Retail Store Operation in Class 10 covers the essential processes and activities involved in managing a retail store effectively. Students learn about store layout, inventory control, customer service, billing, and safety measures. This topic provides practical knowledge to operate and manage daily store functions, ensuring smooth business operations. It also helps in understanding the roles and responsibilities of store staff, sales procedures, and compliance with retail policies.
Retail store operation Class 10 Notes
Unit-2: Retail Store Operations
The store layout and design tell a customer what the store is all about. It is very strong tool to create store image in the minds of the consumers. Store layout is a plan to make effective use of space. It takes into account the customer flow pattern, display of merchandise, permanent structures like aisles and fixtures.
Good Layout for a Retail Store
A retail stores layout play important role in its sucess. Customers decide whether to stay or leave based on the first impression. A well designed store can attract the customer and lighting, music, cleanliness sets the emotional tone and influence buying behavior. If the product are displayed properly the it catch attenton of customer.
Space
The amount of space depends on the nature of the business. Retailer must choose a space that align with their product offerings, customer experience goals and operationsl needs.
Considerations for the Store Layout
A good store layout serves many purposes:
- Store Atmosphere: The physical characteristics and surrounding influence of a retail store creates an image in order to attract customers.
- Enhance Sales: The store layout should enable the customers to move around the store conveniently. This is done by preparing a circulation plan.
- Maximize Returns per Square Foot: A good layout provides a balance between available space for display and the return on productivity.
- Match the merchandise with the format: retail stores are designed to target the specific kind’s of customers.
Assistance for differently abled women, children and safety of customers
The retail layout ensure comfort, accessibility and safety for all types of shoppers including abled individuals, mothers with children and elderly customers. The modern store like Kine Globus, Shoppers Stop and Pantaloons are great example.
Hence, the importance of layout can be summarized in the following manner:
- It guides the flow of customers to all parts of the store showcasing the best of merchandise offered on sale.
- It provide for impulsive buying.
- It permits the store to maximize the use of space in relation to non selling space in the store.
- It aids the customer in selecting and comparing merchandise
- It leads to maximize sales.
Steps for Designing Store Layout
Planning a store layout involves the following steps:
- Determining the availability of space.
- Determining ‘space needs’ for selling and non selling area.
- Fitting ‘space needs’ for good customer flow and maximum sales per square foot.
- Provision for self service
- Types of merchandise presentation techniques.
Forms of Layout in Retail Store
The retailer must plan out each and everything well, the location of the shelves or racks to display the merchandise, the position of the mannequins or the cash counter and so on.
a. Straight Floor Plan
The straight floor plan makes optimum use of the walls, and utilizes the space in the most judicious manner.
Advantages
- Motivates shoppers to spend time and explore the merchandise.
- Maximizes sale through impulsive buying.
- Appropriate for stores where selling approach is consultative and personal.
Disadvantages
- Inefficient use of space resources.
- As vision is blocked, the chances of shop lifting are higher.
b. Diagonal Floor Plan
According to the diagonal floor plan, the shelves or racks are kept diagonal to each other for the owner or the store manager to have a watch on the customers.
Advantages
- Loops facilitate impulsive buying. The latest or fashion merchandise is prominently displayed on the main aisles.
- Overhead directional signs and departmental graphics provide visual cues to the location of other departments helping shoppers while they shop.
Disadvantage
- This layout is costlier to design, construct and maintain.
c. Angular Floor Plan
Angular floor plan gives a more sophisticated look to the store. Such layouts are often seen in high end
stores. You generally find it in grocery stores, drug stores.
Advantages
- Methodological, efficient and convenient.
- Visibility of merchandise is better.
- Useful in self service.
- Effective use of space and cost efficient.
- Easy maintenance of selling area.
Disadvantages
- Not very aesthetic, looks clumsy and the very principle of impulsive selling is not served.
- Mixed Layout: This type of layout blends the advantages of straight floor and diagonal store layout thereby eliminating the disadvantages of both.
Session 2: Store Design
Store layout helps to decide the best methods of presenting goods to the customer. Goods are presented either on shelving units, hanging from something, on pegboard, stacked or placed on dump tables. The methods determined are designed to optimize sales volumes.
Objectives for a Store Design
- Implement the retailer’s strategy,
- Influence customer buying behavior,
- Provide flexibility,
- Control design and maintenance costs, and
- Meet legal requirements.
Elements of Store Design
Store design is a strategic method which guides customers behavior and maximizes sales. The key element include layout, signage and feature areas. Serveral type of layout used by retailare are grid, race track and free form.
- Grid design: The grid design is best of grocery stores and drug stores.
- Racetrack design: Racetrack is basicaly used in large upscale stores like department strores.
- Free-form: Free form design are mainly used in small speciality stores and within large stores departments.
Signage and graphics help customer to navigate, highlight promotes and enhance store ambiance, with digital signage offering dynamic advantages despite higher initial costs.
Space management involves two decisions:
- the allocation of store space to merchandise categories and brands and
- the location of departments or merchandise categories in the store.
Some factors that retailers consider when deciding how muchfloor or shelf space to allocate to merchandise categories and brands are:
- the productivity of the allocated space,
- the merchandise’s inventory turnover,
- impact on store sales, and
- the display needs for the merchandise. When evaluating the productivity of retail space, retailers generally use sales per square foot or sales per linear foot.
Tips for Store Design and Layout
The signage displaying the name and logo of the store in properplace where all people can see, even from the distance. Do not use too much information.
- The store must offer a positive ambience to the customers.
- Make sure the mannequins are according to the target market and display the latest trends.
- The trial rooms should have mirrors and must be kept clean.
- The retailer must choose the right colour for the walls to set the mood of the customers.
- The fixtures or furniture should not act as an object of obstacle.
- The merchandise should be well arranged and organized on the racks.
- Never play loud music at the store.
- Replace burned out lights immediately.
- The floor tiles, ceilings, carpet and the racks should be kept clean and stain free.
- There should be no bad odor at the store as it irritates the customers.
- Do not stock anything at the entrance or exit of the store.
The retailer must plan his store in a way which minimizes theft or shop lifting.
- Merchandise should never be displayed at the entrance or exit of the store.
- Expensive products like watches, jeweler, precious stones, mobile handsets and so on must be kept in locked cabinets.
- Install cameras, CCTVs to have a closed look on the customers.
- Instruct the store manager or the sales representatives to try and assist all the customers who come for shopping.
- Ask the customers to deposit their carry bags at the entrance itself.
- Do not allow the customers to carry more than three dresses at one time to the trial room.
Session 3: Store Procedures
Store operations run smoothly when clear policies and daily procedures are set eraly during the planning stage. This helps to prepare the everyday tasks and unexpected issues and also reduce mistakes and imporve customer service. The good planning helps to controls and support successful retail functions.
Standard Operating Procedures in Retail
Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive activity followed by an organization. Following standard operating procedures increases sales, boosts worker productivity and enhances a store’s image.
- Standardization: The SOPs ensures the consistency and helps to do same task every day which helps to avoids mistakes.
- Technology: Stores use computer to track the sell product and also able to manage stock.
- Inventory Management: Inventory Management helps to check products details like when they arrive, counting them often and using cameras to stop theft etc.
- Marketing: Stores use ads, discounts and signs to promote the product and bring the customers and encourage they to buy.
- Labor Practices: Stores plan staff schedules to save money and may hire younger workers who accept lower pay.
Store Procedures in regard to Exchanges and Returns
Store procedures for exchanges and returns are important for smooth customer service. In Store there are checkout counter and in bigger stores have a separate area for returning or exchangeing the prodcut. To complete these properly staff must fill out all required paperwork correctly and quickly, this helps the customer to be happy and ensure the store keeps good records.
Common Transactions Include:
In a retail environment several common transactions are governed by specific procedures and legal requirements like Lay-by which allows the customer to purchased good using an installement payments. Another is Refund or exchange of goods helps legally obligated to meet certain conditions before issues refunds or exchangeing items.
a. Lay-by:
- You can purchase goods via installment
- Before the final payment the goods will retailer property.
- Retailer can follow strict guidelines.
b. Refunds and Exchanges
- The conditions must be met for refund or exchagne.
- The refund or exchagne policy governed by NSW Fair Trading Act 1987 and Trade Practices Act 1974.
- Enforced by the ACCC to protect consumer rights.
In a retail environment, opening and closing times present unique security risks. At these times, employees are particularly vulnerable to robbery. The following policy can be modified for any retail business that stores cash and valuables such as banks and jewellery stores.
- Opening Procedure: To ensure safety during opening hours at least two employees must be present. One exmployess should be in entry gate and other will be outside of the entry gate with mobile phone and able to see the clean view of premises. The main gait should be open when otherside employee give a clear signal like “All clear”. Before opening the main gate the DVR functionality and camera angles must be checked.
- Closing Procedure: At the time of closing, one employee locks the customer entry doors from inside and another monitors the exit of remaining customers. Any type of suspicious activity should be reported to the manager. No one is admitted after doors are locked. After the last customer exits an initial walkthrough is conduct and focused on the areas where someone could hide.
Session 4: Store Maintenance
The the demand of retail is increasing the smoth functionality maintenance has become a important concern for retailers. To ensure the smooth operations and customer satisfaction. The retailers must checked all the product which are enter the store and store this product systematically place and location. Proper placement of the product not only enhances the shopping experience but also streamlines inventory management.
Main Points for Maintenance of Stores
- Retail store maintenance management that helps in keeping facilities maintenance and repair cost on track.
- Emergency services should be available 24 hours a day, 365 days a year.
- Store history should be identify problem areas is part of preventive maintenance software.
- Store maintenance reporting solutions customized to meet customer’s needs.
- Fixture installations and National roll outs on time.
- Cost effective preventive maintenance programs, fire extinguishers and yearly inspection tracking should be programmed.
- Open invoicing; its open procedures for vendors to insure that they are getting an honest price.
- Have access to qualified facilitators for retail store maintenance.
- The ability to resolve maintenance problem through communications, your locations and our contractors.
Retail maintenance is a very specialized field. To maintain a store is not a one man task. For this, retailer requires help of maintenance company.
Following working process of maintenance management solution:
- 100% Web-Based Application requiring no installation on client machines
- The Service Requester allows members to request maintenance using their web browser
- Technicians can be paged and assigned work
- Work History is stored and recorded for each location and asset
- Easy to set up Preventive Maintenance schedules
- Open architecture with easy integration to other applications
- Built using standard Microsoft Web Technologies
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