retail organization

8/8/2019 Retail Organization

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Retail Organization

Retail Management

Additional Readings


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Retail OrganizationPlanning

and

Assessment

Management

Needs


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Outlining Specific Tasks

To Be Performed in a

Retail Distribution Channel

Grouping Retailers

Tasks into Job

Dividing the Tasks Among

Channel Members

& Customers

Integrating Positions

Through an

Organizational Chart

Classifying Jobs


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Tasks to be performed in a

retail distribution channel1. Buying merchandise

2. Shipping merchandise

3. Receiving merchandise and checkingincoming shipments

4. Setting prices

5. Marking merchandise

6. Inventory storage and control

7. Preparing merchandise and windowdisplays


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retail distribution channel8. Facilities maintenance (e.g., keeping the

store clean)

9. Customer research10. Customer contact (e.g., advertising,

personal selling)

11. Facilitating shopping (e.g., convenient

site, short checkout lines)12. Customer follow-up and complaint

handling


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retail distribution channel13. Personnel management

14. Repairs and alteration of merchandise

15. Billing customers

16. Handling receipts and financial records

17. Credit operations

18. Gift wrapping19. Delivery to customers


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retail distribution channel20. Return of merchandise to vendors

21. Sales forecasting and budgeting

22. Coordination


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Dividing Tasks

Performer Tasks

Retailer Can perform all / some of the tasks listedbefore

Manufacturer /Wholesaler

Shipping, marking merchandise,inventory storage & control, display

preparation, sales forecasting etc.

Specialists Buying, delivery, warehouse, MR, Ad

agency, computer service etc.

Consumer Delivery responsibility, Cash only, selfservice, direct marketing, do it yourself

etc.


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Dividing

Tasks

A task should be carried out only if desired by

the target market

A task should be done by the party withproper competence

The retailers institutional framework can

impact on task allocation

Task allocation should take into account the

savings gained by sharing or shifting tasks


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Grouping

Tasks into Jobs

Tasks Jobs

Merchandise display, customer contact,

customer follow up, gift wrapping

Sales

Personnel

Transaction data, receipts (cash /

credit), inventory control

Cashier

Merchandise receipt, marking, return

to vendors, inventory storage & control

Inventory

personnel


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Grouping Tasks into Jobs

Tasks Jobs

Window dressing, interior display set up etc. Display

personnel

Repair & alterations, resolution of customer

complaints, research etc.Customer

service

Clean up of store, sanitation, replacing oldfixtures etc. Janitorpersonnel

Personnel management, sales forecasting,

budgeting, pricing, coordinationManagement

personnel


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Grouping

Tasks into Jobs

Under specialization, each employee isresponsible for limited functions.

This clearly defines tasks, provides greaterexpertise, reduces training costs and time,and allows part-time and relativelyinexperienced employees to be hired.

However, extreme specialization may lead topoor morale (boredom), personnel beingunaware of the importance of their jobs, andthe need for more employees


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Grouping

Tasks into Jobs

A job description outlines the job title,

objectives, duties, and responsibilities

for every position.

It is used in hiring, supervision, and

evaluation


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Example

Job Title : Store Manager in ShopperStop Bangalore branch

Position reports to V.P. Operations

Positions reporting to the store manager

All personnel working in Shopper Stop at Blr

ObjectiveTo staff & operate the Shopper Stop Bangalore

branch as per over all objectives pre-set


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Example

Duties and Responsibilities

Personnel recruitment, selection, training,

motivation and evaluation

Merchandise display

Inventory storage and control

Merchandise order approval Sales forecasting

Budgeting etc.


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Example

Committees and meetings

Store Managers review committee

Attendance at monthly meetings with Sr. VP

Supervision of weekly meetings with

department managers


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Classifying Jobs Jobs are broadly categorized by one of

these classifications

Functional (e.g., sales promotion)

Product (e.g., clothing department)

Geographic (e.g., branch store)

Combination (e.g., sales promotionmanager for clothing in branch stores)


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Strategic Management TasksPerformed in a Retail Firm


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Merchandise Management TasksPerformed in a Retail Firm


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Store Management TasksPerformed in a Retail Firm


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Administrative Management Tasks Performed in a Retail Firm


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Organization of a Small Retailer


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Organization of a RegionalDepartment Store: Richs


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Merchandise DivisionOrganization: Richs


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Department Store Organization atRichs/Lazarus/Goldsmiths


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Merchandising Organization

Chain Stores

In chain stores buying and selling are

different activities at different levels

The buying activity is more centralized and

conducted by the central buyer

The actual placing of order for specific

items and its management is theresponsibility of the store manager


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Functions Performed

Merchandising includes various steps in thebuying and selling of goods and services,

such as assortments, advertising, pricing,point-of-sale displays, the deployment ofpersonnel, and personal selling approaches

Buying includes the buying of products,advertising, and pricing

Functions must also reflect the level offormality, the degree of centralization, andpersonnel resources


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Staffing Buyers must be attuned to the marketplace,

must be assertive, must make extensive use

of buying plans, and may have to travel Sales managers must be good organizers,

supervisors, and motivators

Merchandising buyers must possess the

attributes of both buyers and sales managers


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Staffing All buying personnel must relate to customers

and anticipate future needs

Federated Department Stores has careertracks that recognize the value of both

merchandising and in-store personnel

Selected positions in both merchandising and

store management are described next


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Assistant Buyer

Aids buyer in selecting and procuring merchandise

which supports over all sales volume, gross margin

and turnover objectives

Assumes buying responsibility of key classifications,

once buyer determines proficiency level

Provides operational support to buyer

Associate BuyerResponsible for merchandise development,

marketing and financial management of a particular

area of business


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Staffing - Merchandising

Buyer

Expected to maximize the sales and profitability of agiven area of business through the development andimplementation of a strategy, analysis and

appropriate reaction to the sales trend Divisional Merchandising Manager (DMM)

Responsible for overseeing the execution ofmerchandise selection and procurement for aparticular segment of business

Sets merchandise direction, develops strategy forconsumer satisfaction

General Merchandising Manager (GMM)

DMMs report to GMM


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Chain store Central buyers

develop standardized assortment plans

determine the resources from which the

purchase to be made

make negotiations regarding the terms of sale

Make decisions with regard to the dropping ofold items and addition of new items


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Assistant Sales Manager

Responsible for supervising all daily store activitiesin a specific merchandise area

Jobs include selling, service management, selectingand developing merchandising

Sales Manager

In charge of all daily store activities in a specificmerchandise area

Job includes merchandise presentation, employeedevelopment, customer service, operations andinventory control


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Staffing Store Management Assistant Store Manager

Directs all activities related to merchandise

flow, store maintenance, expense

management, shortage prevention and all

store sales support functions

Store Manager Senior level executive responsible for all aspects of

running a profitable store


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A combination ! In many cases branch stores maintain assortment

of products and services that caters closely to the

local taste and local requirements (largegeographical, cultural diversity)

In such cases the stores keep some standardized

assortment (say 60%) and the remaining is based

on local need

Obviously in these cases, the buying activity also

gets decentralized to the store level to some extent


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Advantages of CentralizedDecision-Making

Retailers can reduce overhead, i.e. fewermanagers

Coordinating efforts, it can achieve lower

prices from suppliers

Opportunity to have the best people

making decisions


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Methods for CoordinatingBuying and Store Management

More communications between buyers and

sellers

Store visits

Employees performing coordinating roles

Decentralizing buying decisions

retail organization

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