Retail Management - Meaning and its Need
What is management ?
Management refers to the process of bringing people together on a common platform and make them work as a single unit to achieve the goals and objectives of an organization. Management is required in all aspects of life and forms an integral part of all businesses.
The various processes which help the customers to procure the desired merchandise from the retail stores for their end use refer to retail management. Retail management includes all the steps required to bring the customers into the store and fulfill their buying needs.
Retail management makes shopping a pleasurable experience and ensures the customers leave the store with a smile. In simpler words, retail management helps customers shop without any difficulty.
Need for Retail Management - Why retail management ?
Peter wanted to gift his wife a nice watch on her birthday. He went to the nearby store to check out few options. The retailer took almost an hour to find the watches. This irritated Peter and he vowed not to visit the store again.-An example of poor management.
You just cant afford to make the customer wait for long. The merchandise needs to be well organized to avoid unnecessary searching. Such situations are common in mom and pop stores (kirana stores). One can never enjoy shopping at such stores.
Retail management saves time and ensures the customers easily locate their desired merchandise and return home satisfied.
An effective management avoids unnecessary chaos at the store.
Effective Management controls shopliftings to a large extent.
- The retailer must keep a record of all the products coming into the store.
- The products must be well arranged on the assigned shelves according to size, colour, gender, patterns etc.
- Plan the store layout well.
- The range of products available at the store must be divided into small groups comprising of similar products. Such groups are called categories. A customer can simply walk up to a particular category and look for products without much assistance.
- A unique SKU code must be assigned to each and every product for easy tracking.
- Necessary labels must be put on the shelves for the customers to locate the merchandise on their own.
- Dont keep the customers waiting.
- Make sure the sales representatives attend the customers well. Assist them in their shopping. Greet them with a smile
- The retailer must ensure enough stock is available at the store.
- Make sure the store is kept clean. Dont stock unnecessary furniture as it gives a cluttered look to the store. The customers must be able to move freely.
- The store manager, department managers, cashier and all other employees should be trained from time to time to extract the best out of them. They should be well aware of their roles and responsibilities and customer oriented. They should be experts in their respective areas.
- The store manager must make daily sales reports to keep a track of the cash flow. Use softwares or maintain registers for the same.
- Remove the unsold merchandise from the shelves. Keep them somewhere else.
- Create an attractive display.
- Plan things well in advance to avoid confusions later on.
- Ask the customers to produce bills in case of exchange. Assign fixed timings for the same. Dont entertain customers after a week.
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Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
- What is Retail ?
- Types of Retail Outlets
- Retail Mechanism
- Retail Pricing
- Retail Merchandising
- Cross Merchandising
- Visual Merchandising
- Retail Management
- Characteristics, Functions and Services of a Retailer
- Classification of Retail Formats, Key Features, Advantages and Disadvantages
- A Comparative Analysis: Product versus Service Retailing; Wholesaling versus Retailing
- Category Management
- Retail Marketing
- Role of Advertising in Retail
- Retail Store Operations
- Store Design and Layout
- Role of Signage in Retail Industry
- Role of Coupons in Retail Marketing
- What affects Customers Buying Decision
- Tips to be a Successful Retailer
- Store manager - Roles & Responsibilities
- Mannequins - Purpose and its Importance
- What are Planograms ?
- Inventory Management in Retail Industry
- Evolution of Retail: Indian Context
- Social and Economic Significance of Retailing
- Food Retailing: Indian Perspective
- Challenges to the Retail Sector (As per Michael Porters Five Forces Model)
- Buying Behaviour Patterns of Customers
- From Kirana to Kopitiam: A Case Study of the Changing Indian Retail Industry
- The Future of Shopping Malls
- Self-Checkout Apps: The Future of Retail
- Why Discounting is Ruining the Retail Industry?
- Point of Sale Financing
- Pricing Challenges in Multi-Channel Retail