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Retail Store Management

Notes Figure 1.4 shows the organization chart of a Rich three assistant store managers reporting to
them. The assistant store manager for sales and merchandising manages the sales associated and
presentation of the merchandise in the store.
The assistant manager for human resources is responsible for selecting, training, and evaluating
employees. The assistant store manager for operations is responsible for store maintenance;
store security; some customer service activities, such as returns, complaints, and gift wrapping;
the receiving, shipping, and storage areas of the store, the general manager may perform the
tasks done by an assistant store manager for merchandise.
Group sales managers, sales managers, and the sales people work with customers in specific
areas of the store.

Example: A sales manager might be responsible for the entire area in which kitchen
appliances, gifts, china, silver, and tableware are sold, while a group sales manager might be
responsible for an entire floor of the store.
Corporate Organization of a Regional Department Store Chain

The decisions made at the corporate office involve activities that set strategic directions and
increase productivity by coordinating the regional chains management information system and
one private and effective than having separate systems and programs in each regional chain.

Corporate Functions Activities performed at the Federated corporate office, rather than at the
regional chain level, include:
1. Corporate (Cincinnati, Ohio): Support services cover tax, audit, according, cash
management and finance, internal audit, planning, insurance, economic forecasting, law,
corporate communications, purchasing, store.
2. Merchandising and Product Development (New York): This function develops
merchandising strategies, coordinates relationships with vendors, designs and sources
private-label merchandise, and managers marketing programs for private-brand
merchandise. Among Federated Clubroom, Tools of the Trade, Badge, Style & Co., and
Alfani.
3. Financial Administrative and Credit Services Group (Mason, Ohio): This group provides
proprietary credit cards and services for each regional department store chain. Federated
has over 58 million credit card holders. The group also is responsible for payroll and
benefits processing.

4. Federated Systems Group (Norcross, Georgia): This division designs, installs, and manages
the information system used by all divisions.
5. Federated Logistics and Operations (Secaucus, New Jersey): Logistics coordinates and
manages the logistics and distribution function as well as accounts payable, purchasing,
store planning, vendor technology, and energy management and expense control.
The History of Federated Department Store Chain

Federated Department Stores was founded in 1929 as a holding company by several family-
owned, regional department store chains, including Shillito Bloomingdale Lazarus, founded in
1851 in Columbus, Ohio; and Abraham & Straus, founded in 1865 in New York. Over the next
30 years, Bon Marche (Seattle), Rike Burdens (Miami), and Rich Basement (an off-price retailer)
and gold Circle (a full-line discounter) and acquired Ralph West Coast supermarket chain). Each

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