PROJECT REPORT ON

RETAIL STORE OPERATIONS

TOPIC- “NEXT BEST RETAIL PRACTICE”

SUBMITTED TO: Prof. V.T.THOMAS

SUBMITTED BY: Roshan Kanoo (08DM076)

INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE BHUBANESWAR

Another case is Pull Back process where products are sent back to distribution centre. 168 charge and the rest as taxes.sellers”. Incase of variance the merchandise is not sent to the floor but is immediately sent back to DC and a quantity difference note is generated. 3. In the other case IBT is done when merchandise are required in other Shopper Stop. Shopper Stop uses three types of cards to categorize their customers – • • • Classic Movement Card Silver Edge Card Golden Glow Card A person is eligible for a classic movement card if he/she is Indian citizen and on payment of Rs. The merchandise are sent from the floor on two conditions. Global count or physical count is a must. If a silver card holder makes a shopping worth Rs. 100. 70 debited into his account and gets 1 point per 100 rupees of purchase. So. counted and tally with the trip sheet and stock transfer memo. This help in tracking shrinkage. The first citizen then gets Rs. A first citizen enjoys benefits like reimbursement of parking charges. Fast moving merchandise means which sales maximum within a particular period as compared to other merchandise. either through RTV (return to vendors) or IBT (inter branch transfer).CURRENT PRACTICES BY SHOPPER STOP 1. Every morning colour blocking and size blocking is done. 40000 within two years. then he/she is upgraded to gold card. Global count generally gets over before 11 am just before customer enters the floor. Global counting is done for the following – o o o o Browsers Glass Wall Gondolas 2. It also gives its members ICICI co branded card. 10000 in a span of two years he/she is upgraded to silver card holder. In the store the merchandise boxes are opened in front of the security. From the DC goods move out in the outsourced carriers to the respective stores. In order to display huge quantity of merchandise the wooden hangers are replaced by plastic hangers. A gold card member earns 3 points in Rs. Global count is taken daily so that one can track if any piece of merchandising is missing without being billed. A silver card holder earns 2 points per Rs. discount in certain restaurants as well as beauty salons etc. The merchandise arrives in the distribution centre from the vendor and then from distribution centre it is distributed as per the replenishment cycle. If there is a variance of more than five pieces then one should seriously look into the matter. . The loyalty program of Shopper Stop is such that it promises the customer the future benefits. 4. 200 which include Rs. 100. in a particular period of three months there can be many fast moving as well as slow moving items. Also when sizes are over the assorted pieces are displayed in a separate browser as the “best. It is very difficult which merchandise moves faster. Colour blocking is done as per the visual merchandising standard – light to dark shades during summer and darker to lighter shades during winter. 5. earning of points and special 2 days preview during sale. If a classic movement card holder does a shopping of Rs. RTV is done in case of that merchandise that is slow moving.

NEXT BEST RETAIL PRACTICES Best Retail Practices is a successful business-boosting program that provides instruction and advice to store owners and store-front service business owners by helping them "think like a brand. The information system of this organization system is so strong that if a customer fails to produce the bill at the time of exchange. can influence the way they interact with our customers in the long term by connecting with them on demand and assisting them in their shopping experience enabled by our multi-channel storefronts. the ERP will not deliver to expectations. A customer can come to the desk and know about his point and its validity. Alignment of business processes and capabilities of the system are the primary decision criteria. If a customer comes with a defective product or a product that needs repairing from customer desk a GAN (goods acknowledgement note) is issued to the customer. server and application administration and monitoring application development and sustenance. In case of lapse of time period. The seamless functioning of the system in terms of uptime and performance are basic hygiene factors. lingerie etc. It defined criteria and teams responsible for monitoring key performance indicators. which result in information protection. in case of defective items exchanges can be done within 90 days. 7. Shopper Stop deployed technology solutions to address the perimeter and internal security. and it continue to engage with users to highlight the awareness of good practices. Therefore. Thus. In a connected enterprise spread across multiple locations. If the system leaves open many manual processes. This policy excludes electronics. Security is managed with a mix of technology and process/policy. the first step is recognition and acceptance of the risk. as they evolve. If a customer does not like an exchange then a credit not is issued which is valid for 6 months. where the customer is the focus. They are exploring convergence technologies on how it can reach out to our customers more effectively at terms defined by the customer. Generally it takes about 15 working days for the goods to be repaired. including facilities management and hardware maintenance. Gift vouchers are also issued here. 9. system mapping to existing and expected needs is a key step toward success. 2000. 50 – Rs. the period can also be increased for 6 months. A gift voucher is valid till one year. Moreover. Communication technologies. their: Consumer marketing Interior design Merchandising mix Windows and displays Employee management ." This approach advises. Exchanges are done in customer service desk. Shopper Stop outsource most of the operational activities. network. it follows the best practices when it comes to security. Shopper Stop gift voucher ranges from Rs. an enterprise like us. The exchange policy of Shopper Stop is that products can be exchanged within 14 days from the date of purchased providedThe merchandise is in a saleable condition and the customer provides the proof of purchase.6. security becomes very critical. it tracks down the transaction and then exchanges are done. One copy is given to the customer and the second is sent to the service station and a third copy is kept for reference. Regarding management of IT risks. Here products are also sent for repairing. perfumes. In this desk when a new customer becomes a first citizen then information is fed up in the system. security concerns will always exist. 10. among other things. 8. A product purchased from Shopper Stop can be exchanged in any Stopper Stop in India. In case of defective goods the merchandise is sent to the vendor.

There are many challenges in this process. While many retailers have driven down to individualized marketing. .The practical and easy-to-implement ideas provided through Best Retail Practices workshops and oneon-one consultations have stimulated achievement. or cash over/short. warehousing. In this ever changing environment. improved bottom lines and promoted success for various retail stores. paper shrink. including cycle counting. Distribution processes typically prove as important to maintaining margins as buying processes. Process characteristics include: • • • • • • Number and placement of Distribution Centres Vendor direct ship. managers often find themselves seeking better ways to identify trends and prevent detrimental behaviours quickly and efficiently. In addition. and are sometimes managed by the Merchandising organization. the Distribution functional area meets the challenge of receiving merchandise. through newspaper tabs. and cross-dock usage Common carrier versus corporate owned fleets Product preparation labour mix (vendor. Processes addressed include: • • • • • Inventory controls. some have found it to be an unnecessary cost. and store personnel) Scheduling methods and productivity analysis Investment level in Quality Assurance MARKETING The Marketing functional area is charged with bringing customers into the store to provide Store Operations with the opportunity to sell products or services. and internet promotions are becoming more and more commonplace. Vendors will often promote systems to improve supply chain efficiencies. from usage of labour in the Distribution Centres to transportation efficiency to appropriate forecasting for allocation of merchandise. Both in the field and at the home office. and the rise of highly sophisticated systems. Loss Prevention must identify potential losses and mitigate risk for the company. With the increase in information granularity. marketers now have the ability to make their message as tailored and personal as necessary to accomplish this goal. but often process improvement alone can make a significant impact. The Best Retail Practices experience proves to retailers large and small that knowing yourself is as important as knowing your customer and aligning the two provides opportunities for unparalleled success! LOSS PREVENTION Whether through employee theft. and maintenance of perpetual inventories Facility audits Cash management Credit and Check processing procedures Applicant screening processes DISTRIBUTION Working very closely with Merchandising. Understanding what has worked from retail peers can help avoid some of the common pitfalls in Customer Relationship Management. Quick response is also required in cases where losses are detected on an ongoing basis. some of the more traditional marketing methods. allocating it. are becoming less and less effective as circulation decreases. physical inventories. DC personnel. Best Retail Practices has proven that the RIGHT updates can quickly revitalize a property and bring a struggling business back to life. and ensuring it is in the right place and available for sale as it is needed.

The power and simplicity of this model is driven by advanced data warehousing techniques that enable retailers to: • Identify if and why their results differ from their peers. • Provide information needed to take decisive action. Product display Do stores have planograms? Are planogram format specific? How often do planograms change? Promotional readiness Are promotional tags delivered or printed instore? Does the POS price automatically reflect promos as they take place? . with shared input across retail sectors. and includes key processes that can be described with specific characteristics and related metrics. A FUNCTIONAL AREA: STORE OPERATIONS Sell product in store PRESENT MERCHANDISE Conduct sales Service sales WITH ACTIVITY CLUSTERS: AND KEY PROCESSES: PRESENT MERCHANDISE Product receipt Product display Promotional readiness WITH PROCESSES AND CHARACTERISTICS KEY PROCESSES Product receipt PROCESSES CHARACTERISTICS How often do stores receive truck? Received during business hours? Dedicated receipt personnel’s.marketers will find answers to both traditional and emerging process questions. • • • • • Measurement of advertising effectiveness Extent and methods of leveraging the internet channel for marketing Involvement of Merchandising and Operations in marketing processes Allocation of resources to various advertising media Cycle times and number of iterations to develop creative content RETAIL MODEL EXAMPLE Each retail functional area is composed of activity clusters. Scan receipt.

In low-volume operations. of product. and then deliver the right tasks to the associates who can make sure the displays are ready for the promotions. and activity management) and determine which processes increase employee productivity.but process characteristics. One of the challenges of doing a promotion is orchestrating the delivery of the display materials. One way to streamline display operations is to approach it like a kitting operation.” Here are five best practices for getting displays of various products and SKU’s in a retail store done right: 1. “A best practice in a specialty apparel retailer may not work in a department store.” “Just because everybody does it this way may not make it a best practice. research has also shown that nearly 50% of stores don't do that on time. Outsource it. Someone has to move them from the stockroom to the location on the selling floor designated for that promotion If a customer goes into the store. What's the easiest way to get the job done? Turn it over to a third-party logistics provider (3PL) that specializes in displays. 4. statistics tell a story. It's not enough to deliver the displays to the stores on time. The trick to building a rainbow pallet for an end-of-aisle display is to create columns. After all: “Simply knowing its broken isn't going to change our bottom line. 3. Track it with RFID. 2. or pallets with more than one SKU. and feed that information into a store execution system. customers don't have to take the pallet apart to get the product they need. We have a customer that fills pre-made kiosks with batteries for delivery to retail stores. the robot picks cases from multiple pallets to build columns of product. but unlike other companies. including end cap locations. how and why. When added to standard metrics that tell a company how its doing and help a company recognize what specific actions can be taken to improve the outcome. Either way. and the operator pushes the kiosk down an aisle on a cart. multiple conveyor lanes deliver the product into the palletizing area where the robot picks cases from each lane. Use voice. are increasingly popular with retailers. This is achieved by studying process characteristics that. Use software. they expect to see those products on the end caps. promotional materials and the product itself. Software solutions can take space-planning applications.” We need to capture and correlate not only performance measurements . when statistically correlated with results. labour planning. we also need to identify related processes (such as staffing. 5. rather than layers. Picking instructions are delivered through a voice recognition system that routes the associate in a prescribed order to pick the right assortment of battery sizes for the display. Manufacturers are spending a lot of money to get displays shipped to the store that never move from the back room. For example. with enough volume. Similar information can be delivered to store managers. Retail Benchmarks is focused exclusively on defining retail best practices. the robot can reduce the cost of manually building pallets. Rainbow pallets. determines what optimizes success. circular in hand on the weekend. telling us how to fix it will. If it's not there. many retail companies benchmark "SPLH" (Sales Per Labour Hour). it causes all kinds of consternation. That way. Research has shown that having products on display at the start of a promotions lead to a 19% sales lift. Add . The rainbow connection. who can then make sure the displays have been positioned according to the instructions. scheduling. The batteries are slotted in a forward pick area.The focus of these benchmarks is to leverage the experience of a group of retailers to determine what processes drive success. In high-volume operations. Sometimes.

__________________________________________________________________________________ . Various next best practices have been designed to increase performance and reduce the range of performance variation among individual employees and organizational units. when it leaves the back room and when it hits the sales floor. Each functional practice addresses a unique set of challenges. Workplace and Leadership Practices • • • • • • Apply behavioural economics to optimize business performance Measure and enhance employee engagement Recruit and hire world-class performers Establish a powerful employment brand Teach employees to develop their strengths Build a powerful succession planning and leadership development system Marketing and Customer Practices • • • Measure and improve customer engagement Increase the overall effectiveness of brand engagement programs Create marketing strategies through objective. REDUCING PERFORMANCE VARIATIONS Functional practice areas are vital to any organization's performance. we can notify a manufacturer when their display arrives at the store. With a tagged display. That gives a manufacturer the visibility to focus on those stores that aren't in compliance. The reward for the investment is a measurable increase in sales. research-based ideas and insights The above mentioned practices are the various next best practices in a retail store which will improve both the efficiency and profitability of a retail store and which can be applied in case of Shopper Stop also.an RFID tag to the display if you're shipping displays into a retailer with RFID-enabled stores.

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