STORE

MANAGEMENT

Managing the Store

Store Layout, Design
& Visual
Merchandising
Customer Service
Retail Selling

Managing the
Store

Nordstrom for Store Managers

This is your business. Do your own thing.

Dont listen to us in Seattle, listen to your
customers. We give you permission to take
care of your customers.
James Nordstrom, the CEO of Nordstroms

Responsibilites of Store Managers

Undertaken by Store Managers
John

Managing Store Employees

Recruiting & selecting
Socializing & training
Motivating
Evaluating & providing constructive feedback
Rewarding & compensating

Controlling Costs
Increasing labor and productivity
Reducing maintenance & energy costs
Reducing inventory losses

Managing Merchandise

Displaying merchandise & maintaining visual standards

Working with buyers
Suggesting new merchandise
Buying merchandise
Planning & managing special events
Marking down merchandise

Providing Customer Service

Steps in the Employee Management

Process

1. Recruit & select

employees

3. Motivate & manage

employees to
achieve store
performance goals

2. Socialize & train

new employees

4. Evaluate employee
performance &
provide feedback

5. Compensate &
reward employees

Recruiting and Selecting Employees

Job analysis
Job description
Locating prospects
Screening applicants
Application form, references, testing
Selecting applicants
Interviewing candidates

Socializing and Training Employees

Orientation program

Training
Where, when, what

Motivating and Managing Employees

Leadership
Task and group maintenance management
Participate and authoritarian
Motivation
Setting goals
Maintaining morale

Evaluating and Providing Feedback to

Employees
Evaluation
Who, when, how often?
Feedback
Performance outcome vs. process

Factors Used to Evaluate Sales

Associates at The Gap

25% Operations
25% Compliance

50%
Sales/Customer
Relations

Common Evaluation Errors

Ratings unduly negative

Rating unduly positive
Using the same rating on all aspects of the evaluation
Placing too much weight on recent events rather than
evaluating performance over the entire period
Having the evaluation of a salesperson unduly
influenced by the evaluation of other salespeople
Making errors in identifying causes of the salespersons
performance

Compensating and Rewarding

Employees
Extrinsic vs. intrinsic rewards
Compensation
Type
Straight salary
Straight commission
Salary plus commission
Quota bonus (Setting quotas)
Individual vs. group incentives

Advantages and Disadvantages of

Straight Salary
Straight Salary
Offers flexibility in assigning employees

Incentive Compensation
Has high motivating potential

to activities
Builds stronger employee commitment

Has more variable cost

Is easy for employees to understand

Relates compensation to productivity

Is easy to administer
Allows for better performance of
non-selling activities such as customer
service

Controlling Costs
Labor scheduling
Store maintenance
Energy maintenance
Reducing inventory loss

Sources of Inventory Shrinkage

Employee theft (38%)
Shoplifting (36%)
Mistakes and inaccurate records (19%)
Vendor errors (6%)

Preventing Shoplifting
Store design
Employee training
Good customer service
Security measures
TV cameras
Prosecution

Reducing Employee Theft

Trusting, supportive work atmosphere
Employee screening
Honesty, drug testing
Security personnel - mystery shoppers
Policies and procedures
Employee theft is an HR problem.

Store Layout,
Design, and
Visual
Merchandising

Receiving & storage

Grid Store Layout

Fruit

Vegetables

Books, magazines, seasonal

display
Checkouts

Cart
area
Entrance

Office &
customer
service
Exit

J.C. Penney Racetrack Layout at North

Park Center in Dallas, Texas

Free-Form Layout

Clearance
Items

Feature

Open Display Window

Tops

Tops

Accessories
Pants

Stockings
Casual Wear
Jeans

Checkout counter

Feature

Open Display Window

Skirts and Dresses

Dressing Rooms

Underwear

Hats and Handbags

Storage, Receiving, Marketing

Space Planning Issues

How profitable is the merchandise?

How will the merchandise be displayed?
What items does the retailer wish to
emphasize?
Will the location of certain merchandise
draw the customer through the store?

Planogram for Salad Dressing

Merchandise Presentation Techniques

Idea-Oriented Presentation
Style/Item Presentation
Color Organization
Price Lining
Vertical Merchandising
Tonnage Merchandising

Straight Rack

Rounder

Four-Way

Gondola

Customer Service

Services Offered by Retailers

Department and
specialty store
Acceptance of credit cards
Alteration of merchandise
Child care facilities
Credit
Delivery to home
Demonstrations of merchandise
Displaying of merchandise
Dressing rooms
Extended store hours
Extensive signage to identify merchandise

Discount
stores

Services Offered by Retailers

Department and
specialty store
Gift wrapping
Facilities for shoppers with special needs
(physically handicapped, etc.)
Parking
Personal assistance in selecting merchandise
Play areas for children
Presentations on how to use merchandise
Repair services

Discount
stores

Problems in Providing Quality Service

Intangibility of benefits
Difficult for customers to evaluate service
quality
Difficult for firms to evaluate quality of
service delivered by employees
Inconsistencies of service provided
Employees are not machines

Customer Service Strategies

Customized
Greater potential benefits to customers
Greater inconsistency
Higher cost
Standardized
Lower cost
High consistency
Meets but does not exceed expectations

Role of Expectations in Evaluating

Retail Service
Service quality
Perception of
service delivered
Satisfaction with

Past

service quality

experiences
Customer
expectations

Dissatisfaction with

Competitive

service quality

offerings

Perception of
service delivered

Cues Customers Use to Evaluate Retail

Service Quality
TANGIBLES

CREDIBILITY

Appearance of store

Reputation for honoring

commitments

Display of merchandise
Appearance of salespeople

UNDERSTANDING & KNOWING

CUSTOMER
Providing individual attention
Recognizing regular customers

SECURITY

Trustworthiness of salespeople
Guarantees & warranties provided
Return policy

INFORMATION PROVIDED TO
CUSTOMERS
Explanation of service & its cost

Feeling safe in parking lot

Notes sent to customers informing

them of sales

Communications & transactions

treated confidentially

Assurances that a problem will be

resolved

Cues Customers Use to Evaluate Retail

Service Quality
COURTESY

COMPETENCE

Friendliness of employees

Knowledgeable & skillful employees

Respect shown to customers

Customer questions answered

Interest shown in customers

RESPONSIVENESS

ACCESS

Returning a customers call

Short waiting time to complete sales

transaction

Giving prompt service

Convenient operating hours

Convenient location
Manager available to discuss
problems

RELIABILITY
Accuracy in billing
Performing service at designated time
Accuracy in completing sales
transaction

The GAPS Model for Improving Service

Quality
Knowledge gap

Management
perceptions of
customer
expectations
Standards gap

Standards
specifying service
to be delivered
Delivery gap

Actual
service delivered

Customer
expectations

Service gap

Retailer
communications
about services
Communication gap

Customer
perception of
service

Closing the Knowledge GAP

Customer research

More interactions between managers

and customers
Better communications between
managers and service providers

Closing the Standards GAP

High quality service commitment

Innovative solutions
Define the role of service providers
Set service goals
Measure service performance

Closing the Delivery GAP

Information and training

Internal communications
Reduce conflicts
Empower employees
Providing incentives

Closing the Communications GAP

Realistic commitments

Managing customer expectations

Service Recovery
Listen to the customer
Provide a fair solution
Resolve problem quickly
Reduce number of contacts
Give clear instructions
Avoid jargon

Retail Selling

Steps in the Selling & Buying Process

1. Approaching the customers
2. Collecting Information
3. Presenting & demonstrating merchandise &
overcoming reservations

4. Making the sale

5. Building future sales

Steps in the Selling & Buying process

1. Problem recognition
2. Information search

3. Alternative evaluation
4. Alternative choice
5. Postpurchase evaluation

Selling Benefits, Not Features

PRESENTATION EMPHASIZING FEATURES

This chinawear has a hard glaze that is applied after the pattern
is on the cups and plates. The handles are molded into the cup
before it is fired. All the china is fired at 2600 F.

PRESENTATION EMPHASIZING BENEFITS

This chinawear will last a long time. It is stronger than most
chinawear because it is fired at 2600 F. To prevent the cup
handles from breaking off, they are molded into the cup body
before it is fired. The pattern will also last a long time. It wont
fade because a hard leadless glaze is applied over the pattern.

Types of Reservations
Store
I dont know
about this stores
return policy.

Timing
I havent made
up my mind.

Location
I cant find it.

Merchandise
I dont think this
is made well.

Salesperson

Price

I dont like him.

This is too expensive.

Building Relationships With a Customer

11-10-97
Dear Ms. Marker,
It was a pleasure meeting you and
assisting you with your sunglasses from our
accessories dept. at our Neimans Northpart
store. Looking forward to seeing you again
soon, and please do not hesitate to call for
any assistance.
Sincerely,
Diana Carreon

Neiman Marcus
Diana Carreon
SALES . FASHION . ACCESSORIES

400 NORTHPARK CENTER

DALLAS, TX 75225

(214)363-8311
Ext. 2127
Res. 327-2258

Patterns of Nonverbal Communication

INTERPRETATION

Power,
dominance,
superiority

INTERPRETATION

Nervousness,
submission,
apprehension

BODY ANGLE

FACE

ARMS

HANDS

Exaggerated
leaning over.

Piercing
eye
contact.

Hands on
hips.

Hands
behind neck
or back.
Steepling
(fingertips
touching).

BODY ANGLE

FACE

ARMS

HANDS

Fidgeting or
shifting from
side to side.

Head
down.
Minimum
eye
contact.
Constant
blinking.

Hands to
face, hair.
Rubbing
back of
neck.

Wringing
hands.
Fingers
clasped.

Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships,
3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).

Patterns of Nonverbal Communication

INTERPRETATION

Disagreement,
anger,
skepticism

INTERPRETATION

Boredom,
distinterest

BODY ANGLE

FACE

Turning body Negative

away.
shake of head,
frown. Lips
pursing. Eyes
squinting.
Chin
thrusting out.
BODY ANGLE

Slouching
against
display.

FACE

Lack of eye
contact.
Looking at
door, at
watch, out
window.
Blank stare.

ARMS

HANDS

Arms
crossed.
Finger
under
collar.

Fist. Finger
pointing.
Hands
gripping
edge of
display.

ARMS

HANDS

Playing with
object on
display case.
Drumming
on display
case..

Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships,
3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).

Points to Consider in Handling Objective

Anticipate objections
Create opportunities from objectives
Maintain a positive attitude
Understand customer objections

Sources of Objections

The customer may be objecting

due to lack of information
The customer may be setting a
condition
The objection may be genuine

Indicators of Assertiveness
Less Assertive

More Assertive

Ask oriented
Go-along attitude
Cooperative
Supportive
Risk avoider
Makes decisions slowly
Lets others take initiative
Leans backward
Indirect eye contact
Speaks slowly, softly
Moves deliberately
Makes few statements
Expresses moderate opinions

Tell oriented
Take-charge attitude
Competitive
Directive
Risk taker
Makes decisions quickly
Takes initiative
Leans forward
Direct eye contact
Speaks quickly, intensively
Moves rapidly
Makes many statements
Expresses strong opinions

Indicators of Responsiveness
Less Responsive

More Responsive

Controls emotions
Cool, independent
Task oreinted
Use facts
Serious
Impersonal, businesslike
Moves rigidly
Limited use of gestures
Formal dress
Disciplined about time
Controlled facial expressions
Monotone voice

Shows emotions
Warm, approachable
People oriented
Uses opinions
Playful
Personable, friendly
Moves freely
Gestures frequently
Informal dress
Undisciplined about time
Animated facial expressions
Many vocal inflections

The Social Style Matrix

Low Responsiveness

S
L
1
A
C
I
T
Y
L
A
2 AN
Low
Assertive

S
E
L
3
B
IA
AM

A
1
S
R
E
V
I
DR
2

S
E
V
I
S
3
S
E
R
P
X
E
4
B

High Responsiveness

High
Assertive

Cues to Identify the Social Styles of

Customers
Analyticals

Drivers

Technical background

Technical background

Achievement awards on

Achievement awards on

wall

wall

Office is work-oriented,

No posters or slogans on

showing a lot of activity

office walls

Conservative dress

Calendar prominently

Like individual leisure

activities, such as reading,
individual sports

displayed
Desk placed so contact with
people is across desk
Conservative dress
Like group activities, such
as politics, team sports

Cues to Identify the Social Styles of

Customers
Amiables

Expressives

Liberal arts background

Liberal arts background

Office has friendly, open

Motivational slogan on wall

atmosphere

Office has friendly, open

Pictures of family displayed

atmosphere

Personal mementos on wall

Cluttered, unorganized

Desk placed for open

contact with people
Casual or flamboyant dress
Like individual leisure
activities, such as reading,
individual sports

desk
Desk placed for open
contact with people
Casual or flamboyant dress
Like group activities, such
as politics, team sports

Versatile and Non-Versatile Behavior

Less Versatile

More Versatile

Limited adaptability to

Able to adapt to others

others needs

needs

Specialist

Generalist

Well-defined interests

Broad interests

Firm of principle

Negotiates issues

Predictable

Unpredictable

Single-minded

Looks at many sides of

issue

Techniques to Alter Sales Behaviors

Reducing Assertiveness

Reducing Responsiveness

Ask for customers opinion

Become businesslike

Acknowledge merits of
customers viewpoint

Talk less

Listen without interruption

Restrain enthusiasm

Be more deliberate dont rush

Make decision based on

facts

Let customer direct flow of

conversation

Stop and think

Techniques to Alter Sales Behaviors

Increasing Assertiveness

Reducing Responsiveness

Get to the point

Verbalize feelings

Dont be vague or ambiguous

Express enthusiasm

Volunteer information

Pay personal compliments

Be willing to disagree

Spend time on relationships

rather than business

Take a stand

Socialize--engage in small talk

Initiate conversation

Use nonverbal communication