Lesson 3

Planning for retail store operations

 Learning Outcomes
At the end of the lesson, you should be able to:
 identify the planning for retail store
operations;
 explain the key roles in store environment;
 analyse the retail workflow and operational
process.
 INTRODUCTION
 The field of retail store operations concerns all
of the activities that keep a store functioning
well each day.
 In the best-run stores, everything is carefully
considered, planned, and executed.
 Operations includes many aspects, such as store
design, display, placement, customer service
and dealing with the entire supply chain that
leads to having products in the store.
ABSTRACTION
 Planning for retail store operations
 
 The challenges of running a profitable, sustainable
retail store are many.
 They become insurmountable, however, without
good planning and without paying attention to every
facet of your operations and customer’s experiences.
 Successful retailers pay careful attention to staffing,
sales logistics, control on cash and inventory and are
always juggling these concerns.
1. Set your top performers’ work schedules first
 You should schedule your most skilled sales
staff to work peak traffic times.
 This gives you best “hitters” the most “trips to
the plate”, to borrow a baseball analogy.
 
2. Implement antitheft controls
 you should have procedures in place that not
only prevent shoplifting, but that also prevent
employee’s theft.
 For example, have a manager and a line staff
member sign off on your cash counting for the
day, and have them both sign for what goes in
the safe and what they take out of the safe.
3.Coordinate deliveries and inventory tasks so
they occur during off-peak hours.
 This allows you to devote staff to emptying a
delivery truck and stocking shelves without
hurting your sales activities on the floor.
4. Monitor your weeks of stock
 this is the total value of your inventory
divided by your weekly sales volume.
 Keep a record of your weekly and monthly
data from previous years so you can monitor
year to year trends, as well as trends in
consecutive weeks or months.
5. Schedule training during off-peak
hours
 your training activities should be
on going, with opportunities for
instruction and mentorship at
each employee level.
6. Plan ahead of time for disasters
 you should have a game plan to deal with
tornados, earthquake, power outages, floods,
missing children and crimes before the event
happens.
Retail workflow and Operational
Processes
 Retail store operations involve a number of
operational processes performed on a
continual basis by different members of a
retail store team.
 Understanding the basic operational
processes and workflow of a retail store can
help you to structure operations for your own
retail business.
Purchasing
 retail store managers often handle purchasing
duties for their specific outlets.

 In larger organization, purchasing may be

centralized, with front-line managers only
responsible for reporting inventory levels to the
main office.
Handling Inventory
 inventory handling duties can be a part of
everyone’s job in a retail store.
 Store employees store new inventory items
according to company policies usually
following the first in, first out rule and restock
inventory on the shelves whenever it is
needed.
Customer Service
 is the core element of retail store operations,
and it is the lynchpin that holds the entire
workflow together.
Accounting
 individual retail outlets report all that they do
to main office.
 One of major component of retail workflow is
regularly reporting financial information to
the accounting department.
Operating Requirement for retail
Business
 Managing a retail business requires a
multifaceted approach to operations and
leadership.

 Trends in retail often fluctuate, and operating

hours of retail businesses are at times a lot
longer than the hours in other industries.
Solid Business Model
 strategic planning is the heart of your business.
 For strategic planning to be effective, the
business model you choose needs to sustain
your business for the long term.
 Most retail businesses fall under a distributor
model and follow the operation of your
business from buying products to reselling
them.
Strong Buyers
 successful retail businesses sell products that
consumers think they must have.
 These companies employ business-savvy
buyers with keen eyes for spotting trends.
Effective Inventory system
 once a company purchase and receives
products, whether stored in a warehouse or
sent directly to the business, they become
inventory.
 Having an organized inventory tracking system
is motherboard of your retail business.
Competent Staff
 retail business need competent people to run
them.
 Effectively running business operations calls
for a retail store manager, assistant manager
in most cases, shift supervisors and sales staff,
normally referred to as sales associates.
Knowledge of Codes
 successful retail businesses adhere to codes.
 Back rooms need to stay clear inventory and
store fixtures so the store can remain within
fire code.
Retail Software – computer systems circulate the
monetary flow in a retail business. Registers
usually have programs to ring up customers and
hold cash.
 
Standards of Policy – successful businesses.
Write business operations down to the finest
detail in a layperson’s language. Refund policies
should be visible to all customers.
Vendors
 keep list of third-party companies vital to the
life of the business.
 These third-party vendors include electricians,
plumbers, heating and cooling specialists and
pest control companies.
Record Keeping
 successful businesses stay legal. You must
have an employer identification number in
most cases and solid bookkeeping records.
 Keep payroll and taxes organized and legit.
Retain financial statements on all purchases,
account payable and account receivable.
Key Roles in Store Environment
 The primary responsibility within the
environment of a retail store lies with the
store manager.
 The retail store is the prime importance to the
retail origination, for two reason. The retail
store is the primary source of revenue for the
retailer.
 It is the point where the customer actually
interacts with the retail store and its offerings.
 While the store manager may not personally
perform all these functions.
 He would be responsible for the tasks being
performed.
 Thus, if one were to enlist the responsibility of
the store manager, they would include:
 Budgeting and Planning
 
 Ensures that the goals are meet through
appropriate planning and organization of staff,
inventory and expenses, for short- and long-
term success.
 Monitor a loss prevention program to protect
the company’s inventory and
assets.
 Communication
 
 Communication with the regional office/head as
per the requirements laid down by the
organization with reference to sales, target
customer service, events and local issues.
 Ensure the company policy and procedures are
communicated in a manner and adhered strictly.
 Hold staff meeting to boost employee morale
and drive for achieving the results needed.
Customer service
Instil the employees, the meaning and
importance of customer service as outlined in
the retail philosophy.
 Personal
 
 Inspire employees so that each person
contributes to the productivity of the store

 Write performance evaluation and goal

assessments for the assistant store manager.
 Legal Compliance
 Ensure that the store is in compliance with
employment laws, including those regarding
wage and hour, human rights and equal
employment opportunities.
 
 Maintain safe working conditions for the
employees and customers coming in the
store, resolve any safety concerns quickly.
Internal Processes of a retail
store
 The processes a retail store adopts guide its
employees and management.
 They serve as road map for how various
aspects of the store functions.
 The store’s operational manual contains the
processes for easy reference.
Security-related Process –
 Shoplifting and employee theft plague retail
store.
 A 2011 study by the National Retail Federation
and University of Florida found that dishonest
employees and shoplifters accounted for more
than half of retail shrink, or inventory
discrepancies.
 Typically, a store has a process for thwarting
shoplifters and dishonest employees.
HR Processes

 Hiring, training and scheduling represents

types of human resources processes.

 The hiring process includes identifying

manpower needs, advertising, screening,
interviewing and on boarding.
Merchandise-related process
 a retail store has a process for receiving
merchandise, displaying it and replenishing it
as needed.
 Inception stock upon arrival, unpacking it,
attaching price tickets and security tags and
recycling material comprise common delivery
process steps.
 Safety and Maintenance
 like all business, retail store have a legal and
moral obligations to ensure the safety of their
employees and customers.
 The process for safety should include a program
that covers hazard identification and
elimination, regular inspections, worker
training, first aid availability, incident