S.S.P.

Mandal’s
Chandmal Tarachand Bora College, Shirur Dist – Pune
Sub: (502) Retail Operations
Class: - T.Y.B.Voc. (RM) Sem-V

Topic.01: Retails Operation

Retail operations are the term used to describe all the activities that keep the store
functioning well. It includes people management, supply chain, store layout, cash
operations, physical inventory, master data management, promotions and pricing. (Date:
12-09-2022)

Market: Any system or place where parties are engaged in exchange of either goods or
services is called as market. The parties are often called as buyers and sellers. The seller
offers his goods or services to the buyer who in return purchases it in exchange of money.

Goods: Tangible (things which can be seen and touched) physical products which are
transferred from a seller to the buyer (consumer) to fulfill the latter’s need are called as
goods.

Retail involves the sale of goods from a single point (malls, markets, department stores etc.)
directly to the consumer in small quantities for his end use. In a layman’s language,
retailing is nothing but transaction of goods between the seller and the end user as a single
unit (piece) or in small quantities to satisfy the needs of the individual and for his direct
consumption.

Example: Tim wanted to purchase a mobile handset. He went to the nearby store and
purchased one for himself.

In the above case, Tim is the buyer who went to a fixed location (in this case the nearby
store). He purchased a mobile handset (Quantity - One) to be used by him. An example of
retail.

The store from where Tim purchased the handset must have shown him several options for
him to select one according to his budget and need.

From where do you think the store owner (also called the retailer) purchased all the
handsets?

Here the manufacturers and the wholesalers come into the picture.

The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users
either directly from the manufacturers or through a wholesaler.

1. Digitize time-consuming internal tasks.

While most retailers have embraced IT in a big way, there are newer solutions that
take efficiency and quality improvements to a whole new level by dramatically reducing
manual and error-prone tasks. For example, contactless payments systems speed up the
payment process considerably, and do away with queues.
2. Automate key business processes
 Many retailers are still running a collection of legacy systems designed for a
particular function. They may not communicate well with other systems making it difficult
to achieve end-to-end integration, which is essential if you are to fully automate your
business processes. So, while you may have different programs to handle tasks like
inventory control, filling out employee timesheets, invoicing, financial management and
POS transactions, they do not communicate well with each other. You can improve
efficiency, reduce errors and save costs by integrating and fully automating these
processes.
3. Personalize customer experiences
Successful retailers always strive to create high-value, personalized interactions with
customers.  The first step towards achieving this goal is to understand the customer’s
preferences and requirements.  This is easy to do on your website of course, but not so easy
to do with store visitors. Nevertheless, personalization is now of paramount importance if
you want to keep customers loyal and ensure they keep visiting your stores.
4. Integrate physical and digital worlds
As we know, omni channel is all about making commerce frictionless across channels
to deliver a unified customer experience. This is particularly important in areas like
fulfillment and payments. If a customer buys an item online and has it delivered  to their
home but then decides to return it, how frictionless is that process? Do you insist that they
wait at home for a courier to come and pick up the item  — like Amazon does — or  do you
let them return it to their nearest store, which is possibly  more convenient.
5. Optimize merchandising
Retailers do not make money by stockpiling inventory. The inventory has to sell, so
when new product lines arrive, smart retailers ask pertinent questions such as “How many
do we plan to sell?” “Can the store make money selling the product?”, and so on. Having
introduced a product, a retailer’s prime focus is to optimize the inventory; the ordering
processes have to be streamlined by identifying the  best order-quantity and they should be
integrated with the sales forecast to eliminate stock-out  and overstock situations. A good
inventory management suite automates all these processes, boosting efficiency and
reducing costs.
6. Optimize the workforce
Retailers need staff in their stores to do a wide variety of tasks: help customers,
process POS transactions, handle new shipment arrivals, arrange merchandise and take
inventory.  Automated algorithmic-based labor scheduling tools can optimize staff at peak
hours and ensure they remain at their productive best. Organizations that are leaders in
operation excellence tend to have one thing in common: highly efficient, automated
processes supported by sophisticated information systems.

Components of Retail Operation

1. Supporting and Encouraging Staff: Store managers have an important role in
supporting and motivating staff to enhance employee retention. For example, providing
incentives or communicating with retail employees can promote a positive environment.
Managers can further reduce employee turnover by effectively administering these
employmentprocess.
2. Recruiting and Hiring: One way to minimize employee turnover is by hiring dependable
candidates whose skill sets align with the job description and who will fit in well with the
company's culture. During the recruitment process, managers should indicate clear
expectations for the role and ask candidates questions that provide insight into how they
work under pressure.
3. Onboarding: Managers should conduct thorough training to ensure their new hire's
transition into the position is seamless. Comprehensive onboarding should include training
on how to use the point-of-sale (POS) system and tips on increasing sales. To monitor an
employee's onboarding progress, managers should set performance goals and milestones
for new hires to meet.

4. Managing: Although a new employee may be fully onboarded, managers should still
interact with them to make sure they are meeting their goals and making progress. It is
also important that management teams listen to their store staff, encourage new ideas, and
address any challenges that may arise. This is important because managers must keep
store employees motivated to ensure that they work hard and productively.
Proactively Controlling Inventory

A retail business to flourish and operate smoothly, inventory must be kept at optimal
levels at all times.

By properly controlling stock levels, businesses will minimize their risk of profit

deficit.
For instance, stock-outs can lead to loss of potential sales and customer loyalty, as
shoppers seek competitors to purchase the products they need. On the other hand,
overstocking store inventory causes carrying costs to rise since unsold products will take
up storage space.

Inventory shrinkage, which is when retailers have fewer items in their actual inventory than
what was recorded, is also a concern for store management. Shrinkage is generally caused
by theft, product damage, or errors in counting.
To control inventory and mitigate stock-related risks to profits, store management should-
Conduct Physical Inventory Counts:
Retail managers should implement regular cycle counts to track inventory on a routine
basis. Cycle counting is an inventory auditing technique where a small portion of the
inventory is counted on a specific day.
By conducting cycle counts, management can quickly monitor their inventory and identify
popular items that may need to be restocked. Also, since managers would be focusing on a
subset of inventory, they can finish promptly and spend more time helping customers in
their store.
Prevent Theft
Theft can occur externally by customers or internally by employees. Implementing
loss prevention practices can help businesses detect any shrinkage and allow them to have
more visibility into their day-to-day inventory.

Work with Staff

Store managers should delegate tasks and work with staff to control stock. By
communicating the importance of inventory and providing related training, businesses will
have extra help with making sure stock is properly maintained.
Implementing Management Tools
Store management can be streamlined with the latest digital tools and software. For
example, retailers can implement cloud POS systems that have advanced features, such as
real-time reporting. These solutions can also be integrated with other software, such as
inventory management and forecasting. This is important because executive teams will be
able to produce data reports, track their inventory, and oversee their financial performance.
1. Store Administration and Management of Store Floor:
Store management is the actual handling of items received, held, and issued from a store.
For small retailers, store administration will focus on inventory management. By
maintaining optimal inventory levels, you can meet customer needs while minimizing
unnecessary costs and achieving sales goals. However, this work becomes more complex
with larger stores and includes:
 Receiving items and materials
 Returning defective or damaged stocks
 Keeping records of incoming and outgoing items
 Maintaining inventory levels precisely to avoid overstocking or overstocking.
However, is that enough to manage a retail store successfully? According to the National
Retail Federation, the average turnover rate of the retail industry is more than 60%.
Therefore, it leads to another vital role of store managers: support and motivate employees
to create a positive environment and increase employee retention. Thus, in short, retail
store management definition is to ensure the health and safety of your retail store and
employees.
Opening and Closing Activity of Store

Retail store opening checklist 

1. Security and safety inspection:

Retail robbery tends to happen most during opening and closing. For this reason, there
should always be at least two people present while opening your retail store. 
Before entering the store, make sure nothing (from the outside) looks suspicious.
Ask yourself these questions: 
Are there any broken windows? 
Do you see signs of a break-in? 
Are there unusual cars or people loitering around the area? 
If the answer to any of these questions is yes, don’t enter the store. Go back to your car or
a safe place and call the police. 
If everything looks normal:
Enter the store and lock the door behind you.
Disable the security alarm if necessary. 
Unlock and lock the door again as more staff members arrive. 
Only leave the door unlocked once the store is open for business. 
Make sure the alarm is working properly and security cameras are on and functioning. 
2. Opening inspection and housekeeping:
Next, you’ll want to turn on all the lights and do an inspection to make sure there are no
issues and that the closing staff completed all the checklist items from the night before. 
Follow these steps: 
Look for wet spots on the floor, ceiling, and walls. These could be signs of issues with
plumbing, heating, or cooling. 
Check for signs of vermin or pests. If there’s an issue, call an exterminator. 
Perform general cleaning, including sweeping the floor, making sure the fitting rooms are
ready for customers, and making sure your windows are clean. You can also make a note of
areas that need improvement and share it with your cleaning staff (or closing staff from the
night before).
3. Turn on electronics:
Before opening to the public, you’ll want to make sure the following electronics are turned
on and working properly: 
Point of sale (POS) system. Are your hardware and software working properly? 
Cash registers/tills. Make sure your cash register is balanced and that you have enough
cash on-hand to give shoppers change when they pay using cash.
TVs, sound systems, and air conditioning. Are they all turned on and functioning? 
Traffic tracking software. If you’re using people-counting software to track foot traffic,
make sure it’s turned on and working.
4. Visual merchandising:
Now that you’re sure all the essentials to operate are in order, it’s time to make sure your
store is visually appealing and customers can find what they’re looking for. 
Get ready for customers by doing the following: 
Ensure shelves and product displays are organized.
Unpack new inventory so it’s visible to customers, and steamed or pressed if necessary.
Check that the appropriate amount of stock is out on the floor (i.e., the right number of
SKUs per style)—this depends on your store layout.
Dress mannequins appropriately.
Make sure all products are tagged with size, price, and special pricing, if applicable. 
Do inventory counts for daily stock-taking, also known as cycle counting—a method
whereby you count a small quantity of inventory on a daily basis.
5. Signage and storefront:
Regardless of whether your retail store is in a stand-alone building or in a shopping mall,
you’ll want to make sure your storefront attracts passersby. 
Do this by completing the following: 
Check to make sure signage is correct, and take down signage from the day before if it’s no
longer applicable. 
Clean and tidy up your storefront by wiping down the windows and sweeping the sidewalk.
Put up your sidewalk sign and refresh the messaging. 
Make sure your window displays are attractive and reflect the latest merchandise you have
in-store. 
6. Team huddle:
Before you start interacting with customers, hold a daily team huddle to excite your staff,
motivate them to reach their sales goals, and make sure everyone has the information they
need to do their best. 
During your daily staff meeting, you can: 
Review shifts and individual and team duties to make sure each associate knows what
they’re responsible for. 
Review daily and weekly sales goals and discuss what each associate can do to help reach
those targets. 
Recap performance from the day before, including sales results and positive and negative
customer interactions. 
Discuss how you can improve today, and give your team the opportunity to provide
feedback. 
Review best practices for health and safety. 
Review active promotions, ways to boost awareness of them, and suggestive selling
strategies your team can try.
Retail store closing checklist 
Just like an opening checklist, a closing checklist helps you remember basic things such as
turning off electronics to save money, but it also helps ensure your store is ready for
whoever opens it the next day. 
When it’s time to close, start with the following: 
1. Clear your store:
Ten to 15 minutes before closing time, make an announcement so customers know they
need to finish trying out products and complete their purchase. This way, they won’t feel
rushed.
Check the dressing rooms, bathrooms, and other areas of your store to make sure everyone
has left. 
Bring in outdoor signage and anything else that was outside. 
Lock the doors and station a staff member at the door to let last-minute customers and
employees out. 
Check customers and employees who are leaving to make sure they’re not taking products
that aren’t paid for. 
2. Restock:
Throughout the day, products get moved around, left at the checkout counter, and
hopefully sold. Restocking ensures the store is ready for another day of selling.
Survey the checkout counter and fitting rooms for merchandise and put items back where
they belong.
Straighten up shelves and fixtures. 
Replace sold inventory by taking more stock from the back and adding it to the appropriate
product displays. 
3. Daily close housekeeping:
Making sure your store is clean before you leave will make the next day’s opening process
easier and more efficient. Run through this list of daily closing housekeeping duties: 
Complete general cleaning, including wiping down counters and mirrors, and make sure
fitting rooms are clean. 
Mop the floors and dust product displays and fixtures. 
Turn off all electronics. 
Take out the trash and recycling. 
Do preparation for the next day. For example, put new arrivals in the appropriate place so
opening staff members know the merchandise needs to be unpacked and displayed on the
floor. 
4. Close registers and POS systems:
Before closing up for the night, it’s important to review and reconcile sales. You may decide
to manage this task yourself or assign it to a manager or long-term employee you know you
can trust.
The procedure you use will depend on the size of your business, but regardless, it should
be clearly defined. Here are the common steps to take: 
Set a specific time to close out registers and count cash, noting any discrepancies. This
should be done away from the checkout counter and lingering customers, and out of sight
from the front door. 
Ensure any carts saved in your POS system are cleared. 
Place tills or cash register drawers in the safe. 
Settle credit card machines. 
Shut down the POS system. 
5. Final walkthrough:
Before locking the doors and leaving for the night, do a final walkthrough to make sure all
the tasks on your closing checklist have been completed. 
Make a note of incomplete duties to discuss during your team huddle the next day. 
Ensure employees clock out and know the next time they’re scheduled to work. 
Turn off the lights, turn on the security alarm, double check that all electronics have been
turned off, and lock up.
For safety, always ensure at least two people are present during closing. 
Check the door one last time before you leave to make sure it’s locked. 

Skills of Retails Store Manager

1. Multi-tasking:
Good managers must be able to oversee all the employees, keeping their abilities and
weaknesses in mind while prioritizing multiple projects. I call this being up the blimp,
looking at the action on the field rather than being in the game.
That's the most effective way to develop and use their problem-solving skills. The best
managers multi-task and balance these priorities without losing productivity.
2. Decision-making:
An effective manager can evaluate and decide which are crucial to the success of
your store. Retail often means actions must be acted upon quickly, but making the right
decision rapidly without mistakes means evaluating information to weed through what is
important and what isn't.
You don't want a manager who looks at a situation over and over without making a
decision - right or wrong. Keep one, and you'll lose sleep, profits, and many sales
opportunities.
3. Leadership:
The best managers know how to get the most out of their team by using their people
management, listening, and problem-solving skills to encourage their associates and
sustain employee engagement.
That means using judicious, constructive criticism instead of belittling them. It
means respecting others instead of "my way or the highway." It means leading by example
instead of doing as I say. These leadership skills inspire employees to give their best.
4. Motivation
This goes hand-in-hand with leadership. To be effective as a team leader, you must
learn how to motivate retail employees. Even though I'm a motivational speaker, my
motivation to do well is internal. 
Successful retail managers can nurture that along with clear performance
expectations. Setting goals will keep managers focused on the long-term success of your
company.
5. Organizational skills
A manager must be able to look for areas in which the rules or procedures of the
company can be improved. Millennial employees are very good at seeing these things when
they first start, so be open to their problem-solving skills.
 Streamlining procedures, hiring the best associates, training them correctly, and
cutting costs are several ways a good leader demonstrates these skills.
6. Effective communication
Only a small percentage of communication is the spoken word. Body language, facial
expressions, and tone of voice all combine with words to convey a message.
The best managers have developed the ability to communicate the points they are
trying to make and truly listen to those around them. True communication skill means
having the smartphone off and eyes looking at the person as they strive to hear rather than
speak.
7. Making the first sale of the day
When your employees see them actively selling that first customer, it makes it much
harder for those associates to stand behind your counter and groan, "No one's buying". 
Maybe that means waiting on several customers out on the sales floor until they
make that happen. Still, the example to your team is better than any caffeinated drink,
breaking news, or social media notification.

Responsibility of Retails Store Manager

1. Recruiting employees for the store is the store manager’s prime responsibility.

He not only has to hire the right candidates for the store but also train them for their
overall development. He must ensure that all the employees (floor manager, department
manager, cashier and so on) contribute to their level best for the effective functioning of the
store.
He must act as a strong pillar of support and stand by his team at the hour of crisis.
It is his duty to acquaint his team members with the latest trends in fashion or any other
newly launched retail software. It is his responsibility to delegate responsibilities to his
subordinates according to their specializations and extract the best out of them. The store
manager must motivate his team members from time to time.

2. The store manager must make sure his store is meeting the targets and earning
profits. He is responsible for the smooth and effective functioning of the store.

3. The store manager is responsible for maintaining the overall image of the store.
It is his duty to sensibly display the merchandise so that it immediately catches the
attention of the customers. The store manager must ensure that his store meets the
expectations of the customers and lives up to its predefined brand image.
 The store is kept clean.
 Shelves and racks are properly stocked and products do not fall off the shelves.
 Mannequins are kept at the right place to attract the customers into the store and
rotated frequently.
 The merchandise should be according to the season as well as the latest trends.
 The store is well lit, ventilated and offers a positive ambience to the customers.
 The signage displaying the name and logo of the store is installed at the right place
and viewable to all.
 One of the major responsibilities of the store manager is to make the customers feel
safe and comfortable in the store. It is his key responsibility to make sure that the
customer leaves the store with a pleasant smile.
2. He is responsible for managing the assets of the store:
The security and safety of the store is his responsibility. The store manager
must ensure that sufficient inventory is available at the store to avoid being “out of
stock”.
 He along with his subordinates are responsible for planning, managing profit and
loss, handling cash at the store as well as collating daily sales as well as other
necessary reports.
 He must ensure that the store is free from pilferage.

Important Question
Q.1. Explain the required skill of retails store manager and responsibility of Retails Store
Manager.
Q.2. Explain the opening and closing activity of retail store.
Q.3. Short Notes:
a) Responsibility of Retails Store Manager.
b) Components of Retail Operation.
Home Assignment
Q.1. Explain the required skill of retails store manager and responsibility of Retails Store
Manager.
Q.2. Write short note on: Components of Retail Operation.
 Topic.02: Retail Operations

Method and Approaches to Retail Operations

1. Store Atmosphere

The store must offer a positive ambience to the customers for them to enjoy their shopping
and leave with a smile.

 The store should not give a cluttered look.

 The products should be properly arranged on the shelves according to their sizes and
patterns. Make sure products do not fall off the shelves.
 There should be no foul smell in the store as it irritates the customers.
 The floor, ceiling, carpet, walls and even the mannequins should not have unwanted
spots.
 Never dump unnecessary packing boxes, hangers or clothes in the dressing room.
Keep it clean.
 Make sure the customers are well attended.
 Don’t allow customers to carry eatables inside the store.
2. Cash Handling

 One of the most important aspects of retailing is cash handling.

 It is essential for the retailer to track the daily cash flow to calculate the profit and
loss of the store.
 Cash Registers, electronic cash management system or an elaborate computerized
point of sale (POS) system help the retailer to manage the daily sales and the revenue
generated.
3. Prevent Shoplifting/Safety and Security

 The merchandise should not be displayed at the entry or exit of the store.
 Do not allow customers to carry more than three dresses at one time to the trial room.
 Install CCTVs and cameras to keep a close watch on the customers.
 Each and every merchandise should have a security tag.
 Ask the individuals to submit carry bags at the security.
 Make sure the sales representative handle the products carefully.
 Clothes should not have unwanted stains or dust marks as they lose appeal and fail to
impress the customers.
 Install a generator for power backup and to avoid unnecessary black outs.
 Keep expensive products in closed cabinets.
 Instruct the children not to touch fragile products.
 The customers should feel safe inside the store.
4. Customer Service
  Customers are assets of the retail business and the retailer can’t afford to lose even a
single customer.
 Greet customers with a smile.
 Assist them in their shopping.
 The sales representatives should help the individuals
 Buy merchandise as per their need and pocket.
 The retailer must not oversell his products to the customers. Let them decide on their
own.
 Give the individual an honest and correct feedback. If any particular outfit is not
looking good on anyone, tell him the truth and suggest him some better options.
 Never compromise on quality of products. Remember one satisfied customer brings
five more individuals to the store. Word of mouth plays an important role in Brand
Promotion.
5. Refunds and Returns

 Formulate a concrete refund policy for your store.

 The store should have fixed timings for exchange of merchandise.
 Never exchange products in lieu of cash.
 Never be rude to the customer, instead help him to find something else.
6. Visual Merchandising

 The position of dummies should be changed frequently.

 There should be adequate light in the store. Change the burned out lights
immediately.
 Don’t stock unnecessary furniture at the store.
 Choose light and subtle colors for the walls to set the mood of the walk-ins.
 Make sure the signage displays all the necessary information about the store and is
installed at the right place visible to all.
 The customers should be able to move and shop freely in the store.
 The retail store should be well ventilated.
7. Training Program

 The store manager must conduct frequent training programs for the sales
representatives, cashier and other team members to motivate them from time to time.
 It is the store manager’s responsibility to update his subordinates with the latest
software’s in retail or any other developments in the industry.
 It is the store manager’s responsibility to collate necessary reports (sales as well as
inventory) and send to the head office on a daily basis.
8. Inventory and Stock Management

 The retailer must ensure to manage inventory to avoid being “out of stock”.
 Every retail chain should have its own warehouse to stock the merchandise.
 Take adequate steps to prevent loss of inventory and stock.
 Retail Locations

A good location for retail is one of the crucial impacts in the case of the marketing
strategy of retail because many of the associated long-term decisions and commitments
depend on the location of the retail. Having a good location is one of c primary element in
attracting prospects and customers.
At times a good location can also lead to an excellent competitive advantage because
in retail marketing mix location is one of the crucial parameters and unique which cannot
be copied by competitors in any way.

Retail Locations Strategies

Importance of Location Decision in retail Business

The importance of the location decision is due to the following factors. Location is a
major cost factor because it

Involves large capital investment

Affects transportation costs

Affects human resources cost, e.g., salaries

Location is a major revenue factor in retail business because it

Affects the amount of customer traffic

Affects the volume of business

The terms ‘location’ and ‘site’ are often used interchangeably but there is a distinct
difference between the two. ‘Location’ is a broader concept, which denotes the store and its
trading area from where a majority of its customers originate, while a site refers to the
specific building or part of the building where a store is located. Location and site
characteristics should interact in a positive and synergistic way with a store’s
merchandising, operations and customer service characteristics. For example, a designer
men’s store located in an up market shopping centre or a mall near posh residential
colonies, housed in an attractive building with adequate parking facilities.

Levels of Location Decisions and its Determining Factors

1. Selection of a City
 The following factors play a significant role in the selection of a particular city for
starting or relocating an existing retail business:

 Size of the city’s trading area: A city’s trading area is the geographic region from which
customers come to the city for shopping. A city’s trading area would comprise its suburbs
as well as neighboring cities and towns. Cities like Mumbai and Delhi have a large trading
area as they draw customers from far off cities and towns.
 Population of population growth in the trading area: The larger the population of the
trading area, the greater the potential of the city as a shopping location. A high growth n
population in the trading area can also increase the retail potential.
 Total purchasing power and its distribution: The retail potential of a city also depends on
the purchasing power of the customers and its distribution networks in its trading area.
Cities with a large population of affluent and upper middle-class customers can be an
attractive location for stores selling high-priced products such as designer men’s wear. The
fast growth in purchasing power and its distribution among a large base of middle class is
contribution to a retailing boom around major cities in India.
 Total retail trade potential for different lines of trade: A city may be become specialized
in certain lines of trade and attract customers from other cities. Moradabad has become an
important retail location for brassware products while Mysore is famous for silk saris.
 Number, size and quality of competition: The retailer also considers the number, size
and quality of competition before selecting a city.
 Development cost: The cost of land, rental value and other related cost.

2. Selection of an Area or Type of Location within a City

In the selection of a particular area or type of location within a city, evaluation of the
following factors is required.

 Customer attraction power of a shopping district or a particular store: Major shopping

centres like Chandni Chowk in Delhi, Colaba in Mumbai and Commercial Street in
Bangalore attract customers from far off, while small shopping centres located in colonies
attract customers from immediate neighborhood.
 Quantitative and qualitative nature of competitive stores: Retailers would like to
evaluate the product lines carried by other sores, number of stores in the area, etc. before
selecting the area.
 Availability of access routes: The area or shopping centre should provide easy access
routes.
 Nature of zoning regulations: The retailer should also consider the zoning regulations in
the city.
 Direction of spread of the city: The retailer should consider the direction in which the
city is developing while selection the location.

3. Selection of a Specific Site

The choice of a specific site is particularly important. In central and secondary shopping
centre, non-anchor sores depend on customers coming to the market and the traffic
generated by anchor stores. The large stores in turn depend on attracting customers from
the existing flow of traffic. Where sales depend on nearby settlements, selecting the trading
area is even more important than picking the specific site.
Formulating a location strategy typically involves the following factors:

1. Facilities. Facilities planning involves determining what kind of space a company will
need given its short-term and long-term goals.
2. Feasibility. Feasibility analysis is an assessment of the different operating costs and
other factors associated with different locations.
3. Logistics. Logistics evaluation is the appraisal of the transportation options and costs
for the prospective manufacturing and warehousing facilities.
4. Labor. Labor analysis determines whether prospective locations can meet a
company's labor needs given its short-term and long-term goals.
5. Community and site. Community and site evaluation involves examining whether a
company and a prospective community and site will be compatible in the long-term.
6. Trade zones. Companies may want to consider the benefits offered by free-trade
zones, which are closed facilities monitored by customs service’s where goods can be
brought without the usual customs requirements. The United States has about 170
free-trade zones and other countries have them as well.
7. Political risk. Companies considering expanding into other countries must take
political risk into consideration when developing a location strategy. Since some
countries have unstable political environments, companies must be prepared for
upheaval and turmoil if they plan long-term operations in such countries.
8. Governmental regulation. Companies also may face government barriers and heavy
restrictions and regulation if they intend to expand into other countries. Therefore,
companies must examine governmental—as well as cultural—obstacles in other
countries when developing location strategies.
9. Environmental regulation. Companies should consider the various environmental
regulations that might affect their operations in different locations. Environmental
regulation also may have an impact on the relationship between a company and the
community around a prospective location.
10. Incentives. Incentive negotiation is the process by which a company and a
community negotiate property and any benefits the company will receive, such as tax
breaks. Incentives may place a significant role in a company's selection of a site

RETAIL BRANDING
All successful brands know what their customers want, and understand the decision
journeys of their customers. The digital revolution has changed consumer engagement and
consumer behaviour immensely, with purchases now being both in-store and online,
making this even more of a challenge as both come with different expectations.  Retail
branding strategies are based on brand concepts that focus on building long-term customer
loyalty and customer preference. Retail branding is all about how you make a customer feel
when entering your physical retail store, or when shopping online. Successful retailers
work to ensure cross-channel consistency to help the customer feel as familiar with the
brand as possible.

RETAIL BRANDING IMPORTANT

Successful retail branding can help your brand stand out from its competitors and
also increase footfall, both leading to increased sales of your product. By building and
maintaining a strong retail branding it helps you make a memorable impression on
consumers and increase brand value, whilst also allowing your customers and clients to
know what to expect from your company. Without a doubt, effective design as part of your
retail marketing strategy helps to boost customer understanding and enjoyment of the
products and the brand itself – and therefore sales! Retail branding design helps to narrate
the brand and product story, educate consumers about the pieces, and – ultimately – make
the items displayed more desirable as a result. This helps to establish a strong brand
personality which can develop consumer trust which is one of the key challenges many
brands online and in store face in the retail sector.
CUSTOMER ENGAGEMENT
Customer engagement is the emotional interaction between the consumer and the
business, both online and offline. The competitive nature of the retail environment means
it's crucial to repeatedly engage with customers as this will draw their attention, and
hopefully business, to your brand. A highly engaged customer will buy more, promote
more, and show more loyalty, which is exactly what any business wants. Personalised
experiences are vitally important for today's consumers with the most successful branding
strategies generating perceptions that truly focus on customer experience.

BRAND IDENTITY
Brand identity is how a company portrays itself to consumers, this relates to all of
the visual aspects of the brand - colours, logos, design, packaging. The visual identity of a
brand is also made up by reputation and customer service, all of which contribute to
building the customers image of your brand. Your aim should be to distinguish your brand
from the rest, through distinctive print marketing to an established online presence - the
more unique and personal it is, the more recognisable your brand will be. 

BRAND AWARENESS
It goes without saying, but you need to get your brand out there! Brand awareness is
a term that describes how familiar consumers are with a brand or its products. You want
your brand to be recognisable and memorable to your target audience, ensuring to
distinguish yourself from the competitors and clarifying what it is you offer that makes you
the better choice. In order to increase footfall and encourage consumers to choose you over
competitors you need to get yourself out there.

CONSISTENCY
Consistency is key a consistent brand is essential because the more consistent you
are, the more familiar you will become, which over time builds trust and loyalty. In-store
design and layout, POS, promotions, your product range and your social and other online
channels all need to demonstrate a similar look, feel and tone so consumers become
familiar with your business and subsequently build trust. 

BRAND MARKETING
Brand marketing is the process of establishing, maintaining and growing a
relationship between the brand and consumer. Rather than focusing solely on the products
of services, brand marketing promotes the entirety of the brand itself.
 Important Question

Q.1. What is mean by retail location? Explain the method of Retail Operations.
Q.2. What do we mean by retail branding? Why is retail branding important?

Q.3. Short Notes:

a) Factors involves in formulation a location strategy.

b) Levels of Location Decisions.

Home Assignment

Q.1. What do we mean by retail branding? Why is retail branding important?

Q.2. Write short note on: Levels of Location Decisions.

 Topic.03: Retail Marketing Mix:
Role of Personal Selling in Retail processes
Retail Promotion:
Role
Objective
Store Security
Topic.04: Supply Chain Management
Objectives
Integration of Supply Chain Strategies
Bottlenecks and Remedies
Supply Chain Performance