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Featured 19th May, 2016  

Retail: from the store’s side

By Gaurav Patekar

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After understanding the customer side of the retail experience, we decided to understand what happens on the retailers side of things, how the store operates.

To understand this we interacted with several people involved in managing a supermarket, from the floor staff in the store to the department managers and store managers.

We present the observations below.

Retail blog 2 illustrationss-02People involved     

The stores follow a hierarchical structure where there is dedicated
Floor staff for each section of the supermarket. This staff is managed by the department managers who report to the store manager. In bigger supermarkets, there can be an additional level of floor manager who will work with department managers from their respective floors.

 

Retail blog 2 illustrationss-03Feedback flow

There are two main sources of feedback that the store receives from the customers, from POS counters and from floor staff who interact with customers directly. This feedback is relayed back in the chain to department managers and then store manager.

When a store receives any kind of negative feedback it is considered as priority and gets relayed back to the people above store managers as well.

 

Retail blog 2 illustrationss-04Marketing

Stores have an in-house marketing team whose job is to:

  • work with manufacturer’s marketing team on product marketing
  • do marketing for in-house products
  • marketing initiatives for festivals and occasions

 

Retail blog 2 illustrationss-06Information flow

How products should be arranged and what quantities should be stocked in store comes from 2 main documents

  • Master data sheet which contains inventory information
  • Planogram which contains the arrangement on the shelves

In case of perishable goods, the inventory and arrangement decisions are done by the store managers.

 

Retail blog 2 illustrationss-07Supply

The number of products that should be there in the store comes from inventory list which is received by the store manager who then informs the department managers of their respective sections. Department managers then receive the supply on a daily/weekly basis from the supplier in order to maintain the required level of inventory.

Each item in the inventory list comes with a minimum inventory number, when the number of items in stock goes lower than that, order of that product is sent to the supplier.

 

 

What Next

Now the next step would be to understand.

  • where the issues and bottlenecks are, and
  • how connected technology can be used to solve these problems.

 

Read the previous blog here.

 

 

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