NAME ROLL NUMBER

ASHISH DHOBAL
12

GOPI KRISHNA 19
SHASHANK KAPDEO 23
NIRAJ MAKHE 30
JIGNESH MALKAN 31
ABHISHEK KUMAR 28
Providing customer
shopping Experience

Receiving &
displaying
goods
Recording sales
Managing alliance and partnerships
Store Administration and management of premises
Tasks performed at the store level
Significant Areas Of Retail Operations
1. Customer Service and Accommodation.

2. Retail selling Process.

3. Store Staffing & Scheduling.

4. Retail Floor & Shelf Management.

5. Stores Administration & Facilities Management.

6. Warehousing & Supply Chain Management.

7. Loss ( Shrinkage ) Prevention.

8. POS/ Cashiering Process.

9. 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 average sales, net of
returns and allowances

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

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




Check out Management
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 Subject Issuing
Authority
For Retail
format
Registration
Certificate
Under Shops &
Establishments
Act
BMC Ward
Office
Supermarket/
Department
Store
Trade License Edible Oil, Ready
made ice creams ,
sweets &
chocolates
BMC Ward
Office
Supermarket
Dairy License License for cow,
buffalo milk
Public Health
Deptt of BMC
Supermarket
License for
frozen items
License for items
like fish,
mutton,etc
Market &
Slaughter Deptt
of BMC
Supermarket
Stores Administration & Facilities
Management - Licenses
License Subject Issuing
Authority
For Retail
format
License for
rationing
For retail sales of
pulses, food-grains,
sugar,etc
Deptt of Civil
Supplies
Supermarket
License for
Weights &
Measures
License for weighing
machines
Inspector-
Weights &
Measures
Supermarket/
Department
Store
Central
Sales Tax
Registration
Registration under
Central Sales Tax
Sales Tax
Office
Supermarket/
Department
Store
VAT /
Mumbai
Sales Tax
Registration
Registration under Sec
22/22A of Mumbai
sales Tax Act
Sales Tax
Office
Supermarket/
Department
Store
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
Sales
Big Spender
Spender
Browser
Profits
Passer by
Loyal Shopper
In- store
100 %
15%
20%
40%
80%
The Customer stickiness Progression Model
Visual Merchandising & Displays
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