RETAIL STORE

OPERATIONS
Group members

Kanishka Vijay Michael

Bhaskar Dibya

Shubhomita Sahu

Sachindra Singh
Smooth operations in a retail store is of
utmost importance
 ELEMENTS OF STORE OPERATIONS

• Store administration

• Management of the premises

• Managing inventory and display

• Managing receipts

• Customer service

• Managing promotions, events, alliances and partnerships.

 STORE ADMINISTRATION

Deals with various aspects like

• the cleanliness of the store premises,

• maintenance of the store façade
• the display windows etc.

Stock

Average selling price= total values of goods sold/ total quantity sold
 
Average stock price = total value of goods and stock / total quantity in
stock
 MANAGEMENT OF PREMISES

• Business hours
1. target market
2. Location
• Security
1. RFID tags
2. video camera
3. separate entry exits for staff and customers

Transaction per hour = number of transaction/ number of hours

Sales per transaction = net sales / number of transactions

Hourly customer traffic = customer traffic in / number of hours

 MANAGING INVENTORY AND DISPLAY

• receiving and in-warding the goods

• checking with the document accompanying the goods
• displaying it correctly

• Stock turnover/ inventory turnover rate = net sales / average retail value of
inventory

• Percent inventory carrying cost = (inventory carrying cost / net sales) * 100

• Gross margin return on inventory = Gross margin / average value of inventory

 Stock

• Occupancy cost per square foot selling space = occupancy cost/ square feet of selling
space

• Sales per square foot = net sales/ square feet of selling space
•  
• Stock per square foot = net stock/ square feet of selling space

• Percentage of selling space = (selling space in square feet/ total space in square feet) *
100
MANAGING RECEIPTS
 CUSTOMER SERVICE

• Billing time
• a customer may spend hours choosing the product that he likes, he does not like
waiting for a long time at the time at the time of payment.

• Staff behaviour

• Return policy

Customer conversion ratio =( number of transactions / customer traffic) * 100

 Employees

• Net sales per full‐ time employee = net sales/ total full‐time employees

• Space covered/ customers served per full‐time employee = total retailing

space/number of customers served/ total full‐time employees

• Labour productivity = (total labour costs / net sales) * 100

• Gross margin per full‐time employee = gross margin/ total full‐time employees

• Suppliers/quantity or value purchased per buyer = total suppliers/ quantity or

value purchased/ total buyers
 MANAGING
PROMOTION, EVENTS
AND PARTNERSHIP