The retail management process is defined as the process of promoting better sales and customer satisfaction. Essentially, if you break this down, what you get, are all the different facts of running a retail business. For example, if you want more sales, you also need to know what the market is looking for. Once you know what is in demand, making sales is less challenging, because you are simply filling a void in the supply for that specific demand.
In the course of meeting this demand, you will need to ensure good product quality, great customer service and employee satisfaction. You need to also be competitive and generate enough revenue to expand and motivate your staff with the right incentives.
The retail management process may seem complicated at first, but here’s a simplified guideline that will help you understand what it really is and whether this career is the right one for you.
The retail management process
Because it is a process, retail management consists of several essential steps that need to be followed for goals to be achieved. These steps decide the way in which the business is run and how much profitability can be gained. Given below is a brief summary of this process and the components that are included within each stage. Now do remember, that this is just a summary, each of these steps, in fact, take a great deal of careful strategising and execution as well as detail.
Key Step 01: Planning
The planning step will lay out the rest of the procedures that need to be complied with so that the use of resources is handled optimally and wastage or misuse is minimised or eliminated wherever possible. Under planning, in the retail management process, you will need to look into;
- Market research
- Profit margins
- Inventory management
Key Step 02: Buying
Buying is where you will work on acquiring the products that you want to sell. It may seem like something that is really simple and easy enough, but you should know that this is a pivotal stage of the retail management process. Without enough research and careful consideration, you may not be able to make a prudent decision and therefore, may lose out on meeting your business bottom line. In buying, there are two main phases;
- Sourcing – this involves finding the right sellers for you to buy from. It would be smart to have several suppliers that you can rely on, rather than just one, unless there is no other choice. This will give you better control over your business.
- Procedures – in order to buy there are some processes that need to be followed and these can really impact your business when speed is needed. At the same time, your processes need to go through stringent checks and balances so that you can sustain the business.
Key Step 03: Moving
During this phase, you need be involved in getting the goods that were bought, ready and available for selling. Some of the steps that are involved in moving are;
- Receiving bought goods
- Storage of goods
- Shelf and product arrangements
- Pricing of goods
Key Step 04: Selling
Selling is pretty much the main process that happens in any retail store. But to make this selling process work, there are several areas that you should consider. In addition to this, because selling is an ongoing process and one that needs to continuously improve, you have to ensure that every area mentioned below is addressed and controlled optimally.
- In-store assistance
- Customer service
- Handling complaints
- Using best practices – these best practices are targeted to attract more customers to your retail store and increase your sales.
By now, you’d see that the retail management process is one that has many layers and is rather complex, which is why, you need to have the right education and training to become a retail manager. According to payscale, you have a variety of well-paying career options should you choose this path, such as;
- Department Manager, Retail Store – £21,871 per annum
- Strategy Manager – £50,891 per annum
- Finance Manager – £38,138 per annum
- Company Secretary – £19,554 per annum
- Policy Manager – £32,000 per annum
- Management Consultant – £47,523 per annum
- Project Manager – £38,254 per annum
We offer a selection of retail management and other associated programmes that you can join and begin your learning with. Even if you want to train your employees, so that they can upgrade their skills in retail management, we can help you.
Contact our team today on [email protected] for more information.