Retail Store Management Strategies PDF

EMA LONG Q COMPONENTS OF MAINTENANCE - RECTIFICATION: shortcomings identified of the business or equipment - REPLACEMENT: new technology brought in when old is faulty - SERVICING: this is a cleaning operation BENEFITS OF MAINTENANCE - REDUCING: operational costs - IMPROVING: brand i...

EMA LONG Q COMPONENTS OF MAINTENANCE - RECTIFICATION: shortcomings identified of the business or equipment - REPLACEMENT: new technology brought in when old is faulty - SERVICING: this is a cleaning operation BENEFITS OF MAINTENANCE - REDUCING: operational costs - IMPROVING: brand image and brand management - ENSURING: optimal productivity TYPES OF RISKS ON ORGANIZATIONS - OPERATIONAL RISKS: these risks relate to the internal processes of an organization including the people and systems - FINANCIAL RISKS: when customers credit gets extended, and they are unable to pay their debts - ENVIRONMENTAL RISKS: natural disaster risks such as water shortage - COMPLIANCE RISKS: organizations should follow all legislation - MARKET RISKS: this is when a new competitor enter the market or an existing competitor adjust their strategy to your advantage HOW TO APPLY RISK MANAGEMENT 1. Identify risks 2. Evaluate risk management techniques available for the risk 3. Select risk management technique 4. Implement risk management technique 5. Monitor the effectiveness of the risk management technique PRINCIPLES OF STORE DESIGN AND LAYOUT - TOTALITY: store should be the basis of the company's strategy and meet the target's market - FOCUS: the store should encourage customers to spend - EASE OF SHOPPING: store should be signed with convenience in mind, maximizing the customer's experience - CHANGE AND FLEXIBILITY: store should never stay unchanged for too long, major renovations should be made every 5-7 years LAYOUT PATTERNS - GRID LAYOUT= in most supermarkets, rows are parallel to each other - FREE FLOW LAYOUT: merchandise and fixtures are arranged in an informal and asymmetrical setting, stores selling goods - BOUTIQUE LAYOUT: this layout is an extension of the free flow layout, the idea is to have multiple "boutiques" within the larger shop - LOOP PATTERN/LAYOUT: this is called the "racetrack layout", has a larger consumer aisle starting at the entrance and flows right rough the shop to the end EXTERIOR STORE DESIGN This begins by looking at the store front. Elements include: - GENERAL ARCHITECTURE - STORE FRONT CONFIGURATION: straight front configuration, angled front configuration, arcade front configuration - EXTERIOR SIGNAGE: these are exterior signs that identifies the store and attract customers - ENTRANCE: constantly open doors, push pull doors, self-opening doors, revolving doors, electrical doors, climate-controlled doors - WINDOW DISPLAYS: elevated windows, island windows, ramped windows, shadow box windows INTERIOR STORE DESIGN This is to encourage customers to stay and shop, browse longer. Elements include: - ATMOSPHERICS: the combination of colours, lighting, sound, scent - DISPLAY FIXTURES: racks, shelves, tables, stands, cages, bins - FLOORING: include carpets, concrete, ceramic tiles, good quality laminates, marble - CEILINGS: this influence temperature and how intimate it feels - WALLS: used to partition different components of a store and display merchandise DESIGN OF NON-SELLING AREAS - DRESSING ROOMS: designed in a way that the atmosphere is in line with the price, image positioning of the shop - TOILETS: designed according to high standards of hygiene - RESTAURANTS: must reflect the atmosphere of the store PRESENTATION - FUNCTIONS OF A DISPLAY: presents the merchandise on offer, increase the visual appeal, used to house stock, improve the image in the shop - PRINCIPLES OF DISPLAY: elements of colour, variety, seasonal products, rhythm and motion - DISPLAY FORMATS: this is the special point of purchase, audio visual displays, can emphasize that merchandise is new/worthy of special attention/reduced price. TYPES: cut case dump bin, ensemble, thematic, point of sale, step DIFFERENT SECTIONS OF THE BUSINESS PLAN - Nature of the business - Analysis of the market - Marketing strategy - Formal budgeted statement - Risk management statement - Information relating to management and employees SCENARIOS WHEN A BUSINESS PLAN IS NEEDED TO RAISE CAPITAL - When evaluating a viability of a new business opportunity - When acquiring external finance for the business - When specifying the way that the retail business should be operated (a franchise setup)