Page 18 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 1: Introduction: An Overview of Retail Operations

Self Assessment Notes

State whether the following statements are true or false:
8. An organization is an informal arrangement of roles and ranks put in place to attain some
particular objectives.

9. The arrangement of a retail organization depicts the role of employees and the mode in
which the organization operates.
10. To outline an effective retail organization structure, managers/owners must describe
store objectives, recognize the tasks, categorize the tasks and jobs, and allocate
responsibilities and power to different positions, and define the link between them.
11. Owner-managers of a single store may be the entire organization.
12. Coordinating and controlling employee activities is easier in a small store than in a large
chain of stores.
13. The owner- manager simply assigns tasks to each employee and watches to see that these
tasks are performed properly.

14. A vertical organization arrangement has only one or two levels of management.
15. A Flat organization has more than two levels of management.

1.3 Selection of Right Location

In today’s competitive retail environment, sales and market share preservation and growth are
critical to survival. It is not surprising then that most successful retailers are constantly engaged
in self-evaluation, of which an important component is ongoing assessment of a retailer’s store
deployment plans. Making better site location decisions for the retail sector is about staying
ahead of the competition, entering a new market, or just familiarizing themselves with the new
advancements in methods and technology facing their industry today.
1.3.1 Considerations in Layout Selection

Location decision is very important in retailing business because location involves large cost.
Customer traffic is also affected by the selection of location; which consequently affects the
volume of business. Thus, retailer should understand the importance of location decision in the
context of retail business.
Level of Location Decision: There are three aspects of location decision. First, a retailer will have
to decide about the city where he wants to starts/shift his retail business. Secondly, he has to
select particular area or location within the decided city. And finally he decides the exact site.
Within any centre, one specific location will have the highest level of customer traffic.
The selection of a particular city is affected by the following factors:

1. Trading area of the city
2. Retail trade potentiality
3. Population
4. Per Capita Income
5. Distribution of income

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