WAQAS YOUNUS PARACHA

RETAIL OPERATIONS MANAGEMENT

What is Retailing?

Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use.

A retailer is a business that sells products and/or services to consumers for personal or family use.

How Retailers Add Value

Breaking Bulk-Buy it in quantities customers want

Holding Inventory-Buy it at a convenient place when you want it

Providing Assortment-Buy other products at the same time

Offering Services-See it before you buy, get credit, layaway

Accounting Finance

MISOperations

Marketing

Human Resources

Retailers are a Business Like Manufacturers

Retail Operations

Retail operations involves managing the day to day functions of retail establishment

Retail operation professionals manage retail establishment on a day to day basis and are responsible for maximizing store profits

A Typical Retail Mix

Retail Strategy

Customer Service

Location

MerchandiseAssortment

PricingCommunication Mix

Store DesignAnd Display

Retail Business Processes

SAMPLE NEW STORE OPENING ACTIVITY

Components of Store Operations

AdministrationVisual merchandisingITHR – talent search, recruiting, training, retention

and skill enhancement.SecurityMerchandising/stocking/shelvingMaintenance/cleanlinessPOS/Check outInventorySales

Important aspects of Store Operations

Customer Service Leads to Loyalty

On Shelf Availability Revenue

In Store Processes Reduce Costs

Staff PlanningStaff Motivation

Operations Manager Responsibility

Human resource specifically recruiting, hiring, training and development, performance management, payroll and schedule workplace scheduling

Store business operations including managing profit and loss, facility management, safety and security, loss prevention (also called shrinking) and banking

Product management including ordering, receiving, price changes, handling damaged products and returns

Team development, facilitating staff learning and development. Problem solving and handling of unusual circumstances Sales generation Safety and security Division of responsibility Hiring, training and development Visual merchandising and inventory control

Retail KPIs Sales/square feet Sales/employee Average transaction (sales/ number of transactions) Inventory/stock/merchandise Inventory shrinkage/sales Items per ticket (total items sold/total transactions) Conversion rate (Total transaction/total traffic) Total sales Sales compared to last year (or any other period) Wage cost Average sales per customer/transaction Sales per hour (selling hours only) Sales per hour (labour hours only) Average sale Inventory turn Average gross margin Customers per day/week Items per customer

Timelines (Project Charter)

Establishing Vision, Mission

and Goals

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