JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

PGDM- RM
th
4 Trimester (Batch 2019-21)
END TERM EXAMINATIONS

Course Name Store Operations Course Code RM-404

Max. Time 2 hours Max. Marks 40

Instructions: Read the case carefully and then answer the questions given in the end. The answers
should relate to case, generic statements to be strictly avoided.

All you need (AYN) Store

AYN store is a leading retailer city. It currently has 42 stores pan India. AYN is a supermarket
store and carries wide variety of merchandise. The stores are big in size and average size of stores
is close to 1 Lakh sq ft, mostly spread on multiple floors and each floor dedicated to different
merchandise categories. The merchandise categories which they carry are as follows:

a) Food and Grocery items: contains all loose, packaged as well as fresh fruits and vegetables.
Has deeper assortment and provides all prominent brands under one roof. Provide better
deals to customers as well. Largely carries National Brands.
b) Apparels and fashion accessories: contains high quality of fashionable apparels and fashion
accessories for entire family i.e. men, women and kids. Provides premium range of
cosmetics, googles, shoes etc. Focus on National Brands as well
c) Consumer durables and furniture: contains electronic household items like television,
refrigerator, washing machines, mobile sets, mixer grinder, oven etc. of prominent brands.
Also offers in-house furniture brands in common household items as well
d) Jewelry Items: One of the best performing category of AYN. Has won trust of consumers as
well. Provides latest fashion and designs in their Hallmarked Gold and Silver jewelry.
Usually one separate floor is dedicated to this category. All brands are in-house.
The entire chain is a family owned business and largely has some Store Operating Procedures
(SOP) as well but lacks clear structured and well documented SOP

With an objective to enhance operational efficiency and improve profitability of the stores as well
the management of AYN hired prominent consultants Roger and Mendis Consultancy Firm (RMC)

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to audit the stores and to suggest ways of improvement and also formulate rigorous SOP for the
stores.
In organizational hierarchy of AYN, there is 1 Store Manager, 4 Asst. Store Manager ( 1 for each
category), Department Managers under ASM and shop floor employees, Cluster of stores has
Head- Accounts , followed by head cashiers in each stores and cashiers at till. Visual Merchandiser
function is outsourced and ASM are responsible for managing VM in their respective departments.
RMC conducted a detailed audit of few sample stores and prepared a detailed report after 06
months of hard work. The report covered all areas of stores and enlisted the problematic areas in
each function as well. A snapshot of the report is all follows:

a) People Function: In general the performance and guidelines related to people function was
found to be average. Some discrepancies found were

 Lack of product knowledge especially in Consumer Durable section.

 Behavior and etiquettes of employees.
 High attrition rate of 42% approx.
 Average Stay of 27 months only.
 Some discrepancies were also found in growth and career progression as well. Some
have grown very quickly while some are at the existing level for long.
 In general it was found that the employees were not energetic and excited on floor.
 Security guards appear to be untrained.

Q.No: 1: What can be done by management to improve and streamline People function of AYN?
Make use of findings of audit report (10 Marks)

b) Merchandise Management: Merchandise is life blood for any retailer. Right quantity, at
right place, offered at right price and displayed in the right manner can do the trick. The
Inventory turnover, Stock velocity, GMROI of categories carried by retailer is as follows:

S.No Food and Apparels Consumer durables and Jewelry

Grocery and Furniture
Fashion

ITR 32 days 56 days 128 days 78 days

Stock Velocity 200% 325% 400% 600%
GMROI 2 4.5 8 12
Profit Margin 6% 28% 42% 70%

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  AYN is taking more days in inventory turnover in food and grocery as compared to industry
standards of 20-24 days.
 GMROI and Profit Margin of food and grocery and apparels much below as compared to
industry counterparts.
 Merchandise availability is lower as compared to industry standards.
 Display and planogram not religiously followed especially in Food and grocery
 Manual Purchase order used for stock management.
 Shrinkage is very high in jewelry section value wise.
 Damage and defective of fresh and exotic fruits and vegetable is a challenges, organization
lacks proper reconciliation system as well.
 Merchandise management near trial room not up-to mark.
 Negative inventory is very common in food and grocery and no specific reason can be
tracked to same.

Q.No: 2: What can be done by management to improve Merchandise Management of AYN? Make
use of findings of audit report (10 Marks)

c) Customer as king: The customer management in store is difficult to be analyzed.

 No data is captured other than the information on the bill.
 They have a loyalty management program but only 18% of customers are enrolled in
the same.
 There is doubt that focus is given on data capturing and data driven decision thus is
a distant reality.
 No metrics put to use related to capturing shopper behavior.
 No feedback mechanism and satisfaction measurement of customers.

Q.No: 3: What can be done by management to improve customer services level of AYN? Make use
of findings of audit report (10 Marks)

Q.No:4: Suggest a suitable opening and closing procedure for AYN? What specific precautions
should be taken in general and what should be additional precautions taken by specific categories?
Explain briefly and be specific while answering the suggesting? (10 Marks)

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