Cross Merchandising – Meaning and Concept
April 3, 2025
Retailing refers to the concept of selling merchandise in small quantities to the consumers for their end use. According to retailing, the individual can walk up to any nearby retail store and purchase products as per his need and pocket in small units for his own consumption. The display of merchandise at the store plays…
In the fast changing globalized and a technology-driven business world, Retail industry over last few decades has witnessed a sea change. World’s largest retail giant of the present times Walmart is operating worldwide by establishing hypermarkets in various countries by taking the help of sophisticated means of communication as well as information systems technology. A…
Michael Porter’s Five Forces Model helps in the determination of the industry attractiveness and in analyzing the prospects of growth and opportunities by assessing the competitive trends and the intensity of the rivalry amongst the existing competitors. It is a major strategic tool used for determining the industry potential/prospects and the possible threats which may…
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.
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 can’t 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.
Retail management is a broad term which encompasses several activities which are related to running a retail store. Hence, the objectives of retail management are not very straightforward.
Retail management can have several diverse objectives. These objectives can vary significantly depending upon the type of retail company as well its strategic objectives.
Some of the common objectives related to retail management have been listed below:
Stores are trying to sell the shopping experience i.e. the act of walking into a store and having happy and friendly store staff assist prospective customers with their shopping needs. Retail management is also about learning various ways in which an enhanced customer experience and store delight can be created.
For instance, some retail shoppers are focused on lower prices whereas others are focused on the latest merchandise. The store must carefully choose a brand persona and then every communication which is sent out must be aligned with the brand persona and must reinforce the brand image.
Capturing data in an offline setting becomes more complicated as compared to the online setting. Retailers often have to provide financial incentives to the customers in order to get them to share their data.
There are multiple stores which provide the same types of products and services. As such, retail has become largely commoditized and hence many retailers can only compete by lowering their prices. The end result is that a price war gets triggered and the profitability of the entire sector gets jeopardized. One of the objectives of retail management is develop ways and means to cut prices without leading to a corresponding reduction in profitability.
The fact of the matter is that retail management encompasses a wide range of strategic objectives. It is up to the retailer to decide on their priority and focus on achieving those goals.
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