RETAIL MANAGEMENT

Retail Strategy

1. A retail strategy is the clear & definite plan that the retailer outlines to tap the
market and build a long term relationship with the consumers
2. The strategy statement should :
3. Identify the retailer’s target market.
4. The format/s the retailer plans to use.
5. Enable building a Sustainable Competitive Advantage.
6. THE MISSION STATEMENT
7. Market Penetration (same segment and format)
8. Increase penetration, basket size, trip frequency
9. cross-selling, loyalty programs, more stores, broader assortment.
10. Market Development (new segment/same format)
11. Increase penetration by going after new segments with same format
12. Medicine Shoppe – Haiko, McDonald’s Ice creams
13. Retail Format Development (same segment, new format)
14. Increase penetration and trip frequency by going after existing customer base with
new formats.
15. Crossword & crossword corners
16. Diversification (new segment and new format)
17. New customer base with new format – Pantaloons – Big Bazaar
18. OBJECTIVES: SALES, PROFIT, SATISFACTION..

Customer Relationship
1. CR may be referred to as a business philosophy, a set of strategies, programmes
and systems which focuses on identifying and building loyalty with retailers most
valued customers
2. Customer Relationship Management
3. Becoming a common and important concept in many industries
4. Beyond mere ‘Contact Management’
5. Most industries have CRM software to help sales process, on-going service, and
even accounting
6. Are they planned? Managed? Documented?
7. Are all “touchers” properly trained? Enroll your complete staff in the vision.
8. Any way to increase the effectiveness of the touch?
9. Any way to increase the number of touches?
RETAIL MANAGEMENT

IT IN RETAILING
1. Use IT to measure staff performance, reduce costs by making use of information
relating to transactions and performance levels.
2. The impact of IT is being felt byRetailers who, are able to operate their businesses
to create phenomenal efficiencies by using Bar coding system, Electronic Data
Interchange and so on…
3. Automation
4. EDI and E commerce
5. Intranet and Extranet
6. Efficiency in time with increase in transaction speed.
7. Reduction in queuing time.
8. No new keying is required
9. Shorter lead time
10. More efficiency in stock holding
11. Possible to make price modification wherever necessary.
12. Improved data handling: forecasts of stocks, promotion activities etc.
13. Faster distribution system cycle.
14. Benefits by improved trading partner relationships.
15. Able to build database on consumer loyalty.
16. Faster distribution systems cycle.
17. Faster movement of merchandise with improved data handling, so more selling
space with reduced stock holding.

LOCATION
1. Size of a Trade area,
2. Occupancy cost of a location
3. Pedestrian and vehicle customer traffic generated in association with the location
4. Restrictions placed on store operations by the property managers.
5. Convenience of location for the customers
6. STORE WITHIN A STORE
7. RESORTS? OR ANY PLACE
8. Competition and compatibility:
9. Laws and Regulation
10. Identify Alternate sites and select the site
11. Amenities Available
12. To Buy, or to lease
RETAIL MANAGEMENT

Understanding Customers and their

Buying Behavior

1. Need Recognition
2. From consumer’s perspective, utilitarian needs are associated with work,
whereas hedonic needs are associated with fun.

Store Image

Circulation Area

Display Areas

Product Display

Product Qualities

Display Techniques

Display Fixture Properties: Access and Support

Display Fixture Types

Display Fixture Materials

RETAIL MANAGEMENT

Need for SCM in Retail

 Short Life Cycles
 High Volatility
 Low Predictability
 High Impulse Purchase
 Time to Market
 Time to Serve
 Time to React
 The Lead Time Gap

Planning Merchandise Assortment

BuyinSystem
Buying Merchandise
1. It refers to the entire process of inventory planning and management in a retail
organization.
2. Merchandising when done properly ,leads to an increase in the return on
investment
3. The merchandise hierarchy is a disciplined way of grouping the merchandise
mix at different levels, starting from a high level grouping to the lowest level of
the stock keeping unit.
4. The grouping may at times have even more than 4-5 levels.
5. An Assortment plan is a list of SKUs that a retailer will offer in a merchandise
category. The assortment plan thus reflects the variety and assortment that the
retailer plans to offer in a merchandise category.
6. CATEGORY VARIETY AND ASSORTMENTS
7. Variety or breadth of a retailer’s merchandise was defined as the number of
different merchandising categories offered.
8. Retailer’s assortment or depth of merchandise was defined as the number of
SKUs within a category.
9. Services retailers also make assortment decisions. For example, some health clubs
offer a large variety of activities and equipment from exercise machines to
swimming& wellness programs
10. The retailer must ask:
11. What products should I offer?
12. What benefits these products would offer to my customers
13. Do these benefits match the requirements of the customer?
RETAIL MANAGEMENT

14. The Right Quantity

15. The Right Quality
16. The Right Price
17. The Right Time
18. The Right Product
19. The Right Place will lead to Right merchandise
20. Planning to introduce New Products
21. Dropping Products
22. Catalogue
23. Special buying situations