STORE

MANAGEMENT
•Managing the Store
•Store Layout, Design
& Visual
Merchandising
•Customer Service
•Retail Selling
Managing the
Store
Nordstrom for Store Managers

“This is your business. Do your own thing.

Don’t listen to us in Seattle, listen to your

customers. We give you permission to take

care of your customers.”

James Nordstrom, the CEO of Nordstrom’s

 Responsibilites of Store Managers
Undertaken by Store Managers
Managing Store Employees
John
Recruiting & selecting
Socializing & training
Motivating
Evaluating & providing constructive feedback
Rewarding & compensating
$ Controlling Costs
Increasing labor and productivity
Reducing maintenance & energy costs
Reducing inventory losses
Managing Merchandise
Displaying merchandise & maintaining visual standards
Working with buyers
Suggesting new merchandise
Buying merchandise
Planning & managing special events
Marking down merchandise
Providing Customer Service
 Steps in the Employee Management
Process

1. Recruit & select 2. Socialize & train

employees new employees

3. Motivate & manage

4. Evaluate employee 5. Compensate &
employees to
performance & reward employees
achieve store
provide feedback
performance goals
Recruiting and Selecting Employees

• Job analysis

• Job description

• Locating prospects

• Screening applicants

­ Application form, references, testing

• Selecting applicants

­ Interviewing candidates
Socializing and Training Employees

• Orientation program

• Training

­ Where, when, what

Motivating and Managing Employees

• Leadership

­ Task and group maintenance management

­ Participate and authoritarian

• Motivation

­ Setting goals

­ Maintaining morale
Evaluating and Providing Feedback to
Employees

• Evaluation

­ Who, when, how often?

• Feedback

­ Performance outcome vs. process

Factors Used to Evaluate Sales
Associates at The Gap

25% Operations 50%

Sales/Customer
25% Compliance Relations
Common Evaluation Errors

Ratings unduly negative

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

• Extrinsic vs. intrinsic rewards

• Compensation
­ Type
• Straight salary

• Straight commission

• Salary plus commission

• Quota bonus (Setting quotas)

­ Individual vs. group incentives

 Advantages and Disadvantages of
Straight Salary

Straight Salary Incentive Compensation

Offers flexibility in assigning employees Has high motivating potential

to activities

Builds stronger employee commitment Has more variable cost

Is easy for employees to understand Relates compensation to productivity

Is easy to administer

Allows for better performance of

non­selling activities such as customer
service
Controlling Costs

• Labor scheduling

• Store maintenance

• Energy maintenance

• Reducing inventory loss

Sources of Inventory Shrinkage

• Employee theft (38%)

• Shoplifting (36%)

• Mistakes and inaccurate records (19%)

• Vendor errors (6%)

Preventing Shoplifting

• Store design

• Employee training

• Good customer service

­ Security measures
­ TV cameras
­ Prosecution
Reducing Employee Theft

• Trusting, supportive work atmosphere

• Employee screening
­ Honesty, drug testing

• Security personnel - mystery shoppers

• Policies and procedures

Employee theft is an HR problem.

Store Layout,
Design, and
Visual
Merchandising
Grid Store Layout

Receiving & storage

Fruit
Books, magazines, seasonal Cart
display area
Vegetables Checkouts

Entrance
Office &
customer
service
Exit
J.C. Penney Racetrack Layout at North
Park Center in Dallas, Texas
Free-Form Layout

Storage, Receiving, Marketing

Dressing Rooms

Hats and Handbags

Underwear
Stockings

Accessories

Tops
Checkout counter
Casual Wear

Tops
Pants

Clearance

Skirts and Dresses

Items
Jeans

Feature Feature

Open Display Window Open Display Window

Space Planning Issues

• How profitable is the merchandise?

• How will the merchandise be displayed?
• What items does the retailer wish to
emphasize?
• Will the location of certain merchandise
draw the customer through the store?
Planogram for Salad Dressing
Merchandise Presentation Techniques

• Idea-Oriented Presentation
• Style/Item Presentation
• Color Organization
• Price Lining
• Vertical Merchandising
• Tonnage Merchandising
Straight Rack
Rounder
Four-Way
Gondola
Customer Service
 Services Offered by Retailers

Department and Discount

specialty store stores
Acceptance of credit cards
Alteration of merchandise
Child care facilities
Credit
Delivery to home
Demonstrations of merchandise
Displaying of merchandise
Dressing rooms
Extended store hours
Extensive signage to identify merchandise
 Services Offered by Retailers

Department and Discount

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

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

• Customized
­ Greater potential benefits to customers
­ Greater inconsistency
­ Higher cost
• Standardized
­ Lower cost
­ High consistency
­ Meets but does not exceed expectations
 Role of Expectations in Evaluating
Retail Service
Service quality
Perception of
service delivered

Satisfaction with Past

service quality experiences

Customer
expectations

Dissatisfaction with Competitive

service quality offerings

Perception of
service delivered
 Cues Customers Use to Evaluate Retail
Service Quality
TANGIBLES
 Appearance of store
 Display of merchandise
 Appearance of salespeople
UNDERSTANDING & KNOWING
CUSTOMER
 Providing individual attention
 Recognizing regular customers
SECURITY
Feeling safe in parking lot
Communications & transactions
treated confidentially
CREDIBILITY
 Reputation for honoring
commitments
 Trustworthiness of salespeople
 Guarantees & warranties provided
 Return policy
INFORMATION PROVIDED TO
CUSTOMERS
 Explanation of service & its cost
 Notes sent to customers informing
them of sales
 Assurances that a problem will be
resolved
 Cues Customers Use to Evaluate Retail
Service Quality
COURTESY
 Friendliness of employees
 Respect shown to customers
 Interest shown in customers
ACCESS
 Short waiting time to complete sales
transaction
Convenient operating hours
 Convenient location
 Manager available to discuss
problems
COMPETENCE
 Knowledgeable & skillful employees
 Customer questions answered
RESPONSIVENESS
 Returning a customer’s call
 Giving prompt service
RELIABILITY
 Accuracy in billing
 Performing service at designated time
 Accuracy in completing sales
transaction
 The GAPS Model for Improving Service
Quality
Knowledge gap
Customer
Management expectations
perceptions of
customer
expectations Service gap
Standards gap
Retailer
Standards communications
specifying service about services
to be delivered
Delivery gap
Communication gap
Actual
service delivered Customer
perception of
service
Closing the Knowledge GAP

• Customer research

• More interactions between managers

and customers

• Better communications between

managers and service providers
Closing the Standards GAP

• High quality service commitment

• Innovative solutions

• Define the role of service providers

• Set service goals

• Measure service performance

Closing the Delivery GAP

• Information and training

• Internal communications

• Reduce conflicts

• Empower employees

• Providing incentives
Closing the Communications GAP

• Realistic commitments

• Managing customer expectations

Service Recovery

• Listen to the customer

• Provide a fair solution

• Resolve problem quickly

­ Reduce number of contacts

­ Give clear instructions

­ Avoid jargon
Retail Selling
Steps in the Selling & Buying Process

1. Approaching the customers

2. Collecting Information

3. Presenting & demonstrating merchandise &

overcoming reservations

4. Making the sale

5. Building future sales

Steps in the Selling & Buying process

1. Problem recognition

2. Information search

3. Alternative evaluation

4. Alternative choice

5. Postpurchase evaluation
 Selling Benefits, Not Features

PRESENTATION EMPHASIZING FEATURES

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

PRESENTATION EMPHASIZING BENEFITS

This chinawear will last a long time. It is stronger than most
chinawear because it is fired at 2600 °F. To prevent the cup
handles from breaking off, they are molded into the cup body
before it is fired. The pattern will also last a long time. It won’t
fade because a hard leadless glaze is applied over the pattern.
Types of Reservations

Store
I don’t know
about this store’s
return policy.

Location
Timing Merchandise
I can’t find it.
I haven’t made I don’t think this
up my mind. is made well.

Salesperson Price
I don’t like him. This is too expensive.
Building Relationships With a Customer

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

(214)363-8311
400 NORTHPARK CENTER Ext. 2127
DALLAS, TX 75225 Res. 327-2258
 Patterns of Nonverbal Communication

INTERPRETATION BODY ANGLE FACE ARMS HANDS

Power, Exaggerated Piercing Hands on Hands

dominance, leaning over. eye hips. behind neck
superiority contact. or back.
Steepling
(fingertips
touching).

INTERPRETATION BODY ANGLE FACE ARMS HANDS

Nervousness, Fidgeting or Head Hands to Wringing

submission, shifting from down. face, hair. hands.
apprehension side to side. Minimum Rubbing Fingers
eye back of clasped.
contact. neck.
Constant
blinking.
Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships,
3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).
 Patterns of Nonverbal Communication

INTERPRETATION BODY ANGLE FACE ARMS HANDS

Disagreement, Turning Negative Arms Fist. Finger

anger, body away. shake of head, crossed. pointing.
skepticism frown. Lips Finger Hands
pursing. Eyes under gripping
squinting. collar. edge of
Chin display.
thrusting out.
INTERPRETATION BODY ANGLE FACE ARMS HANDS

Boredom, Slouching Lack of eye Playing with

distinterest against contact. object on
display. Looking at display case.
door, at Drumming
watch, out on display
window. case..
Blank stare.
Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Parternships,
3rd ed. (Burr Ridge, IL: Irwin/McGraw-Hill, 1998).
Points to Consider in Handling Objective

Anticipate objections

Create opportunities from objectives

Maintain a positive attitude

Understand customer objections

 Sources of Objections

• The customer may be objecting

due to lack of information

• The customer may be setting a

condition

• The objection may be genuine

Indicators of Assertiveness
Less Assertive
“Ask” oriented
Go-along attitude
Cooperative
Supportive
Risk avoider
Makes decisions slowly
Lets others take initiative
Leans backward
Indirect eye contact
Speaks slowly, softly
Moves deliberately
Makes few statements
Expresses moderate opinions
More Assertive
“Tell” oriented
Take-charge attitude
Competitive
Directive
Risk taker
Makes decisions quickly
Takes initiative
Leans forward
Direct eye contact
Speaks quickly, intensively
Moves rapidly
Makes many statements
Expresses strong opinions
Indicators of Responsiveness

Less Responsive More Responsive

Controls emotions Shows emotions
Cool, independent Warm, approachable
Task oreinted People oriented
Use facts Uses opinions
Serious Playful
Impersonal, businesslike Personable, friendly
Moves rigidly Moves freely
Limited use of gestures Gestures frequently
Formal dress Informal dress
Disciplined about time Undisciplined about time
Controlled facial expressions Animated facial expressions
Monotone voice Many vocal inflections
The Social Style Matrix

Low Responsiveness
D C B A
L S
1 A S 1
IC R
Y T VE
L I
2 AN
A DR 2
Low High
Assertive Assertive
S E S
LE IV
3 B SS 3
IA RE
AM EXP
4 4
D C B A
High Responsiveness
Cues to Identify the Social Styles of
Customers
Analyticals
Technical background
Achievement awards on
wall
Office is work-oriented,
showing a lot of activity
Conservative dress
Like individual leisure
activities, such as reading,
individual sports
Drivers
Technical background
Achievement awards on
wall
No posters or slogans on
office walls
Calendar prominently
displayed
Desk placed so contact with
people is across desk
Conservative dress
Like group activities, such
as politics, team sports
Cues to Identify the Social Styles of
Customers
Amiables
Liberal arts background
Office has friendly, open
atmosphere
Pictures of family displayed
Personal mementos on wall
Desk placed for open
contact with people
Casual or flamboyant dress
Like individual leisure
activities, such as reading,
individual sports
Expressives
Liberal arts background
Motivational slogan on wall
Office has friendly, open
atmosphere
Cluttered, unorganized
desk
Desk placed for open
contact with people
Casual or flamboyant dress
Like group activities, such
as politics, team sports
Versatile and Non-Versatile Behavior

Less Versatile More Versatile

Limited adaptability to Able to adapt to others’
other’s needs needs

Specialist Generalist

Well-defined interests Broad interests

Firm of principle Negotiates issues

Predictable Unpredictable

Single-minded Looks at many sides of

issue
Techniques to Alter Sales Behaviors

Reducing Assertiveness Reducing Responsiveness

Ask for customer’s opinion Become businesslike

Acknowledge merits of Talk less

customer’s viewpoint

Listen without interruption Restrain enthusiasm

Be more deliberate don’t rush Make decision based on

facts

Let customer direct flow of Stop and think

conversation
Techniques to Alter Sales Behaviors

Increasing Assertiveness Reducing Responsiveness

Get to the point Verbalize feelings

Don’t be vague or ambiguous Express enthusiasm

Volunteer information Pay personal compliments

Be willing to disagree Spend time on relationships

rather than business

Take a stand Socialize--engage in small talk

Initiate conversation Use nonverbal communication