MAIN FUNCTIONS
SALES TEAM
Sales target Sales promotion Inventory management
Visual display
Store Mgr
YOU ?
CUSTOMERS To ensure that the customer are attended without making them wait for too long Greeting customers Writing down customer orders, if required Escalate unresolved queries to store manager Help and offer customers with baskets & trolleys
Supervisor
To ensure the administration of floor and fulfillment of customer requirements to make them satisfied & increase the sale of the store To ensure the cleaning of shelves, floor, door, windows, lighting and surroundings Proper shelving of products Handle billing & cash in case of staff shortage Interaction with customer to guide them as per their requirements Taking customer feedback on the form and ask for suggestion if they have any Physical check of the stock as per TO/bill/challan should be entered in the system on the same day. Report damages or variances as per LP procedure Managing staff on the floor.
Store Manager
Responsibility of overall management of the store and coordination with the staff. Providing the required information and data to the senior management, regularly Ensure management of operations towards achievement of targeted revenues Ensure management of operations towards optimization of cost Ensure management of operations towards achievement of targeted return on capital employed To ensure profitability of store through achievement by keeping the cost expense low Independently control store operations of the outlet Prepare resource plan and annual budget Inventory and vendor management Responsible for merchandising & displays as per company SOPs
OBJECTIVES
To achieve & sustain customer delight To be cost effective
Team Work
TEAM
Definition:
A formal group made up of independent individuals who are responsible for the attainment of a goal
STAGES OF TEAM
DEVELOPMENT
Forming Storming Norming Performing Adjourning
FORMING The first stage of work team development, characterized by uncertainly about the groups purpose, structure, and leadership STORMING The second stage of work team development, characterized by intragroup conflict NORMING The third stage of work team development, in which close relationships develop and members begin to demonstrate cohesiveness PERFORMING The fourth stage of work team development, in which the structure is fully functional and accepted by team members ADJOURNING The fifth and final stage of the development of temporary work teams, in which the team prepares for its disbandment
WORK TEAM
A Group that engage in collective work that requires joint effort and generates a positive synergy
WORK GROUP
A group that interacts primarily to share information and to make decisions that will help each member perform within his or her area of responsibility
Groups
Share information
Neutral Individual Random and varied
collective performance
positive
Seven Essential Skills for Teamwork 1. Listening 2. Questioning 3. Persuading 4. Respecting 5. Helping 6. Sharing 7. Participating
Paradigm Shifts
Ordinary people can achieve extraordinary results Allow people to fail People who are afraid to fail are also afraid to take chances. Optimal solutions to difficult problems almost always require taking chances. Criticism equals loyalty People who care want the best. Teamwork equals cheating This attitude is instilled in us throughout our education, most of which is built on a competitive framework.
Recommendations
Effective teamwork requires a culture change. Time and resources must be devoted to teamwork. Teamwork roles and responsibilities must be recognized as real and continuing job responsibilities, and are equally important with technical- and businessrelated job responsibilities. Teamwork is a skill that requires training, practice, and evaluation. Recognition and awards to teams are essential in achieving the culture change.
WELCOME
Session 3
Receiving Stock
PO is what the store sends to the HO/ vendor whereas PS is what HO or vendor sends to the store.
Carplus Store PO 6-White seat cover 6-Black seat cover 4- Sony music system 4- Xplod speaker 6 6- Ambipur Car perfume (rose) 6- Ambipur Car Spray (Lemon)
HO- Warehouse PS 8-White seat cover 6-Black seat cover 2- Sony music system 8- Xplod speaker 6 10- Ambipur Car perfume (rose) 4- Ambipur Car Spray (Lemon) Shortage Excess
Everyone knows .. You cant sell the merchandise while its resting in the store/ stock room
Few stores have store room personnel who are responsible to review inventory & restock the shelves as needed
with accurate information as they wont be asking stockroom personnel as how much an item costs!!!
Before placing incoming merchandise on the sales floor, take note of the prices to ensure that the prices shown on the scanner agrees with the sale, advertised or listed price of an item
Situation Analysis
Vinod, a CCA at Carplus, an auto accessories store offering various products, is very happy that a new consignment of Baby seat has finally arrived. Vinod cant wait to unpack the items & get them ready for sale. After completing the check in procedure required by the store, he brings the Baby seat to the floor. After opening the first box, he takes the Baby seat to the cash register & scans the tag. The scanned price on the new Baby seat is Rs 595, while the current MRP is Rs 580. Just then, a woman walks over & exclaims oh they finally arrived- Thank God!, there are no Baby seats left on the shelf & thats the one I want!!
Solution
If there is a difference between the advertised price & the ticketed or scanned price, customers are often charged the lower prices. As it prevents hard feelings & builds customer loyalty. Notify the supervisor immediately after the completion of sales transaction so that problem can be fixed asap. Unless the store policy states, it is usually best not to keep the customer waiting, but to do what is needed to complete the sale & keep the customer happy, then report the problem
New merchandise of existing stock comes regularly to the store. But before putting the incoming items on the selling floor..Ask Yourself
Are these items on sale?
Have identical items now on the floor have been marked up or down recently?
If the answer is yes to either question, Then special care must be given to:
Ensure that the price on the tickets for incoming merchandise reflects the current price
Account for incoming merchandise using the proper paperwork as required by the companys policy & procedures
When Restocking:
Ensure all variations (color, size, model etc.) are displayed Make sure that advertised merchandise is placed so that it is easy for customers to locate & that it has correct signs & price tags Rotate/remove any expiry items (such as car shampoo, car perfumes etc.)
During special promotions, it may be necessary to cut back on the space for non sale items to make room for large supplies of featured merchandise
Items that are past the expiration date should be removed from the shelves
Good record keeping is must
Enter all returned merchandise into the stores records system even if you have simply swapped items to give a customer a different size or color
Use good judgement - dont expect a customer to pay more for repairing an item than the item cost originally!!!
What is an INVENTORY?
Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.
SPECIAL TERMINOLOGIES
STOCK KEEPING UNIT (SKU)
It is a unique combination of all the components that are assembled into the purchasable item. Therefore any change in the packaging or product is a new SKU. This level of detailed specification assists in managing inventory.
SPECIAL TERMINOLOGIES
STOCK OUT
TYPOLOGY
BUFFER/SAFETY STOCK
CYCLE STOCK
(Used in batch processes, it is the available inventory excluding buffer stock)
DE-COUPLING
(Buffer stock that is held by both the supplier and the retailer)
(building up extra stock for periods of increased demand e.g. ice-creams for summer)
Sales
Warehouse
SALES PEOPLE
Determine what products should be stocked in each branch or store.
WAREHOUSE PERSONNEL
Organize stock in the warehouse to minimize the cost of filling orders. Keep inventory records accurate.
Ensure that all material movement (both receipts and disbursements) are properly recorded.
Protect inventory from breakage, spoilage, misplacement, and theft.
Achieving effective inventory management is probably one of the most effective undertakings to increase company's profitability.
But it cannot be accomplished by just one person or department. It takes cooperation and commitment from everyone in sales, purchasing, and the warehouse. So, implement and maintain the "triangle of cooperation and responsibility."
Taking Stock
Physical Inventory Is the basic process to physically counting every piece of merchandise in the store creating a record of the stores inventory at a specific point in time.
WELCOME
Session 4
HOUSEKEEPING
1. First Impressions Count Is the parking area clean of litter and brightly lit? Is the entrance clean and inviting with a trash receptacle available? 2. Front Door Assumption Is the glass clean and free of fingerprints? Customers will make the assumption if the front door is dirty the rest of the store may be the same.
3. Make it Glitter! If it's glass or metal it must be clean. Make it a priority to dust and use glass cleaner every morning after vacuuming.
4. Shoulders to Knees Customers notice the majority of "merchandising" between their shoulders and knees. Make those areas a priority of cleanliness.
5. Fitting Room/Area If the customer comes to see his/her vehicle in the fitting room/area, keep it spotless. It influences the customer's buying decision. If you have a back stock area, keep it closed to the customer's eyes! 6. Necessary Rooms Customers should be able to use your restrooms. Not only should it say "squeaky clean" to your customers but it also should say something about how you value your employees and their comfort level.
7. Clutter Free Shipping boxes, pallets, rolling racks, shipping materials....anything needed for the operation of the store should be out of site or neatly stored away from the traffic flow in the store. 8. Ease of Shopping Overstocking of merchandise can be overwhelming to the customer and they can "assume" your store is messy merely because of the volume of merchandise. How easy is it to get around your store? Can you get a stroller or wheelchair easily around the store?
9. Aroma Does your store "smell clean"? Customers can make an assumption of whether a store is clean based on what they smell? If you have become to immune to any smell your store may have, ask friends or new employees to give you their opinion. 10. Register Area The most important area of the store, no matter what kind, is the place you exchange your hard earned money for something you value, your purchase. Make it spotless!
Loss Prevention
Loss Prevention
Retail Loss prevention (in some retailers known as Asset Protection) is a form of private investigation into larceny or theft. The focus of such investigations generally includes shoplifting, package pilferage, embezzlement, credit fraud, and check fraud. "Loss prevention" or "LP" is used to describe a number of methods used to reduce the amount of all losses and shrinkage often related to retail trade.
Sources of Theft
46.8% from employee theft, 31.6% of shrinkage comes from shoplifting 14.4% from administrative error 3.75% from vendor error 2.86% from unknown error.
Source: National Retail Security Survey,2006
Although most retailers experience a shrink percentage of less than 2%, some smaller retailers often experience monthly and annual average shrinkage percentages as high as 20%.
CHEQUE FRAUD
MARGIN LOSS & SWEET HEARTING
Shoplifting
Shoplifting (also known as retail theft, or shrinkage within the retail industry) is theft of goods from a retail establishment by an ostensible patron.
It is one of the most common crimes for police and courts
Embezzlement
Employee embezzlement is the theft or taking of property or funds entrusted to an employee by an employer. The most common type of retail embezzlement is cash theft. Other types include ringing up fake gift cards, passing merchandise, discount fraud, and, of course, theft of merchandise.
Cheque Fraud
Check fraud is generally accomplished in one of two ways. The first is by writing a check that is manufactured to look like a real document, which in fact has no real value or no real bank account to back it up. Typically this is done by suspects who are experienced in forgery. The second method is check kiting, in which the suspect writes a check for a high dollar purchase, then withdraws the funds from the account before the check clears. Check kiting is usually done when suspects establish a fraudulent bank account under a false name.
Point of Sale
Point of sale is a form of electronic journal that allows the loss prevention investigator to see a transaction as it is occurring live. This system is either displayed on a computer screen or on a monitor linked to the CCTV camera system. This system has assisted investigators in closing employee embezzlement cases pertaining to merchandise passing, merchandise voiding, and discount fraud
ELECTRONIC JOURNALS
Almost every large retail institution has some form of electronic journal which records all its transactions. Information such as credit card numbers, gift card numbers, refunds, and merchandise voids is
Ceiling Mirrors
Ceiling mirrors were once a staple of the loss prevention industry. Now, for the most part, they have been relegated to convenience stores. Mirrors allow loss prevention investigators to watch activity in a high-theft area without being seen. Some loss prevention departments have been known to use mirrors to increase the range of their camera systems.
Bottom of Basket
Bottom of Basket loss (BOB), occurs when an item is placed on the lower tray of a shopping cart and the cashier forgets to check the lower tray for items, resulting in the item not being paid for. What makes this form of shrink unique is that it may happen intentionally or unintentionally.
Consent Searches
Consent searches are widely used in law enforcement and are still present in loss prevention today. By asking a customer to consent to a search of their belongings, such as shopping bags and receipts, any illegal search or seizure requirements can be circumvented
Viewing Towers
Although the necessity of viewing towers has been largely eliminated by CCTV camera systems, they still exist today. A tower is usually a centrally located observation platform raised above the sales floor. An investigator can spend time in the tower while searching for shoplifters or investigating employees, much in the same manner as with CCTV. Most towers are now obsolete and being eliminated in many retailers.
Store Security
SECURITY MEASURES
Expensive items can be chained to fixtures Convex mirrors placed at key locations so that employees can observe a wide area of the store. Closed circuit TV cameras can be monitored from a central location Electronic Article Surveillance ( EAS) Systems- special tags are placed on merchandise. When the merchandise is purchased, the tags are de activated by the POS scanner.If a shoplifter tries to steal the merchandise, the active tags are sensed when the shoplifter passes a detection device at the store exit and the alarm is triggered off.
SECURITY MEASURES
Establishing Security Policies and Control Systems to control employee theft
Randomly search containers such as trash bins where stolen merchandise can be stored. Store employees should enter & leave the store at designated entrances. Assign salespeople to specific POS terminals and require all transactions to be handled through those terminals Restrict employee purchases to working hours Have all refunds, returns, and discounts cosigned by a department or store manager. Change locks periodically and issue keys to authorized personnel only. Have a locker room where all employee handbags, purses, packages, and coats must be checked.
STORE DESIGN
Security issues need to be considered when placing merchandise near entrances, delivery areas, and dressing rooms Reducing the height of fixtures and having open sight lines to entrances and exits, store employees can see customers in the store and watch for shoplifters while providing better service. Dressing room entrances should be visible to store employees so they can easily observe customers entering and exiting with merchandise. Cash wraps ( places where customer can buy purchase and have it wrapped )- should always be placed near areas where theft is likely to occur.
ALERT EMPLOYEES
Store employees must be aware, visible, and alert to potential shoplifting situations. Dont Assume that all shoplifters are poorly dressed To avoid detection, professional shoplifters dress in the same manner as customers patronizing the store. Over 90 percent of all amateur shoplifters arrested have either the cash, cheques, or credit to purchase the merchandise they stole. Spot Loiterers Amateur shoplifters frequently loiter in areas as they build up the nerve to steal something. Professionals also spend time waiting for the right opportunity, but less conspicuously than amateurs Look for Groups Teenagers planning to shoplift often travel in groups. Some members of the group divert employees attention while others take the merchandise
ALERT EMPLOYEES
Look for people with Loose clothing Shoplifters frequently hide stolen merchandise under loose- fitting clothing or in large shopping bags. People wearing a winter coat in the summer or a raincoat on a sunny day may be potential shoplifters. Watch the eyes, hands, and body. Professional shoplifters avoid looking at merchandise and concentrate on searching for store employees who might observe their activities. Shoplifters movements might be unusual as they try to conceal merchandise.