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Retail Store Operations


Store Atmosphere

The store must offer a positive ambience to the customers for them to enjoy their shopping and leave with a smile.

  • The store should not give a cluttered look.
  • The products should be properly arranged on the shelves according to their sizes and patterns. Make sure products do not fall off the shelves.
  • There should be no foul smell in the store as it irritates the customers.
  • The floor, ceiling, carpet, walls and even the mannequins should not have unwanted spots.
  • Never dump unnecessary packing boxes, hangers or clothes in the dressing room. Keep it clean.
  • Make sure the customers are well attended.
  • Don’t allow customers to carry eatables inside the store.

Cash Handling

  • One of the most important aspects of retailing is cash handling.
  • It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the store.
  • Cash Registers, electronic cash management system or an elaborate computerized point of sale (POS) system help the retailer to manage the daily sales and the revenue generated.

Prevent Shoplifting/Safety and Security

  • The merchandise should not be displayed at the entry or exit of the store.
  • Do not allow customers to carry more than three dresses at one time to the trial room.
  • Install CCTVs and cameras to keep a close watch on the customers.
  • Each and every merchandise should have a security tag.
  • Ask the individuals to submit carry bags at the security.
  • Make sure the sales representative handle the products carefully.
  • Clothes should not have unwanted stains or dust marks as they lose appeal and fail to impress the customers.
  • Install a generator for power backup and to avoid unnecessary black outs.
  • Keep expensive products in closed cabinets.
  • Instruct the children not to touch fragile products.
  • The customers should feel safe inside the store.

Customer Service

  • Customers are assets of the retail business and the retailer can’t afford to lose even a single customer.
  • Greet customers with a smile.
  • Assist them in their shopping.
  • The sales representatives should help the individuals buy merchandise as per their need and pocket.
  • The retailer must not oversell his products to the customers. Let them decide on their own.
  • Give the individual an honest and correct feedback. If any particular outfit is not looking good on anyone, tell him the truth and suggest him some better options.
  • Never compromise on quality of products. Remember one satisfied customer brings five more individuals to the store. Word of mouth plays an important role in Brand Promotion.

Refunds and Returns

  • Formulate a concrete refund policy for your store.
  • The store should have fixed timings for exchange of merchandise.
  • Never exchange products in lieu of cash.
  • Never be rude to the customer, instead help him to find something else.

Visual Merchandising

  • The position of dummies should be changed frequently.
  • There should be adequate light in the store. Change the burned out lights immediately.
  • Don’t stock unnecessary furniture at the store.
  • Choose light and subtle colours for the walls to set the mood of the walk-ins.
  • Make sure the signage displays all the necessary information about the store and is installed at the right place visible to all.
  • The customers should be able to move and shop freely in the store.
  • The retail store should be well ventilated.

Training Program

  • The store manager must conduct frequent training programs for the sales representatives, cashier and other team members to motivate them from time to time.
  • It is the store manager’s responsibility to update his subordinates with the latest softwares in retail or any other developments in the industry.
  • It is the store manager’s responsibility to collate necessary reports (sales as well as inventory) and send to the head office on a daily basis.

Inventory and Stock Management

  • The retailer must ensure to manage inventory to avoid being “out of stock”.
  • Every retail chain should have its own warehouse to stock the merchandise.
  • Take adequate steps to prevent loss of inventory and stock.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.


Retail Management