Once one has got a clear understanding of the product mix it becomes very easy to plan the lay-out of the store and merchandise the goods. Various retailers use different types of layouts to merchandise their products depending on the size of the store, the type of products and location of the store.

Store layout:
Store layout should entertain customers to move around the store to purchase more merchandise than they may have originally planned. Before a store is set up the layout of the store is prepared. It involves the elevation plan for placing of fixtures on the walls and the floor; it shows how the walkway in a store should be and how much spacing needs to be given between departments and sections. Store layout is nothing but a Plano-gram of the store. It is similar like a map. It has information related to the sections, the fixtures used, area each section has occupied, which product is displayed where, and so on.

Grid layout: (Courtesy: Retailing Management-Levy and Weitz.)
It is mostly used in small grocery and FMCG store operations. It contains long gondolas of merchandise and aisles in a repetitive pattern. It isn’t the most aesthetically pleasing arrangement. Customers are not naturally drawn into the store.




Grid layout
ref: google site

o Racetrack track layout:
The race track layout facilitates the goal of getting customers to visit multiple departments.It is a type of store layout that provides a major aisle to facilitate customer traffic that has access to the store’s multiple entrances. This aisle “loops” through the store, providing access to smaller self contained departments.
The race track layout encourages impulse purchasing.

o Free-Form:
A free form layout arranges fixtures or aisles asymmetrically.Its successively used primarily in small speciality stores or within the departments of large stores.In this relaxed environment,customers feel like they are at someone’s home.Fixtures are likely to be expensive,hence customers are not naturally drawn towards the store.Hence personal selling becomes more important.Theft is higher in such layouts.



free flow layout
ref: google site
It is at Big Bazaar that I was exposed to most of the standard operating procedures, thanks to Ved Prakash Arya, the then CEO and his team. A proper SOP manual was in place in all the stores of Future Group to guide the store manager and his team to understand and follow the processes properly.

To understand the operations of a store one needs to be aware of all the day to day activities happening within a store. He needs to be a keen observer and should have a hunger for learning. One needs to ask questions to himself when inside a shop floor as to why the store lay out is in the way it is, why such a merchandise mix, understand and ask why fixtures are placed in a particular manner, and how it solves the problem, and which fixture is used when and where and why, and try to analyse each and every activity happening in the shop floor. The more you observe and the more you ask questions the more you come closer in understanding operations. You also need to understand the SOP for each and every process inside the store. Let’s understand this step by step. What is the first activity that happens when the store is ready to open?

What is the day to day activity that generates inside a retail store apart from selling? Many assume inside a retail store you only need to sell merchandise to a customer who enters your store. Is there anything more into it? If yes what is it? Sometimes I feel it’s suspense to a lame man and I need to open this Pandora’s Box to them. There are many things that a person needs to know and understand about retail store operations. If you’ll open the box you will find inside it various activities like selling, customer service, warehousing, systems, sop’s, security, merchandising, layouts, stock take, cashiering, stock planning, placing fixtures, human resources functioning, report generation, schemes, events, housekeeping, target planning, end of season sale, buying, negotiating, servicing, managing people, the list is endless. Imagine so many activities under one roof. This it-self makes operation more interesting. Let’s take every aspect one by one to understand each activity more clearly.

One needs to first and foremost understand the format of the store, whether it’s a lifestyle format or a value format. In a lifestyle format to ensure quality service the ambience within the store is very pleasant, all the merchandise is well placed, and quality of merchandise is maintained, availability is not in abundance, the visuals are very specific to the concept of merchandise, the sales associates are provided with the skills required to assist customers, infrastructure within the store is beautiful. To maintain these service standards the price of merchandise available here is high. Discounts are not available at such stores often, except during an end of season sale or clearance sale. All departmental stores are lifestyle formats. Compared to this a value format store is similar to a supermarket where the ambience is similar to a market. Here the availability of merchandise is in abundant and at all times they are either put on discounts or some offer or scheme is available. Hence service provided is compromised. The infrastructure is very simple and not similar to the one within a lifestyle format. Personal customer assistance is not ensured, merchandise displayed will not be very expensive and of high range quality. Basically value formats target volume business and for the mass.Once the concept of store format is clear one needs to clearly understand the departments, products and their hierarchy within a store. Understanding product hierarchy (product mix) is very essential as it helps one to display the products in the right manner and easier to assist a customer buy a product. It also helps one to plan the layout of the store very systematically.Many organisations have large number of brands and products which is referred to as Product Line. They offer shirts, trousers, t-shirts and other products in different styles, sizes and colours. Therefore, it can be concluded that they have a wide product line with different product lines (shirts, trousers, t-shirts). Product line depth indicates how many product variants are there under each brand/ product line.
Next week we will understand the store layouts.

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.

Retail Musings

Hi,

Starting from today, every week I will be writing a small article on retail, especially on store operations for you all to be aware of the challenging activities that occur within a store.
According to me store operations is the happening place in a retail industry and this is the only place which will make a person an all rounder in the industry. It is here where I learnt that to become a perfect store manager you need to have hand-on experience in all the departments, starting from the warehouse. Hence whenever any new recruit used to join us, be it a management trainee, or a sales advisor we used to start their training at the warehouse. But it is not the same here in India, which I feel is a disadvantage. Most of the new recruits, who pass out from the B- schools and join the organisation as management trainees in store operations feel working in a warehouse, is not their cup of tea. This it-self is the first sign of failure. Hence mainly because of this reason most of them are not a successful store manager. Most of the stores which are doing great numbers are not because of the existing managers’ contribution, but because of the high rise in consuming power of the existing population. If you have shopped in such stores you will notice that there is still chaos within such stores and still most customers are not satisfied with the working of the store. The store manager will mostly be seen in a reactive mode and doing mostly fire fighting activities, rather than being in a proactive mode. There are two major reasons for the same, one being lack of trained store managers and inhibition to learn from their mistakes and the second not understanding the importances of processes and application of the same within the stores. It is very crucial to set processes in place to operate a store very efficiently.. Lot of scope is available to improve the operations of the store. I strongly believe that all management trainees who have joined the operations team dreaming to become store managers need to compulsorily start to get trained from scratch in store operations and understand each and every process, only then will he be able to run a store successfully.
I still remember how people used to look at me in the early nineties when I used to tell them that I am working in a retail store. They used to compare me with one of those salesmen working at a small shop situated at every lane in the town. Most of them are not clear as to what exactly this industry is all about. There is a wrong notion, especially in the rural areas about retail shops. One here feels people working in this industry are no one but the common kiranawala working at the neighbourhood kirana store. But it is gradually getting its importance and people have started accepting it as another career prospect. Retail is the code word in every individual tongue. Every second individual is talking about the retail industry. It has started growing rapidly since past five years. It generates more than ten percent of India’s GDP, and around eight percent of the employment. Organised retailing is gradually developing and due to this there is a great demand of skilled people in this industry. But as this industry was not so much in demand five to seven years back there is a tremendous shortage of skilled people to run the business, especially store operations. Due to this many institutes have started launching courses in retail management so as to develop skilled manpower and provide to the industry people with skill to run the business. But even now most of the institutes are finding it difficult to provide the full knowledge required to run the business, especially in store operations, reason being lack of exposure to this industry. Need is now to provide specific detail knowledge on every aspect in retailing such as, store operations, visual merchandising, merchandise buying, function of human resource in retail, logistics, retail marketing, and retail finance.
Career opportunities:
Tremendous opportunity exists in this industry and one can achieve a good career launch through this sector. Retail as most assume is not just about shops and salesmen. Apart from sales one can consider various functions from the choices listed below.

Segments within the industry:
Apparels
General Merchandise
Fast Moving Consumer Goods
Consumer Durables


Various inter department roles and functions:
Organization structure and Human Resource Management
Information Systems and Supply Chain Management
Merchandise Management
Communication Mix
Store Operations
Store Layout, Design and Visual Merchandising
Financial Strategy
Customer Service
Loss Prevention Cell

Various other roles one can fit into are:
Marketing
Logistics
Facility Management
Real estate/Properties
Category Management
Design/Creativity
Project Management



Because this industry is witnessing a huge growth one can also look for tremendous growth options within the industry. One can easily climb the ladder from a supervisor level to a store manager level in a span of four to five years time. Apart from this one also has a tremendous opportunity to grow horizontally in this industry as scope for learning is wide
ext week I will talk about careers in retail operations, the various segments it holds and
career opportunities.
From next week we will understand store operations in depth.