Page 11 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes Define relevant performance metrics to evaluate business functions.
Manage ownership and accountability for category performance and profitability.
Ensure that the new organization structure does not impede the flexibility and dynamic
responsiveness of the Internet business.
Store management takes care:
1. That the required material is never out of stock.
2. That no material is available in excess that required.
3. To purchase materials on the principle of economic order quantity so that the associated
costs can be minimized.
4. To protect stores against damage theft etc. This can be achieved through:
(i) A proper purchasing practice,
(ii) An adequate procedure of receipt and issues of materials,
(iii) Proper methods of storing materials,

(iv) An effective system of physical control of materials, and
(v) A proper method of keeping stores record.

1.2.2 Forms of Retail Store Organization

Retail organization structures differ according to the type of retailer and the size of the firm. For
example, a retailer with a single store will have an organization structure quite different from
a national chain.
Organization of a Single-Store Retailer: Owner-managers of a single store may be the entire
organization. When they go to lunch or go home, the store closes. As sales grow, the owner-
manager hires employees. Coordinating and controlling employee activities is easier in a small
store than in a large chain of stores. The owner-manager simply assigns tasks to each employee
and watches to see that these tasks are performed properly. Since the number of employees is
limited, single-store retailers have little specialization.
Each employee must perform a wide range of activities, and the owner-manager is responsible
for all management tasks.
Figure 1.1: Organization Chart of a Small Retailer

Owner-manager
Strategic Management

Accountant
Financial Control

Store Manager
Merchandise Manager
Store Management
Merchandise Management
Advertising and Promotion Human Resource Management
Distribution

Sales people

Source: Everonn_Retail Management_Exhibit 6.1: Organization Chart of a Small Retailer

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