LESSON 18- PUTTING UP A RETAIL STORE

LEARNING OUTCOME:
At the end of the lesson, the student must have:
1. discussed the classifications of retail store.
2. identified the factors to be consider in putting up a retail store and
qualities of a good salesperson.
ACTIVATE

 Anything would you like to say about the image?

 Would you like to relate the image to the lesson that
we have today?
 Do you have plans to engage in business?
 Does your family or other relatives and friends have
their own business?
ACQUIRE
RETAILING- refers to all forms of small-quantity selling directly to the consumer.
The person engaged in this activity is the retailer who serves as the connecting link
between the producers and the consumers. Retailing enables the consumers to buy the
amount of goods they want when they need them. Retail store come in all sizes, from
small operations where the store owner manages the store and do the purchasing, to
large department stores with hundreds of employees who all have specialized jobs.
DUTIES OF THE RETAILER
1. To provide goods of high quality to the public.
2. To sell at the lowest price possible.
3. To give the customers the maximum satisfactory service.
4. To treat all employees and customers equally and fairly.
5. To avoid dishonest and unfair practices in dealing with the customers.
CLASSIFICATION OF RETAIL STORES
Classification According to Goods Handled
a. General store or sari-sari store- it is the most common type of retail store in
the Philippines. It carries a wide variety of items, from basic commodities
such as rice, canned goods to cosmetics. It is owned by one person or family
located in the neighborhood.
b. Specialty store- it is a store that carries a single line or closely related lines
of merchandise. Some of the specialty stores commonly found in the
Philippines in shoe stores, furniture stores, grocery stores and sports stores.
c. Department store- it is a retail store organized in a department basis and
carries a wide variety of goods with dry goods as one of its major lines.
Classification According to Selling Methods
a. Travelling store- travelling stores may be classified as follows:
1. House to house peddling by itinerant merchants traveling on foot
2. Stores-on-wheels (stores in pushcarts, truck, etc.)
b. Mail-order house- it is a store that sells its products by mail.
c. Automatic vending machine- it is a method of selling using automatic
machines. Examples of these machines are the soft drinks, snacks, hot drinks
like coffee, and chocolate boxes that contain slots where a certain amount of
money is inserted. The item automatically comes out as soon as the coin is
inserted into the slot.
Classification According to Ownership
a. Independent store- it is a store that is controlled by its own proprietor.
 b. Company store- it is one that is owned and operated by a manufacturing,
mining or lumbering company and is generally located near the place of work
for the clients or employees of the company.
c. Manufacturer’s outlet store- this is a store owned by a manufacturing
company and operated for the purpose of retailing their own products.
d. Chain stores- the chain stores consist of a group of stores handling the same
products and operating under single ownership and centralized management.
FACTORS TO CONSIDER IN PUTTING UP A RETAIL STORE
a. Capital
b. Site
c. Location of Goods
d. Light and Ventilation
e. Cleanliness
f. Effective advertising
g. Type of Merchandise
h. Salesperson
i. Competent Manager
j. Business Permit
Setting up a store
A store with the proper set-up is like a person who is neatly dressed. Such a
store puts up a good impression. The following suggestions are given for a good sari-
sari store set-up.
a. Arrange the merchandise according to type.
b. All merchandise should be placed within the reach of the seller.
c. Fill all shelves with merchandise
d. Store must be well lighted and clean.
e. No merchandise or advertising material should be hung from the ceiling
f. Walls and ceiling should be kept freshly painted
g. The counter should not be too high nor too low.
h. Raw foods should properly cover to protect them from flies
i. All merchandise should have a price tag.
PRICING THE MERCHANDISE
Price is the values of the merchandise. It is the amount needed to pay for the
merchandise or services. The prices of the merchandise vary from time to time. In
pricing the merchandise, the retailer must consider the following factors.
1. Quality of the merchandise
2. Value of the goods or services
3. Desirability of the merchandise
4. Attitude of customers towards price
 5. Mark-up needed to ascertain the profitability of the store.
PRICE COMPONENTS
1. Cost
2. Profit
3. Mark-up
Example:
The cost of one can of powdered milk is P150.00. You want to impose a 20%
mark-up; therefore, P150.00X20%=P30.00. P30.00 is the profit. To get the selling the
price of your merchandise, add the cost of the merchandise (P150.00) and the mark-up
P30.00).
P150.00 Cost of the merchandise
P 30.00 20% mark-up
P180.00
In this case, P180.00 will be the selling price of your merchandise. Mark-up is,
therefore, the amount of percentage added to the cost of your merchandise so that you
can fix the selling price with profit. The mark-up is not fixed. The higher the mark-up, the
higher the percentage of your profit, and the higher the selling price will be.
RECORD KEEPING
Record keeping is very important in every business transaction. Daily
transactions like the purchase of merchandise and operating expenses should be
properly recorded by the store manager.
a. Sales Record-daily sales should be recorded in the record book.
b. Purchase Record- this is the record of merchandise ordered and delivered.
1. Date
2. Quantity
3. Goods ordered
4. Date
5. Quantity
6. Good delivered
c. Making an inventory of the goods. As a store owner, you should make an
inventory of goods that are on hand at the beginning of the period, and the
amount of goods left at the end of the period.
d. Expenses Record- It is the listing of all expenses incurred by the business other
than the cost of goods sold including the expenses in lease of the place,
transportation, electric and water bills, salaries of the helpers and other
expenses.
QUALITIES OF A GOOS SALESPERSON
To be good salesperson, one should possess the following qualities.
1. Good health-physically and mentally
2. Admirable character
3. Pleasing personality
4. Good grooming
5. Good posture
6. Fairness in treating customers
7. Honest and polite
8. Knowledgeable of the merchandise the sells