Retail Organization

Retail Management
Additional Readings
 Ta N
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Retail Organization
Emp

Planning
and
Assessment

Management
Needs
 Outlining Specific Tasks Dividing the Tasks Among
To Be Performed in a Channel Members
Retail Distribution Channel & Customers

Grouping Retailer’s
Tasks into Job Classifying Jobs

Integrating Positions
Through an
Organizational Chart
 Tasks to be performed in a
retail distribution channel
1. Buying merchandise
2. Shipping merchandise
3. Receiving merchandise and checking
incoming shipments
4. Setting prices
5. Marking merchandise
6. Inventory storage and control
7. Preparing merchandise and window
displays
 Tasks to be performed in a
retail distribution channel
8. Facilities maintenance (e.g., keeping the
store clean)
9. Customer research
10. Customer contact (e.g., advertising,
personal selling)
11. Facilitating shopping (e.g., convenient
site, short checkout lines)
12. Customer follow-up and complaint
handling
 Tasks to be performed in a
retail distribution channel
13. Personnel management
14. Repairs and alteration of merchandise
15. Billing customers
16. Handling receipts and financial records
17. Credit operations
18. Gift wrapping
19. Delivery to customers
 Tasks to be performed in a
retail distribution channel
20. Return of merchandise to vendors
21. Sales forecasting and budgeting
22. Coordination
 Dividing Tasks
Performer Tasks
Retailer Can perform all / some of the tasks listed
before
Manufacturer / Shipping, marking merchandise,
Wholesaler inventory storage & control, display
preparation, sales forecasting etc.
Specialists Buying, delivery, warehouse, MR, Ad
agency, computer service etc.
Consumer Delivery responsibility, Cash only, self
service, direct marketing, do it yourself
etc.
 Dividing Tasks
• A task should be carried out only if desired by
the target market
• A task should be done by the party with
proper competence
• The retailer’s institutional framework can
impact on task allocation
• Task allocation should take into account the
savings gained by sharing or shifting tasks
 Grouping Tasks into Jobs
Tasks Jobs
Merchandise display, customer Sales
contact, customer follow up, gift Personnel
wrapping
Transaction data, receipts (cash / Cashier
credit), inventory control
Merchandise receipt, marking, return Inventory
to vendors, inventory storage & personnel
control
 Grouping Tasks into Jobs
Tasks Jobs
Window dressing, interior display set up etc. Display
personnel
Repair & alterations, resolution of customer Customer
complaints, research etc. service
Clean up of store, sanitation, replacing old Janitor
fixtures etc. personnel
Personnel management, sales forecasting, Management
budgeting, pricing, coordination personnel
 Grouping Tasks into Jobs
• Under specialization, each employee is
responsible for limited functions.
• This clearly defines tasks, provides greater
expertise, reduces training costs and time,
and allows part-time and relatively
inexperienced employees to be hired.
• However, extreme specialization may lead to
poor morale (boredom), personnel being
unaware of the importance of their jobs, and
the need for more employees
 Grouping Tasks into Jobs
• A job description outlines the job title,
objectives, duties, and responsibilities
for every position.
• It is used in hiring, supervision, and
evaluation
 Example
• Job Title : Store Manager in Shopper Stop
Bangalore branch
• Position reports to V.P. Operations
• Positions reporting to the store manager
– All personnel working in Shopper Stop at Blr
• Objective
– To staff & operate the Shopper Stop Bangalore
branch as per over all objectives pre-set
 Example
• Duties and Responsibilities
– Personnel recruitment, selection, training,
motivation and evaluation
– Merchandise display
– Inventory storage and control
– Merchandise order approval
– Sales forecasting
– Budgeting etc.
 Example
• Committees and meetings
– Store Manager’s review committee
– Attendance at monthly meetings with Sr. VP
– Supervision of weekly meetings with
department managers
 Classifying Jobs
• Jobs are broadly categorized by one of
these classifications
– Functional (e.g., sales promotion)
– Product (e.g., clothing department)
– Geographic (e.g., branch store)
– Combination (e.g., sales promotion
manager for clothing in branch stores)
Strategic Management Tasks
Performed in a Retail Firm
Merchandise Management Tasks
Performed in a Retail Firm
Store Management Tasks
Performed in a Retail Firm
Administrative Management Tasks Performed in a Retail Firm
Organization of a Small Retailer
Organization of a Regional
Department Store: Rich’s
Merchandise Division
Organization: Rich’s
Department Store Organization at
Rich’s/Lazarus/Goldsmith’s
 Merchandising Organization
Chain Stores
• In chain stores buying and selling are
different activities at different levels
• The buying activity is more centralized and
conducted by the central buyer
• The actual placing of order for specific
items and its management is the
responsibility of the store manager
 Functions Performed
• Merchandising includes various steps in the
buying and selling of goods and services,
such as assortments, advertising, pricing,
point-of-sale displays, the deployment of
personnel, and personal selling approaches
• Buying includes the buying of products,
advertising, and pricing
• Functions must also reflect the level of
formality, the degree of centralization, and
personnel resources
 Staffing
• Buyers must be attuned to the marketplace,
must be assertive, must make extensive use
of buying plans, and may have to travel
• Sales managers must be good organizers,
supervisors, and motivators
• Merchandising buyers must possess the
attributes of both buyers and sales managers
 Staffing
• All buying personnel must relate to customers
and anticipate future needs
• Federated Department Stores has career
tracks that recognize the value of both
merchandising and in-store personnel
• Selected positions in both merchandising and
store management are described next
• Assistant Buyer
– Aids buyer in selecting and procuring merchandise
which supports over all sales volume, gross margin
and turnover objectives
– Assumes buying responsibility of key classifications,
once buyer determines proficiency level
– Provides operational support to buyer
• Associate Buyer
– Responsible for merchandise development,
marketing and financial management of a particular
area of business
 Staffing - Merchandising
• Buyer
– Expected to maximize the sales and profitability of a
given area of business through the development and
implementation of a strategy, analysis and
appropriate reaction to the sales trend
• Divisional Merchandising Manager (DMM)
– Responsible for overseeing the execution of
merchandise selection and procurement for a
particular segment of business
– Sets merchandise direction, develops strategy for
consumer satisfaction
• General Merchandising Manager (GMM)
– DMMs report to GMM
 Chain store
• Central buyers
– develop standardized assortment plans
– determine the resources from which the
purchase to be made
– make negotiations regarding the terms of sale
– Make decisions with regard to the dropping of
old items and addition of new items
• Assistant Sales Manager
– Responsible for supervising all daily store activities
in a specific merchandise area
– Jobs include selling, service management, selecting
and developing merchandising
• Sales Manager
– In charge of all daily store activities in a specific
merchandise area
– Job includes merchandise presentation, employee
development, customer service, operations and
inventory control
 Staffing – Store Management
• Assistant Store Manager
– Directs all activities related to merchandise
flow, store maintenance, expense
management, shortage prevention and all
store sales support functions
• Store Manager
– Senior level executive responsible for all aspects of
running a profitable store
 A combination !
• In many cases branch stores maintain assortment
of products and services that caters closely to the
local taste and local requirements (large
geographical, cultural diversity)
• In such cases the stores keep some standardized
assortment (say 60%) and the remaining is based
on local need
• Obviously in these cases, the buying activity also
gets decentralized to the store level to some extent
 Advantages of Centralized
Decision-Making
• Retailers can reduce overhead, i.e. fewer
managers
• Coordinating efforts, it can achieve lower
prices from suppliers
• Opportunity to have the best people
making decisions
 Methods for Coordinating
Buying and Store Management
• More communications between buyers and
sellers
• Store visits
• Employees performing coordinating roles
• Decentralizing buying decisions