RETAIL MERCHANDISING RETAIL MERCHANDISING ‘Amaraco, Kyla Jane Dajay, Ruthea Pacino, Larah Joy Tuala, Mary Claire BEED3-B Page 1of 37EE RETAIL MERCHANDISING LEARNING OUTCOME: At the end of the lesson, the student must have: 1. discussed the classifications of retail store. identified the factors to be consider in putting up a retail store and qualities of a good salesperson. 2: _o Page 2 of 37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? RETAIL MERCHANDISING Page 3 of 37RETAIL MERCHANDISING Page 4 of 37SSC rete verchandising dS 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. ZZ RETAIL MERCHANDISING Page 5 of 37DUTIES OF THE RETAILER RETAIL MERCHANDISING Page 6 of 37> Duties of the Retailer c RETAIL MERCHANDISING 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. Page 7 of 37Oo@ ‘New Tab <> Ge CLASSIFICATION OF RETAIL STORES RETAIL MERCHANDISING Page 8 of 37—_ Oo x G, Classification of Retail Stores G Ew 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. RETAIL MERCHANDISING Page 9 of 37Q. Classification of Retail Stores b. Specialty Store- it isa store that carries a single line or closely related lines of merchandise. + Specialty Store Some of the specialty TTT ae stores commonly found in the Philippines in shoe stores, furniture stores, grocery stores and sports stores. RETAIL MERCHANDISING Page 10 of 37— oOo x ©. Classification of Retail Stores ¢ c. Department Store- it is a retail store organized ina + Department Store department basis and carries a wide variety of goods with dry goods as one of its major lines. RETAIL MERCHANDISING Page 11 of 37—~ ox Q Classification of Retail Stores c a 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.) RETAIL MERCHANDISING Page 12 of 37,©. Classification of Retail Stores a.Mail-Order House- it is a store that sells its products by mail. MAIL-ORDER HOMES SEARS HOMES AND OTHER RETAIL MERCHANDISING Page 13 of 37~ ox Q Classification of Retail Stores caw b. 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. RETAIL MERCHANDISING Page 14 of 37—~ oOo x Q Classification of Retail Stores caw Classification According to Ownership a. Independent store- it is astore that is controlled by its own proprietor. RETAIL MERCHANDISING Page 15 of 37— oOo x ©. Classification of Retail Stores ¢ Classification According to Ownership a.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. RETAIL MERCHANDISING Page 16 of 37—~ ox Q Classification of Retail Stores c a Classification According to Ownership c.Manufacturer’s outlet store- this is a store owned bya manufacturing company and operated for the purpose of retailing their own products. RETAIL MERCHANDISING Page 17 of 37©. Classification of Retail Stores Classification According to Ownership d.Chain stores- the chain stores consist if if Thanatingthe same CHAIN STORE products and operating under single ownership and centralized management. RETAIL MERCHANDISING Page 18 of 37ce QOD FACTORS TO CONSIDER IN PUTTING UP A RETAIL RETAIL MERCHANDISING Page 19 of 37Q) Factors to Consider in Putting Up 4 Retail store FACTORS TO CONSIDER IN PUTTING UPA RETAIL STORE a.Capital bsite c.Location of Goods d.Light and Ventilation e.Cleanliness f.Effective advertising g.Type of Merchandise hSalesperson i.Competent Manager j.Business Permit RETAIL MERCHANDISING Page 20 of 37‘Q, Factors to Consider in Putting Up a Retail Store 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. RETAIL MERCHANDISING Page 21 of 37Q. Factors to Consider in Putting Up a Retail Store 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. RETAIL MERCHANDISING Page 22 of 37PRICING THE MERCHANDISE RETAIL MERCHANDISING Page 23 of 37Q. 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. RETAIL MERCHANDISING Page 24 of 37RETAIL MERCHANDISING Page 25 of 37(Q. 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). RETAIL MERCHANDISING Page 26 of 37Q_Price Components P150.00 Cost of the merchandise P30.00 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. RETAIL MERCHANDISING Page 27 of 37RETAIL MERCHANDISING Page 28 of 37RETAIL MERCHANDISING 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. Page 29 of 37Record Keeping a.Sales Record- daily sales should be recorded in the record book. RETAIL MERCHANDISING Page 30 of 37Record Keeping b. Purchase Record- this is the record of merchandise ordered and delivered. L.Date 2.Quantity 3.Goods ordered 4.Date 5.Quantity 6.Good delivered RETAIL MERCHANDISING Page 31 of 37Record Keeping 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. RETAIL MERCHANDISING Page 32 of 37Record Keeping 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. RETAIL MERCHANDISING Page 33 of 37QUALITIES OF A GOOD SALESPERSON RETAIL MERCHANDISING Page 34 of 37Q_Qualities of a Good Salesperson Cc 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 RETAIL MERCHANDISING Page 35 of 37ec ies aC Ee el eal aes aur) era Tacs al RETAIL MERCHANDISING Page 36 of 37@ ‘New Tab a: Cee Thank you for listening! RETAIL MERCHANDISING Page 37 of 37