retail organization
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Retail Organization
Retail Management
Additional Readings
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Retail OrganizationPlanning
and
Assessment
Management
Needs
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Outlining Specific Tasks
To Be Performed in a
Retail Distribution Channel
Grouping Retailers
Tasks into Job
Dividing the Tasks Among
Channel Members
& Customers
Integrating Positions
Through an
Organizational Chart
Classifying Jobs
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Tasks to be performed in a
retail distribution channel1. Buying merchandise
2. Shipping merchandise
3. Receiving merchandise and checkingincoming shipments
4. Setting prices
5. Marking merchandise
6. Inventory storage and control
7. Preparing merchandise and windowdisplays
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Tasks to be performed in a
retail distribution channel8. Facilities maintenance (e.g., keeping the
store clean)
9. Customer research10. Customer contact (e.g., advertising,
personal selling)
11. Facilitating shopping (e.g., convenient
site, short checkout lines)12. Customer follow-up and complaint
handling
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Tasks to be performed in a
retail distribution channel13. Personnel management
14. Repairs and alteration of merchandise
15. Billing customers
16. Handling receipts and financial records
17. Credit operations
18. Gift wrapping19. Delivery to customers
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Tasks to be performed in a
retail distribution channel20. Return of merchandise to vendors
21. Sales forecasting and budgeting
22. Coordination
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Dividing Tasks
Performer Tasks
Retailer Can perform all / some of the tasks listedbefore
Manufacturer /Wholesaler
Shipping, marking merchandise,inventory storage & control, display
preparation, sales forecasting etc.
Specialists Buying, delivery, warehouse, MR, Ad
agency, computer service etc.
Consumer Delivery responsibility, Cash only, selfservice, direct marketing, do it yourself
etc.
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Dividing
Tasks
A task should be carried out only if desired by
the target market
A task should be done by the party withproper competence
The retailers institutional framework can
impact on task allocation
Task allocation should take into account the
savings gained by sharing or shifting tasks
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Grouping
Tasks into Jobs
Tasks Jobs
Merchandise display, customer contact,
customer follow up, gift wrapping
Sales
Personnel
Transaction data, receipts (cash /
credit), inventory control
Cashier
Merchandise receipt, marking, return
to vendors, inventory storage & control
Inventory
personnel
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Grouping Tasks into Jobs
Tasks Jobs
Window dressing, interior display set up etc. Display
personnel
Repair & alterations, resolution of customer
complaints, research etc.Customer
service
Clean up of store, sanitation, replacing oldfixtures etc. Janitorpersonnel
Personnel management, sales forecasting,
budgeting, pricing, coordinationManagement
personnel
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Grouping
Tasks into Jobs
Under specialization, each employee isresponsible for limited functions.
This clearly defines tasks, provides greaterexpertise, reduces training costs and time,and allows part-time and relativelyinexperienced employees to be hired.
However, extreme specialization may lead topoor morale (boredom), personnel beingunaware of the importance of their jobs, andthe need for more employees
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Grouping
Tasks into Jobs
A job description outlines the job title,
objectives, duties, and responsibilities
for every position.
It is used in hiring, supervision, and
evaluation
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Example
Job Title : Store Manager in ShopperStop Bangalore branch
Position reports to V.P. Operations
Positions reporting to the store manager
All personnel working in Shopper Stop at Blr
ObjectiveTo staff & operate the Shopper Stop Bangalore
branch as per over all objectives pre-set
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Example
Duties and Responsibilities
Personnel recruitment, selection, training,
motivation and evaluation
Merchandise display
Inventory storage and control
Merchandise order approval Sales forecasting
Budgeting etc.
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Example
Committees and meetings
Store Managers review committee
Attendance at monthly meetings with Sr. VP
Supervision of weekly meetings with
department managers
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Classifying Jobs Jobs are broadly categorized by one of
these classifications
Functional (e.g., sales promotion)
Product (e.g., clothing department)
Geographic (e.g., branch store)
Combination (e.g., sales promotionmanager for clothing in branch stores)
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Strategic Management TasksPerformed in a Retail Firm
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Merchandise Management TasksPerformed in a Retail Firm
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Store Management TasksPerformed in a Retail Firm
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Administrative Management Tasks Performed in a Retail Firm
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Organization of a Small Retailer
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Organization of a RegionalDepartment Store: Richs
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Merchandise DivisionOrganization: Richs
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Department Store Organization atRichs/Lazarus/Goldsmiths
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Merchandising Organization
Chain Stores
In chain stores buying and selling are
different activities at different levels
The buying activity is more centralized and
conducted by the central buyer
The actual placing of order for specific
items and its management is theresponsibility of the store manager
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Functions Performed
Merchandising includes various steps in thebuying and selling of goods and services,
such as assortments, advertising, pricing,point-of-sale displays, the deployment ofpersonnel, and personal selling approaches
Buying includes the buying of products,advertising, and pricing
Functions must also reflect the level offormality, the degree of centralization, andpersonnel resources
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Staffing Buyers must be attuned to the marketplace,
must be assertive, must make extensive use
of buying plans, and may have to travel Sales managers must be good organizers,
supervisors, and motivators
Merchandising buyers must possess the
attributes of both buyers and sales managers
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Staffing All buying personnel must relate to customers
and anticipate future needs
Federated Department Stores has careertracks that recognize the value of both
merchandising and in-store personnel
Selected positions in both merchandising and
store management are described next
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Assistant Buyer
Aids buyer in selecting and procuring merchandise
which supports over all sales volume, gross margin
and turnover objectives
Assumes buying responsibility of key classifications,
once buyer determines proficiency level
Provides operational support to buyer
Associate BuyerResponsible for merchandise development,
marketing and financial management of a particular
area of business
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Staffing - Merchandising
Buyer
Expected to maximize the sales and profitability of agiven area of business through the development andimplementation of a strategy, analysis and
appropriate reaction to the sales trend Divisional Merchandising Manager (DMM)
Responsible for overseeing the execution ofmerchandise selection and procurement for aparticular segment of business
Sets merchandise direction, develops strategy forconsumer satisfaction
General Merchandising Manager (GMM)
DMMs report to GMM
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Chain store Central buyers
develop standardized assortment plans
determine the resources from which the
purchase to be made
make negotiations regarding the terms of sale
Make decisions with regard to the dropping ofold items and addition of new items
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Assistant Sales Manager
Responsible for supervising all daily store activitiesin a specific merchandise area
Jobs include selling, service management, selectingand developing merchandising
Sales Manager
In charge of all daily store activities in a specificmerchandise area
Job includes merchandise presentation, employeedevelopment, customer service, operations andinventory control
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Staffing Store Management Assistant Store Manager
Directs all activities related to merchandise
flow, store maintenance, expense
management, shortage prevention and all
store sales support functions
Store Manager Senior level executive responsible for all aspects of
running a profitable store
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A combination ! In many cases branch stores maintain assortment
of products and services that caters closely to the
local taste and local requirements (largegeographical, cultural diversity)
In such cases the stores keep some standardized
assortment (say 60%) and the remaining is based
on local need
Obviously in these cases, the buying activity also
gets decentralized to the store level to some extent
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Advantages of CentralizedDecision-Making
Retailers can reduce overhead, i.e. fewermanagers
Coordinating efforts, it can achieve lower
prices from suppliers
Opportunity to have the best people
making decisions
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Methods for CoordinatingBuying and Store Management
More communications between buyers and
sellers
Store visits
Employees performing coordinating roles
Decentralizing buying decisions