C in computing the cost of commodity DX-13C sold inventory of commodity DX-13C.
- Aug. 01: Beginning inventory; 20 units @ $40 per
- Aug. 07: Sales; 14 units.
- Aug. 12: Purchases; 16 units @ $42 per unit.
- Aug. 17: Sales; 8 units.
- Aug. 23: Sales; 4 units.
- Aug. 27: Purchases; 8 units @ $44 per unit.
- Aug. 30: Sales; 10 units.
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| Date | Purchases | Sales |
|---|---|---|
| Aug.01 | Beginning inventory | |
| Aug.07 | 14 units × $40 = | |
| Aug.12 | 16 units × $42 = $672 | |
| Aug.17 | 8 units × $42 = | |
| Aug.23 | 4 units x $42 = | |
| Aug.27 | 8 units X $44 = $352 | |
| Aug.30 | 8 units X $44 = | |
| 2 units X $42 | ||
| Total | $1,024 | $ |
FIFO
This method assumes that inventory purchased or manufactured inventory remains unsold.
| Mar 1 | Beginning Inventory |
| 5 | Purchase |
| 9 | Sale |
| 11 | Purchase |
| 16 | Purchase |
| 20 | Sale |
| 29 | Sale |
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FIFO Periodic
Units Sold = 94 + 116 + 62
Units in Ending Inventory = 326-272
| Cost of Goods Sold | Units |
|---|---|
| Sales From Mar 1 Inventory | 68 |
| Sales From Mar 5 Purchase | 140 |
| Sales From Mar 11 Purchase | 40 |
| Sales From Mar 16 Purchase | 24 |
| 272 |
| Ending Inventory | Units |
|---|---|
| Inventory From Mar 16 | 54 |
| Purchase |
| Date | Purchases | Sales | |||
|---|---|---|---|---|---|
| Units | Unit Cost | Total | Units | Unit Cost | |
| Mar 1 | |||||
| 5 | 140 | $15.50 | $2,170 | ||
| 9 | 68 | $15.00 | |||
| 26 | $15.50 | ||||
| 11 | 40 | $16.00 | $640 | ||
| 16 | 78 | $16.50 | $1,287 | ||
| 20 | 114 | $15.50 | |||
| 2 | $16.00 | ||||
| 29 | 38 | $16.00 | |||
| 24 | $16.50 | ||||
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Highest in first out method
The inventory with the highest cost of purchase is the first
Inventory that is recorded as used up-most expensive inventory
Suitable -constant fluctuation
Next in first out:
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Here materials issued are valued at the price quoted on the order is placed.
Standard price:
Materials are issued at a standard price.
Specific price method:
Under this method materials are issued at the price at which It is suitable for job industries which carry out individual job orders.
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Moving simple average price method:
Rate for material issues is calculated by dividing the total of given number of periods by the number of periods.
Periodic simple average method:
Average price is calculated periodically
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Total of purchase prices during the period
Moving weighted average method:
Weighted average is computed by dividing total amount by
Replacement method:
It is one at which material can be replaced by purchase from Here cost of the materials in hand is not considered. When ascertained and the issue is priced at that price.
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Base stock method:
The method is based on the contention that maintains at all times a minimum quantity of goods in its stock. This quantity is termed stock is deemed to have been created out and, therefore, it is always valued at this as a fixed asset.
Inflated price method:
In case the material suffers loss due to its inherent material is inflated to cover losses.
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Coding system : Bar code
Barcode:
Graphical representation of a code enables a scanning device to the database where further information about the product dimensions and they can be re-transmitted back to a computer read.
Benefits:
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- Improves operational efficiency
- Saves time
- Reduces errors
- Cuts costs
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Limitations
- Pricing Discrepancies and Scanning problems
- Label damage
- Financing and equipment costs-Training requirements
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Material handling
“A right method to provide right amount of right material time, in the right sequence, in the right position, in the
Activities covered in Material handling
- Shipping
- In storage handling
- Shipping
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Storage activities:
Planned storage: Basic inventory replenishment
Extended storage: inventory in excess of planned storage operation
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Importance of good material
- Regular product movement
- Space availability
- Reduces Idle labour time
- Improves customer service
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Factors affecting modern management
- Distance
- Customer loyalty
- Purchase intention
- Customer satisfaction
- Perceived value factors-customer value triad
- Store assortment
- Socio-economics
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Key components of retail atmosphere
- Exterior atmospherics
- Interior atmospherics
- Store layout
- Visual merchandising
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Key components of retail atmosphere
Atmospherics
Design of an environment with the help of visual components color ,music , and scent to stimulate customers perception responses and thereby influences customer behavior
Aesthetics:
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Actual size of the store, colors, texture used to create of the store
Principles of store design
- Totality
- Focus
- Ease of shopping
- Change and flexibility
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Elements of retail store atmosphere
Exterior Atmospherics
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- Storefront
- Entrances
- Display windows
- Size of building
- Visibility
- Adjoining stores
- Parking
- Accessibility
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Elements of retail store atmosphere
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Exterior Atmospherics
- Storefront
- marquee
- Entrances
- Display windows
- Size of building
- Visibility
- Adjoining stores
- Parking
- Accessibility
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INTERIOR ATMOSPHERICS
- FLOORING
- LIGHTING
- ODOUR
- FIXTURES
- WALLS
- TEMPERATURE
- TRIAL ROOMS
- PERSONNEL
- CLEANLINESS
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Interior store design is a function of
- aesthetics within the store
- Merchandise sold within and the space used for the same
- Overall layout of the store
- Key factors
- -space planning
- -Atmospherics and aesthetics:
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- Fixtures-tables, racks, shelves, gandolas
- Flooring and ceiling
- Lighting
- Graphics and signages
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- Theme graphics
- Campaign graphic
- Promotion graphics
- Signages
- Merchandise related -informs customers about the
- Directional signs-cash counters, customer service area
- Instructional signs-caution boards,
- Courtesy signs-visit again
- Store directory-informs customer about location of
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Window display
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STORE LAYOUT
- Interior retail store arrangements of departments
- FLOOR SPACE ALLOCATION FOR SELLING
- CUSTOMERS
- TRAFFIC FLOW
- DEPARTMENT LOCATION
- SPACE/MERCHANDISE CATEGORY
- SIGNAGES
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Grid Layout
- Counters and Fixtures are placed in long rows or "runs" usually at right angles, throughout the store
- This layout is used in grocery, discount store and drugs stores, like- Reliance fresh
- Advantages-: Easy to locate merchandise, cost efficient, easy accessible for customers
- Disadvantages-: limited browsing and limited creativity in decor
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Grid Layout
- Another traditional form of store layout is counters and fixtures are placed in long right angles, throughout the stores. In circulate up down through the fixtures, and often reoffered to as maze.
- The most familiar example of the grid layout drugstore.
- The grid is a true shopping layout, best used which the majority of customers wish to shop
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Grid (Straight) Design
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Grid layout
Display is in the form of racetrack or loop with a major
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Aisle provides various shop in shops or departments with
Race Track
- The major customer aisle begins at the entrance, loops through the store and returns customer to the front of the store
- Used in departmental stores such as-: Shopper's Stop, Ritu Wear.
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Curving/Loop (Racetrack Design
Racetrack/loop
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Free form layout
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Free form layout
Boutique layout, arranges fixtures asymmetric pattern. Use in small stores within depts of large stores
Provides an intimate and relaxing environment that facilitates shopping and browsing
No well defined customer towards the Personal important some retailers space to create environment
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Free Flow/ Boutique
- The simplest type of store layout is a free fixtures and merchandise are grouped into
- the sales floor.
- Customers are encouraged to flow freely because there are usually no defined traffic
- This type of layout of works well in small stores than 5000 square feet, in which customers all the merchandise.
- It there is a greater variety of merchandise women's apparel, bedding, and health and layout fails to provide cues as to where one another start confusing the shoppers.
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Free-Flow Layout
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