Page 9 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes 2. He keeps a large variety of goods produced by different producers and thereby ensures a
wide variety of choice to the customers.
3. He relives the consumers of maintaining large quantity of goods for future period because
he himself holds large stock of goods.
4. He develops personal relationship with the customers by giving them credit.
5. He provides free-home delivery service to the customers.

6. He informs the new product to the customers.
7. He makes arrangement for replacement of goods when he receive complaints.
8. He gives valuable market information with regard to taste, fashion and demand for the
goods to the wholesaler.
9. The retailer maintains direct contact with the customers and so he relieves the wholesaler
with regard to maintenance of direct contact.

10. He helps the wholesaler in getting their goods distributed to the consumer.
11. He is regarded as an important link between the wholesaler and the consumer.
12. He creates demand for the products by displaying the goods to the consumers.

Notes Retailing Issues: Retailers are faced with many issues as they attempt to be successful.
The key issues include:
Customer Satisfaction: Retailers know that satisfied customers are loyal customers.
Consequently, retailers must develop strategies intended to build relationships
that result in customers returning to make more purchases.

Ability to Acquire the Right Products: A customer will only be satisfied if they can
purchase the right products to satisfy their needs. Since a large percentage of retailers
do not manufacture their own products, they must seek suppliers who will supply
products demanded by customers. Thus, an important objective for retailers is to
identify the products customers will demand and negotiate with suppliers to obtain
these products.
Product Presentation: Once obtained products must be presented or merchandised
to customers in a way that generates interest. Retail merchandising often requires
hiring creative people who understand and can relate to the market.
Traffic Building: Like any marketer, retailers must use promotional methods to
build customer interest. For retailers a key measure of interest is the number of
people visiting a retail location or website. Building “traffic” is accomplished with
a variety of promotional techniques such as advertising, including local newspapers
or Internet, and specialized promotional activities, such as coupons.

Layout: For store-based retailers a store’s physical layout is an important component
in creating a retail experience that will attract customers. The physical layout is
more than just deciding in what part of the store to locate products. For many
retailers designing the right shopping atmosphere (e.g., objects, light, and sound)
can add to the appeal of a store. Layout is also important in the online world where
site navigation and usability may be deciding factors in whether of a retail website
is successful.
Contd....

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