LOVELY SCHOOL OF BUSINESS (LSM)

Term PAPER
OF
RETAIL STORES MANAGEMENT
TOPIC: - Opening of retail store in Andhra
Pradesh(hyderabad)

SUBMITTED TO: SUBMITTED BY:

Mr. Manish Rajput,Sir NAME: Sanjeev kumar
REG NO: 10907431
ROLL NO: RS1905A34
Section: 1905
Contents

Reason for choosing 2

Introduction 3
Location 5
Layout 7
Material Handling 12
Storage System 16
Merchandise Mix 18
Inventory Control & Planning 21
Safety 25
Security 28
Legal Aspects 30
Store Records 32
Reference 34

Reason for Choosing Hyderabad City

Hyderabad is one of the largest city of India. The population of this city is huge so we can more
customer from this city. Per capita income of the people is better than the other city of Andra
Pradesh so they have good expending capacity. Hyderabad is the financial, economic, and
political capital of the state of Andhra Pradesh. The city is the largest contributor to the state’s
gross domestic product, state tax and excise revenues. This show more industrialization and
income of people is there. In the context of competition Laad Bazaar is situated near Charminar.

Name of The Retail Store- INDIAN WAL-MART (A Department Store)

Slogan Good quality at cheap price

Introduction

Andhra Pradesh is a state situated on the south-eastern coast of India. It is India's fourth largest
state by area and fifth largest by population. Its capital and largest city is Hyderabad. The State
has the second longest coastline (972 km) among all the States in India. Andhra Pradesh is
historically called the "Rice Bowl of India". More than 77% of its crop is rice.

Andhra Pradesh was formed by merging Telugu speaking areas of Hyderabad State and the
Telugu speaking part of the Madras Presidency on 1 November 1956.

Geography and climate

Geographically, Andhra Pradesh is composed of most of the eastern half of the Deccan plateau
and the plains to the east of the Eastern Ghats. It is the 4th Largest state in India. The northern
part of the plateau is generally considered as the Telangana region and the southern part is
known as Rayalaseema.[16] These two regions are separated, roughly, by the River Krishna. The
plains to the east of Eastern ghats form the coastal plain region. The Eastern ghats are
discontinuous and have local names for individual sections. The kadapa basin[17] formed by two
arching branches of the eastern ghats is a mineral rich area. The coastal plains are, for a major
part, delta regions formed by the rivers Godavari, Krishna, and Penner. The Eastern ghats are a
major dividing line in the state's geography. The ghats become more pronounced towards the
south and extreme north of the coast. The Eastern ghat region also is home to dense tropical
forests, while the vegetation becomes sparse as the ghats give way to the deccan plateau, where
shrub vegetation is more common. Most of the coastal plains are put to intense agricultural use.
West and South west parts of Andhra Pradesh have semi-arid conditions.

The climate of Andhra Pradesh varies considerably, depending on the geographical region. The
major role in determining the climate of the state is played by monsoons. Summers last from
March to June. In the coastal plain the summer temperatures are generally higher than the rest of
the state, with temperature ranging between 20°C and 41°C

Demographics

Telugu is the official language of the state, spoken by 80.5% of the population. Telugu is the
second most widely spoken language in India, after Hindi[21] The major linguistic minority
groups in the state include the speakers of Urdu (8.63%) and Hindi (1.63%), Kannada (1.8%)
and Tamil (1.91%).[22] The Indian government designated Telugu as a classical and ancient
language on 1 November 2008.[23]

Other languages spoken in Andhra Pradesh by less than 1% each are Marathi (0.84%), Oriya
(0.42%), Gondi (0.21%) and Malayalam (0.1%). Languages spoken by less than 0.1% are the
states residents include Gujarati (0.09%), Savara (0.09%), Koya (0.08%), Jatapu (0.04%),
Punjabi (0.04%), Kolami (0.03%), Konda (0.03%), Gadaba (0.02%), Sindhi (0.02%),
Gorkhali/Nepali (0.01%) and Khond/Kondh (0.01%).

The main ethnic group of Andhra Pradesh is the Telugu people who primarily are Dravidians.

Economy

Agriculture has been the chief source of income for the state's economy. Four important rivers of
India, the Godavari, Krishna, Penna and Thungabhadra flow through the state, providing
irrigation. Rice, sugarcane, cotton, mirchi (chilli pepper), mango and tobacco are the local crops.
Recently, crops used for vegetable oil production such as sunflower and peanuts have gained
favour.
The state has also started to focus on the fields of information technology and biotechnology. In
2004–2005, Andhra Pradesh was at the fifth position in the list of top IT exporting states of
India. The IT exports from the State were Rs.82,700 million in 2004–2005 ($1.8 billion). The
state capital, Hyderabad is considered to be bulk drug capital of the country. 50% of the top 10
companies in Pharmaceutical field are from the state.

The state also commands a very prominent place in the infrastructure space, with many
companies from the state being up there at the fore-front. Andhra Pradesh's GSDP for 2005 was
estimated at $62 billion in current prices. This is a chart of trend of GSDP of Andhra Pradesh at
market prices estimated.

LOCATION

The oft-referenced response to the question “ what are the three most things in retailing?” is
“Location, location, location.” Why is store location such an important decision for a retailer?
There are some reason for this. First location is typically the prime consideration in a customer’s
store choice decision. When customer want to purchase something, mostly they choose the store
that is close to them. Second location decisions have strategic importance because they can be
used to develop a sustainable competitive advantage. If a retailer has the best location, that is, the
location that is most attractive to its customers, competitors cannot easily copy this advantage
and are relegated to occupying the second best location. Third, location decisions are risky.
Typically, when retailers select a location, they invest a huge money. This is the factor which
cannot not be change easily and without losses.

Where you choose to locate your retail business will have a major impact on everything your
shop does. The difference between selecting the wrong location and the right site could be the
difference between business failure and success.

Before choosing a retail store location, define how you see your business, both now and in the
future.

• What do your customers look like?

• Can you visualize your building?
 • Do you know what you want to sell and what you want your business to be known for?
• Have you determined how much retail space, storage area, or the size of the office you
need?

Without the answers to these basic questions, it will be hard to find the perfect location for
generating the maximum amount of profit for your retail store.

There are mainly three types of location to choose for opening a retail store, each with its own
strengths and weaknesses. These are freestanding, city or town business district, and shopping
center.

From these types I’m choosing city business district location because there are many reason
behind this.

Many urban areas are going through a process of gentrification-the renewal and rebuilding of
offices, housing, and retailers in deteriorating areas coupled with an influx of more affluent
people that often displaces earlier, usually poorer residents. Young professionals and retired
empty nesters are moving into these areas to enjoy the convenience of shopping and
entertainment near there they live. Cities often provide significant incentives for retailers to
locate in gentrified and other urban areas.

The store will be opened at Central Business District. CBD is the traditional downtown business
area in a city. Due to its daily activity, It draws many people and employees into the area during
business hours. The CBD is also the bub for public transportation and there is a high level of
pedestrian traffic and they have a large number of residents living in the area.

Population and Our Customer

Because we are going a retail store in Central Business district , the population is large in
numbers that would provide us benefits. Large population means much shopping and much
benefits. It is confirmed from the census Bureau that the population of this area is much. There
is not matter of only huge population but our customers from this population are also more
which are untimately our target.
 Accessibility, Visibility and Traffic

Accessibility to the store is a matter to be considered. That is why we are opening our store in a
City Location because most of our customers are find in this area and they can easily access our
store. The visibility is also confirmed so that the attraction of our store will be able to attract our
customers. That is a point which has value because if our store is located in a street, it will not
be easily visiable to customers and will give a negative effect to our business. It is true that in
such type of area traffic may be a problem but our store will be opened where traffic is less. It is
for the comfortableness of our customers.

Competition and Neighbors

There will be our competitors in this area. Competitors are not always bad for a business because
they will a medium to attract the customer in the market and ultimetaly it will be beneficial for
us because when customer are in the market they may be consumer our store products.
Competition not always results in losses , it also provides benefits for a business because of huge
market in a particular area. And this obstion pull the customer to come in that area.

LAYOUT

Interface design and the interaction between customer and computer are factors critical to
business effectiveness over the Web. A key aspect of conventional retailing is store
layout; an analogous aspect in virtual retail is virtual store layout. “ Store layout needs to
guide the customer silently about where he/she wants to go and for exposing him/her to
the entire store offering” . ( The store itself it’s the most meaningful communication
between the retailer and the customer)

Some factor are very essential while choosing the layout of a store and these are as given
below or we can say that we have to analysis these factors before defining the layout of our
store.

1. Effective Use of Space - Space needs to be used effectively, with all the areas
planned properly to break up the store into logical and functional areas such as POS,
 Back Office, Chaging Rooms, Pantry, Toilets, etc.

2. Inviting Customers - Layout is desinged to attaract the targeted audience. It should

speak on its own and guide customers to all the areas of merchandise.

3. Interiors - Interior arrangements - appearance, walls, sections, areas should be

planned and positioned well. Lighting and Music arrangement needs to be taken into
consideration while planning a layout. It should be placed to suit the kind of shopper.
These arrangements can be changed during different hours in a store.

One method of encouraging customer exploration is to present them with a layout that
facilitates a specific traffic pattern. Customers can be enticed to follow what amounts to a
yellow brick road. Another method of helping customers move through the store is to provide
interesting design elements.

There are many layouts that are used to fulfill the needs of retailers. To understand the
advantages and disadvantages are necessary before select a accurate layout for our store.

Types of Layout

• Grid

• Free Flow

• Loop/Boutique

Grid Layouts
A linear design for a selling floor where fixtures

are arranged to form vertical and horizontal aisles

throughout the store. Supermarkets, discounters,

grocery, drug store and other convenience –

oriented retailers, typically use it. This layout is

done for more of the store’s convenience and the

need to get a lot of product out on display.

Advantages

• It is efficient in terms of space use

• Allows orderly stocking

• Helps shoppers see a great number

of items easily

• Is simple and predictable to navigate

• Efficient to maintain.

Disadvantages

• The psychological effect on customers is one of

feeling constrained and rushed, which reduces

the time they spend browsing.

• Not aesthetically pleasing.

• Contains long gondolas of merchandise and aisles

in a repetitive pattern, which creates a

monotonous effect that makes the customers feel

bored after a certain time.

Free Flow Layout

 Loop or Boutique or Racetrack

It exposes shoppers to a great deal of

merchandise as they follow a perimeter traffic

aisle with departments on the right and left of the

circular, square, rectangular or oval racetrack.

This layout divides the selling floor into shops

within the store. This layout is employed in a

discount or a department store.

Advantages

• This layout exposes shoppers to a

great deal of merchandise

• It forces the customer to visit

multiple departments as they pass

through
• This loop effect facilitates impulse

buying

• The newest merchandise is

prominently displayed on these main

Disadvantage

It has not so much advantages as other layouts have and its disadvantages can be ignored due
to less effects.

We are going to follow the pattern of Racetrack Layout or Loop Layout and there are many
reasons behind this.

Loop Layout is a type of store layout in which a major customer aisle begins at the

entrance, loops through the store – usually in the shape of a circle, square, or

rectangle – and then returns the customer to the front of the store.

MATERIAL HANDLING
Material handling constitutes one of the main activities in the store and, therefore,
considerable attention needs to be given to this subject in order to ensure that handling
methods and handling equipment contribute to efficiency and economy.

Material Handling Equipment:-

Material handling equipment is all equipment that relates to the movement, storage, control
and protection of materials, goods and products throughout the process of manufacturing,
distribution, consumption and disposal. Material handling equipment is the mechanical
equipment involved in the complete system.

Ways in which material handling equipment can improve efficiency

Material handling equipment is used to increase throughput, control costs, and maximize
productivity. There are several ways to determine if the material handling equipment is
achieving peak efficiency. These include capturing all relevant data related to the
warehouse’s operation (such as SKUs), measuring how many times an item is “touched” from
the time it is ordered until it leaves the building, making sure you are using the proper picking
technology, and keeping system downtime to a minimum.

For these purposes we are going to use the following material handling equipments-

•
• Heavy Duty Storage Racks
We are going to use storage racks and heavy duty storage racks which are fabricated using steel
as raw material. These heavy duty storage racks are used in stores where heavy products are kept
and for their qualitative features such as optimum strength, durability and easy to assemble.

•
• Warehouse Racks
We will use install high rise ware house racking, industrial storage racking, cold storage racking
together with flat Pallets of metal & plastic, box pallets of steel plates & wire mesh, collapsible
pallets, stacking frames, storage crates of metal plate/ wire mesh & reinforced plastic and
warehouse trolleys.

•
 • Material Handling Systems
We will use highly durable material handling systems. These are processes by using good quality
raw material to ensure their high standard durability and sturdiness .Our range of material
handling system is available in various sizes.

•
• Cosmetic Racks
We will use Cosmetic Rack commercial design, but one of the most important difference in our
store Cosmetic Display Racks is Latest Design using high Quality Raw Material and Glass
Shelves which Makes them Elegant in Look as well as long life. The Retail stores beauty counter
Cosmetic Rack should be: eye-catching, organized, well lit, and above all, the Cosmetic product
is displayed where it is accessible for the customers to see it.

Wire Mesh Racks-

We will use a range of stainless steel wire mesh racks. These wire mesh racks are provided in
various sizes and materials.

Supermarket Racks
We are going to useof premium quality raw material. These Racks are used for storing various
goods and are available in various sizes and dimensions. These can be also be customized as per
the clients specifications or requirements. Some of the details are mentioned below:

• Modular Construction Stand Alone Gondola

•Single Side Access
•Box Section Pillars
•Plain, Perforated, Mesh, Laminated board
•Easy to assemble and re adjust the levels
•Back panel Options
•Available in Various combinations

Specification

• Height: 1200mm (4') to 2500mm (8')

•Length:600mm (2')/750mm(2'6")/900mm (3')
•Depth: 225mm(9") to 600mm (24") Any Combination Made out of CR & HR Steels Capacity
65Kg per Level (Higher Capacities possible by request)
Finish

•Powder Coated with desired Standard Color

Application

• Can be used for any Items

•To be used at the wall side

Rack
We are going to use this type of racks that will be much beneficial material handling as they are
strong and easy to move from here to there.

Gift items/ Show Piece Racks

These racks will be used for gift iteams and show piece items that will be kept in our store.

Storage systems
The term Storage refers to the physical act of storing the materials in a store, on pallets
shelves, racks boxes, almirahs etc. with the objective of retrieving them later for issue or
dispatch to the user or customer. The purpose of any store is to provide to users or customers
the right materials,in the right quantity, at the right time and at the lowest possible cost.

Importance of Efficient storage

 1. There should be maximum economy exercised in relation to the volume of
space occupied. The flow of goods through stores m ay seriously be affected and
mechanical handling may not be possible.

2. Every material requires a specific method of string to obtain the maximum

efficiency with respect to ease of handling,shelf life and prevention of deterioration,
Suitability of storage equipment is, therefore, a major factor, it is also quite likely
that new lines of production involving new material may be introduced.

3. Apart from waste, spillage of materials may also occur due to improper
storage. Dampness is one major problem in all stores because it leads to corrosion of
metals, solidified powders, discolouration of paper, ect.

4. Another aspect of storage is prevention of losses due to evaporation,

pilferage, etc. Theft is common where there is no control on the people coming into
the store. The store should be out of bounds for every outsider.

5. The bin must be of the right size. If it is small, the item will stick out and
cannot be placed correctly and untidy stacking will result.

6. Storage must also enable adequate ease in counting, checking and issue.

Storage Methods

The methods of storage that will take place our store are as following-

1. Binned Storage:- A bin is a receptacle in which materials are kept. This is by

far the most popular method in most stores and we are going to follow this pattern.

2. Block Stocking:- The materials, usually in containers (boxes , sacks, cartons,

etc.) will be stacked one on top of another to a maximum safe height.

3. Shelving:- Materials will be stored on shelves(steel, wood, fibre-board, etc.)

4. Racking:- This is often used to store palletized goods. One pallet is soted on
the stacking side of the rack. It can e made to any size and erected or dismantled very
rapidly. If forklifts are used, racks can to up to 30 feet.

Merchandise Mix
The breadth and depth of the products carried by retailers is known as merchandise mix.
Merchandise that will be used in our store are as below-

Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids Girls
Kitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids Girls
Blues & Khakis : Mens Trousers Zero Degree : Kids Boys
Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts
Mens Trousers &
Chlorine : Mens Shirts Massa Bay :
Bermudas
Mens Shirts, T-Shirts,
Fume :
UnderGarments.

HOUSE HOLD

Cleaning Aids
Plastic Aids
 Gifts & Novelties

Thermo Ware

Appliances

Kitchen Aids

Covers
Bath Furnishing

Kitchen Furnishing

Drawing Room Furnishing

 Opticals
Perfume-Deo

STATIONERY
School stationery
Office stationery

Books

Bag

Time Zone

Men's Accessories
Inventory Planning & Control
The retail industry can be extremely competitive and one of the biggest challenges is
managing a store’s retail inventory. Businesses need to have space to store a wide
number of products along with a wide variety. If a retail store does not carry enough of a
product, then they are losing potential customers who will shop elsewhere.

Retail inventory is different from other forms of inventory because of the quantities
needed. Retail chains need warehouses to keep all of their stock and the means to
transport it to their stores. Keeping up with such large quantities can be difficult for
anyone, even with the help of an automated system. To track a company’s products, a
retail inventory management system needs to be successfully implemented.

What Is Retail Inventory Management?

Retail inventory management is the process and methods used to keep track of the stock
in a retail business. These methods control everything from ordering, shipping,
receiving, tracking inventory, retail turn-over, and storage. Retail inventory management
can help keep a business’ profits at a steady margin as well as reducing theft and loss of
inventory. Many retail businesses lose money every year because they do not have a
successful inventory management system in place.

Retail Inventory Management should provide the following functions for a retail
business:

• Track and manage all of the inventory for the business

• Keep up with store markdowns

• Evaluate how well some groups of products do in sales

• Provides analysis for comparison shopping with competitors

• Collect data on the sales and inventory of individual stores using SKU

• Allows you to accurately review your inventory

How To Manage Inventory

Most businesses use some form of computer software to manage their inventory. Unless
the retail business is very small, doing it manually would be very impractical, especially
for large companies that deal in thousands of individual products.

A business that has a successful system for retail management will allow the business to
keep a sufficient amount of stock to meet customer demand. If a business does not have
enough inventory, then it can slow down cash flow. Too much inventory can cost a
business money and take up more room.

When dealing with retail inventory management, companies will utilize one of these
systems:

• Point-of-sale terminals – These are check-out points that automatically

update a company’s inventory levels.

• Job costing and inventory systems – Another automatic system that updates
computerized levels of inventory.

• Barcodes and readers – Every product these days contains a barcode with the
items information. Barcodes makes it easy and quick track stock.

• Electronic Supplier Product catalogs – This system can update inventory

levels automatically through either the internet or media disk.

Managing retail inventory involves several characteristics and steps. One of the most
important steps is to make sure that you always remove products from the system as
soon as they are sold. The same is true for receiving shipments of new stock. Make sure
you record it as quickly as possible.

Physical inspections should be regularly performed to make sure the computerized

system is accurate with what is actually in stock. A physical inspection involves
manually looking over the stock to see that they numbers match.
Review sales reports weekly. You want to do this to see what is selling and what is not.
Products that spend more time on the shelf should be re-evaluated or discounted to get
rid of them.

Another step is to research to find the right products to sell. Businesses should come up
with a target market and try to carry the right type of inventory to meet that target. To
make sure that you have the right product in your stores, you need to know what type of
products to order and how much, when to order, and when the products should arrive.

Keeping up with retail inventory management should be delegated to several individuals

or a department.

Prevention of Inventory Theft and Loss

One of the biggest problems to plague retail inventory is theft and loss of retail products.
Every time this happens, it costs a business money. Preventing inventory theft can be
difficult. But with the right system, we can definitely reduce it. Here are some tips:

• We will not share or hand out the same password for every cashier. Having
separate passwords and log-ins tells who was manning the register at certain times.

• We will always check out any transactions that were voided or canceled. This
is a common way for inventory to disappear from a store.

• We will Set up a password-protected security on all computers and systems.

Only when employees absolutely must have access should it be granted.

• We will go over inventory reports every day to make sure sales figures match
with the current quantities.

• We will make sure the back door has a security alarm system that is activated
every time the door is opened without authorization. If employees know the door should
not be opened without permission, they shouldn’t open it.

• We will inspect the garbage every night before it goes out. Use clear plastic
bags so that you can easily see inside the bag and make sure there is no inventory hidden
inside.
• We will set up security cameras not only in the store but in the back storage
as well. This allows you to keep an eye on items out on the racks as well as in stock.

INVERNTORY MANAGEMENT

Retail inventory management is probably one of the most complex of all inventory
management departments. In retail management, you’ll have a greater variety of
products to store and a great deal more of each product. In fact, your warehouse may
never be big enough to hold all the merchandise that you need to keep in stock, and it
can be difficult to maintain the right number of any particular item at any given time.
How can you solve the problem, or at least address it, before it becomes too much to
handle?

Retail inventory management should never be the job of a single individual but should
be divided into departments and classified accordingly.

Delegation of Responsibility

Depending on the size of your store, your retail inventory management could be divided
into the two main categories and delegated to two individuals who would be responsible
for the management of your entire inventory, or you could break it down further, having
an employee in charge of each smaller division. This would allow the individual to gain
an intimate knowledge of how quickly each product sold and how often it needed to be
reordered. This would easily allow you to account for excess stock in some areas while
others remained fairly empty.

The important thing to remember in retail inventory management is that you most likely
have a little storage space for an enormous array of products and have to determine what
will and won’t be important to maintain in quantity. Being efficient in carefully stocking
the storage areas, as well as knowing what your best sellers are, can help you keep your
retail inventory management process strong and in balance.

Safety
The term Safety encompasses the safety of the material in the store, facilities used,
including materials handling equipment and the safety of the personnel working in a
store.

Personal Safety in Retail Stores

Retailers have the dual responsibility of protecting both their workers and their
customers. Major retailers are open relatively long hours during the week and even on
weekends. Inevitably, something can go wrong. Certain systems must be in place to
create optimal personal safety in retail stores.

Significance

1. We are going to use some safety patterns for the beneficial for our stores and
employees as grocery stores will keep boxes near shelves when stocking to prevent
customers from tripping over them.

Function

2. Retail workers who stock or lift objects during the day should wear safety
belts to protect their back. Moreover, retail employees are often required to wear
comfortable, non-slip shoes to prevent slipping.

Types

3. Ergonomic injuries can be a potential hazard for retail employees, which can
be caused by repetitive motion or stress. Retailers should encourage employees to stop
and rest every 20 or 30 minutes to prevent injuries.

Other Safeguards
4. Retail stores usually install security cameras and keep parking lots and
buildings illuminated at night. This helps protect store employees and shoppers from
theft and potential violence. Personal safety in retail stores also includes instructions for
fires and the handling of money.

Considerations

5. Retail stores should always train their employees on personal safety issues
such as lifting, transporting goods and using equipment.

Health & Safety

Every workplace has its hazards, but no one ever expects accidents to happen to them at
work. In fact, new and young workers are injured on the job every day.

In the retail industry, the leading causes of injury are:

• Handling bags, boxes and other objects

• Using tools and equipment (e.g., from box cutters to pallet jacks)

• Slips and falls

Many other causes of injury are less frequent but still common.

Tips for working safely

There are some tips related to safety in the stores and these tips will be given our
employees.

Handling & lifting

Improper handling and lifting of heavy or bulky objects is a

major source of strains, sprains, neck and back injuries, cuts,

bruises, broken bones and hernias. Any one of these injuries

can affect you for the rest of your life.

Signs and symptoms of sprains and strains

It is important to recognize the early signs and symptoms of

sprains and strains. The sooner treatment starts, the better.

Signs and symptoms include:

• Swelling

• Redness

• Difficulty moving a particular body part

• Numbness

• Tingling, and

• Pain

If you notice any early signs or symptoms of sprains and

strains, report them to your supervisor, manager or employer

(or first aid attendant, health and safety committee, safety

representative, supervisor).

Sprains and strains (known as musculoskeletal injuries, or “MSIs”) are

the most common type of work-related injury. These can arise from

repetitive movement or from overexertion, which is associated with

lifting.

Most MSIs result from overexertion, and many of these are associated

with lifting. When lifting, you need to think about the force required to

lift the load and about your posture. Muscles and tendons can be
 overloaded, especially when your body is in an awkward posture.

However, a bit of prevention can go a long way toward ensuring

injury-free muscles and joints.

Security
Security is becoming more and more prevalent in today’s world, and has become a
priority to businesses worldwide. With years of experience and technically advanced
anti-shoplifting equipment in retail sector, we will utilize it in our store. We will provide
products and services that will address our stores loss prevention needs.

For this purpose we will use different types of equipments and these are as below—

1. We will use Electronic Article Surveillance(EAS) that has been designed to

protect retail stores form shoplifting.

2. Radio Frequency Identification Device(RFDI)

3. Closed Circuit Television as dixed and domed cameras, public display

monitors and digital video recorders that are always on watch and document store
activity.

Security is becoming an increasingly important consideration in all aspects of our lives.

Unfortunately, now more than ever, there are greater threats to both. Doors and window. Are
the external doors and windows solidly constructed? Are they fitted with deadlocks? Are
doors and windows locked at all times? Are skylights secured?

The following 10-point checklist provides a starting point for considering the security of
your business premises:

1. Security lighting. Is security lighting installed throughout and around the premises? Are all
lights operating? Is some lighting left on inside the business at night? Are entry and exits well
lit?

2. Building design. Is the building solidly constructed so unauthorised access is restricted? Is

there adequate protection against entry through the roof? Is the building secured to reduce the
risk of vehicle ram raid?
3. Doors and window. Are the external doors and windows solidly constructed? Are they fitted
with deadlocks? Are doors and windows locked at all times? Are skylights secured?

4. Property identification. Has the make, model and serial numbers of items such as computers,
printers and photocopiers been recorded? Is your property photographed for identification?

5. Telephone. Are telephones pre-programmed with emergency contact numbers? Are telephone
lines installed in such a way so they cannot be tampered with (particularly important if your
alarm system is connected to your telephone line)?

6. Safes. Has a safe been installed? Is it appropriately positioned? Does it have a drop-chute
facility? Is it kept locked?

7. Cash handling. Are there established cash handling procedures? Do you have irregular
banking procedures? Is money counted out of public view? Do you use a company to transport
cash?

8. Key and valuables control. Is there a key register? Are all keys secured? Do staff have
somewhere to store their personal items securely? Is there restricted access to this area?

9. Alarm systems / surveillance equipment. Is an intruder alarm system installed? Is it

monitored? Is surveillance equipment installed? Is footage recorded with the tapes kept for a
minimum of seven days? Is there a fire alarm?

10. General. Are sensitive documents appropriately destroyed? Are computer passwords
changed regularly? Do you have an emergency evacuation plan? Do staff know the plan?

In addition to the above checklist, the implementation of a security plan is an ideal time to
review your business insurance. Consider:

• What does your Shop & Retail Insurance policy cover?

• Have you met all the minimum requirements stipulated in your policy?
• Have you updated your business insurance policy to reflect any new purchases or changes
to your business?

• Do you need to upgrade your insurance to include add-ons such as stock protection,
contents insurance or theft by employees?

Legal Aspects

Health and Safety

Every business owner has to ensure the health and safety of their employees at the
workplace. This is one of the major concerns of business owners of all businesses, whether
big or small. Such responsibilities are both ethical and legal. If your business has a physical
location, then you will need to register your business with OSHA (Occupational Safety
Health Administration. This goes double if your employees face on the job hazards, such as
building things or handling hazardous materials. Not following the law when it comes to
health and safety is a sure-fire way to get into legal trouble.
Employment and Age
It is necessary for every business owner to ensure compliance of age and employment-
related laws along with the health and safety laws applicable to their particular business. In a
case where a business is sold to another owner, the new owner needs to follow and maintain
the correct policies and procedures together with appropriate practices that accompany the
purchase of the business. It would be advisable to seek information from the EEOC (Equal
Employment Opportunity Commission) to ensure legal compliance and help you stay within
the age limitations imposed by the law.
Buildings and Property
As a small business owner, we need to know the building codes in the district where our
business will be operating. This will ensure that there are no building code violations and
that there are no structural issues or other problems that may invite fines.
Fair Trading Practices
Fair trading practices help to avoid deceptive conduct and prevent economic injury to
consumers and other businesses. Fair Trade includes unfair competition, false advertising,
copyright infringement, etc. As a small business owner, you should make sure to acquaint
yourself with Better Business Bureau guidelines and register our business with them.
Registering with the BBB shows that our business has an open-door policy and will be fair
and equitable when dealing with complaints or other issues. In general, when selling
products, either wholesale or retail, all sales should be on equal terms and prices must be
non-discriminatory.

Licensing and Insurance

It is important that all relevant and necessary licenses pertinent to the business be obtained.
The proper way to proceed in applying for any licenses you need is through your state’s
Business License division. Your business should also be insured (in fact, this is often
required), preferably with a reputable insurance company. To get more information on
government regulations related to licenses, permits, registrations etc. for a specific line of
business, check with related trade associations, business colleagues and experienced
consultants. It is best to hire an attorney to go through all documentation, plans and papers
related to the legal aspects of your business. This will help you to comply with any legal
requirements and ensure that your business is protected from lawsuits and other legal
complications.

Stores Records
Why Keep Records?
There are many reasons to keep records. In addition to tax purposes, you may need to keep
records for insurance purposes or for getting a loan. Good records will help you:

•Identify sources of income. You may receive money or property from a variety of sources.
Your records can identify the sources of your income. You need this information to separate
business from nonbusiness income and taxable from nontaxable income.
•Keep track of expenses. You may forget an expense unless you record it when it occurs.
You can use your records to identify expenses for which you can claim a deduction. This
will help you determine if you can itemize deductions on your tax return.
•Keep track of the basis of property. You need to keep records that show the basis of your
property. This includes the original cost or other basis of the property and any improvements
you made.
•Prepare tax returns. You need records to prepare your tax return. Good records help you to
file quickly and accurately.
•Support items reported on tax returns. You must keep records in case the IRS has a
question about an item on your return. If the IRS examines your tax return, you may be
asked to explain the items reported. Good records will help you explain any item and arrive
at the correct tax with a minimum of effort. If you do not have records, you may have to
spend time getting statements and receipts from various sources. If you cannot produce the
correct documents, you may have to pay additional tax and be subject to penalties.
Kinds of Records To Keep
The IRS does not require you to keep your records in a particular way. Keep them in a
manner that allows you and the IRS to determine your correct tax.
You can use your checkbook to keep a record of your income and expenses. In your
checkbook you should record amounts, sources of deposits, and types of expenses. You also
need to keep documents, such as receipts and sales slips, that can help prove a deduction.
You should keep your records in an orderly fashion and in a safe place. Keep them by year
and type of income or expense. One method is to keep all records related to a particular item
in a designated envelope.
In this section you will find guidance about basic records that everyone should keep. The
section also provides guidance about specific records you should keep for certain items.

Computerized records. Many retail stores sell computer software packages that you can use
for recordkeeping. These packages are relatively easy to use and require little knowledge of
bookkeeping and accounting. If you use a computerized system, you must be able to
produce legible records of the information needed to determine your correct tax liability. In
addition to your computerized records, you must keep proof of payment, receipts, and other
documents to prove the amounts shown on your tax return.
Copies of tax returns. You should keep copies of your tax returns as part of your tax records.
They can help you prepare future tax returns, and you will need them if you file an amended
return. Copies of your returns and other records can be helpful to your survivor or the
executor or administrator of your estate. If necessary, you can request a copy of a return
and all attachments (including Form W-2) from the IRS by using Form 4506, Request for
Copy of Tax Return. There is a charge for a copy of a return. For information on the cost
and where to file, see the Form 4506 instructions.
If you just need information from your return, you can order a transcript by calling 1-800-
829-1040, or using Form 4506-T, Request for Transcript of Tax Return. There is no fee for a
transcript. For more information, see Form 4506-T.
Basic Records
Basic records are documents that everybody should keep. These are the records that prove
your income and expenses. If you own a home or investments, your basic records should
contain documents related to those items. Table 1 lists documents you should keep as basic
records. Following Table 1 are examples of information you can get from these records.
There are some factors that will be kept in record and these are as
•income tax returns
•income tax payment checks
•investment trade confirmations
•important correspondence
•legal records
•retirement and pension records
•CPA audit reports
•annual financial statements and books of account
•corporate documents (incorporation, charter, by-laws, etc.)
•stock records
•retirement and pension records
•licenses, patents, and trademarks and registration packets
•investment trade confirmations
•documents substantiating fixed asset additions
•note: consult your accountant before getting rid of any financial paperwork
•note: consult your attorney before getting rid of any legal paperwork
How long should I keep records?
The length of time you should keep a document depends on the action, expense, or event the
document records. Generally, you must keep your records that support an item of income or
deductions on a tax return until the period of limitations for that return runs out.
The period of limitations is the period of time in which you can amend your tax return to
claim a credit or refund, or that the IRS can assess additional tax. The below information
contains the periods of limitations that apply to income tax returns. Unless otherwise stated,
the years refer to the period after the return was filed. Returns filed before the due date are
treated as filed on the due date.
Note: Keep copies of your filed tax returns. They help in preparing future tax returns and
making computations if you file an amended return.
1. You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep
records for 3 years.
2. You do not report income that you should report, and it is more than 25% of the gross
income shown on your return; keep records for 6 years.
3. You file a fraudulent return; keep records indefinitely.
4. You do not file a return; keep records indefinitely.
5. You file a claim for credit or refund* after you file your return; keep records for 3 years
from the date you filed your original return or 2 years from the date you paid the tax,
whichever is later.
6. You file a claim for a loss from worthless securities or bad debt deduction; keep records
for 7 years.
7. Keep all employment tax records for at least 4 years after the date that the tax becomes
due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a
document or throw it away.
Are the records connected to assets?
Keep records relating to property until the period of limitations expires for the year in which
you dispose of the property in a taxable disposition. You must keep these records to figure
any depreciation, amortization, or depletion deduction and to figure the gain or loss when
you sell or otherwise dispose of the property.
Generally, if you received property in a nontaxable exchange, your basis in that property is
the same as the bases of the property you gave up, increased by any money you paid. You
must keep the records on the old property, as well as on the new property, until the period of
limitations expires for the year in which you dispose of the new property in a taxable
disposition.
What should do with my records for nontax purposes?
When your records are no longer needed for tax purposes, do not discard them until you
check to see if you have to keep them longer for other purposes. For example, your
insurance company or creditors may require you to keep them longer than the IRS does.

Reference

http://en.wikipedia.org/wiki/Andhra_Pradesh
http://retail.about.com/od/location/a/selecting_site_2.htm
http://www.sonystyle.com/webapp/wcs/stores/servlet/CategoryDisplay?
catalogId=10551&storeId=10151&langId=-
1&identifier=S_BrandShowcase_Retail_Locations
http://www.scribd.com/doc/26417506/Inventory-Control
file:///C:/Documents%20and
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%20Fixtures,%20Steel%20Shelving,%20Retail%20Displays,%20St

file:///C:/Documents%20and
%20Settings/Administrator/Desktop/retail
%20material/MATERIALHANDLING%20Ppt%20Presentation.htm

Ajay pandit(2008) Retailing Management 8th edition New Delhi

Tata McGraw Hill Education Private Limited, New Delhi