Page 97 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes In this unit, we will discuss stock management .We will also focus on relevance of stock
management to retail operations, various types of stock checks and taking care of quality inside
a store.

6.1 Relevance of Stock Management to Retail Operations

Gone are the days when customers had limited options for shopping. In the current scenario,
if a customer does not find the desired merchandise at one retail shop, he has a second brand to
rely on. A retailer can’t afford to loose even a single customer. It is really important for the
retailer to retain his existing customers as well as attract potential buyers. The retailer must
ensure that every customer leaves his store with a smile. Unavailability of merchandise, empty
shelves leave a negative impression on the customers and they are reluctant to visit the store in
near future. Retail Stock management prevents such a situation.

Did u know? One must understand that the products need some time to reach the store
from the supplier’s unit.

The retailer must have sufficient stock to offer to the customers during the “lead time”. Managing
Retail Stock also helps the retailer during situations beyond control like transport strikes,
curfews etc. The retailer has ample stock as a result of judicious Retail Stock management even
at the time of crisis.

6.1.1 Important Terminologies Used in Retail Stock Management

1. SKU (Stock Keeping Unit): Every product available at the store has a unique code. This
code which helps in the identification and tracking of the products at the retail store is
called as stock keeping unit or SKU.
The retailer feeds each and every SKU in the master computer and can easily track the
product in the stock just by entering the SKU Number.

!
Caution Assigning a unique code to the products avoids unnecessary searching.

Example: Let us take the example of “Numero Uno” which stocks denims, shirts, T Shirts
and targets both men as well as women.
SKU for Shirts

NU – M–40-FL-W
NU - M-38-FL-B
Where:
NU stands for Numero Uno
M - Men

40 - Collar Size
FL - Full Sleeves
W - White (Colour of the shirt)

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