Retail: survival of the fittest

Retail is the final stage of any economic activity, by fact retail occupies an important
place in the world’s economy (USD 1 Trillion) , in an attempt to understand the scope of
the term retail , various definitions of retail term has been examined ,

“Retailing includes all the activities including in selling goods or services to the final
consumer for personal, non-business use. A retailer or retail store is any business
enterprise that’s primarily from retailing”.

French word Retailer, Which means to cut a piece or to break bulk. Therefore, a retailer
may be defined as a dealer or trader who sells goods in small quantities or one who
repeats or relates .In an age where the customer is the king and marketers are focusing
on the customer delight , retail may be redefined as the first point of customer
contact .

Retail Function:
Provide Form, of a product that is acceptable to the customer
Time Utility , by keeping the store open when the consumer prefer to shop
Place Utility, by being available at a convenient location
Ownership Utility, when the product is sold to the end consumer

Retail Equation: the process by which individuals and groups obtain what they need and
want through creating, offering, and freely exchanging products and services of value
with others, also the management process responsible for identifying, anticipating and
satisfying customer requirements profitably.

Common Channels

manufactu Manufactur
rer er Manufactur
er
Wholesale Retailer
r Consumer
Consumer
Retailer

Consume
r
 Retail is Trending towards Consumerism: Retailer is a part of dynamic worlds today. The
retailer faces a more knowledgeable and demanding consumer and since business exists to
satisfy the needs of the consumer the demands and expectations of the consumer often have
forced retail organization to change their formats and product offerings “ consumerism is getting
educated through e-tail / e-retail ”.

Private Label: is more than a product with the name of the retailer/store-it needs to be
seen by the end consumer as a different product. There must be a clear perception that
‘it is produced by store’.

Need: Across the globe, as retailers become more sophisticated and competitive, the
role of private labels in their stores, changes from that of a price-fighter to being a value-
added marketing differentiator. The changing customer tastes and the need to fill a gap
in the product offering is the key reason for offering private label. This gap may be due
to the non-availability of a particular product/category. Which gives the customer newer
reasons to visit the store every month or week, is something that every business
expects, the most specific advantage that a private label allows a retailer is that of
earning a level of margin which may be higher than what is offered on other brands that
he chooses to retail / sell. A private label basically involves the retailer doing the
designing, merchandising, sourcing and distribution.

Identification of need gap

Changing customer habits Create unique merchandise

Need for a Private Label

Need to earn increased margins Creating customer loyalty

 Development of Private Label: gap i.e. changing customer tastes and habits

Stores Visited / Induction Held :

Citymax Aziz Mr. Richard

Citymax Balad Mr.Joseph
Citymax Heera Mr.Faisal Store: Store is primary
importance of the retail
Citymax Andalus Mr. Sheikh
organization for two
Citymax Sitteen Mr.Manju reasons. The first being
that the retail store is the
Citymax Haddab Mr.Akhef primary source of revenue
Citymax Mr.Hameed to the retailer, and the
second reason is that it is
Sulthana,madinah
the point where the
Citymax customer actually interacts
Almanar ,madinah with the retail store and its
offerings. The primary
Warehouse Mr.Hassan area of responsibility
within the environment
Mr.Erwin/Mr.A of a retail store lies with
Dome, Head office
nil the store manager

• The Store Manager has to play a dual role in a retail environment. On one hand, he
is responsible for the various members of the staff and team who report to him and
enable the smooth functioning of the day to day operations of the store. On the
other hand he also has to ensure that the policies and the guidelines as laid down
by the management are adhered to by the store and all the employees within the
 store. Typically the store manager is responsible for all the activities that are
conducted within the environs of the store, and would include opening of the store
on time, scheduling of staff, cleanliness, ensuring adequate stock on the floor ,
closing of the store and also dealing with customer grievances and complaints.
• Customer Service : Instill in the employees the meaning and importance of
customer service as outlined in the retail philosophy
• Promote and monitor quality of service among staff through training and by acting
as a positive role model
• Be personally available to all customers to communicate and identify there needs
and address their questions or concerns

Budgeting and Planning:

• Ensure hat goals will be met through appropriate planning and organization of
staff, inventory and expenses, for short and long term success
• Develop and monitor the capital expenses to ensure that the store is properly
maintained and upgraded to meet the high standards that reflects the store image
• Monitor a loss prevention program the company’s inventory and assets

Communication:
• Communicate with the Regional/HO as per the requirements laid down the
organization, with ref to sales, targets, customer service, events and local issues
• Hold staff meetings(at least 5-10 minutes in a day) to boost employees morale and
drive for achieving the results needed
• Ensure that company policy are communicated in a timely manner and
adhered/implemented accordingly
• Motivate and develop staff in order to encourage their professional development

Legal Compliance:
• Ensure that store is in compliance with all employment laws, fire department,
including wage and hour, human rights and equal employment opportunities
• Maintain safe working conditions for employees and customer; Resolve safety
concerns quickly ( if it’s a mall operational store then need to communicate with
mall management and get the concern resolved )
• Ensure store security from internal and external theft and know the proper
apprehension/reprimand and prosecution procedures

Depending on the size of the store and its structure of the organization, there may be levels of
Senior / Assistant Manager, etc.

Sales: Areas in sales include positions like in-line manager, senior sales, salesman, sales
associate, back-store in-charge, Chief cashier, and cashier. While the primary duty of a
sales staff is to serve customers on the selling floor, actually selling goods; front-end
sales staffs are also involved in receiving goods/merchandise into the store, counting it
and then displaying it on the store shelf. Front-end positions need the ability to deal with
people, flexibility and importantly, the ability to work in teams. Very often a sales
position may be the entry position in retail.

Cashier: Cashier is responsible for transacting the exchange of money or credit with
customers in return for merchandiser or services, is responsible for the billing and the
collection of Cash, Credit Card, Foreign Currency, Gift Vouchers as may be applicable.
The necessary due diligence and precautions need to be taken when accepting different
forms of payment.

Operations: In order to ensure smooth flow of operations at the store level, it is

necessary that the management defines processes and has the people and the
resources to implement them. The tasks to be performed and the processes are usually
defined in a store operations manual. This document/file lists the tasks that need to be
carried out at the store level and states the responsibility and the time period in which
these tasks need to be performed. A well-prepared operation manual or blue print is the
starting point of efficient store operations.

• Store administration and management of the premises

• Managing inventory and Display
• Managing receipts
• Customer service
• Managing Promotions & Events

Store Administration and management process

Top of Mind:
Merchandise > Groups>Subgroups
Managing promotions/events

• Men’s/ Dept 01: Casual, Casual Knitwear, Active Wear, Denim, Formal, Underwear &
Sleepwear
 • Ladies/Dept 02: Young Fashions, CORE, Plus, Basic, Maternity, Denims, SPORTS

• Children’s/Dept 03: 2-8 Boys, Boys 8-14, Girls 8-14, Infant Basic, Infant Outerwear-Boys,
Infant Outerwear-Girls, Underwear & Night Wear-Boys, Underwear & Night-Girls
• Lingerie’s/Dept 07: Sleep Wear, Basics, Fashion, Teen Wear, Active Wear, Maternity Wear,
Swimwear, Accessories
• Footwear/Dept 06: Children Footwear, Ladies Footwear, Men’s Footwear, Hosiery,
Accessories
• Home/Dept 04: Bath, Dining, Gardens, Gifts, Textiles, Others
• Toys/08: Boys, Unisex, Toys-Accessories
• Accessories/Dept 09: Children, Ladies, Men’s

Daily Checklist/DTD activities: Store standards have to be as per the Layout

& Plano gram. And has to react immediately once catalogue & Story book/guide
received from the Buyer, Spend atleast one hour each day on the floor, immediately
after store opens

• Check The Window Display & Parking

• Check Staff Attendance
• Checks Emails
• Daily Team Talk (5-10 minutes)
• Discuss and Inform the Budget / hand them over a copy
• Check Selling area / Trading Area,
a. Floor, Gondolas & Shelves Cleanliness
b. Signage, Price Pointers, Graphics, Posters & Acrylics
c. Check Was & Now Tags & Arabic descriptions
d. Cash Counter has to clean and organized
e. All return has to be cleared from the return counters
f. Back store stock check and updates
g. Make sure all the cartons/stocks been displayed on the floor
h. All the non-trading items has to be properly aligned and kept
i. Garments are properly displayed and merchandised on the floor
j. Advise and update employees about stay back, week off’s and Intervals
k. Seek Product/Employee feed back , from the customers
l. Take a walk around the floor , prior to closing
m. Maintain Log Book , Maintenance, Acknowledgment & even to Handle Store
Keys / Properties
n. Shop to Shop / Warehouse to shop Transfer / Pull Out update details
o. Baggage counter has to be checked at the end of the day

Eye on Maintenance & Resources:

• Electrical Devices : Maintain Log book , also electricity bill/phone bills has to be
sent to RO/HO immediately when, received
• Maintenance / House Keeping : Maintain Log book
 • Security Staff
• Saudi Staff
• Walls
• Ceiling
• Pillars
• Elevator / Lift
• Fire Distinguishers
• Water : Maintain Log Book

Updates / Charts / Reports (need to update some more charts in the List)
• Daily Sales Report / Sales File to be sent to Mr.Basheer
• Department Wise Budget and Contribution Update
• YTD update
• LFL update
• Business Report
• Event Calendar
• Shop-to-Shop, Pull Outs, Wear House Pull Outs, On hold Updates
• Damages, Sellable, Non-Sellable Update Chart
• Staff Details
• Week off
• Stay back
• Merchandise Feed Back report
• Walk In Report
• Leave, Medical Leave, Uniform, Resignation, Vacation & HRA requests
• KPI
• Cashier Spot Checklist
• Back Store Stock Update / Non-Moving

Training/Seminar (Product): Must Know the product which we sell and have to know
the merchandise offering well and must, need to be enthusiastic and educated about the
product in order to sell more and sell fast.

• Increases Self Confidence

• Increases Professionalism as a result of improved product knowledge
• Strengthens communication skills
• Boots enthusiasm
• Assists in overcoming objectives

Product Knowledge Training, seminars improves once ability to perform better and
higher, which in return generate revenues to the organization.
Store Design:
• Exterior: it is the exterior look of the store that draws a customer to the store, it is
the first impression that a customer has of the store: ex: Window Display
• Store Front : Right design and cleanliness and possible space allows the customer
to the enter the store
• Interiors

• Space Planning: helps to determine the amount of space available for selling
and storage. It also helps to determine various locations and departments
• Atmospherics & Aesthetics: atmosphere is the design of an environment with
the help of visual communications, lighting, color and sent
• Fixtures: are used for storing and displaying MerchandiseInterior
• Flooring and Ceilings: floorings, ceilings and the walls Store
work together in creating
an image, ceilings are important because they house the Design
air-conditioning and the
lighting
• Lighting: lighting scheme to be adopted for the store has to be done, keeping the
kind of theme and products merchandised/visualized in the floor. Effective lighting
is a key in the sale of merchandise and also helps create a favourable first
impression of the merchandise and its surroundings
• Graphics and Signages: informs the customers about the products,
merchandise, price and special offers and also direct customers. Signages and
graphics used in the store window can compel and allows the customer to enter
the store

• Directional Signs: directs the customer towards the cash counters, customer
service areas, exchange counter, washrooms, or the location of the lift and
staircases and trial rooms
• Instructional Signs: ex: store is under electronic surveillance, instructions about
the malfunctioning of a lift and exchange policies
• Store Directory: informs the customer about the location of the various sections
in the store
• Courtesy Signs: ex: Thank You for Shopping in CityMax , Visit Again
• Layout: Plan of Store. It is meant to aid movement and flow of customers, so that
they move through the entire store, areas within the store need to be demarcated
as prime selling areas, impulse merchandise areas, destination area and seasonal
or special merchandise areas, by balancing the destination areas and the impulse
buying areas, the flow of the traffic through store can be directed which at times,
make an unplanned purchase.

• Visual Merchandising / Design: is much more than pure merchandise, it’s

about build a story-building and multi dimensional shopping experience for the
customer which is replete with sights, colors, textures and environments which will
leave a lasting impression on the minds of the customers. This area is specialized
in design and reflect an environment in which the shopper would be comfortable
and it needs to catch the customer’s eye an draw his attention away from the
other stores, VM / Design create an image and perception of the store .
Tools used:
• Colors & Textures
• Fixtures and merchandise presentation
• Signages
• Windows
• Props
• Lighting
• Mannequins
• Planogram: helps customer feels familiar and comfortable at each location, which
in return helps to build brand loyalty and customer trust. It is a good medium of
communication on how to displays are to be done
• Warehouse: deals with inventory and goods, and it is the backbone of the
organization, this department looks after the processing of the goods and
merchandises from the port of receiving the goods till it reaches the shop floor and
then finally to the end consumer. Logistics department and the IT support
departments work hand in hand to facilitate the smooth movement of the goods
and in the stipulated time frame.
• Physically moving the goods from one location to another, where location may be a
distribution center, warehouse, store or manufacturer
• Stocking the goods at the locations needed in the quantities, needed
• The management of this entire process , “good logistics cuts costs, speeds work
and impress customer service”