Page 203 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes 11.1.7 Lighting

Low lighting may create the ambiance you are looking for in your retail store, but it can lead to
more accidents or crime. Poor lighting may make it easier for shoplifters to steal goods without
being clearly seen. Customers or employees also may have problems seeing objects on the floor
and could trip and fall as a result. Always keep good lighting on throughout your store’s front
end and in stock rooms.

11.1.8 Employee Training

A variety of emergencies in your store could require a first aid-trained employee to handle. For
example, if an employee cuts himself unpacking inventory, he may need to properly know how
to clean and bandage the wound to avoid infection. If, on the other hand, a customer begins to
choke on candy you’ve put at the front register, one of your employees may save her life by
administering the Heimlich manoeuvre and dislodging the candy from her throat. Hire a first-
aid professional to train your employees in basic first aid, and always keep first aid supplies on
hand in case of emergency.

Notes Cost Control
A retail manager agrees that cutting salary costs in the small store can be done without
hurting business. “Actually, maybe it’s helped, since cutting staff means more people
(everyone, from customers to delivery) are dealing directly with me. That has to be a
benefit; people appreciate speaking with the owner when they have a problem.”
Inventory control is another money crunching area. One retailer who deals predominantly
with a single paper goods company, which is a 10 minute drive from his store, cites an
example. “Because this company is capable of delivery in three days, we’re allowed the
flexibility of not keeping extra stock on hand. And we don’t need to carry as many different
kinds of patterns.” He adds, “People like to pick exactly what they want from the catalogue.
I call while they’re here, to verify delivery, and they’re happy for the extra choices and
service.” In addition, he feels this cuts way’ down on waste.
All retail outlets caution not to cut too far, otherwise customers assume empty shelves
mean you’re going out of business. They do not prefer to carry as much inventory in their
store. Of course, they stress staying on top of stock in bigger areas, like “over-the-hill” or
children’s birthdays. Retail stores need to spend where the money is coming in, and cut
back on the rest.

A retail chain owner, who also is responsible for purchasing, says that one smart way to
cut inventory, is getting rid of holiday carry over. “It’s more worthwhile for me to dump
it at 75 percent off, than to warehouse it as inventory for an entire year. A lot of people
think they don’t have much in their back room, but if they inventoried it, they’d find they
have a lot.” Simply put, reducing inventory with low turnover, and never running out of
items with a high turn over will save you money and space.
He stresses the importance of keeping track of what’s sold well in the past, and what’s
carried over. Paying careful attention to volume is needed, in order to take advantage of
free freight or other discounts. He also advised developing sound relationships with
vendors so you’ll be alerted to price breaks.
Contd....

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