UNIT 1 INTRODUCTION STORE OPERATION S

Structure
1.0 Objectives 1.1 Introduction 1.2 Origination of Stores All 1.3 about Store Operations Major Responsibilities of a Store 1.3.1 1.4 Store Operation Management System 1.5 Retail Store in India 1.5.1 Curtain Raiser to WIPRO 1.6 Strategy Behind The Store 1.6.1 Store Space: Case Study of 1.7 Store Operations Solutions 1.7.1 Task Manager
1.7.3 Time Attendance Store 1.7.4 Walk Retail Big Bazaar The Brand Building 1.5.2 Challenge Manager 1.3.2 Logical Operations Activity Flow of Store

TO

Introduction to Store Operations

Store Hanger Fraschetti: Automates Warehouse to Improve 1.6.2 Operations

1.7.2 Workforce Manager and

1.8 Let us Sum Up 1.9 Keywords

1.10 Answers to Check Progress 1.11 Terminal Questions 1.12 Further Readings

Your

1.0 OBJECTIVES
The Store Operations course is designed for store managers with an emphasis on the reports, new area managers and potential store managers. The basic aims direct of unit is to process the selling and marketing of store operations as well as the providing to retailers. This unit can make learners compatible with the operating solutions force takes into consideration the back-office or front office activities. After which going through the unit, the learner will be able to acquaint: with the functions of store operations and activities of a store operator how different real life scenario fit into store operations a means to streamline operations by integrating business provides processes the process and tracking inventory in automating retail Providing SO solutions with the help of different Finaly tools
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1.1 INTRODUCTION
Retailing is a technology-intensive industry. Successful retailers now-a-days work with their vendors to predict consumer demand, shorten lead times, closely reduce holding and thereby, save on cost. Wal-Mart had pioneered the concept inventory of building a competitive advantage through distribution and information systems in the retailing industry. Society is changing and the evolution of the Internet in recent years is causing unprecedented changes in consumption patterns. The virtual world is getting bigger, and in coming years it is going to add a feather in the cap as far as retail industry in concerned. Retailing in its present appearance constitutes 20% of US GDP. It is the 3rd largest employer segment in USA and going to become a hot cake in coming years. Organized retailing in India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1, 00,000 crores by 2010. Therefore, it is imperative to have elastic tools that tolerate retailers to speedily acclimatize to changing consumer demands. There are certain questions which need to be raised prior to going into the depth of the unit. When you stride in to a retail store, what part of the stores tone may have an effect on your shopping familiarity? you off in positive What turns stores? On this preamble, this unit is going to talk about all those basic things which are really required in Store Operation.

1.2 ORIGINATION OF STORES

In our present consumer-oriented culture, people do not shop simply to acquire itemsneed, but also to gratify their wants. From the 1860s to the start of they the Edwardian period, the western countries witnessed the development and growth of department stores, which in turn had a major impact on gender relations. Today, it is the large purpose-built structures like Selfridges (opened in 1909) that capture the modern imagination and yet these cathedrals of consumption were far controversial as a consumer space by the early 1900s than they had been in less the previous 30 years.

Source: http://hubpages.com/hub/A-History-of-Visual-Merchandising-in-RetailStores Figure 1.1: Visual Merchandise in Stores

It was during this period that many historians, such as Erika Rappaport and Judith Walkowitz, have charted the rise of Londons main shopping areas and their role as apace of female conspicuous consumption. They have constructed their arguments s by examining masculine criticisms (although they also explore a number of early feminist surrounding the female attacks) shopper.

The augment of the department store or grand emporium in the 19th century brought more changes in store design and visual displays. The early department stores continued with the idea of displaying merchandise in complex and luxurious setting. A retail store is a retail establishment which gratify an extensive variety of the consumer s personal and residential product needs; and at the identical time offering the consumer an alternative of manifold merchandise lines, at changeable price points, product categories. Retail stores more often than not sell products in all including attire, furniture, home appliances, electronics, and furthermore select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods. Definite department stores are more hush-hush as discount stores. Discount stores frequently have central customer checkout areas, by large in the front area of the store. Department stores are more often than and not ingredient of a retail chain of many stores positioned around a country or several countries.

Introduction to Store Operations

Figure1.2: Presentation of a commodity in a Retail Store

1.3 ALL ABOUT STORE OPERATIONS

Retailers drop millions of Rupees per year due to contradictory storelevel implementation of their corporate approach. The cost bang of inconsistent execution 2-5 percent of annual sales. Uncoordinated corporate planning results is between in uncertainty and precedence divergence in the stores; lack of two-way response prevent constant development. Store managers are filled to capacity with communication and left to prioritize tasks on their own. Field managers, swamped byglut of out-of-date MIS reports, fight fires reactively as an alternative of a providing Labor schedules are out of footstep with genuine workload necessities. leadership. Even when tasks are completed, corporate struggles to authenticate acquiescence. Store Operations enable retailers to make certain dependable implementation of their corporate strategy by all stores and pull through the sales they would have otherwise lost. Store Operations comprise Task Manager (for closed-loop task management), Workforce Manager (for forecasting and preparation labor based on sales forecasts, initiatives, and employee skills and work predilection), Time and corporate Attendance (for time entry, labor tracking, and time costing functionality), KPI Activator (for real- KPI-driven alerts with the ability to assign corrective rejoinder based on time, best

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practices), and Store Walk (for ensuring consistency from enhanced store walks and audits). Store Operations solutions facilitate retailers to boost efficiency, augment sales, and comprehend rapid ROI. Store Operations has again and again implemented in 21 weeks or less, across numerous store formats at some of its solutions the worlds largest retailers. The primary attitude at the rear the science of shopping is the simplest one. Publicconfident similarities and tendencies which the retail environment must have receive into account. Store operations are concerned with maximizing the efficacy of the retailers use of resources on a day to day basis. Retail store operation is about converting resources into sales and profits. Store operation aims at maximizing profits by providing aatisfactory experience and effective service to customers by making optimal use s of people, space and merchandise. Store operation is about executing the strategies and policies of the retail business at store level on a day to day basis. Store operations could be seen from the four perspectives namely: Product, Customers, Sales, and Place. We will definitely threw more light on these four important ingredients in this whole episode of some SO.

Place

The Product perspective will include type of merchandise, merchandise planning, merchandise display, etc. Customer perspective will include customer service, customer The relationship, and customer satisfaction. perspective includes selling process, sales promotions, pricing and The Sales discounting policies, etc. The Placeperspective will include location, managing space, fixtures and layout design, meeting statutory requirements of the place, Frometc. above figure we had observed that these four terms had a great the linkage with one-another. After the development of a product, how it is going to serve the customers matter a lot i.e., its sales and place from where the product disseminate. Most part of operations at a store level can only be accomplished by detailed planning. Planning of store operations translates managing customers, into manpower, merchandise, space, fixtures, promotions, statutory licensing and permissions from government agencies, taxes, etc. The other dimension of retail

Figure 1.3: Operations

Four

Perspective

of

Store

operation is about managing exceptions. This involves things like managing the store tough weather conditions, providing medical help as first aid to customers during who get un-well in the store, fire-fighting plans might etc. Let us look at the major responsibilities of a store manager, which are given below, in order to understand briefly what store operations would involve:

Introduction to Store Operations

1.3.1 Major Responsibilities of a Store Manager

Achieve sales targets as provided by the central office. effective service to customers by providing proper attention and Provide taking their needs care of Right type of manpower so as to provide satisfactory service to customers Suitable training on an on-going basis to manpower operating in the store. merchandise is stocked and managed as per policy of the store. Proper Merchandise is displayed suitably by making use of right fixtures and space.lay-out and display is maintained as per the design provided by Store the central office.and semi-fixed assets, as well as current assets are maintained and Fixed managed well for achieving proper utilization and returns. Store operational expenses are managed well in order to achieve a profitable operation. All statutory licensing requirements are fully met regular tax returns in totality as per government File rules Describe the organization structure of the Store Operations function and who should be responsible for what. key performance indicators used to evaluate Store The Operations performance . wide range of business processes involved in the successful operation of a A chain of stores. A wide range of business processes performed at the corporate headquarters by Store Operations Management. Retail Store Operation impression is one of the most noteworthy constituent of integrated planning. Although the retail environment is a critical constituent of brand communications, many in-store marketing opportunities lack thorough psychoanalysis as fulfillment, media value, brand equity metrics, sales lift and in key areas such by and large ROI. Having a winning vision and approach for the retail business are significant but not adequate to tip the odds entirely in favour of success. Retail works with retailers to illuminate and operationalize the strategies they have to to appreciate their expansion objectives . Consumer habits survey commissioned Store Perform Technologies and by afterward, conducted by Harris found that the retailers spotlight Interactive on creating a constantly optimistic shopping understanding across all of their stores can the benefits of customer loyalty. A retailer s successful effecting of critical reap instore operations and initiatives is more important to creating customer trustworthiness than providing discounts and promotions.

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Retail works with retailers in all channels who are facing a multiplicity of equipped The endeavor of the retailers is to is to enhance the challenges. process improvements which resulted in increased sales and reduced operating expenses for the clients. The team has decades of experience assisting major retailers in all aspects of store operations. The skill-set includes following thoughts.

Assisting major retailers

Retails experts in store operations can provide assistance with respect to store visionstrategy, organization, operating metrics, coordination with upstream and activities, environment service and functional operation.

The Store Performance Improvement Continuum

Operational Effectiveness

Best Practice s

Labor Managemen and t Schedulin g syste m The Right People Doing the Right Things at the Right Time

Customer Servic e Excellenc e Providing an Interpersonal Environment that Invites Visitation and Sales

Streamlined and Organized Execution

Typical Retail Performer

Typica l Improvemen t Range

Best in Class

Source: http://www.retailforward.com Figure 1.4: The Store Performance Improvement Continuum 10

1.3.2 Logical Activity Flow of Store Operations

Logical Activity flow is a kind of activity that links with one another and facilitate the manager in finding out the responsibilities allocated to his/her downline. Let store us understand the diagram detailing the logical flow of all the activities involved with operations to get a broader view of the matter. From the following chart we store getfair idea about the kind of activities that are involved in store a operations.
Attending customer Helping customer with product selection Product display and visual merchandising

Introduction to Store Operations

Location & Store Lay-out planning

Customer entry

Maintenance & Repairs

Store Training to Ambience POS software sales team

Maintenance

Customer relationship management

Customer data Sales data

Billing process

To do regular replenishments

Analysis of sales trends

To do regular stock-take

To maintain stock level

Preparation of merchandise plan

Figure 1.5: Major responsibilities of a store manager in a Store Operation

1.4 STORE OPERATIONS MANAGEMENT SYSTEM [SOMS]

Store Operations Management System gives retail organization the type of information tools that retail blockbusters use, such as customer purchase histories, ereceipts, personalized marketing, even B2B, e-commerce and CRM/ERP connectivity. The aim of the store operation management system. Know accurately what sold best in every department, group and season a decision what to buy or mark make down ROI from your ads, mailings, promotions, sales and Track Thus discounts observed that a store operation management system accomplish we had store operations, in employing a communication equipment. In the store, connected with at slightest one store workstation by way of a first line inside the store and connected with a server by a second line outside the store. The communication apparatus judges the operation type of each operation request sent from the store terminal and, when the operation form is a primary operation, processes the operation appeal and, when the operation type is a second operation, transmits the operation request to the server the server processes the operation task. so that Thus has laid the groundwork for streaming store administration and achieving greater accuracy in ordering and will help us cut costs and create more potential for new services.

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Source:http://www.nitrosell.com/solution s Figure 1.6: Retail Management System for store Operations

From the above figure in had been observed that. The key feature is conversion to broadband. By recording the store-operation manual on the server at head office, for example, we can make available the latest version electronically for consultation at time, paperlessly. It also helps in acknowledging electronic and other any cashless formats, and, being easy to use and fast. Thus it helps position new payment store better for their staff duties.
Deploy a complete point of sale solution with Microsoft Dynamics Retail Management System (RMS) Drive retail growth with a flexible, connected solution Dynamics Retail Management System (RMS) offers small and midMicrosoft market a complete point of sale (POS) solution that can be adapted to meet retailers unique retail requirements. This powerful software package automates POS processes and store operations, provides centralized control for multi-store retailers, and integrates with Microsoft Office system programs, Microsoft Dynamics GP, and other popular applications. Microsoft Dynamics RMS is built on a proven Microsoft platform that adapts to meet unique and changing retail needs. Set up and use easily Minimize disruptions with a retail management solution designed for rapid installation use. and ease of

The intuitive interface in Store Operations makes training cashiers easier. Work with expert Microsoft Certified Partners to quickly set up and tailor Microsoft Dynamics RMS to meet your specific retail management needs. employees to learn POS procedures in minutes with built-in wizards and Enable an intuitive user interface. data fields to track information you want to see about Customize 12 customers, inventory, suppliers. and

Keep costs down now and into the future with support for existing computers and OPOS (OLE for POS)-compatible peripherals. Automate inventory and purchasing management

Introduction to Store Operations

Store Operations Manager provides several easy-to-use tools to create, track, and manage your inventory. Track and manage inventory using any stock and sales method and inventory include standard, serialized, kit, assembly, matrix, lot matrix, types that voucher, non-inventory, and weighed. Manage complex, multidimensional inventory requirements with easy-touse matrix forms.item movement and supplier histories, quickly generate purchase orders, Track and add items on the fly. Export purchase orders to Microsoft Office Excel and Microsoft Office Word for easy customization and viewing in a matrix grid format. Streamline transaction processing Respond quickly to customer needs with efficient, personalized service.

Whether your customers pay with cash, check, or credit, Store Operations makes sales transactions fast and easy. Work with a customizable POS screen that offers immediate access to prices, availability, and stock location. Access customer histories at the POS; handle multiple tenders and partial payments at checkout; and quickly create and process returns, back orders, sales quotes, work orders, and layaways. Expedite checkouts, target customer preferences to offer up-sells and cross-sells, and implement automatic discounts for frequent shoppers. Eliminate credit card terminals and dedicated phone lines for card transaction processing. Help reduce shrinkage, false returns, credit card fraud, and unauthorized discounts with 31 levels of user security features. Improve marketing efforts Target your marketing efforts based on accurate customer data, including preferences and detailed purchase histories. 1 3

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Easily set up discounts, promotions, and sales to increase customer satisfaction. Work with flexible pricing structures to offer special pricing to your best customers. Send targeted mailings with offers and promotions to selected customers. Display up-sells so that associates can mention them. Collaborate with suppliers to advertise products, promotions, new items, or upcoming events to customers in line with a secondary net display. Analyze data with flexible reporting options analyze, and share current, detailed data across your entire business Access, including multiple store locationswith a wide range of flexible reports.

Manager is a convenient, central location for creating and managing reports. Preview, search, and print daily sales reports and journals by register, batch, and receipt number, as well as close cashier shifts quickly and accurately. Identify sales trends in every department or category, evaluate operations and financials, track results from sales and ad campaigns, and set and monitor business policies across stores. Export report information directly into Office Excel, XML, Comma Separated Value (CSV) files, or your email application. Integrate with other solutions Help eliminate duplicate data entry, connect business information and processes, and protect your existing software investments. Connect retail and financial management across a multi-store network with integration to Microsoft Dynamics GP. with familiar Microsoft Office system applications such as Excel and Work Word data for analysis and communications. Use Electronic Data Capture (EDC) and integrate with leading credit card services to reduce fraud and human error. Manage accounts receivable in Microsoft Dynamics Retail Management System Store Operations, then trade summary POS data with popular accounting software Intuit QuickBooks (U.S. such as version). independent software vendors to enhance existing functionality. Work with You also add new features, functionality, and applications, including can vertical solutions, accounting and enterprise resource planning (ERP) integration, eCommerce solutions, personal digital assistant (PDA) and mobile/wirelessadditional integration to EDC and credit card stations, and services. Scale to meet business growth Work with a scalable, flexible platform that helps you adapt efficiently to midmarket requirements and drive a lower total cost of ownership business (TCO). Retailers can deploy and manage Microsoft Dynamics RMS chain-wide, 14 givingthe visibility and control they need to compete in a highly competitive them retail environment .

Retailers can help drive more value from their existing investments and keep the retail management software and systems as their business grows same into multiple stores and retail channels. As they add customers and products to the system, flexible Microsoft SQL Server database technologies can store and manage virtually unlimited amounts of information. Data generated at stores across the retail chain can be integrated with merchandising systems, warehouse systems, and other back-office enterpriseor portals, including Microsoft Office SharePoint systems Server. An extensive catalog of Microsoft Certified Partner add-on solutionsincluding ecommerce, mobility, business intelligence, merchandising, and others further the investment value of a solution that can be tailored to suit enhance demanding retail needs http://www.microsoft.com/en-us/dynamics/products/rmsoverview.aspx

Introduction to Store Operations

1.5 RETAIL STORE IN INDIA

Yes, it is not a 20-20 match; it is going to be a long and hard fought Test match with pain and effort in terms of time. One that Indian consumers are going to lot of watch intimately with enthusiasm. The Indian retail sector is on the cusp of a change, a verychange. This change is going to affect thousands of Kirana store owners, big smallbig traders and Indian consumers and alike. The enlargement of retailers depends principally on their collection of environmentalchance of new stores. Retail chains that discover the most markets and excellent match between the positioning of the stores and uniqueness of the local market are most contemporory ways to accomplish something. From a consumer the viewpoint, locations and product assortment drive store would be an convenient utmost alternative to bridge this gap. The retail sector keeps reinventing itself as it moves with the times and matches ever increasing customer demands for efficient services and best prices. This has raised substantial challenges for the retail merchandizing business as one can endeavor to accomplish cost optimization with the best processes in place as far as India is concerned. Leveraging decades of experience in this sector, Wipro Retail unit provides focused solutions for this retail sector in particular and helps one to achieve strategic business targets in a competitive market. The in-depth retail knowledge provides one the insight and project execution skill to offer customized solutions in the e-business, CRM, SCM, Technology Infrastructure, Warehousing, Stores Operations Management, Retail Shrink ERP, Data Management, Retail Merchandising and Business Intelligence space. The offerings cover various of the retail sector like grocery, specialty, pharma and convenience segments retailing. In the below mentioned head we will throw light on a Wipro retail case study which emphasize how the industry specialists and customers through the Centers of Excellence in supply chain efficiency, retail merchandizing and pricing, RFID, pharmacy in retail, in-store solutions and data analytics execute a process. Retailing is one of the pillars of the economy in India and accounts for 13% of GDP.retail industry is divided into organized and unorganized sectors. Over 12 The million operate in the country and only 4% of them being larger than 500 sq ft (46 2 ) outlets m size. Organized retailing refers to trading activities undertaken by licensed in retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large businesses. Unorganized retailing, on the other hand, refers to the retail traditional low-cost retailing, for example, the local kirana shops, owner formats of manned

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general stores, paan/beedi shops, convenience stores, hand cart and payement vendors, etc. In India, a shopkeeper of such kind of shops is usually known as a ukandar. d

1.5.1 Curtain Raiser to WIPRO Retail

Wipro Retail is a division within Wipro with both a dedication and passion for retail. Our unsurpassed depth of knowledge stems from the acquisition of Enabler in 2006, a company founded originally by retailers for retailers. Deep retail knowledge gives us an unique insight into the key business levers and the ways that process and technology can be blended to improve commercial performance. We are proud to work with a high number of the worlds leading international retailers, amongst them; Morrisons, Supervalu, Tesco, Ahold, Sonae, DeSpar, Carrefour and Walmart. Wipro Retails expertise and customer base spans across all retail industries (Grocery, Fashion, DIY, Department Stores and Wholesale) and projects extend from PCI DSS to large ERP implementations. We have many long standing relationships as our core proposition requires us to focus on customer and value creation. Therefore Wipro Retail invests strongly in satisfaction the establishment of long-term relationships with customers, allowing a deeper understanding of the business, the joint deployment of the best solutions and increasing value over time. Wipro Retail helps on to understand where the business is going and the challenges that are faced to lead organizational transformations to the next level. We have the delivery expertise to partner retailers in making a sustainable difference with proven experience and commitment to customer excellence, as key driving factors. Wipro Retail is an Oracle Retail Tier 1 Partner which deals in store operation management system (SOMS) already discussed in an elaborative manner at point 1.4this unit, has enjoyed a long standing relationship that jointly leverages the of power Oracle Retail suite to provide end-to-end business and IT solutions for of the global Wipro Retail is the most successful integrator of Oracle Retail solutions retailers. and boasts prime reseller status in many territories. Source: http://www.wipro.com/industries/retail/retail/index.htm

1.5.2 Big Bazaar: The Brand Building Challenge

The Big Bazaar brand name is in its growth stage. Pantaloon group faced various small and large scales troubles in the introductory stage of the brand. Present years high growth in retail sphere as market has high potential to sustain are the growth. are increasing, more and more firms are coming to markets, foreign The sales players are entering into retail sector and finally presence of organized retail is increasing in retail sector. Factors that shaped Big Bazaar during its life cycle
Influence of Sarvana Stores located in Theyagraya Nagar, Chennai Many people think that Big Bazaar was inspired by Wall Mart but the truth is that Kishore Biyani (KB) and his team members are neither inspired by US ways of doing retailing nor they have been to US much. The credit for foundation and inspiration goes to Saravana Store, a family run 25 years old store, whose philosophy was margin, high turnover. In that store, food, groceries, clothes everything had low aeparate section. It had around 120 people just to manage crowd. The s singlewas doing business of more than 200 crore per year. This shop was shop the template for Big Bazaar.

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Observing customer regularly Regular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team that looks for customers purchasing pattern and how they like or dislike products, how they approach to particular For example, unlike other stores where the most expensive and catchy products. item is placed at the front display, Big Bazaar places the Value for Money Item at check out point. Imbibed entrepreneurial spirit in organization Decision making power is given to every level of employee at Big Bazaar. KB has given risk-taking power, which led to entrepreneurial spirits into every employee. in big Bazaar operates with speed and confidence when it comes Everybody to decision making. Building on core values Core values of Indian-ness, valuing and nurturing relationships and Simplicity shaped the brand. Kishore Biyani always believes in long term relationships, with customers, employees. Once thinking about offering gifts to employees close suppliers and to Diwali, KB suggested giving them wallpaints to keep their house clean. The paint is used in Indian culture to keep house clean and brings freshness. The motive behind keep everything clean and bring freshness in was to organization.

Introduction to Store Operations

Strategic decisions taken to build the Big Bazaar brand

The strategic decisions that lead to building of Big Bazaar were:Real Estate Game For a retailer, location is one of the most important things. According to KB, real cost should be less than 5 % of total sales of store in order to estate provide benefits to customer. The strategic decisions to secure spaces before maximum other retailers join in have resulted in costsaving. Also, it has created early presence in market. Nurturing relationshipsstrategy to develop trust and nurture relationships with suppliers. KB follows This led to strategically correct decisions most of the time. Whoever works trust with Future Group, either leaves in initial deals or continues forever. Use of technology, scenario planning and story-telling Big Bazaar planning and design used advance technologies like scenario planning and storytelling. These techniques were mainly store-design layout, store-location selection. The strategy to use used for userfocused, prototype-based development tool made the brand adapt to the fastchanging external environment. Design Management Design-led thinking helped Big Bazaar to achieve customer-first objective and ultimately lead to better financial performance. Big Bazaar strategy to focus on design creation of Idiom, an independent design and consultancy firm, based led to in Bangalore. They are one of the few organizations in India having economist, ethnographers and sociologists working across various teams as a part of Design management team. Back-end operations, supply chain Harvard Business School just a case study on Pantaloons supply chain and it says that Pantaloons is the did most cost-effective supply chain in the world. India may not have a modern supply chain definitely has a cost-effective one. Retailers have made use of the but it existing supply chain.

Source: www.bigbazaar.com

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Check Your Progress-A 1. Briefly Comment on the following statements a. Retail Store Operation is about converting resources into sales & profit. ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... b. Many people think that Big Bazaar was inspired by Walmart. ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... c. Regular customer feedback is also an influential factor. ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... d. From a consumer perspective, convenient locations and product assortment drive store choice. ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... 2. Fill in the blanks with the appropriate word given in the brackets. a. Decision making power is given to ________ (Top / Lower) b. level.retailer __________ is an important For (Location / Price) c. d. factor. square_________is most commonly used for planning Sales per inventory (Acre / . Foot ) The growth of retailer depends largely on the selection of ____________ market.

(Geographical / e. Retailer_________million Historical) of rupee per year due to contradictory store ( Loose / Gain) level . 3. State whether the following statements are true or false. Indian consumers are going to watch intimately with enthusiasm. b. Retailing is one of the pillars of Indian economy. c. Retail knowledge not able to provide site and project executions. 4. Write Short Notes on the following: a. Big Bazar ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... a.

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b.

c.

Wipro Retail ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ................... History of Store ........................................................................................ ................... ........................................................................................ ................... ........................................................................................ ...................

Introduction to Store Operations

1.6 STRATEGY BEHIND THE STORE DESIGN

There are certain bodily and anatomical factors and limitations which are widespread to all the people shopping in the store. Whilst there are numerous differences in shoppers based on tastes, preferences gender, age, income, etc., there are a large number of similarities which should be reflected in the design of the store. you regard as some basic facts there are some things which require to When be memorized in the design of the retail outlet. Most of the customers will have two and when they are standing usually, these hands will be situated just about hands 36 inches off the floor. This means that if you merchandise products below that height, your customers are going to have to bend over. If they bend over, is there sufficient people to pass without knocking them? The strategy rather a room for pedagogy store design talks up to some extent about these behind the issues. use shopping baskets in your store? Where do you store them? Are they Do you in stacks around the store or are they located just in one place near the entrance. A good tactic to increase sales, is to get the sales staff to carry some baskets and give one to many customer that has two items in their hands. Immediately this will free up hand so that they can add more merchandise to the basket. Tactics like one this increase the rupee value of each transaction and there is no cost. The longer you can keep your customer in the store, the more they will buy. The quicker your customers walk, the less they will purchase. If the store encourages aeisurely pace, the customers will see the merchandise and the signs clearly. This l will contribute to purchasing also more. customer is walking through the complete store and considering a wide If the variety of merchandise, a substantial amount of time is required. In some stores, buyers have timed in spending four or five as much time as non-buyers. If you can been acquire your shoppers to shop longer, then your average business will also increase, on the other hand, you have to be acquainted with how long your customers spend shopping in your store for you can design strategies to augment it. science of shopping shows quite obviously that store design and profitability The are linked very intimately. If your store has a good design, you will be more into moneymaking .

1.6.1 Store Space: Case Study of Store Hanger

Retailers that give away hangers, whether imprinted or not, should consider storageHangers can be purchased in bulk to reduce costs and to avoid running space. out. in mind that hanger boxes are usually on the large side and may take up a lot Keep of space in the stockroom. As sales clerks remove items from hangers, these recycled hangers should also have a neat and organized space at the checkout counter.

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Hangers are a critical part of any clothing display. Using the proper types of hangers only protect and preserve the merchandise, but it will also help will not your customers find what they are looking for much faster. Hangers for clothing and fashion accessories are available in a variety of styles, materials and sizes. Standard adult hangers are usually around 17 inches wide, while childrens hangers are only 12 to 14 inches. Specialiy hangers for pants and skirts are available in 14 inches. Economical plastic, durable metal and classic wood hangers may all be suitable to usea retail environment. Before choosing clothes hangers to use in your store, in learn the more popular types of about hangers.

Padded Hanger Plastic Hanger All-Purpose Clothing Hanger Hanger Linqaria

Salesmans Hanger Cotoured

Hanger

Skirt/Slacks Hanger

Wire Hanger

Wooden Hanger 1. Plastic Hangers: Commercial plastic hangers are generally available in white, black or clear plastic. The quality will run from lightweight, almost flimsy, plastic super heavyweight unbreakable hangers. Plastic hangers work well as to the an all-purpose hanger. These are generally used for shirts, blouses, and dresses. 2. Wire Hangers: Metal, or wire, hangers will also vary in quality. The most inexpensive, lightweight metal clothes hangers are the type you may receive with dry cleaning. Heavier metal hangers wont bend or sag and are great your for stores with a more contemporary look. Because wire can rust, some wire clothing are coated in colored vinyl to protect hangers 3. fabric. Hangers: Classic wood hangers are available in a natural finish Wooden with chrome hardware or the higher end teak wood with brass hardware. Wood hangerinclude coat hangers with or without wooden bars, hangers with metal styles rods or lock bars on a spring to prevent pants from sliding. 4. Tubular Hangers: All-purpose tubular molded hangers are the type also available to consumers and found in many homes. They come in a large variety of colors.colored hangers may increase sales appeal. Using 5. Padded Hangers: Not only does a cloth covered hanger protect delicate garments, the padded hanger is usually covered with satin and therefore a prettyto display lingerie or other clothing. The padding helps to prevent way slipping and assists in preserving the shape of the garment.

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6. Specialty Hangers: Retailers have many choices in hanger styles for unusual garments or non-typical situations. Notched hangers are perfect for items with Skirt/slacks hangers have metal or plastic clips on a metal rod straps. which sliding. Another type of specialty hanger is the salesmans hanger. prevent These chrome hangers feature a space-saving style and are ideal for trade-shows strong, or salespeople transporting garments. 7. Hanger Accessories: Hanger markers, cardboard tubes and other hanger accessories help retailers keep their merchandise neat and tidy while creating an appealing display. Instead of purchasing different types of specialty hangers, piggyback connectors can be used on most any hanger to allow two garments to displayed together. Soft plastic clips can attach easily to most hangers be with notched tops. Also, foam hanger covers or strips can be placed on most any plastic or wooden hanger to prevent items from slipping. Before buying commercial hangers for a retail store, consider the following factors. Garment Type: The most important factor when choosing a hanger is to determine the type of garment to be displayed. Of the many types of hangers to retailers, each has its own particular function. For example, available the higher cost and thickness of wood would make it impractical to choose hangers for displaying tee wooden shirts. Store Atmosphere: Hangers should match, or at least blend, with a stores decor. Take into consideration the look and feel of the store when choosing Upscale boutiques may want to avoid lightweight plastic hangers. hangers, wood hangers may look out of place in a discount while teak store. To give or not to Some retailers write their marketing plans to give: include custom printed hangers. Occasionally, a retailer may even receive clothing manufacturer already on hangers. All of these hangers are from the generally to the customer and are considered a standard cost of doing passed on business. On the other hand, more expensive and higher quality hangers are generally reused as long as they remain in good condition. Storage Space: Retailers that give away hangers, whether imprinted or should consider not, storage space. Hangers can be purchased in bulk to reduce to avoid running out. Keep in mind that hanger boxes are usually costs and on large side and may take up a lot of space in the stockroom. As sales the clerks items from hangers, these recycled hangers should also have a remove neat organized space at the checkout and counter.

Introduction to Store Operations

Source: http://retail.about.com

1.6.2 Fraschetti: Automates Warehouse to Improve Operations

Fraschetti, a leading Italian hardware and household item retailer, purchases from than 500 suppliers and restocks approximately 2,500 sales points more throughout with exclusive products purchased in Europe or the Far East Italy, often and distributed under its own logo. Due to the size of the sector and the numerous product categories within, the distributor has a prominent role in the exclusive distribution of big name brands. To work efficiently with traditional shops you have to be service oriented, Giorgio vice president of sales, said. We have a network of 44 single-brand Fraschetti, representatives connecting with the company at least once a day. Our program deliveries at least twice a week over the whole area and once a week in involves the inaccessible areas. In some privileged areas like Rome and Naples and the more entire Latium coast, deliveries arrive every day. An order received by noon today is filled by tomorrow.

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The widespread nature of the deliveries means Fraschetti manages an enormous orders and invoices each day. Working closely with Intermec number of partnerFraschetti now uses Intermecs 2455 vehicle mount computers in place Incas, of traditional paper-based means of shipping and receiving to ensure the right products amount are delivered to the appropriate retail locations. The logistics and correct involved in managing this many orders can be daunting. Consider a large number of deliveries that each include an extremely complex assortment of goods of different e.g. 10 pulleys, nine tubes, 11 boxes of nails, six bags of earth, four amounts, pipes, inventory management and distribution process could be staggering. The etc. The useIntermecs 2455 vehicle mount computers has enabled the Italian retailer to of easily nearly 12,000 items per day without move error. Improving Inventory Management Delivery is guaranteed by Fraschetti; therefore 85 percent of the daily work involves orders received the same day. To make it easier to locate and track items, goods are now checked upon receipt using Intermec 2415 wireless handheld computers. The Intermec 2415 confirms quantities and makes note of any discrepancies in the delivery. The content of the suppliers shipping note is then loaded into a computer production of load units and instructions for the formatting of the with the goods. After an item is formatted, it is assigned a bar code label. The bar code label is identified by the Intermec 2455 vehicle mount computer. The goods are then handled as indicated by the computer. The Intermec 2455 shows where to position goods in accordance with a specially designed logic as well as the items destination. After the positioning of the goods, all handling, movement and checking is done using the Intermec 2455. Since using Intermec, the improvement in warehouse operations has been dramatic. warehouse area is now mapped allowing Fraschetti to track all of its The entire items times. A considerable increase in the number of operations performed and at all ateep fall in the number of errors occurred has contributed to the s organizations increased profitability. In the future, Fraschetti plans to implement an automation its other very important operations, such as the optimization of loads system for andautomatic weighing of larger packages. the About Fraschetti The companys history began in 1870 when Francesco Fraschetti opened a small ironmongery in Ceprano and by doing so paved the way for what was to become one Italys leading household and DIY (do it yourself) item marketing of companies. The ownership of the company has always remained in the family and after periods growth and others of consolidation; it is now in its fourth generation. of strong The company today operates across the center and south of Italy providing a very high of service and annual sales totaling around 35 million Euros. In the last level few the sector has moved on with the advent of the new DIY chains of shops, years, but traditional sales point, the old-fashioned the s tore, still accounts for hardware the largest percentage of business. About Incas Based in Italy, from its foundation, the aim of the Incas group has been to find innovative methods for industrial process automation and control. Today this aim is fully realized within a modern, efficient and innovative company. A marked specialization in the two areas constitutes its core business, logistics and production has made it possible to develop skills that translate into monitoring, powerful strengths : The ability to propose flexible and efficient solutions supported by an extensive knowledge of system integration. of reliability and providing support over Guarantee time. Source: http://www.intermec.com/learning/content_library/case_studies/cs2057.aspx

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1.7 STORE OPERATIONS SOLUTIONS

Store operations solutions is a spohisticated technology and database tools which provide a retail organisation a pathway. There are four ways by which the store operations solutions will be explained.
Task Manager Workforce Manager Time and

Introduction to Store Operations

Attendance Store walk For leaner convenience we are explaining these terminology in a more elaborative manner .

1.7.1 Task Manager

Boost sales and cut costs by turning corporate retail strategy into store-level action with closed-loop task management. Task Manager gives retailers active control of every store, giving upper management turn strategy into action, and the benefits of higher sales and the ability to improved performance . This powerful solution streamlines store execution with one comprehensible channel of communication that focuses stores on their objectives and provides realtime feedback and visibility of task compliance to field and corporate managers. In short, it facilitates good tasks while eliminating bad tasks. It gives store managers, field managers, and corporate the ability to clearly plan and communicate objectives across the enterprise, optimize productivity throughout a ariety of regions, and return the primary focus to their v customers. Whether its introducing a new line of merchandise, running promotions, or conducting product recalls, heads-up management drives your chains ability to turn a healthy continue to grow. Task manager gives your managers exactly profit and the information they need, without being overloaded, so that they can get out of the back more and into the store where they can make a room difference.

1.7.2 Workforce Manager

Workforce Manager gives retailers complete control over budgeting, forecasting, and scheduling store labour, ensuring efficient operations, on-time task execution, and consistent levels of customer service. The result stores generate more sales while labor rupes. more effectively, leading to increased profitability and growth. using Even Workforce Managers power and complexity stay behind the scenes better, while managers and employees use simple, web-based forms that eliminate the frustration of paper-based scheduling. The solution generates optimized schedules and drudgery that are in compliance with labor laws, union rules, and work policies while respecting preferences, availabilities, and proficiency. Integration with Time employee and Attendance allows real-time monitoring of key labor metrics and exceptions to ensure compliance . To Workforce Manager, scheduling is not just about filling shifts for the day, its about matching skills and availability to the actual tasks in and around the store. Powered by unique algorithms, Workforce Manager takes into account all store activities routine, sales-driven, corporate-directed, even vendor deliveriesand incorporates them into forecasts that yield optimal labor schedules. Its also the only labor labor scheduling

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system to fully leverage the ad hoc activities that account for more than 30 percent of work in most retail stores.

1.7.3 Time and Attendance

Provides full-featured time entry, labor tracking, and time costing functionality. Time and Attendance provides a wide range of features for managers and employees to track labor and stay in compliance with laws and rules. It supports multiple time clock options, including clocks with the latest technologies such as fingerprint biometrics. The Time and Attendance module for time entry, labor tracking, and time costing retailers with the following capabilities to maximize productivity provides and compliance:
Table 1.1: Module Time and Attendance

1.7.4 Store Walk

Lock in operational gains by fool-proofing store walks and audits throughout the chain . With Store Walk, retailers have the tools to monitor and improve store operations and ensure compliance in a much more cost-effective and timely manner. One customer by using Store Walk, they were able to cut the district managers reports that per- audit times from multiple days to a matter of hours. Imagine the boost store in productivity when applied to every store in your retail chain. Store Walk uses focused sets of questions, created and controlled by retail management, that are used to focus district and regional managers attention on the of their stores that deserve the most attention. But Store Walk goes parts beyondan incredibly effective checklist. Problem areas that show up in the being exceptionbased system can be used to automatically trigger tasks that fix issues using best practices as a model. With Store Walk, every visit and walkthrough mean the start of major improvements retail to your business.

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Check Your Progress-B 1. Briefly comment on the following statements. a) Store Operations enable retailers to ensure consistent execution of their corporate strategy

Introduction to Store Operations

.............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... b) Visibility is everything in the multi branded malls. .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... c) Store operation resources facilitate daily procedures, creating internal controls other and day-to-day retail operations. .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... d) Efficient store operations increase sales and diminish expenses. .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... e) Retail store operation is about converting resources on a day-to-day basis. .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... f) Operations at a store level can only be accomplished by detailed planning. .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... 2. Fill in the blanks with the appropriate word given in the brackets a) Fraschetti is a leading Italian _____________ and household item retailer. (Hardware / Software) b) Attendance provides a _____________ range of feature. (Wide / Narrow) c) The longer you can _______________ customer in the store, the more they will (eliminate/retain buy. ) 3. State whether the following statements are True or False a) b) To work efficiently with traditional shops you have to service oriented. The logistics involved in managing this money order is daunting.

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Store walk cannot improve the retail business. Workforce manager gives retailer incomplete control over budgeting. 4. Write Short Notes on the following: 1. Task Manager .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... 2. Work Force Manager .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. ..................... .............................................................................................. .....................

c) d)

1.8 LET US SUM UP

The better the shopping experience, the more your customers will shop and spend in stores. Store operation systems now enable one to provide differentiated the service secure loyal customers and drive more frequent visits and a larger that will basket size. This unit provides a learner with an aim to analyse the need to be built for the store operations side of the business. Many of the analyses for one group will apply to another group. For example, the basic sales figures used by store operations are important to marketing during a promotion.

1.9 KEYWORDS
Counter service : Is a service where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewellery) and controlled items like medicine and liquor. It was common before the 1900s in the United and is more common in certain States countries. where goods are shipped directly Delivery to consumers homes or workplaces. sales where the salesperson sometimes Door-to-Door travels with the goods for sale. Self-service where goods may be handled and examined prior to purchase

Delivery : Door-to-Door sales : Self-service :

1.10 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress A 2) (a) Top (b)
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Location (c) Foot (d) Geographical (e) Loose

3) (a) True (b) True (c) False

Check Your Progress B 2) (a) Hardware (b) Wide (c) Retain True (b) True (c) False (d) False 3) (a)

Introduction to Store Operations

1.11 TERMINAL QUESTIONS

1. Store Operations provides the learner with an excellent overview of the organization, functions and concerns of Store Operations within a modern retail business. Explain 2. Critically analyze the association between Store Operation, Store Environment, Productivity and Profitability in retail operations. 3. Judge the way in which different retailers in India use the Store Operations in order to improve productivity and profitability. 4. Appraise, compare and contrast differences in retail store operations practices. the nature of decision making within retail organization pertaining 5. Evaluate to retail operations practices. 7. It helps the stores know whats expected of them. And it helps Head Office to step back from the day to day problems because if its clear what a store has to they dont have to contact you each time to ask or negotiate. do, Explain 8. How retail store operation is going to be one of the significant platform for integrated planning . 9. Explain the scenario of retail store in India. 10. What are the strategy behind the stores? Explain with the help of suitable example 11. Retail Business is still dominated by small family run stores. Give your view with the help of real life scenario. 12. Retail works with retailer to clarify and operationalize the strategy. Explain 13. Retailing is one of the pillars of Indian Economy. Elucidate your answer with the help of suitable examples. 14. Task manager gives your manager exactly the information they need. Explain longer you can keep your customer in the store, the more they will 15. The buy.Explain in the light of customers perspective. 16. In store, design is proportionately related to profitability. Discuss learning you have from the Big Bazaar case study? Give your 17. What Comment are the critical part of any clothing display. Explain with respect 18. Hangers of Space Management. 19. India retail store is on the cusp of change. Explain with respect to Indian Retail ndustry I .

1.12 FURTHER READINGS

Books Barry Barman, Joel R. Evans, Mini Mathur Retail Management: (2011). A Strategic , Pearson Education. Approach Krafft, Manfred; Mantrala, Murali K. (eds.) Retailing in the (2006). current and future . 21st century: New York: trends Springer Verlag. ISBN 3540283994.

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A.J. Lamba. 2003. The Art of Retailing, 1st edition, Tata McGrawHill, New Delhi . McGoldrick P. (2002) Retail Marketing 2nd edition McGrawHill Varley R. & Rafiq M. (2003) Principles of Retail Management Routledge& Weitz B.A. (2004) Retailing Management 5th edition Levy M. Irwin Sullivan M. & Adcock D. (2002) Retail Marketing Thomson Fernie S. & Moore C. (2003) Principles of Retailing Fernie J. ButterworthHeineman n Kent T. & Omar O. (2002) Retailing Palgrave Macmillan (2002) Retail Marketing Management FT Prentice Gilbert D. Hall B. & Ward P. (2002) Managing Retail Consumption John Wiley Davies and Ltd Sons Website and Online Resource http://www.digitalretailer.com/RMSdemo/UIc.ht ml http://www.hackneycitizen.co.uk/2010/11/12/the-one-hundred-poundshop/ http://www.mydollarstoreindia.co m http://www.daisosangyo.co.jp/english/storeinfo/storeinfo02.html http://www.dollarstore.s e http://buyerbehaviour.blogspot.com/2008/01/big-bazaar-freedom-salechang... http://www.slideshare.net/theRedIndian/india-retail-2008-big-bazaarscen... http://www.docstoc.com/docs/18635840/Reliance-Retail-StoreOperation British Retail Consortium: http://www.brc.org.uk Institute for Retail http://www.marketing.stir.ac.uk/irs/ Centre for Retail Studies: Research:

http://www.retailresearch.org/home/index.php Group: Interactive Media in Retail http://www.imrg.org/ the History of Retailing and Distribution: The Committee for http:// www.wlv.ac.uk/shass/chord.ht ml Forrester Research Retail: http://www.forrester.com/Research Chain Store Age (USA): http://www.chainstoreage.com National Retail Federation (USA): http://www.nrf.com

Note These questions/exercises will help you to understand the unit better. Try : to write answers for them. But do not submit your answers to the University for Assessment. These are for your practice only.

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