Monday, August 11, 2008

Retail Musings……

An operation is a transformation process of inputs into outputs. Store operations are linked to all processes related to a store. A store operation is a task by itself and requires trained people to manage this process efficiently for more productivity and profitability.

A store operation is the heart and soul of this industry. In store operations they say “Retail is detail” as it deals with every activity in the minute detail. Retail operations offer exciting and challenging career opportunities. It offers profit and loss handling activities and the experience of managing people early in your career. Entry-level retail jobs for college graduates offer both of these opportunities. Most college graduates can begin their career in retailing as a sales executive or sales advisor, but can also join in as a management trainee, and after completion of the training period get designated as a floor or department manager at floor level if they have undergone proper retail management training. As a department manager one will be responsible for the profitability of a category of merchandise or a department of the store and will be managing people who will work for you. You will get opportunity to provide lot of innovative thoughts which may be initiated to increase sales and will be rewarded in a huge way through incentives and perks.

The career path for front end store operations begins with:

Team Member


Team Leader


Asst. Department Manager


Department Manager


Floor Manager


Asst. Store Manager


Store Manager

As depicted above the front line career on the shop floor normally begins with a candidate being appointed as a Team Member. Across corporate in this industry the designation varies (Team member/ Customer sales associate/ Sales Executive/ Sales Advisor). The team member looks after the front line sales within a store. The team leader is in charge of the members. A Team leader reports to a Assistant department manager. In some cases the team leader may also report to an ADM / DM depending on the size and business generated from the department. The asst. department manager in turn reports to the department manager who takes care of a specific department e.g. Men’s wear which would in turn comprise casuals, formals, accessories etc. In certain cases an ADM may directly report to the store manager if the department is smaller in business and size.
Depending on the size of the store the hierarchy may further grow up to the floor manager, an assistant store manager and finally the Store manager who is responsible
for the entire operations and the business of the store.



The growth path…..

Area Manager


Operations Manager


Business Manager






The best way to understand the way a retail store functions is to begin with at the shop floor or at the warehouse. Only at the shop floor will you be able to learn your products, understand the store and your customers better. The operations team to my knowledge and experience is the best place to be in a retail industry as you get exposed to all the verticals like operations, marketing, HR functions, project handling, visual merchandising, logistics, etc. To work in a retail store you need to have the passion and eagerness to work. You need to have the potential in you to deliver, spend more time on the shop floor, sacrifice the daily entertainment activities, public holidays, the Sundays, etc. You need to mentally mould yourself to submit yourself to the lifestyle of retailing. Here when the world enjoys you are required to assist them to enjoy more at your cost of enjoyment. That it-self is a task and if you can achieve this it in itself is a great feeling of achievement and satisfaction. Here you get to meet many different types of customers, from different cast, creed, different places, and having different lifestyle. Here unlike marketing people come to visit you and that itself is a great fun as you get to understand different types of people of different nature from whom you get to learn a lot every day. Store operations involve a continuous learning process. It teaches you to become stronger, become more aggressive, more confident, and get exposed to extreme situations and to tackle all sorts of activities or situation the way it comes. The best thing of store operations is you do not have to wait for the work to come; you get it at all the time. You will be learning new things every day, every moment. It makes you act effectively and think at all stages. There are many fields within the store operations where you can put your thoughts into action. The best part in a retail store operations is you get to incubate your thoughts into action, can become very initiative and also get to learn from the errors you create. Sometimes the errors caused by it-self may become an entry level for fresh thoughts to come in and create something new at the shop floor. It also makes you more systematic, disciplined as it teaches you to schedule your work process and get tuned to it. The best part in a store operation is its activities differs on week days and on weekends and public or bank holidays, reason being the activities within a store depends on the customer walk-ins. The more the walk-ins more is the activity.
When I came back to India after my small stint in retailing abroad I was impressed by the way organised retail had come up. I felt very happy as this industry was coming up in a big way, and especially because I started my career in this industry. Many malls and individual super stores and shops were coming up or were planning to be set up in most of the western and central suburbs of Mumbai. I was very eager to visit one such mall in south Mumbai. I was extremely fascinated by the way the mall had come up. It was very much similar to the malls that I had visited abroad. I spent almost an entire day visiting all the shops within the mall. I did some bit of shopping, moved around within various outlets to understand the way they operated, made some observations, and also got into a casual conversation with many of the sales employees. Every day I used to visit one of the malls in the suburbs, and get into either window shopping or just interacting with some of the floor staffs. During these visits I used to observe the day to day operational activities within the stores, how it was different from the other stores, which activity was unique to that store, or what was not right in the store, and so on. During this process what I observed was that some retailers were efficient in setting up the standard store ambience, some were experts in service standards, some were efficient in stacking stocks, or some were experts in service as well procuring stocks and so on. Overall what I observed was that every one of the retailer was a master in one of these parameters or all of them. But still what I could experience was there was still lot of commotion within the store when it comes to billing a product, or handling the customer flow on week ends, or managing the operations within the store. I am sure you must have surely experienced this sometimes, somewhere in one of the outlets in a mall you had visited.
The main reason for this is the absence of proper systems and processes or if present then not adhering to the same. To ensure all activities within the store is run smoothly proper processes need to be in place. Most of the activities within the store operations is mainly process driven. Hence it is very essential to enforce standard operating process. (SOP) it is a pre-designed document officially approved by the management, hence an official method of getting all work done. One should ensure that when these processes are designed and implemented it should benefit both, the customer as well as the employee. If it does not benefit any one then its existence is not justified. We will understand these processes in detail as and when the topic is covered in my following articles chapters.

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