Retail management refers to various processes of managing a retail outlet and its day-to-day activities. Retail management helps a business increase the customer satisfactions as well as increase the brand value.
- Retail management ensures a business functions at its highest capacity
- Creating value is an important aspect of retail management
- Retail management helps the customers save time while shopping
- If you have a retail store than retail management will help you keep track of all the products of your store
WHAT IS THE RETAIL SECTOR?
Retail conforms to supply chain management with a bout of marketing, real estate, HR, and accounting. Manufacturers produce goods and sell their products to wholesalers. Wholesalers, who, in turn, resell them to you.
A retailer calculates how much profit they could yield off the wholesale price. In other words, the retailer adds a profit margin to the wholesale price. Consequently, the retailer then sells the products and services to you, the customer, for more than he or she paid.
But, the retail sector is a broad industry. It is more than just intermediaries or middleman activities. The reality is that retail became a dynamic sector. Its expansion is mentionable. A careful combination of business theory, skilled practice, creativity, and technology is pushing this sector forward.
And, it is adding value to customers’ lifestyles.
Adding value to customers’ lifestyles means improving experiences, convenience, service, and more. Author Michael Levy in his definitive retail textbook said value-creating functions described by, widely used, Retailing Management, are as follows:
1. Providing an assortment of products and services
2. Breaking bulk
3. Holding inventory
4. Providing services
Creating value is an important aspect of retail management. And, the examples Levy provides form foundations of successful retailers around the world. However, the retail sector is going through rapid change.
And, expectations go beyond the traditional retail model. Expectations regarding the model in society are increasing.
Customers analyzing retailers today are the ones who set value standards. These value standards include aspects regarding environmental impact, social responsibility, workplace safety, and diversity. And, standards include the forces of globalization and trade.
But, the retail sector is not free from turmoil. Digital disruption has been and continues to be a formidable force in this sector. Amazon is in the news daily, and, fairly or not, many consider the e-commerce giant as a symbol of this disorder.
With the ever-increasing growth of Amazon, retailers feel that they will soon be “Amazoned” out of business. According to a recent article published in Wall Street Journal, Amazon controls 20 percent of online retail in the U.S., and 90 percent of U.S. consumers choose Amazon as their online retailer of choice.
Emulating Costco and others, Amazon started selling its own products — AmazonBasics — and the recent possession of Whole Foods supports a large competitive downside the company had in the grocery category.
Amazon has acquired 800 approved or pending trademarks. Quartz uncovered after carrying out an investigation that Amazon features 19 brands that it does not clearly identify as its own. The company merely acknowledges that these products are produced “exclusively for Prime members.”
Retail management is the various processes of helping the customers to procure the desired merchandise. The acquisition of such products may include covering bodies from the retail stores for their end-use.
Retail management includes all the steps required to bring the customers into the store and fulfill their buying needs.
Shopping should be a pleasurable experience for customers. And, retail management is kept in practice to make shopping a pleasurable experience. Retail management is to ensure the customers leave the store with a smile. In simpler words, retail management ensures customers to shop without any difficulty.
Need for Retail Management – Why Retail Management?
Imagine the average Joe, Peter, wanted to present his wife with a nice watch on her birthday. He checked out the nearby store for a few options. The retailer took almost an hour to find the watches he was looking for. This irritated Peter and he vowed not to visit the store again. The retailer’s inability to find the product in time is reflective of poor management.
No way can you afford to make the customer wait for long. The merchandise needs to be well organized. A well-organized retailer is able to avoid unnecessary searching. Customers fall victim to such situations in mom-and-pop stores (kirana stores). One can hardly enjoy shopping at such stores.
Retail management saves time and effort. And, such management ensures the customers easily locate their preferred merchandise and return home satisfied.
Effective management limits unnecessary chaos at the store. Besides shoplifting is a major issue for retailers. Effective Management limits shoplifting to a large extent.
1. Keeping a record of all the products coming into the store makes retail management function.
2. Retailers must keep products on the assigned shelves according to size, color, gender, patterns, etc.
3. Plan the store layout well.
Retailers should keep the products on the shelves according to similar products. The range of products available at the store must be divided into small groups. Such groups are defined as categories. A customer looks for products without much assistance and can keep products in a particular category.
The retail sector continues to grow all over the world. And, retailers must arrange and deal with products with effective management. The store manager, cashier, department managers, and all other employees should be trained from time to time to make the best out of them. They should be well aware of their roles, responsibilities, and be customer-oriented. They should be experts in their respective areas.
Last Updated on October 8, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.