Chapter 2

Retail Standard Operating

Procedure

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for FDDI
 Overview
• A Standard Operating Procedure (SOP) is a set of
written instructions that documents a routine or repetitive
activity followed by an retail organization.
• SOPs are an integral part of a successful quality system
as it provides individuals with the information to perform
a job properly, and facilitates consistency in the quality
and integrity of a product or end result.
• Standard Operating Policies and Procedures can be
effective catalysts to drive performance improvement
and improving organizational results.

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for FDDI
 Purpose of SOP’s
• SOPs detail the work process to be conducted or
followed within an organization.
• They document the way activities are to be performed to
facilitate consistence conformance to technical and
quality system requirements.
• In addition the best written SOPs will fail if not
implemented properly.
• Therefore the use of SOPs needs to be reviewed and re-
enforced by management, preferably the direct
supervisor

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for FDDI
Definition of Standard Operating
Procedure
• It is a set of detailed, written instructions to
achieve uniformity of the performance of a
specific function. It ensures that all the functions
are carried out efficiently and consistently
• SOPs are sets of instructions having the force of
a directive, covering those features of operations
which lend themselves to a definite or
standardized procedure without loss of
effectiveness

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for FDDI
 Benefits
• The development and use of SOPs promotes quality
through consistent implementation of a procedure within
an organization, even if there are temporary or
permanent personnel changes
• SOPs can be used as a part of personnel training
program, since they should provide detailed work
instructions.
• It minimizes the opportunities for miscommunication
 In addition, SOPs are frequently used as checklists by
inspectors when auditing procedures.

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for FDDI
• Other benefits include reduced work effort,
along with improved data comparability,
credibility and legal defensibility

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for FDDI
 Reasons for Writing Standard
Operating Procedures
• To provide people with all the safety, health,
environmental and operational information necessary to
perform a job properly.
• To ensure that operations are performed consistently to
maintain quality control of processes and products.
• To ensure that processes continue uninterrupted and are
completed on a prescribed schedule

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• To ensure that no failures occur and other processes
that would harm anyone in the surrounding community.
• To ensure that approved procedures are followed in
compliance with company and government regulations.
• To serve as a training document for teaching users
about the process for which the SOP was written.
• To serve as a checklist for co-workers who observe job
performance to reinforce proper performance.

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• To serve as a checklist for auditors
• To serve as an historical record of the how, why and
when the steps in an existing process were wrong so
there is a factual basis (not hearsay) for revising those
steps when a process or equipment are changed.
• To serve as an explanation of steps in a process so they
can be reviewed in accident investigations.

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 Daily store operations
• The floor is swept or vacuumed and mopped everyday
with good cleaning agents.
• The inside panel and the shelves are dusted everyday.
• The signage and frontage of the store is dusted with
utter care.
• The mannequins are cleaned with dry and clean cloth
with care so as to avoid any scratch or stain.
• The windows and mirrors are cleaned using newspaper
and Collin liquid.
• The trial room are kept clean.

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 Merchandise maintenance
• The merchandise should be ironed in case they are
crushed
• The merchandise which are hung should be steam
ironed. They are folded and stacked as per the
instructions.
• The back stock is arranged well according to their styles
and sizes so as to ease handling of stocks

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 Merchandise stacking and display
guidelines
• Merchandise should be stacked and displayed according
to the instructions provided

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 Cash wrap area guidelines
The cash wrap area is generally equipped with the
following items:
• Computer with printer
• Bill printer.
• EDC machines for credit cards.
• Store stamps.
• Business cards
• Stationery like paper clips, stapler and pins,
pens, erasers, scissors.
• Visitors’ book etc.

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• All these are cleaned and arranged every
morning.
• The visitors’ book is kept open along with a pen.
• All the billing requirements should be kept close
to the cash wrap area in order to facilitate the
billing process.
• There should be some person in the cash area.
• The key of the safe has to be with the store
manager

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for FDDI
 During the day activities
Walk ins
• The store needs to keep a record of the number of
customers visiting the store. For this a register is
maintained by the security guard standing on the gate.
• It is an important parameter to keep track of the store
performance, performance of the previous day.
• It is an important indicator for one to formulate ones
strategy to improve sales.
• This information is updated everyday so as to keep a
track of the conversion rates which is sent along with the
other reports.

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 Tele calling
• This is the practice of informing the customer
base about the brand, any new scheme, arrival
of a new stock etc.
• As and when the new stock arrives at the store
or any seasonal promotions is happening, the
same is informed to the customers by personally
calling them on their contact numbers which is
obtained from a record.
• A record of the customers is kept by asking
them to enter their contact details in the
record/visitors’ book.
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 Good receipt guidelines
• The goods are first received by the head office
where the number as per the options and style
are counted and matched with the goods receipt
invoice.
• The other documents that are accompanied
with the goods are delivery challan, packing slip
in the cartons.
• The goods are then sent to the store where it is
again counted and verified with the goods
receipt invoice.
• In case of any discrepancies, the same is
informed to the head office.
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• In case the number of garments matches
with the number mentioned in the goods
receipt invoice, the replenishment of the
fresh stock should be done on the floor.
• The remaining stock should be arranged
well in the stock room. The above
documents are to be maintained well.

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Back store upkeep guidelines
• The back store acts as a place for the non
displayed merchandise.
• There should be sufficient space in each store
where in the merchandise are sorted style wise
to further ease the process of locating an option.
• The merchandise are supposed to be kept size
wise but this is not possible most of the times.
• The merchandise should not be removed from
their packing until they reach the floor so as to
keep them look clean and fresh.

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for FDDI
 Sales guidelines
• The moment a customer walks into a store, he is
greeted with a smile and is directed towards his area
of interest or is allowed to browse on his own.
• There should always be one salesperson with each
customer but should assist him only when asked for.
• The salespersons are required to know everything
about the merchandise in the store as in the number
of options per style, what all are available in the
store at that moment so that the customer does not
have to wait too long for the salesperson to check
the availability of the garment.

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for FDDI
• He should make a note of the customers’
requirement, suggestions.
• He should know how to handle a customer as in
if a customer asks for an option which the store
does not have.

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 Billing guidelines
• For the purpose of billing, the company should
install necessary equipments like computer with
printers with tailor made softwares developed by
the company’s IT department.
• They should have a billing printer, two card
readers etc.
• Once the customer selects a product to buy, the
product is scanned and the customer is informed
about the total bill value.
• If he agrees, the customer is asked whether he
wants to pay in cash or credit.

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• If he wants to pay by credit card, the card
should be checked as in whether the store
accepts the same.
• If the card cannot be swiped for some reason,
the customer can be asked for some other card
or cash.
• Once the credit card is swiped, the counterfoil
thus generated is signed by the customer and is
retained by the store.
• The copy of this foil is attached to the bill and is
given to the customer.

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• . The bill has details like bill no. , bill date,
serial no. ,barcode no. ,item, quantity, rate,
amount, vat rate % and value, total
amount, signature of the cashier etc

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for FDDI
 Credit card operating and
deposit guidelines
• At the time of billing, the credit card is swiped at the EDC
machine and the counterfoil generated of the amount
received is signed by the customer.
• This sign is cross verified with the signature at the back
of the credit card. The copy of this counterfoil is attached
with the bill and is given to the customer.
• The original copy bearing the sign of the customer is
retained by the store.
• Every morning the last day’s credit receipt should be
settled in the EDC machine and should be filed with the
counterfoils generated by the system of the sales bill

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 Petty cash expenses

• The company keeps an imprest cash equivalent

to one month expense at the showroom.
• The purpose of this imprest is to meet the petty
cash requirements of the showroom such as
stationary, refreshments, courier charges,
cleaning etc.
• A separate register is maintained to record these
petty expenses, along with the details of the bill.
• Infact the bills should be attached in the register.

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for FDDI
• At the end of each month, the store manager
should forward these details to the finance
department and claim for reimbursement if the
expenses exceed the amount actually assigned.

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for FDDI
 Physical verification of cash
• Cash shall be verified by the store
manager at the end of each working day
and shall sign the register with complete
details including the denominations of
physical cash.
• Any amount spent in deviation from the
approved list of expenses or cash
shortage is treated as misappropriation.

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for FDDI
Defected goods exchange/return
guidelines
• If a customer claims that a piece is
defective, the same is checked by store
manager or sent to the head office where
it is checked by the quality department.
• If store manager or If the quality
department accepts that the defect due to
company’s fault, the piece can be
exchanged, otherwise no. within time
frame.

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for FDDI
• . The customer can exchange the piece with
anything available in the store. If he does not
find anything satisfactory, he can retain the
piece with himself and get it some other time
when there is a new arrival of stocks.
• The company can also issue a credit note or
refund for such an exchange.
• The goods to be returned should not have any
external defects from the customer side

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 Monthly activities
• Every month all the sales and stock registers
should be closed and the consolidated report on
the same is sent to the retailer manager.
• All the expenses incurred by the store should be
listed and the reason for excessive expenses
should be cited.
• Any market activity happening in the business
area of the brand should be informed to the
retail manager.

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Stock level and replenishments
• The stock level should be checked on floor
and the shortage should be replenished
from the back stock.
• In case the back stock does not hold the
same shortage, the same can be acquired
from some other store.

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 Replenishments
• The store sends its requisition to the head office . Head
office then marks the products that it has along with the
numbers of the same.
• For products which it does not have, nor is it going to be
produced, the head office sends the form to all the stores
who in turn indicates the products and the quantity that is
available to them.
• If viable the stocks required can be transferred from
different stores. There is also a provision wherein the
slow moving items of a store can be transferred to any
other store where the same item may be doing very well.

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 Closing of the store
• The departure time of each and every store staff is
marked in the attendance register along with their
signatures.
• Coat-and-bag check is done every time a store staff
leaves so as to ensure there is no merchandise from
the store being carried outside.
• The lights of the main signage, the secondary
signage, the windows and the store are switched off
before being vacated.
• Utmost care is taken to lock the store entrances
before leaving.
• The keys are then handed over to the store
manager
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Maintenance of documents at store
• The following are the list of registers to be
maintained. Registers should be maintained
electronically wherever possible, otherwise
manually:
• Stock register
• Cash register
• Credit card register

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• Original stock transfer notes, as received
from central warehouse.
• Duplicate copies of cash memos, void
bills.
• Details of stock adjustments done.
• Challan book in proof of depositing daily
sale proceeds both cash and credit cards.

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• Original covering letters received from
credit card discharging banks, received
along with cheques.
• Latest warning bulletin received from
credit card discharging banks

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 Daily sales report( DSR)
• The DSR gives an over all sales, stock, cash
and credit of a particular day:
• The Daily Sales Report is used to monitor actual
sales volume and compare it against plan and
last year and assists in guiding the business.
• Stores receive a Daily Sales Report
 Sales results are reported as a daily number,
week to date, month to date and year to date.

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 Daily Planner & Statistics Guidelines
• The Daily Planner and Statistics form is a tool for
managers to plan and track their sales business
throughout the day, as well as their staff
activities.
• Set up one Daily Planner & Statistics page for
each day of the fiscal month. Fill in as much
sales information that is available in advance.
• The managers on duty for each shift is
responsible for making any adjustments
necessary due to Associate sick calls, additional
project, etc.
• Retain the form in the communicator binder.

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• At the end of the fiscal month, purge the Daily
Planner & Statistics forms into the Monthly
Media box, and insert a new Daily Planner &
Statistics form for each day of the new fiscal
month.
• Plan ahead by entering any special or scheduled
projects in advance.
• The manager on duty for each shift is also
responsible for reviewing the zone and project
directions with the Associates on their shift.

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Completing the Daily Statistics section
• In advance, a member of management enters
most of the sales figures, from the daily sales
journal, at the top of the form.
• The managers on duty takes the 12 noon, 2 PM,
6 PM and 1 hour before closing sales volume,
IPC (Items per Customer) and RPC ( Rupees
per Customer) reads off the register.
• The reads helps management track their sales
performance for the day, and assign sales
productivity goals for the team

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• Enter any notable issues of the day as it may be
related to or affected by the store’s sales
performance (such as weather conditions, power
outages, mail activities, floor etc.)
• Managers can review the information through
out the week to familiarize themselves with sales
performance on their day(s) off or while working
in another store.

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 Completing the Daily Planner section

• Complete the top of the form with current

sales figures.
• Write in each associate’s name scheduled
for the work that day.
• Enter their shift then plan their break time
accordingly. Be conscious of the task
deadline and overlapping of breaks

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• Enter the zone in the store , the associate
will be responsible for, as well as any
specific project they will be working on
during their shift.
• Record issued and returned fitting room or
display case keys for specific associates

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 Month end managers checklist
 During the last week of the month each
staff should be told about their monthly
performance.
• Balance petty cash and send to DM for
review and approval.
• Verify bank deposit log against validate
deposit slips and file.

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• Conduct month end filing and purging of
completed documents.
• Shrink Program: Ensure that all the
associates have reviewed the month’s
Shrink Topic/ Meeting Agenda.
• Review month end sales performance
report and P&L Statement

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 Reviewing the Profit and loss Statement of store

 Review the P&L Statement for posted

sales volume.
• Controllable expenses : Are those
expenses that can be monitored and
adjusted by management decisions or
frequency of use, such as:
• Store supplies.
• Telephone service
• Cleaning
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• Security
• Postage and delivery
• Repairs and maintenance
• At the end of each fiscal month, review all
controllable expense to ensure your store
is within the budget.
• Insert a copy of the monthly P&L
Statement in your Sales Report Binder.
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 Store Audits
• Store management is required to conduct
a self audit minimum once in every six
weeks, from the start of the fiscal year.
• District/Area Managers or a external
auditor can be appointed to conduct the
store audit once in six months.
• Select stores will be audited more
frequently

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 Imprest or petty Cash
• The store keeps an imprest cash
equivalent to one month expense at
the showroom. The purpose of this
imprest is to meet the petty cash
requirements of the showroom.

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for FDDI
• The internal control systems for this
amount are:
• This amount shall be maintained in a
separate cash box, not mixing with the
Showroom sale.
• At any given point of time, entire amount
of imprest cash should be available in
cash or in the form of bills or combination
of both.
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• A separate cashbook should be maintained for
recording petty cash transactions. Showroom
• Manager should record all the transactions in
the register instantaneously.
• Printed cash voucher forms of the company
should be used for recording the transactions.
As and when the vouchers are exhausted,
showroom managers collects these vouchers
from corporate office.

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• At the end of each month, the showroom
manager should forward these vouchers with
original supporting along with the photocopy of
the petty cash register to the corporate office for
reimbursement by 2nd of the following month.
• Internal auditors to duly sign all cash vouchers.
For this purpose the showroom manager should
get this cash register certified during the routine
visit of the internal auditors without fail.

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Damaged Merchandise Policy
• Remove damaged merchandise from the
selling floor.
• Verify it has a price ticket.
• Write the type of damage and location of
the damage on the Damage Tag (i.e. rip
/left sleeve, button missing/ collar etc.)
• Place merchandise on the Damaged
Merchandise Bar in the designated area.
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• Record the damaged merchandise information
on a damaged stock Form.
• Make a duplicate copy of the register receipt.
• Obtain the Zonal/Area manager’s signature on
the damage stock form and both the original and
duplicate copies of the register receipt.
• Attach the first register receipt to the Head office
(white) copy of the damage stock form.
• Attach the second register receipt to the Store
(yellow) copy of the damaged stock form.

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