unit-1 store ops

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Store Operations-

I1.1 INTRODUCTION

Retailing is a technology-intensive industry. Successful retailers now-a-days

workclosely with their vendors to predict consumer demand, shorten lead times,reduceinventory holding and thereby, save on cost. Wal-Mart had pioneered the conceptofbuilding a competitive advantage through distribution and information systems in

theretailing industry. Society is changing and the evolution of the Internet in recent

yearsis causing unprecedented changes in consumption patterns. The virtual worldisgetting bigger, and in coming years it is going to add a feather in the cap as far

asretail industry in

concerned.Retailing in its present appearance constitutes 20% of US GDP. It is the 3rdlargestemployer segment in USA and going to become a hot cake in coming

years.Organized retailing in India is projected to grow at the rate of 25%-30% p.a. andisestimated to reach an astounding Rs 1, 00,000 crores by 2010. Therefore, it

isimperative to have elastic tools that tolerate retailers to speedily acclimatize

tochanging consumer

demands.There are certain questions which need to be raised prior to going into the depth

ofthe

unit.When you stride in to a retail store, what part of the stores tone may have

aneffect on your shoppingfamiliarity?What turns you off in positive

stores?On this preamble, this unit is going to talk about all those basic things which arereallyrequired in StoreOperation.1.2 ORIGINATION OF STORES

In our present consumer-oriented culture, people do not shop simply to acquire

itemsthey need, but also to gratify their wants. From the 1860s to the start of

theEdwardian period, the western countries witnessed the development and growth

ofdepartment stores, which in turn had a major impact on gender

relations.Today, it is the large purpose-built structures like Selfridges (opened in 1909)

thatcapture the modern imagination and yet these cathedrals of consumption were

farless controversial as a consumer space by the early 1900s than they had been in

theprevious 30 years.

Source: http://hubpages.com/hub/A-History-of-Visual-Merchandising-in-Retail-

StoresFigure 1.1: Visual Merchandise in

StoresIt was during this period that many historians, such as Erika Rappaport and

JudithWalkowitz, have charted the rise of Londons main shopping areas and their role asaspace of female conspicuous consumption. They have constructed their arguments

byexamining masculine criticisms (although they also explore a number of early

feminist6 attacks) surrounding the female

shopper.


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The augment of the department store or grand emporium in the 19th century

brought

Introduction

toStore

Operationsmore changes in store design and visual displays. The early department

storescontinued with the idea of displaying merchandise in complex and luxurious

setting.A retail store is a retail establishment which gratify an extensive variety of

theconsumer s personal and residential product needs; and at the identical time

offeringthe consumer an alternative of manifold merchandise lines, at changeable price

points,in all product categories. Retail stores more often than not sell products

includingattire, furniture, home appliances, electronics, and furthermore select other lines

ofproducts such as paint, hardware, toiletries, cosmetics, photographic equipment,jewellery, toys, and sporting goods. Definite department stores are more hush-hushasdiscount stores. Discount stores frequently have central customer checkout areas,byand large in the front area of the store. Department stores are more often than

notingredient of a retail chain of many stores positioned around a country orseveralcountries.

Figure1.2: Presentation of a commodity in a Retail Store

1.3 ALL ABOUT STORE OPERATIONS

Retailers drop millions of Rupees per year due to contradictory store-levelimplementation of their corporate approach. The cost bang of inconsistentexecutionis between 2-5 percent of annual sales. Uncoordinated corporate planning results

inuncertainty and precedence divergence in the stores; lack of two-way response

prevent constant development. Store managers are filled to capacity

withcommunication and left to prioritize tasks on their own. Field managers, swamped

bya glut of out-of-date MIS reports, fight fires reactively as an alternative ofprovidingleadership. Labor schedules are out of footstep with genuine workload necessities.

Even when tasks are completed, corporate struggles to authenticate acquiescence.

Store Operations enable retailers to make certain dependable implementation of

theircorporate strategy by all stores and pull through the sales they would have

otherwiselost. Store Operations comprise Task Manager (for closed-loop task

management),Workforce Manager (for forecasting and preparation labor based on sales

forecasts,corporate initiatives, and employee skills and work predilection), Time andAttendance(for time entry, labor tracking, and time costing functionality), KPI Activator (forreal-time, KPI-driven alerts with the ability to assign corrective rejoinder based on

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practices), and Store Walk (for ensuring consistency from enhanced store walks

and

Store Operations-

Iaudits). Store Operations solutions facilitate retailers to boost efficiency,

augmentsales, and comprehend rapid ROI. Store Operations has again and again

implementedits solutions in 21 weeks or less, across numerous store formats at some of

theworlds largestretailers.The primary attitude at the rear the science of shopping is the simplest one.

Publichave confident similarities and tendencies which the retail environment must

receiveinto

account.Store operations are concerned with maximizing the efficacy of the retailers useofresources on a day to day basis. Retail store operation is about converting resources

into sales and profits. Store operation aims at maximizing profits by providing

asatisfactory experience and effective service to customers by making optimal use

ofpeople, space and merchandise.

Store operation is about executing the strategies and policies of the retail business

atthe store level on a day to day basis. Store operations could be seen from

fourperspectives namely: Product, Customers, Sales, and Place. We will definitely

threwsome more light on these four important ingredients in this whole episode of

SO.

Place

Figure 1.3: Four Perspective of Store

OperationsThe Productperspective will include type of merchandise,

merchandiseplanning, merchandise display,etc.The Customerperspective will include customer service, customer

relationship, and customer

satisfaction.The Salesperspective includes selling process, sales promotions, pricing and

discounting policies, etc.The Placeperspective will include location, managing space, fixtures

andlayout design, meeting statutory requirements of the place,etc.

From the above figure we had observed that these four terms had a great

linkagewith one-another. After the development of a product, how it is going to serve

thecustomers matter a lot i.e., its sales and place from where the product

disseminate.Most part of operations at a store level can only be accomplished by

detailedplanning. Planning of store operations translates

into

managingcustomers,

manpower, merchandise, space, fixtures, promotions, statutory licensing

andpermissions from government agencies, taxes, etc. The other dimension ofretail

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operation is about managing exceptions. This involves things like managing thestore

Introduction

toStore

Operationsduring tough weather conditions, providing medical help as first aid to customers

whomight get un-well in the store, fire-fighting plans

etc.Let us look at the major responsibilities of a store manager, which are given below,

inorder to understand briefly what store operations wouldinvolve:

1.3.1 Major Responsibilities of a Store Manager

Achieve sales targets as provided by the centraloffice.Provide effective service to customers by providing proper attention and

takingcare of their needs

Right type of manpower so as to provide satisfactory service to

customersSuitable training on an on-going basis to manpower operating in thestore.Proper merchandise is stocked and managed as per policy of the store.

Merchandise is displayed suitably by making use of right fixtures and

space.Store lay-out and display is maintained as per the design provided bythecentral

office.Fixed and semi-fixed assets, as well as current assets are maintained andmanaged well for achieving proper utilization and

returns.Store operational expenses are managed well in order to achieve a

profitableoperation.

All statutory licensing requirements are fullymetFile regular tax returns in totality as per governmentrulesDescribe the organization structure of the Store Operations function and

whoshould be responsible forwhat.The key performance indicators used to evaluate StoreOperationsperformance

.A wide range of business processes involved in the successful operation of a

chain of stores.

A wide range of business processes performed at the corporate headquarters

by Store OperationsManagement.

Retail Store Operation impression is one of the most noteworthy constituent

ofintegrated planning. Although the retail environment is a critical constituent of

brandcommunications, many in-store marketing opportunities lack thoroughpsychoanalysisin key areas such as fulfillment, media value, brand equity metrics, sales lift and

byand large

ROI.Having a winning vision and approach for the retail business are significant butnotadequate to tip the odds entirely in favour of success. Retail works with retailers

toilluminate and operationalize the strategies they have to to appreciate theirexpansionobjectives

.Consumer habits survey commissionedby

Store Perform Technologies and

afterward, conducted by Harris

Interactive

found that the retailers spotlight

oncreating a constantly optimistic shopping understanding across all of their stores

canreap the benefits of customer loyalty. A retailer s successful effecting of criticalin-store operations and initiatives is more important to creating customer

trustworthinessthan providing discounts and

promotions.9


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Store Operations-

I Retail works with retailers in all channels who are facing a multiplicity of

equippedchallenges. The endeavor of the retailers is to is to enhance the

processimprovements which resulted in increased sales and reduced operating expenses for

the clients. The team has decades of experience assisting major retailers in

allaspects of store operations. The skill-set includes following

thoughts.

Assisting major retailers

Retails experts in store operations can provide assistance with respect to store

visionand strategy, organization, operating metrics, coordination with upstream

activities,service environment and functionaloperation.

The Store Performance Improvement Continuum

LaborManagemen

tCustomerBestOperational

and Servic

ePractice

sEffectiveness

Schedulin

gExcellenc

esyste

m

Providingan

The Right People

InterpersonalDoing theRightStreamlined

and

Things at

the

Environment that

InvitesOrganizedExecution

RightTime

Visitation and Sales

Typica

l Best in ClassImprovemen

tTypical

Retail RangePerformer

Source:

http://www.retailforward.comFigure 1.4: The Store Performance Improvement Continuum

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1.3.2 Logical Activity Flow of Store Operations IntroductiontoStore

OperationsLogical Activity flow is a kind of activity that links with one another and facilitatethestore manager in finding out the responsibilities allocated to his/her downline. Let

usunderstand the diagram detailing the logical flow of all the activities involved

withstore operations to get a broader view of the matter. From the following chart we

geta fair idea about the kind of activities that are involved in store

operations.Helping

Product displaycustomer with

and visualproductAttendingmerchandisingselectionLocation & Customer customer

Store Lay-out entry

planning

Store Training toMaintenance Ambience POS software sales team& Repairs Maintenance

Customer BillingCustomer

data Sales data processrelationship

management

To do regular Analysis of replenishments sales trends

Preparation ofTo do To maintain merchandise planregular stock level

stock-take

Figure 1.5: Major responsibilities of a store manager in a Store Operation

1.4 STORE OPERATIONS MANAGEMENT SYSTEM

[SOMS]

Store Operations Management System gives retail organization the type

ofinformation tools that retail blockbusters use, such as customer purchase histories,

e-receipts, personalized marketing, even B2B, e-commerce and

CRM/ERPconnectivity. The aim of the store operation management

system.Know accurately what sold best in every department, group andseasonmake a decision what to buy or markdownTrack ROI from your ads, mailings, promotions, sales and

discountsThus we had observed that a store operation management system accomplish

storeoperations, in employing a communication equipment. In the store, connected with

atslightest one store workstation by way of a first line inside the store and

connectedwith a server by a second line outside the store. The communication apparatus

judgesthe operation type of each operation request sent from the store terminal and,

whenthe operation form is a primary operation, processes the operation appeal and,

whenthe operation type is a second operation, transmits the operation request to the

serverso that the server processes the operation task.

Thus has laid the groundwork for streaming store administration and

achievinggreater accuracy in ordering and will help us cut costs and create more potential for

new services. 11


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Store Operations-

I

Source:http://www.nitrosell.com/solution

sFigure 1.6: Retail Management System for store Operations

From the above figure in had been observed that. The key feature is conversiontobroadband. By recording the store-operation manual on the server at head office,

forexample, we can make available the latest version electronically for consultation

atany time, paperlessly. It also helps in acknowledging electronic and other

cashlesspayment formats, and, being easy to use and fast. Thus it helps position new

storestaff better for theirduties.

Deploy a complete point of sale solution with Microsoft Dynamics

Retail Management System (RMS)

Drive retail growth with a flexible, connected

solutionMicrosoft Dynamics Retail Management System (RMS) offers small and mid-

marketretailers a complete point of sale (POS) solution that can be adapted to meet

uniqueretail requirements. This powerful software package automates POS processes and

store operations, provides centralized control for multi-store retailers, and integrates

with Microsoft Office system programs, Microsoft Dynamics GP, and other

popularapplications. Microsoft Dynamics RMS is built on a proven Microsoft platform

thatadapts to meet unique and changing retail

needs.Set up and use easily

Minimize disruptions with a retail management solution designed for rapid

installationand ease of use.

The intuitive interface in Store Operations makes training cashiers easier.

Work with expert Microsoft Certified Partners to quickly set up and

tailorMicrosoft Dynamics RMS to meet your specific retail management

needs.Enable employees to learn POS procedures in minutes with built-in wizards and

anintuitive user

interface.Customize data fields to track information you want to see about

customers,inventory, and

suppliers.12


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Introduction

toKeep costs down now and into the future with support for existing computers

andStore

OperationsOPOS (OLE for POS)-compatible

peripherals.Automate inventory and purchasing management

Store Operations Manager provides several easy-to-use tools to create, track, and

manage your inventory.

Track and manage inventory using any stock and sales method and

inventorytypes that include standard, serialized, kit, assembly, matrix, lot matrix,

voucher,non-inventory, and

weighed.Manage complex, multidimensional inventory requirements with easy-to-

usematrix

forms.Track item movement and supplier histories, quickly generate purchase orders,

and add items on the

fly.Export purchase orders to Microsoft Office Excel and Microsoft Office Word for

easy customization and viewing in a matrix grid

format.

Streamline transaction processing

Respond quickly to customer needs with efficient, personalizedservice.

Whether your customers pay with cash, check, or credit, Store Operations makes sales

transactions fast and easy.

Work with a customizable POS screen that offers immediate access to

prices,availability, and stock location.

Access customer histories at the POS; handle multiple tenders and

partialpayments at checkout; and quickly create and process returns, back orders, sales

quotes, work orders, and layaways.

Expedite checkouts, target customer preferences to offer up-sells and cross-sells,

and implement automatic discounts for frequent

shoppers.Eliminate credit card terminals and dedicated phone lines for card

transactionprocessing.

Help reduce shrinkage, false returns, credit card fraud, and unauthorized discounts

with 31 levels of user security

features.

Improve marketing efforts

Target your marketing efforts based on accurate customer data, including preferences

and detailed purchase histories. 1

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Store Operations-

I Easily set up discounts, promotions, and sales to increase customer

satisfaction.Work with flexible pricing structures to offer special pricing to your

bestcustomers.

Send targeted mailings with offers and promotions to selected

customers.Display up-sells so that associates can mention

them.Collaborate with suppliers to advertise products, promotions, new items,

orupcoming events to customers in line with a secondary net

display.

Analyze data with flexible reportingoptionsAccess, analyze, and share current, detailed data across your entire business

including multiple store locationswith a wide range of flexible

reports.

Manager is a convenient, central location for creating and managing reports.

Preview, search, and print daily sales reports and journals by register, batch,

andreceipt number, as well as close cashier shifts quickly and

accurately.Identify sales trends in every department or category, evaluate operations

andfinancials, track results from sales and ad campaigns, and set and monitor

business policies across stores.

Export report information directly into Office Excel, XML, Comma

SeparatedValue (CSV) files, or your email application.

Integrate with other

solutionsHelp eliminate duplicate data entry, connect business information and processes,

andprotect your existing softwareinvestments.

Connect retail and financial management across a multi-store network

withintegration to Microsoft Dynamics

GP.Work with familiar Microsoft Office system applications such as Excel and

Wordfor data analysis and

communications.Use Electronic Data Capture (EDC) and integrate with leading credit

cardservices to reduce fraud and humanerror.Manage accounts receivable in Microsoft Dynamics Retail Management

SystemStore Operations, then trade summary POS data with popular accounting

softwaresuch as Intuit QuickBooks (U.S.

version).Work with independent software vendors to enhance existing functionality.

Youcan also add new features, functionality, and applications, including

verticalsolutions, accounting and enterprise resource planning (ERP)

integration,eCommerce solutions, personal digital assistant (PDA) and

mobile/wirelessstations, and additional integration to EDC and credit card

services.Scale to meet business growth

Work with a scalable, flexible platform that helps you adapt efficiently to mid-

marketbusiness requirements and drive a lower total cost of ownership

(TCO).Retailers can deploy and manage Microsoft Dynamics RMS chain-wide,

givingthem the visibility and control they need to compete in a highly competitive

retailenvironment

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Introduction

toRetailers can help drive more value from their existing investments and keep

theStore

Operationssame retail management software and systems as their business grows

intomultiple stores and retail channels. As they add customers and products to

thesystem, flexible Microsoft SQL Server database technologies can store

andmanage virtually unlimited amounts of

information.Data generated at stores across the retail chain can be integrated

withmerchandising systems, warehouse systems, and other back-office

enterprisesystems or portals, including Microsoft Office SharePoint

Server.An extensive catalog of Microsoft Certified Partner add-on solutionsincludinge-commerce, mobility, business intelligence, merchandising, and others

furtherenhance the investment value of a solution that can be tailored to suit

demandingretail needs

http://www.microsoft.com/en-us/dynamics/products/rms-overview.aspx

1.5 RETAIL STORE IN INDIA

Yes, it is not a 20-20 match; it is going to be a long and hard fought Test match

withlot of pain and effort in terms of time. One that Indian consumers are going to

watchintimately with enthusiasm. The Indian retail sector is on the cusp of a change, a

verybig change. This change is going to affect thousands of Kirana store owners,

smalland big traders and Indian consumersalike.The enlargement of retailers depends principally on their collection of

environmentalmarkets and chance of new stores. Retail chains that discover the most

excellentmatch between the positioning of the stores and uniqueness of the local market

arethe most contemporory ways to accomplish something. From a consumerviewpoint,convenient locations and product assortment drive store would be anutmostalternative to bridge thisgap.The retail sector keeps reinventing itself as it moves with the times and matches

everincreasing customer demands for efficient services and best prices. This has

raisedsubstantial challenges for the retail merchandizing business as one can endeavor

toaccomplish cost optimization with the best processes in place as far as Indiaisconcerned. Leveraging decades of experience in this sector, Wipro Retailunitprovides focused solutions for this retail sector in particular and helps one to achieve

strategic business targets in a competitive

market.The in-depth retail knowledge provides one the insight and project execution skill

tooffer customized solutions in the e-business, CRM, SCM, TechnologyInfrastructure,ERP, Data Warehousing, Stores Operations Management, Retail ShrinkManagement,Retail Merchandising and Business Intelligence space. The offerings cover

varioussegments of the retail sector like grocery, specialty, pharma and convenience

retailing.In the below mentioned head we will throw light on a Wipro retail case study

whichemphasize how the industry specialists and customers through the Centers

ofExcellence in supply chain efficiency, retail merchandizing and pricing,

RFID,pharmacy in retail, in-store solutions and data analytics execute a

process.Retailing is one of the pillars of the economy in India and accounts for 13% of

GDP.The retail industry is divided into organized and unorganized sectors. Over 12

millionoutlets operate in the country and only 4% of them being larger than 500 sq ft (46

m

)2

in size. Organized retailing refers to trading activities undertaken by licensed

retailers,that is, those who are registered for sales tax, income tax, etc. These include

thecorporate-backed hypermarkets and retail chains, and also the privately owned

largeretail businesses. Unorganized retailing, on the other hand, refers to thetraditionalformats of low-cost retailing, for example, the local kirana shops, owner

manned

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general stores, paan/beedi shops, convenience stores, hand cart and payementStore Operations-I vendors, etc. In India, a shopkeeper of such kind of shops is usually known as

adukandar.

1.5.1 Curtain Raiser to WIPRO Retail

Wipro Retail is a division within Wipro with both a dedication and passion for

retail.Our unsurpassed depth of knowledge stems from the acquisition of Enabler in

2006,a company founded originally by retailers for retailers. Deep retail knowledge gives us

an unique insight into the key business levers and the ways that processandtechnology can be blended to improve commercial

performance.We are proud to work with a high number of the worlds leading

internationalretailers, amongst them; Morrisons, Supervalu, Tesco, Ahold, Sonae, DeSpar,

Carrefour and Walmart. Wipro Retails expertise and customer base spans across all

retail industries (Grocery, Fashion, DIY, Department Stores and Wholesale)

andprojects extend from PCI DSS to large ERP implementations. We have many

longstanding relationships as our core proposition requires us to focus on

customersatisfaction and value creation. Therefore Wipro Retail invests strongly in

theestablishment of long-term relationships with customers, allowing adeeperunderstanding of the business, the joint deployment of the best solutions

andincreasing value over

time.Wipro Retail helps on to understand where the business is going and the

challengesthat are faced to lead organizational transformations to the next level. We have

thedelivery expertise to partner retailers in making a sustainable difference with

provenexperience and commitment to customer excellence, as key driving

factors.Wipro Retail is an Oracle Retail Tier 1 Partner which deals in store

operationmanagement system (SOMS) already discussed in an elaborative manner at point

1.4of this unit, has enjoyed a long standing relationship that jointly leverages the

powerof the Oracle Retail suite to provide end-to-end business and IT solutions for

globalretailers. Wipro Retail is the most successful integrator of Oracle Retail solutions

andboasts prime reseller status in many

territories.

Source:http://www.wipro.com/industries/retail/retail/index.htm

1.5.2 Big Bazaar: The Brand Building Challenge

The Big Bazaar brand name is in its growth stage. Pantaloon group facedvarioussmall and large scales troubles in the introductory stage of the brand. Present

yearsare the high growth in retail sphere as market has high potential to sustain

growth.The sales are increasing, more and more firms are coming to markets, foreign

playersare entering into retail sector and finally presence of organized retail is increasing

inretail sector.

Factors that shaped Big Bazaar during its life

cycleInfluence of Sarvana Stores located in Theyagraya Nagar, Chennai

Many people think that Big Bazaar was inspired by Wall Mart but the truth is

thatKishore Biyani (KB) and his team members are neither inspired by US ways of

doingretailing nor they have been to US much. The credit for foundation and

inspirationgoes to Saravana Store, a family run 25 years old store, whose philosophy was

low margin, high turnover. In that store, food, groceries, clothes everything hadaseparate section. It had around 120 people just to manage crowd. The

singleshop was doing business of more than 200 crore per year. This shop was

thetemplate for Big

Bazaar.16


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Introduction

toObserving customer regularly StoreOperations

Regular customer feedback is also an influential factor for the success of

BigBazaar. The Big Bazaar has a separate team that looks for customers

purchasingpattern and how they like or dislike products, how they approach to

particularproducts. For example, unlike other stores where the most expensive and catchy

itemis placed at the front display, Big Bazaar places the Value for Money Item at

checkout

point.

Imbibed entrepreneurial spirit in organization

Decision making power is given to every level of employee at Big Bazaar. KB

hasgiven risk-taking power, which led to entrepreneurial spirits into every

employee.Everybody in big Bazaar operates with speed and confidence when it comes

todecision making.

Building on core

valuesCore values of Indian-ness, valuing and nurturing relationships and Simplicity

shapedthe brand. Kishore Biyani always believes in long term relationships, with

customers,suppliers and employees. Once thinking about offering gifts to employees close

toDiwali, KB suggested giving them wallpaints to keep their house clean. The paint

isused in Indian culture to keep house clean and brings freshness. The motive

behindwas to keep everything clean and bring freshness inorganization.

Strategic decisions taken to build the Big Bazaar

brandThe strategic decisions that lead to building of Big Bazaar

were:-

Real Estate Game

For a retailer, location is one of the most important things. According to KB,

realestate cost should be less than 5 % of total sales of store in order toprovidemaximum benefits to customer. The strategic decisions to secure spaces before

otherretailers join in have resulted in cost-

saving.Also, it has created early presence in market.

Nurturing

relationshipsKB follows strategy to develop trust and nurture relationships with suppliers.

Thistrust led to strategically correct decisions most of the time. Whoever works

withFuture Group, either leaves in initial deals or continues forever. Use of

technology,scenario planning and story-telling Big Bazaar planning and design used

advancetechnologies like scenario planning and storytelling. These techniques were

mainlyused for store-design layout, store-location selection. The strategy to use

user-focused, prototype-based development tool made the brand adapt to the

fast-changing external

environment.Design Management

Design-led thinking helped Big Bazaar to achieve customer-first objectiveandultimately lead to better financial performance. Big Bazaar strategy to focus on

designled to creation of Idiom, an independent design and consultancy firm, based

inBangalore. They are one of the few organizations in India having

economist,ethnographers and sociologists working across various teams as a part of Design

management team. Back-end operations, supply chain Harvard Business School

justdid a case study on Pantaloons supply chain and it says that Pantaloons is the

mostcost-effective supply chain in the world. India may not have a modern supply

chainbut it definitely has a cost-effective one. Retailers have made use of the

existingsupply

chain.Source:

www.bigbazaar.com17


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Store Operations-

I Check Your Progress-A

1. Briefly Comment on the following

statementsa. Retail Store Operation is about converting resources into sales &

profit.........................................................................................

...................

........................................................................................

...................

........................................................................................

...................b. Many people think that Big Bazaar was inspired byWalmart.........................................................................................

...................

........................................................................................

...................

........................................................................................

...................c. Regular customer feedback is also an influential

factor.........................................................................................

...................

........................................................................................

...................

........................................................................................

...................d. From a consumer perspective, convenient locations andproductassortment drive store

choice.........................................................................................

...................

........................................................................................

...................

........................................................................................

...................2. Fill in the blanks with the appropriate word given in the

brackets.a. Decision making power is given to ________

level.(Top / Lower)

b. For retailer __________ is an important

factor.(Location / Price)

c. Sales per square_________is most commonly used for planninginventory

.

(Acre /

Foot )d. The growth of retailer depends largely on the selection

of____________ market. (Geographical /

Historical)e. Retailer_________million of rupee per year due to contradictory

storelevel.

( Loose / Gain)

3. State whether the following statements are true or false.

a. Indian consumers are going to watch intimately with

enthusiasm.b. Retailing is one of the pillars of Indian

economy.

c. Retail knowledge not able to provide site and projectexecutions.4. Write Short Notes on the following:

a. Big Bazar

........................................................................................

...................

........................................................................................

...................

........................................................................................

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Introduction

tob. Wipro

RetailStore

Operations...................................................................................................................................................................................................

...................

........................................................................................

...................c. History of

Store........................................................................................

...................

........................................................................................

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........................................................................................

...................

1.6 STRATEGY BEHIND THE STORE DESIGN

There are certain bodily and anatomical factors and limitations which are

widespreadto all the people shopping in the store. Whilst there are numerous differences

inshoppers based on tastes, preferences gender, age, income, etc., there are a large

number of similarities which should be reflected in the design of the

store.When you regard as some basic facts there are some things which require to

bememorized in the design of the retail outlet. Most of the customers will havetwohands and when they are standing usually, these hands will be situated just about

36inches off the floor. This means that if you merchandise products below that

height,your customers are going to have to bend over. If they bend over, is there

sufficientroom for people to pass without knocking them? The strategy rather a

pedagogybehind the store design talks up to some extent about these

issues.Do you use shopping baskets in your store? Where do you store them? Are they

instacks around the store or are they located just in one place near the entrance.Agood tactic to increase sales, is to get the sales staff to carry some baskets and give

one to many customer that has two items in their hands. Immediately this will free

upone hand so that they can add more merchandise to the basket. Tactics like

thisincrease the rupee value of each transaction and there is no cost.

The longer you can keep your customer in the store, the more they will buy.

Thequicker your customers walk, the less they will purchase. If the store encourages

aleisurely pace, the customers will see the merchandise and the signs clearly. This

willalso contribute to purchasing

more.If the customer is walking through the complete store and considering a wide

varietyof merchandise, a substantial amount of time is required. In some stores, buyers

havebeen timed in spending four or five as much time as non-buyers. If you can

acquireyour shoppers to shop longer, then your average business will also increase, on the

other hand, you have to be acquainted with how long your customers spendshoppingin your store for you can design strategies to augmentit.The science of shopping shows quite obviously that store design and profitability

arelinked very intimately. If your store has a good design, you will be more intomoney-making

.1.6.1 Store Space: Case Study of Store Hanger

Retailers that give away hangers, whether imprinted or not, should consider

storagespace. Hangers can be purchased in bulk to reduce costs and to avoid running

out.Keep in mind that hanger boxes are usually on the large side and may take up a lot

ofspace in the stockroom. As sales clerks remove items from hangers, these recycled

hangers should also have a neat and organized space at the checkout

counter.19


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Store Operations-

I Hangers are a critical part of any clothing display. Using the proper types of

hangerswill not only protect and preserve the merchandise, but it will also help

yourcustomers find what they are looking for much

faster.Hangers for clothing and fashion accessories are available in a variety of styles,

materials and sizes. Standard adult hangers are usually around 17 inches wide,

whilechildrens hangers are only 12 to 14 inches. Specialiy hangers for pants and skirts

areavailable in 14

inches.Economical plastic, durable metal and classic wood hangers may all be suitable to

usein a retail environment. Before choosing clothes hangers to use in your store,learnabout the more popular types of

hangers.

Padded Hanger Plastic Hanger

All-Purpose

Clothing Hanger Linqaria

Hanger

Salesmans Skirt/Slacks WireHanger Cotoured Hanger Hanger Hanger

WoodenHanger

1. Plastic Hangers: Commercial plastic hangers are generally available in white,

black or clear plastic. The quality will run from lightweight, almost flimsy,

plasticto the super heavyweight unbreakable hangers. Plastic hangers work well as

anall-purpose hanger. These are generally used for shirts, blouses, and dresses.

2. Wire Hangers: Metal, or wire, hangers will also vary in quality. The

mostinexpensive, lightweight metal clothes hangers are the type you may receivewithyour dry cleaning. Heavier metal hangers wont bend or sag and are great

forstores with a more contemporary look. Because wire can rust, some wire

clothinghangers are coated in colored vinyl to protect

fabric.3. Wooden Hangers: Classic wood hangers are available in a natural finish

withchrome hardware or the higher end teak wood with brass hardware. Wood

hangerstyles include coat hangers with or without wooden bars, hangers with metal

rodsor lock bars on a spring to prevent pants from

sliding.4. Tubular Hangers: All-purpose tubular molded hangers are the type also

availableto consumers and found in many homes. They come in a large variety of

colors.Using colored hangers may increase sales appeal.

5. Padded Hangers: Not only does a cloth covered hanger protect

delicategarments, the padded hanger is usually covered with satin and therefore a

prettyway to display lingerie or other clothing. The padding helps to prevent

slippingand assists in preserving the shape of the

garment.20


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Introduction

to6. Specialty Hangers: Retailers have many choices in hanger styles for

unusualStore

Operationsgarments or non-typical situations. Notched hangers are perfect for items

withstraps. Skirt/slacks hangers have metal or plastic clips on a metal rod

whichprevent sliding. Another type of specialty hanger is the salesmans hanger.

Thesestrong, chrome hangers feature a space-saving style and are ideal for trade-shows

or salespeople transporting garments.

7. Hanger Accessories: Hanger markers, cardboard tubes and other hanger

accessories help retailers keep their merchandise neat and tidy while creating

anappealing display. Instead of purchasing different types of specialty hangers,

piggyback connectors can be used on most any hanger to allow two garments

tobe displayed together. Soft plastic clips can attach easily to most hangers

withnotched tops. Also, foam hanger covers or strips can be placed on most

anyplastic or wooden hanger to prevent items from

slipping.Before buying commercial hangers for a retail store, consider the following

factors.

Garment Type: The most important factor when choosing a hanger is

todetermine the type of garment to be displayed. Of the many types ofhangersavailable to retailers, each has its own particular function. For example,

thehigher cost and thickness of wood would make it impractical to

choosewooden hangers for displaying tee

shirts.Store Atmosphere: Hangers should match, or at least blend, with astoresdecor. Take into consideration the look and feel of the store when

choosinghangers. Upscale boutiques may want to avoid lightweight plastic

hangers,while teak wood hangers may look out of place in a discount

store.To give or not to

give:

Some retailers write their marketing plans to

includecustom printed hangers. Occasionally, a retailer may even receive

clothingfrom the manufacturer already on hangers. All of these hangers are

generallypassed on to the customer and are considered a standard cost of doing

business. On the other hand, more expensive and higher quality hangers

aregenerally reused as long as they remain in good

condition.Storage Space: Retailers that give away hangers, whether imprinted or

not,should consider storage space. Hangers can be purchased in bulk toreducecosts and to avoid running out. Keep in mind that hanger boxes are usually

onthe large side and may take up a lot of space in the stockroom. As sales

clerksremove items from hangers, these recycled hangers should also have a

neatand organized space at the checkout

counter.Source:

http://retail.about.com

1.6.2 Fraschetti: Automates Warehouse to Improve Operations

Fraschetti, a leading Italian hardware and household item retailer, purchases

frommore than 500 suppliers and restocks approximately 2,500 sales points

throughoutItaly, often with exclusive products purchased in Europe or the Far Eastanddistributed under its own logo. Due to the size of the sector and the

numerousproduct categories within, the distributor has a prominent role in the

exclusivedistribution of big name

brands.To work efficiently with traditional shops you have to be service oriented,

GiorgioFraschetti, vice president of sales, said. We have a network of 44 single-brand

representatives connecting with the company at least once a day. Our

programinvolves deliveries at least twice a week over the whole area and once a week in

themore inaccessible areas. In some privileged areas like Rome and Naples and the

entire Latium coast, deliveries arrive every day. An order received by noon today

isfilled by tomorrow.21


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Store Operations-

I The widespread nature of the deliveries means Fraschetti manages an

enormousnumber of orders and invoices each day. Working closely with Intermec

partnerIncas, Fraschetti now uses Intermecs 2455 vehicle mount computers in place

oftraditional paper-based means of shipping and receiving to ensure the right

productsand correct amount are delivered to the appropriate retail locations. The logistics

involved in managing this many orders can be daunting. Consider a large number

ofdeliveries that each include an extremely complex assortment of goods of

differentamounts, e.g. 10 pulleys, nine tubes, 11 boxes of nails, six bags of earth, four

pipes,etc. The inventory management and distribution process could be staggering. The

useof Intermecs 2455 vehicle mount computers has enabled the Italian retailer toeasilymove nearly 12,000 items per day without

error.Improving Inventory Management

Delivery is guaranteed by Fraschetti; therefore 85 percent of the daily work

involvesorders received the same day. To make it easier to locate and track items, goods are

now checked upon receipt using Intermec 2415 wireless handheld computers.

TheIntermec 2415 confirms quantities and makes note of any discrepancies in

thedelivery. The content of the suppliers shipping note is then loaded into a

computerwith the production of load units and instructions for the formatting of the

goods.After an item is formatted, it is assigned a bar code label. The bar code label

isidentified by the Intermec 2455 vehicle mount computer. The goods are then

handledas indicated by the computer. The Intermec 2455 shows where to position goodsinaccordance with a specially designed logic as well as the items destination. After

thepositioning of the goods, all handling, movement and checking is done using

theIntermec

2455.Since using Intermec, the improvement in warehouse operations has been

dramatic.The entire warehouse area is now mapped allowing Fraschetti to track all of its

itemsat all times. A considerable increase in the number of operations performed and

asteep fall in the number of errors occurred has contributed to the

organizationsincreased profitability. In the future, Fraschetti plans to implement an

automationsystem for its other very important operations, such as the optimization of loadsandthe automatic weighing of larger packages.

About

FraschettiThe companys history began in 1870 when Francesco Fraschetti opened a

smallironmongery in Ceprano and by doing so paved the way for what was to become

oneof Italys leading household and DIY (do it yourself) item marketing

companies.The ownership of the company has always remained in the family and after

periodsof strong growth and others of consolidation; it is now in its fourth generation.

Thecompany today operates across the center and south of Italy providing a very

highlevel of service and annual sales totaling around 35 million Euros. In the last

fewyears, the sector has moved on with the advent of the new DIY chains of shops,

butthe traditional sales point, the old-fashioned

hardware

s tore, still accounts for

thelargest percentage of business.

About Incas

Based in Italy, from its foundation, the aim of the Incas group has been to

findinnovative methods for industrial process automation and control. Today this aim

isfully realized within a modern, efficient and innovative company. A

markedspecialization in the two areas constitutes its core business, logistics and

productionmonitoring, has made it possible to develop skills that translate into

powerfulstrengths

:The ability to propose flexible and efficient solutions supported by an

extensiveknowledge of system

integration.Guarantee of reliability and providing support over

time.Source:

http://www.intermec.com/learning/content_library/case_studies/cs2057.aspx22


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Introduction

to1.7 STORE OPERATIONS SOLUTIONS

Store

Operations

Store operations solutions is a spohisticated technology and database tools which

provide a retail organisation a pathway. There are four ways by which the store

operations solutions will be explained.

Task Manager

Workforce

ManagerTime andAttendanceStore

walkFor leaner convenience we are explaining these terminology in a more

elaborativemanner.1.7.1 Task Manager

Boost sales and cut costs by turning corporate retail strategy into store-level

actionwith closed-loop task

management.Task Manager gives retailers active control of every store, giving upper

managementthe ability to turn strategy into action, and the benefits of higher sales and

improvedperformance.This powerful solution streamlines store execution with one comprehensiblechannelof communication that focuses stores on their objectives and provides real-timefeedback and visibility of task compliance to field and corporate managers. In short,

itfacilitates good tasks while eliminating bad

tasks.It gives store managers, field managers, and corporate the ability to clearly plan

andcommunicate objectives across the enterprise, optimize productivity throughoutavariety of regions, and return the primary focus to theircustomers.Whether its introducing a new line of merchandise, running promotions, or

conductingproduct recalls, heads-up management drives your chains ability to turn a

healthyprofit and continue to grow. Task manager gives your managers exactly

theinformation they need, without being overloaded, so that they can get out of thebackroom more and into the store where they can make adifference.1.7.2 Workforce Manager

Workforce Manager gives retailers complete control over budgeting, forecasting,andscheduling store labour, ensuring efficient operations, on-time task execution,andconsistent levels of customer service. The result stores generate more saleswhileusing labor rupes. more effectively, leading to increased profitability and growth.

Evenbetter, Workforce Managers power and complexity stay behind the scenes

whilemanagers and employees use simple, web-based forms that eliminate the

frustrationand drudgery of paper-based scheduling. The solution generates optimized schedules

that are in compliance with labor laws, union rules, and work policies while

respectingemployee preferences, availabilities, and proficiency. Integration with Time

andAttendance allows real-time monitoring of key labor metrics and exceptions toensurecompliance.To Workforce Manager, scheduling is not just about filling shifts for the day, its

aboutmatching skills and availability to the actual tasks in and around the store. Powered

byunique algorithms, Workforce Manager takes into account all store activities

routine,sales-driven, corporate-directed, even vendor deliveriesand incorporates themintolabor forecasts that yield optimal labor schedules. Its also the only labor

scheduling

23


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system to fully leverage the ad hoc activities that account for more than 30 percent

of

Store Operations-

Iwork in most retail

stores.

1.7.3 Time and Attendance

Provides full-featured time entry, labor tracking, and time costing functionality.Timeand Attendance provides a wide range of features for managers and employees to

track labor and stay in compliance with laws and rules. It supports multiple timeclockoptions, including clocks with the latest technologies such as fingerprint

biometrics.The Time and Attendance module for time entry, labor tracking, and timecostingprovides retailers with the following capabilities to maximize productivity

andcompliance:

Table 1.1: Time and Attendance

Module

1.7.4 Store Walk

Lock in operational gains by fool-proofing store walks and audits throughout

thechain

.With Store Walk, retailers have the tools to monitor and improve store operations

andensure compliance in a much more cost-effective and timely manner. One

customerreports that by using Store Walk, they were able to cut the district managers

per-store audit times from multiple days to a matter of hours. Imagine the boost

inproductivity when applied to every store in your retail

chain.Store Walk uses focused sets of questions, created and controlled by retail

management, that are used to focus district and regional managers attention on

theparts of their stores that deserve the most attention. But Store Walk goes

beyondbeing an incredibly effective checklist. Problem areas that show up in the

exception-based system can be used to automatically trigger tasks that fix issues using

bestpractices as a model.

With Store Walk, every visit and walkthrough mean the start of major

improvementsto your retail

business.

24


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Introduction

toCheck Your Progress-B StoreOperations

1. Briefly comment on the following statements.

a) Store Operations enable retailers to ensure consistent execution of

theircorporate strategy

..............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................b) Visibility is everything in the multi branded

malls...............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................c) Store operation resources facilitate daily procedures, creating internal

controlsand other day-to-day retail

operations...............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................d) Efficient store operations increase sales and diminish

expenses...............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................e) Retail store operation is about converting resources on a day-to-day basis.

..............................................................................................

...................................................................................................................

.....................

..............................................................................................

.....................f) Operations at a store level can only be accomplished by detailed

planning...............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................2. Fill in the blanks with the appropriate word given in the

bracketsa) Fraschetti is a leading Italian _____________ and household item

retailer.(Hardware /Software)

b) Attendance provides a _____________ range of feature.

(Wide /

Narrow)c) The longer you can _______________ customer in the store, the more they

will

buy.(eliminate/retain

)3. State whether the following statements are True or False

a) To work efficiently with traditional shops you have to service

oriented.b) The logistics involved in managing this money order is

daunting. 25


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Store Operations-

I c) Store walk cannot improve the retail

business.d) Workforce manager gives retailer incomplete control overbudgeting.

4. Write Short Notes on the following:

1. Task Manager

..............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................2. Work Force

Manager..............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................

..............................................................................................

.....................

1.8 LET US SUM UP

The better the shopping experience, the more your customers will shop and spend

inthe stores. Store operation systems now enable one to provide differentiated

servicethat will secure loyal customers and drive more frequent visits and a largerbasketsize.

This unit provides a learner with an aim to analyse the need to be built for the

storeoperations side of the business. Many of the analyses for one group will apply

toanother group. For example, the basic sales figures used by store operations are

important to marketing during apromotion.

1.9 KEYWORDS

Counter service : Is a service where goods are out of reach of buyers

and must be obtained from the seller. This typeofretail is common for small expensive items(e.g.jewellery) and controlled items like medicine

andliquor. It was common before the 1900s in the

UnitedStates and is more common in certain

countries.Delivery

:

Delivery where goods are shipped directly

toconsumers homes or workplaces.

Door-to-Door

sales :

Door-to-Door sales where the salesperson sometimes

travels with the goods forsale.

Self-service : Self-service where goods may be handled

andexamined prior to purchase

1.10 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress A

2) (a) Top (b) Location (c) Foot (d) Geographical (e) Loose

3) (a) True (b) True (c) False26


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Check Your Progress B IntroductiontoStore

Operations2) (a) Hardware (b) Wide (c)Retain3) (a) True (b) True (c) False (d) False

1.11 TERMINAL QUESTIONS

1. Store Operations provides the learner with an excellent overview of

the organization, functions and concerns of Store Operations within a modern

retailbusiness.Explain2. Critically analyze the association between Store Operation, Store

Environment,Productivity and Profitability in retail

operations.3. Judge the way in which different retailers in India use the Store Operations

in order to improve productivity and

profitability.4. Appraise, compare and contrast differences in retail store operations

practices.5. Evaluate the nature of decision making within retail organization pertaining

to retail operations practices.

7. It helps the stores know whats expected of them. And it helps Head Office

to step back from the day to day problems because if its clear what a store has

todo, they dont have to contact you each time to ask or negotiate.Explain8. How retail store operation is going to be one of the significant platform for

integratedplanning

.9. Explain the scenario of retail store in

India.10. What are the strategy behind the stores? Explain with the help of

suitableexample

11. Retail Business is still dominated by small family run stores. Give your

view with the help of real life

scenario.12. Retail works with retailer to clarify and operationalize the strategy.

Explain13. Retailing is one of the pillars of Indian Economy. Elucidate your answer

with the help of suitableexamples.14. Task manager gives your manager exactly the information they need.

Explain15. The longer you can keep your customer in the store, the more they willbuy.Explain in the light of customers

perspective.16. In store, design is proportionately related to profitability.

Discuss17. What learning you have from the Big Bazaar case study? Give your

Comment18. Hangers are the critical part of any clothing display. Explain with respect

of SpaceManagement.19. India retail store is on the cusp of change. Explain with respect to Indian

RetailIndustry

.1.12 FURTHER READINGS

Books

Barry Barman, Joel R. Evans, Mini Mathur

(2011).

Retail Management:

AStrategic

Approach

, Pearson Education.

Krafft, Manfred; Mantrala, Murali K. (eds.)

(2006).

Retailing in the

21stcentury: current and future

trends

. New York:

SpringerVerlag. ISBN

3540283994.27


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A.J. Lamba. 2003. The Art of Retailing, 1st edition, Tata McGrawHill,

New

Store Operations-

IDelhi

.McGoldrick P. (2002) Retail Marketing 2nd edition McGraw-

HillVarley R. & Rafiq M. (2003) Principles of Retail Management

RoutledgeLevy M. & Weitz B.A. (2004) Retailing Management 5th edition

IrwinSullivan M. & Adcock D. (2002) Retail Marketing

ThomsonFernie J. Fernie S. & Moore C. (2003) Principles of RetailingButterworth-Heineman

nKent T. & Omar O. (2002) Retailing PalgraveMacmillanGilbert D. (2002) Retail Marketing Management FT PrenticeHallDavies B. & Ward P. (2002) Managing Retail Consumption John Wiley

andSons Ltd

Website and Online Resource

http://www.digitalretailer.com/RMSdemo/UIc.htmlhttp://www.hackneycitizen.co.uk/2010/11/12/the-one-hundred-pound-shop/http://www.mydollarstoreindia.co

mhttp://www.daiso-sangyo.co.jp/english/storeinfo/storeinfo02.htmlhttp://www.dollarstore.s

ehttp://buyerbehaviour.blogspot.com/2008/01/big-bazaar-freedom-sale-

chang...http://www.slideshare.net/theRedIndian/india-retail-2008-big-bazaar-

scen...http://www.docstoc.com/docs/18635840/Reliance-Retail-Store-

OperationBritish Retail Consortium:http://www.brc.org.ukInstitute for Retail Studies:

http://www.marketing.stir.ac.uk/irs/Centre for Retail Research:http://www.retailresearch.org/home/index.phpInteractive Media in Retail Group:

http://www.imrg.org/The Committee for the History of Retailing and Distribution:http://www.wlv.ac.uk/shass/chord.ht

mlForrester Research Retail:

http://www.forrester.com/ResearchChain Store Age (USA):

http://www.chainstoreage.comNational Retail Federation (USA):

http://www.nrf.com

Note

:

These questions/exercises will help you to understand the unit better. Try

towrite answers for them. But do not submit your answers to the

Universityfor Assessment. These are for your practice

only.

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unit-1 store ops

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