This document discusses store operations and management. It begins with an introduction to store operations, noting that store operations aim to consistently implement a retailer's strategy through functions like task management, labor forecasting, time tracking, and store audits. It then covers types of retail stores and store organization, factors in store location selection like trading area and site evaluation, and merchandise management topics like planning, buying, and product presentation. The document emphasizes maximizing efficiency and sales through optimal use of resources, providing a good customer experience, and handling merchandise effectively to convert resources into profits.

1. Jagannath Institute of Management Sciences
Vasant Kunj-II, New Delhi - 110070
Subject Name: Retail Operations & Store
Management -II
Department of Management Studies
Created By: Dr. Nilima Thakur
Dr. Nilima Thakur

2. Subject: Retail Operations & Store Mgmt -II
Topic: Introduction of store operations
Dr. Nilima Thakur

3. Content
The Logistic Chain , Store operations,Objectives of Store Functions
Types of Retail Stores & Its Organization
Centralized & Decentralized Retail Stores
Location & Site Selection of Retail Stores
Merchandise Management & Merchandise Handling in Retail Stores
Dr. Nilima Thakur

4. The Logistic Chain
Retail works with retailers in all channels who are facing a multiplicity of equipped
challenges. The endeavor of the retailers is to is to enhance the process
improvements which resulted in increased sales and reduced operating expenses for
the clients. The team has decades of experience assisting major retailers in all
aspects of store operations. The skill-set includes following thoughts.

5. Retail’s experts in store operations
can provide assistance with respect
to store vision and strategy, organization,
operating metrics, coordination with upstream
activities,service environment
and functional operation
Dr. Nilima Thakur

6. Introduction to store Operations
Store Operations enable retailers to make certain dependable implementation of their
corporate strategy by all stores and pull through the sales they would have otherwise lost.
Store Operations comprise 1.Task Manager (for closed-loop task management),
2. Workforce Manager (for forecasting and preparation labor based on sales forecasts,
corporate initiatives, and employee skills and work prediction),
3. Time and Attendance (for time entry, labor tracking, and time costing functionality),
KPI Activator (for realtime,KPI-driven alerts with the ability to assign corrective rejoinder
based on best practices), and Store Walk (for ensuring consistency from enhanced store
walks and audits).
Store Operations solutions facilitate retailers to boost efficiency, augment sales, and
comprehend rapid ROI. Store Operations has again and again implemented its solutions
in 21 weeks or less, across numerous store formats at some of the world’s largest
retailers.
Dr. Nilima Thakur

7. Store operations are concerned with maximizing the efficacy of the retailer’s
use of resources 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 a satisfactory experience and effective
service to customers by making optimal use of people, space and
merchandise.
the functions of store operations and activities of a store operator
● How different real life scenario fit into store operations
● Provides a means to streamline operations by integrating business
processes
● Automating the process and tracking inventory in retail
● Finally Providing ‘SO’ solutions with the help of different tools
Dr. Nilima Thakur

8. Four Perspectives of Store Operations
Store operation is about executing the strategies and policies of the retail
business at the store level on a day to day basis. Store operations could be
seen from four perspectives namely: Product, Customers, Sales, and
Place.
Dr. Nilima Thakur

9. ● The ‘Product’ perspective will include type of merchandise,
merchandise
planning, merchandise display, etc.
● The ‘Customer’ perspective will include customer service, customer
relationship, and customer satisfaction.
● The ‘Sales’ perspective includes selling process, sales promotions,
pricing and discounting policies, etc.
● The ‘Place’ perspective will include location, managing space, fixtures
and layout design, meeting statutory requirements of the place, etc.
Dr. Nilima Thakur

10. Logical Activity Flow of Store Operations
Logical Activity flow is a kind of activity that links with one another and
facilitate the store manager in finding out the responsibilities allocated to
his/her downline. Store Operations Management System gives retail
organization the type of information tools that retail blockbusters use, such
as customer purchase histories, ereceipts,personalized marketing, even
B2B, e-commerce and CRM/ERP connectivity.
Dr. Nilima Thakur

11. Types of Store Location & Site
For a store a right site ensures that right type of customers walk into the store and
hence, the site selection has to be done in stages:
The first stage in site selection
to identify the trading area,
to identify the type of location as per company’s retail objectives.
the selection of general location is done, followed by evaluation of alternative store sites.
to assess the store sites to make substantial investment into opening a new retail store.
to avoid loss of Cash flow and loss of store image .
Selection of Effective & Efficient team for site assessment.
Dr. Nilima Thakur

12. Three types of Locations
1. Isolated stores i.e drive the customers to the stores e.g Murthal Dhabha
2. Unplanned Business Districts i.e vendors
3. Planned Shopping Centres i.e food chains e.g Moti mahal Punjabi By
Nature etc.
Dr. Nilima Thakur

13. An isolated store is a stand-alone retail outlet, which is either located on a highway or a
street.
Advantages
The advantages can be listed as follows for such type of stores:
● There is no competition from any type of stores in its close proximity.
● Being the only store in an isolated area it has relatively low rental costs.
● The store has the flexibility in organizing interiors of the store as there is lesser
space constraint.
● Isolated stores are good for selling one-stop shopping items like grocery and food
items or convenience items. The retailer is able to make the most of the available
space by keeping all the items that can go in a single purchase basket.
Dr. Nilima Thakur

14. ● The store due to its isolated location is able to attract the attention of road traffic
due to higher visibility an account of its roadside location.
● The facilities can be modified to suit the need of the target consumers as well as
that of the store due to lower space constraint issues.
● Parking is not a problem, os this was one of the main reasons for putting up the
store in an isolated location.
● Cost reductions are possible due to low rentals thereby leading to lower prices.
Dr. Nilima Thakur

15. Disadvantages
There are also disadvantages which can be listed as follows:
● It is difficult to attract customers in the initial phase due to its
location and being
unknown to larger customer groups.
Dr. Nilima Thakur

16. Merchandise Management in Retail Stores
Advertising moves people toward goods; merchandising moves goods
toward people.
Merchandising is the sequence of various activities performed by the retailer such as planning, buying,
and selling of products to the customers for their use. It is an integral part of handling store operations
and e-commerce of retailing.Merchandising presents the products in retail environment to influence
the customer’s buying decision.
Dr. Nilima Thakur

17. Factors Influencing Merchandising
The following factors influence retail merchandising:
Size of the Retail Operations
This includes issues such as how large is the retail business? What is the demographic scope of business: local,
national, or international? What is the scope of operations: direct, online with multilingual option, television,
telephonic? How large is the storage space? What is the daily number of customers the business is required to
serve?
Shopping Options
Today’s customers have various shopping channels such as in-store, via electronic media such as Internet,
television, or telephone, catalogue reference, to name a few. Every option demands different sets of
merchandising tasks and experts.
Separation of Portfolios Depending on the size of retail business, there are workforces for handling each stage
of merchandising from planning, buying, and selling the product or service. The small retailers might employ a
couple of persons to execute all duties of merchandising.
Dr. Nilima Thakur

18. There are two basic types of merchandise −
Staple Merchandise Fashion Merchandise
It has predictable demand It has unpredictable demand
History of past sales is available Limited past sales history is available
It provides relatively accurate forecasts It is difficult to forecast sales
Dr. Nilima Thakur

19. IN-STORE MERCHANDISE HANDLING
This is an important activity which the retail management needs to pay special attention
for ensuring that the activity is handled in a fool-proof manner. In the Indian scenario the
retailers either receive the merchandise directly at the store or in case of chain of stores
there could be a receiving ware-house.
At the ware-house of a retail chain the merchandise is received either through the transport courier
services or through delivery vans from the distributors or vendors of the concerned products/brands.
On receiving the merchandise at the ware-house the ware-house personnel makes a check of the
merchandise packages for any breakages or damage that may indicate pilferage by the transporter’s
personnel, which is immediately notified to the concerned vendor; and if the packages are intact
then the cartons or packages are opened and merchandise are physically counted or scanned
through bar-code scanner for recording the merchandise details under the system software. Based
on the physical check or bar-code scanning inward goods received note (GRN) is prepared after duly
verifying the same against the relevant PO (Purchase Order) raised for the concerned product/brand.
Dr. Nilima Thakur

20. While handling receipt of merchandise the retail store management will have to be
careful about certain possibilities of theft as listed below:
Vendor collusion: In this type of theft the vendor’s delivery personnel could be involved
and both the store and delivery boys collude to remove the merchandise once the delivery
note is duly signed by the authorized person in the store.
Customer theft: This is also a major reason for shrinkage of merchandise. Generally, the
customer may pilfer merchandise in collusion with store employees from the stock room
or the receiving area.
Dr. Nilima Thakur

21. Thank You !!
Dr. Nilima Thakur