“Store Manager – a mini CEO: Understanding Roles & Responsibilities”

What according to you is the role of a

CEO ??

CUSTOMER PROCESSFINANCE

PEOPLE

Mini CEO - Roles & Responsibilities

CUSTOMER•Customer Satisfaction

•Customer Loyalty program

• Customer Adoption (Know your BIG customers)

•Customer recovery process

• Customer listening program (FGD’s)

The Golden RuleAlways think:How will it affect my customer? If I was in the customer’s place, how would I feel?

– What do you see?

– What don’t you see

– Is everything clearly marked?

– Is there someone to help you?

– What do you like?

– What don’t you like?

– What would you like to change

CUSTOMER

Customer Satisfaction• Make customers feel comfortable by paying attention

to every detail of the experience

Customer Listening Program (FGD’s)• Understand the customer’s concern in an environment which facilitates open talk

Customer Loyalty Program• Religiously make more loyalty members for long term relationship (Shopper Stop-72%, Lifestyle-55%)

Relationships are the essence of customer service.Service = Sell Relationships

CUSTOMER

Customer Adoption (Know your BIG customers)• How many customers do I know personally ?

• How many my team members know ?

• Do I only talk business with them or make

them be a part of my store

-Holi celebration, sale previews,

Anniversaries, etc…

Customer recovery process• Speedy customer complaint redressal

e.g: First customer in MM Forum value mall.

CUSTOMER

Attractive displays , Convenient floor plan & world class ambience are key to success

“I am willing to pay more if am comfortable” – Customer

e.g. Volvo buses, Multiplexes, DTH, Lifestyle, Shoppers Stop,Central, Exclusive Brand stores

Kids section - Before

Kids section - After

PEOPLE•Hiring

•Motivation / Empowering

• Training

•Performance Evaluation

•Listening (FGD’s)

• Acting

Hiring:

• Hire The Smile – Train The Skill• Hire The Personality And The Confidence

Motivating/Empowering:• Push decision-making responsibility and authority down to the lowest level possible• Appropriate and timely incentives• Recognition – reinforces the areas that should be continued – Recognition meetings

PEOPLE

TRAINING• Training is required not only on the basics of running the store, or departments but also on ways to improve store’s performance.(The best training programs answer the what, when and how. What additional training is necessary to continuously improve the skills of the store team. Whenshould training occur? How should training occur to ensure an efficient and timely process)

Performance Evaluation:• Evaluate team’s performance on weekly basis • Enable them to function smoothly by addressing the roadblocks• Act as a mentor not as a Boss

PEOPLE

Listening (FGD’s)• Involve frontline staff in Problem Solving as well as Execution• Store managers should establish formal store-level processes that allow staff to capture an evaluate ideas• AI Research

Acting•Act on what you listen !!

PEOPLE

PROCESS•Inventory accuracy and forecasting

•Retail shrink as a percentage

•Compliance to statutory requirements

• Retail Operational Effectiveness

Retail Operational Effectiveness:• Improving bottom line/top line and customer service through enhanced operational effectiveness.

• Field managers and store managers need a toolkit of their own that guides them in creating and applying cost-reduction solutions.

PROCESS

E.g.:1. BREAKING DOWN PROCESSES INTO SUFFICINET DETAIL TO IDENTIFY ROOT CAUSES OF POOR PERFORMANCE

2. APPLYING THE OPERATIONS EFFECTIVNESS TOOL LEAN PRODUCTION TO THE CHECKOUT PROCESS

Core Process

Hours Per

weekIn-store

activities

Hours per

week Tasks

Hours per

week

Merchandise Flow

2000Unload 300

. Unload trailer

. Checking

. Preprocessing

2002575

Stock 1000. Move to floor. Put away

300700

Back stock 500. Collect. Put in wareouse. Locate

15030050

Change display

200

. Set Planogarm

. Stock merchandise

. Revise Planogram

. Change and caps

501002525

In-store merchandising

200

Place SignsPrice Changes

50150

. Put up and remove

. Maintain

. Audit

3515

Database Benefits

• Provides sufficient detail toIdentify root causes of poorPerformance

• Recasts economics alongProcess lines to eliminateThe problem of differentJob responsibilities

• Allows for peer-to-peercomparisons

• Provides detail to quantifyAnd value savings

Operational Effectiveness involves breaking down processes into sufficient detail and identify root causes for poor performance

Long checkout lines Checkout Demand

Checkoutovercapacity Long

Checkout Lines

CashierSupply

BEF

OR

E > Checkout was viewed as a key function

> Cashiers were staffed based on gut feel of the expected workload

> There was limited assessment of checkout productivity and customer service

> A mismatch existed between supply and demand, which resulted in

- Low productivity

- Pockets of poor service

- Checkout overcapacity

AFT

ER> Checkout is now viewed as core process across departments to facilitate flexible staffing

> Staffing needs are analyzed day by day, hour by hour, based on queue length rather than throughput

> Explicit overall and individual productivity and service targets were established

RES

ULT • Improved

productivity 10-15%

• Enhanced service levels

• Raised employee morale

Applying the Operational Effectiveness toolLEAN production to Checkout process

Retail shrink as a percentage:•Retail Shrink is the store level manifestation of a poor corporate profit plan• Following global count as a process on daily basis and scan audit on a quarterly basis• Loss prevention team and adapting best practices to control and reduce the same.

Compliance to statutory requirements• To ensure the all the statutory requirements and fees, licenses, etc.. are maintained and updated on regular intervals as required.

PROCESS

FINANCE•Sales Per sq. ft.

•Gross Retail Margin(Private Label / High Stock Turns)

•Manpower cost as a percentage

•Sales/ Customer

• EBIDT

FINANCE

Sales Per Sq. ft.:• Total Net Sales ÷ Sq. ft.

Manpower Cost as Percentage•GMROL (Gross Margin return on Labor)

Sales / Customer• Result of store Conversions and Cash Memo size• Total Net Sales ÷ Total Customers

Tips to increase Conversion

• Ensure each and every customer in the store is wished and greeted

• Never show back to the customers and work while customers pass through the aisle

• Ensure full options are at eye level display

• Make the section easy for customers to browse. ( ticketing and promo communication

• Usage of nesting table on new arrivals prominently near the aisle with bust on top of the nesting table, biz from all the nesting tables to be monitored.

• Ensure CSA’s get the list of ratios on a weekly basis. E.g.... Shirts vs. ties, trousers vs. belts, western wear top vs. bottoms, shirts vs. trouser etc., .

• Ensure all the cut options are displayed in the last two racks with a tag mentioning as top seller, display them size wise.

• Schemes and promotions to be communicated to customers either by CSA’s or by proper signage's at eye level.

• Section to be color blocked and size blocked always.

• Ensure you know the details mentioned on the tag of a product.

• Excess stocks should not be dumped on the floor.

• All the impulse products are neatly displayed as its a velocity item ( in bulks)

PRODUCT• Ensure CSA’s on the floor knows the store completely.• Take CSA’s store tour every month.( every one should know the store thoroughly).• Ensure signage's are customer friendly •Make customers spend more time in the store by various activity.• Identify the bottle necks and constantly remove the same. ( lead time to be analyzed in all the area s)• Ensure sections are adequately lit

ANALYSIS• Compare your store brand wise piecewise with higher conversion store.

• Analyze your own store brand/ sub class on higher conversion day vs. lower conversion day.

• Ensure high selling brands have adequate space to move around and adequate manpower to handle. • Ensure all the CSA’s are trained in basic product knowledge (customers arewell informed). Analyze no of CSA’s fully trained vs. new ones.

When the store conversions are low following to be identified and addressed.

FINANCE

The power of 10 !!

Since operating expenses are fixed, the margin - even a 10% drop in sales could result in a loss to the Company – similarly, a 10% increase in sales would fetch the company good returns.

Target 90% 100% 110%

Net Sales 90 100 110

Gross Margin 27 30 33

Operating Expenses 25 25 25

EBIDT 2.0 5.0 8.0

% to planned profit -60% 60%

THANK YOU