Preface

Operating a retail business is not confined to opening and closing the shop every day. The smooth running of a shop entails many aspects of retail operations. Retail operations are those activities that support the buying, selling, promotion and control functions of a retail business. The retailer must pay attention to the day-to-day requirements of running a retail outlet.

Retail operations include stock management, maintenance, sales policies, customer service and general management of the shop. While each shop should have a grand plan or strategy to compete, the daily operations will determine its ability to achieve this strategy. However, this does not mean that retailers are expected to achieve perfection in all aspects of retailing.

In reality, operations problems surface frequently. The key issue here is to encourage retailers to achieve good and consistent standards in shop operations. Success in retailing is about details and the implementation of those details. Retail concepts, however interesting or new, ultimately live or die in their execution. By not paying attention to the details, retailers are selling themselves — and shoppers — short.

This is the second edition of the book and it is intended not only for students of retailing, but also for potential and existing retailers. The policies and procedures included here are not intended to fit the needs of every company, but they illustrate the types of policies and procedures that should be addressed.

This book offers

• A reference for new entries into the retail industry who are seeking information on how to run a retail shop more efficiently;

• A handbook for retailers who are expanding their business and require proper systems and procedures to better manage or control their chain of stores; and

• A guide for retailers who are seeking to develop or improve their operations manual. The purpose of an operations manual is to have one major reference containing all the company’s standards, policies, procedures and forms so as to achieve better consistency and control.

Some sections contain sample forms written for a ficticious shop called “The Shop”. They should serve as a helpful guide for retailers developing forms specifically for their company.

Organisation of the book

Additional topics are included in the second edition. In addition, improvements and expansion have been made on the existing chapters. The second edition of the retail operations book is organised into seventeen chapters that replicate and describe the steps a person who works in store operations would take:

• Chapter 1 introduces the concept of retailing and its development in the future.

• Chapter 2 draws attention to the retail store customers and the ways to deliver services to meet their needs.

• Chapter 3 elaborates on the importance of store location and site, and the evaluation and selection processes.

• Chapter 4 looks at the daily essential operating procedures before the retailer opens for business and closes up at the end of the business day.

• Chapter 5 examines the efficient and effective handling of merchandise when the suppliers send the stock to the retailer. Procedural guidelines from ordering, receiving, marking and storage to stock take are explained.

• Chapter 6 concentrates on cash handling and control procedures.

• Chapter 7 highlights basic shop layout principles, store maintenance and housekeeping approaches to upkeep the store image.

• Chapter 8 describes shop safety and security issues, as well as preventive and remedial measures.

• Chapter 9 covers the establishment of sales policies necessary to avoid customers’ misunderstanding.

• Chapter 10 deals with the extent to which a retailer provides consumers with extra help in purchasing a product and offers a complaints-handling procedure.

• Chapter 11 expounds the steps involved in the retail selling process.

• Chapter 12 highlights some considerations in making merchandise decisions.

• Chapter 13 contains some general marketing practices which a retailer should look out for when promoting their merchandise.

• Chapter 14 attempts to highlight some legal and ethical issues in retailing.

• Chapter 15 reviews some technology applications for retailing.

• Chapter 16 aims to create awareness on issues relating to organisation structure, culture and management of employees.

• Chapter 17 emphasizes on important financial issues such as financing the initial operation, budgetary control, the evaluation of merchandise and the overall retail performance.