Blending store activities for success Flashcards
Meaning of success
Different retailers seek different results/successes from their store:
Some want to maximise store sales
Some want to provide a needed service in a area.
Some want a strong store image etc
Physical elements
Location
Design
Location
All locations should be analysed periodically because time and changing conditions can affect the profitability at any site.
When retailers are considering the strengths and weaknesses they can follow the step by step analysis
Defines the geographical size of a trading area.
Calculates the number of customers within this area.
Assesses the competition for these customers to determine the stores potential.
how can existing stores benefit from analysing their trading areas and sites?
They can discover changes that have taken place and adapt their stores accordingly.
- changing the retailing mix to suit a changing market or moving to another location that is more promising.
The focal point of any location analysis
Number of customers and how much they will spend at a particular store.
Assess Location (Analysis)
Can the trading area support your store? Define the area? Estimate total sales. Divide with competition. Which is the best site? Determine accessibility. Consider neighbours and competitors. Decide on the physical features. Analyse traffic flow. Establish costs. Describe other characteristics.
Design
Design is the way a store is presented, from the exterior windows and sign to it’s interior layout and display. This reflects the store’s character.
It should reflect the buying habits of customers and allow store staff to provide proper service and maintain control.
Assess Store Design
Does the exterior make passers- by stop, look and enter? Store front Sign Display Windows Entrance Does the store interior encourage buying? Customer circulation patterns Layouts Displays
Merchandise selection and control practises:
Making selling easier
Increase sales
Lead to profit
Merchandise selection and control process:
Decide what to sell and select assortment of goods that the customer buy.
Who can supply required goods and negotiate how much to pay.
Develop a buying plan that regulates how much to by by having a close look at expected sales and past sales patterns.
Systems are needed for effective stock control, from the moment that goods are delivered until they leave the store.
Always begin by determining what your customers are looking for:
Price Image Quality Fashion Compatibility to their lifestyles. New merchandise?
Suppliers, Manufacturers and Intermediaries can use the same criteria:
Once the retailer knows what to buy, they can determine where to purchase it by examining the advantages and disadvantages of each supplier who offer the required merchandise, as well as to rate each possible supplier against a list of important criteria.
Both manufacturers and intermediaries can be evaluated using the same criteria, but it is important for retailers to decide which of these criteria should be given the most weight.
Retailers should know the following, in negotiating terms and conditions
what discounts they receive.
What method of dating will be used.
Transportation arrangements
Building good relations with suppliers
Most retailers try to keep the number of suppliers they deal with to a minimum in order to build good working relationships.
Building good relations with a few key suppliers is a ongoing process and successful retailers know that maintaining good sources of supply is a key area of a store operations.
