Introduction to Retail

Management
Participant Guide
1
Index
2
About the Guide 3
Module 1: Course Orientation 4
Module 2: Introduction to Retailing 5
Lesson 1: The Retail Landscape 5
Lesson 2: What Influences Retail Success 7
Lesson 3: The Retail Business Cycle 9
Lesson 4: The Importance of Planning and the Retail Calendar 12
Lesson 5: The Retail Managers Role 15
Module 3: The shopping Experience 17
Lesson 1: The Customers Perspective 17
Lesson 2: Staying Ahead of the Competition 20
Lesson 3: The Managers Role in the Shopping Experience 21
Module 4: Retail People and Positions 22
Lesson 1: Management Roles 22
Lesson 2: People Impacting Success 24
Lesson 3: Career Paths and Compensation 25
Module 5: Summary of the Managers Role 27
Lesson 1: How you Impact Sales and Profit 27
3
Notes:
About the Guide
Take Notes
This guide provides information to help you navigate through the Introduction
to Retail Management Course. It also provides you with valuable information
about the course content, objectives and activities in each module.
The guide consists of two columns. The right-hand column is for notes you
may want to take during the course. The left-hand column summarizes the
most important information from each lesson along with questions to
complete. These questions are follow up questions that will help you learn
more about the information presented in the course. You may need to ask a
Coach and others to help you answer these questions.
Activity for the learner
4
Module 1: Course Orientation
Objective: Learn how to navigate through the course.
Notes:
This orientation outlines the structure of the Introduction to Retail Management
course and highlights some of the features of this online learning environment.
Before you begin the course, take a few minutes to make yourself familiar with
the following:
Course Info General information, including technical
requirements.
Course Outline The course outline provides an overview of the topics
you will cover in the course. This course has 5 modules and an
assessment. Each module is broken into lessons. If you are unable to
complete this course in one session, use the outline to plan your learning
sessions.
Glossary - Throughout this course, you will be introduced to several new
terms. The Glossary defines the new terms, and you can access it
throughout the course.
Resources Look at all of the resources in the course. These may
include printable job aids, Web links, or other helpful documents.
The Course Outline, Glossary and Resources are accessible from each page in the
course.
5
Notes:
Module 2: Introduction to Retailing
Successful retailers constantly adapt to customers' changing needs and
shopping habits. They anticipate trends, give customers what they want
when they want it, and make shopping easy for them.
As a new Manager, there are plenty of things to learn, areas to explore, and
many career opportunities to examine.
Each retailer falls into a major classification, such as General Merchandise,
Apparel, Food, Restaurants, Building Materials, Furniture, Auto Dealers, and
Specialty.
Lesson 1: The Retail Landscape
Objectives:
- Learn about the retail landscape.
- Identify the different types and classifications of retail.
In what retail classification are you most interested and why
Apparel? Specialty? Food? Home Improvement? Home Dcor?
Retailing provides many shopping options to meet consumer demands for
convenience, variety of products, and different levels of service. Most
retailers have brick-and-mortar stores that are freestanding or located in
malls or strip centers, but many also offer customers the convenience of
shopping via the Internet or a catalog. Retailers use this strategy to reach a
broader share of their market.
What type of stores do you shop in most frequently? What
shopping options and service levels do they offer customers?
What changes have you noticed in the retail industry in the recent
years? What have you noticed about the different ways customers
shop today?
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Notes:
Module 2: Introduction to Retailing
Retail Categories
Location refers to where the sale takes place.
Product Line refers to the assortment of merchandise a retailer offers.
Shopping Environment refers to the type of atmosphere and surroundings the
customer seeks out to meet their needs and expectations as a consumer.
Ownership refers to who owns the retail business.
Lesson 1: continued
-Brick and mortar/Retail Stores
-Internet
-Catalog
-Specialty
-Limited Line
-Big Box/Super Store
-Convenience
-Shopping
-Service
-Independent
-Chain
-Franchise
-Pop-up
-Kiosk
Think about the stores in your area or community.
What product lines do they offer?
Where are they located and what shopping alternatives do they
offer customers, i.e. catalog or internet?
Are the stores chains, franchises or independently owned?
Which retail model do you think would best suit your needs?
Would you prefer working in a large department store in the mall
or a neighborhood specialty shop?
-Discounters
-Department Store
-Upper-End
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Module 2: Introduction to Retailing
Notes:
Objectives:
- Learn what influences retail success.
- Describe the internal and external factors that impact the retail business.
Lesson 2: What Influences Retail Success
Many factors affect the retail business. As a Retail Manager, you have little to no
control over external forces. However, you can influence or control the internal
factors that affect the store.
External Factors
Economy
Economic factors definitely affect the business. Employment rates influence how
much money consumers spend shopping in retail stores. Economic effects aren't
always negative. In times of recession, tax cuts can increase how much consumers
spend in stores.
Technology
Customers increasingly want things done better and faster. Self-service tools, such
as wedding registry kiosks, price scanners, and self-checkout lanes, move customers
through the store faster, provide privacy for customers purchasing sensitive or
personal items, and free cashiers to help in other areas.
Weather
In apparel retailing, warm winter weather or cold, rainy summer weather can
dramatically impact seasonal sales.
Customers/Lifestyles
By far, the customer is the biggest external factor affecting retail. Diversity has
triggered growth in consumer segments, preferences, tastes, and lifestyles.
Retailers need to adapt to it in order to survive and remain profitable.
Business and trade publications provide some information on products, trends,
marketing, finance, and the economy, but the best way to gain insight about
customers is by interacting with them. You can learn a lot by watching and
listening to your customers. Talk to them often and ask them what they think
about your store.
What are the customer demographics in your area?
How have retailers adapted to meet the needs of the
various customer groups in the area?
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Notes:
Module 2: Introduction to Retailing
Objective: Learn what influences retail success.
Lesson 2: continued
Branding
Internal Factors
Branding and rebranding are strategic, powerful, and effective tools for
businesses. Branding means that a product name becomes part of the
customer's thinking. For example most people ask for a Kleenex - not a
facial tissue.
Other Internal Factors
As a Retail Manager, you'll be instrumental in making your store appeal to as
many markets as possible. Internal factors that you should regularly
evaluate include: Atmosphere (store fixtures, lighting, temperature,
signage, music, cleanliness, merchandise assortments, and presentation);
Product availability (are sizes and styles appropriate to the customers who
shop in your store?); Convenience (fast checkout, easy-to-find items, hours,
location); Level of services offered; Friendliness and customer service; and
Exclusive merchandise offerings.
What types of products come to mind when you think of
branding?
How have the stores in your community branded themselves to
their customers?
What factors have influenced retail success in your area?
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Notes:
Module 2: Introduction to Retailing
Lesson 3: The Retail Business Cycle
Objectives:
-Describe the stages of the retail product life cycle.
-Learn about the three Ps of retail: People, Product, Presentation, and describe
how they influence customer satisfaction and loyalty.
A Retail Story
Ladies' boots were the hot item last Fall season. The Buyers selected great merchandise.
The boots were delivered in plenty of time for pre-fall shopping and were priced well. Store
displays conveyed the message that boots were the current fashion statement; all colors,
tall and short, high heeled to stacked heels. Boots were the season's must-have item!
The sell thru for boots was high, the Buyers made their gross margin plan, and your store
made its seasonal sales plan for ladies shoes. This year, the Buyers determine that boots
are an even bigger fashion statement. Boots of all colors to coordinate with leather coats
and jackets were the hot item on the runways.
You'll be receiving 200 leather and suede boots: 30% black, 20% brown, and the remaining
50% in a variety of colors. Boots will retail between $49 in the moderate range to full price
offerings for $110. You expect the hot sellers to be in the $79 price range.
Immediately, you begin thinking about the sales projections. The value of your total
inventory is $6,820. The demand for boots is high. The vendor just notified the Buyer that
there was a delay in shipping the boots to the Distribution Center (DC), which means a
delay in getting the boots to your store.
After a few calls to the DC and the Buyer, you've been reassured that the delay has been
handled and your store will receive the goods on time for the sale. A ladies' footwear
promotional ad ran in the local paper that highlighted your boot selection. Unfortunately,
you don't have the $79 bootsthe ones you expected to be the best sellers!
The Sales Associates are able to tell customers about the product, but you don't have the
range of sizes and selections to meet customer demand. The vendor shipped the boots in
time, but they were delayed at the DC because of a vendor error. The vendor is making it
right, and you will get the goods, but you've already disappointed several shoppers.
After getting assurance that your full selection of boots will arrive in 48 hours, you contact
your Allocation team and tell them you're losing sales because of the delay. They quickly
help you identify a temporary solution. Another store in your city received their full
shipment and can get you enough merchandise to meet customer needs until your shipment
hits the floor.
The boots have finally arrived from the DC, but several pairs were damaged when a pallet
of shoes was crushed. You're not sure how it happened, but the first thing you have to do is
make sure you still have enough merchandise to meet customer demand. Then you have to
take care of the damaged goods.
Allocation can help you again if you need more goods quickly. You make it a point to pay
close attention to your stock-to-sales ratio to make sure you don't get into an out-of-stock
position.
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Notes:
Module 2: Introduction to Retailing
Lesson 3: The Retail Business Cycle continued
Despite your best efforts, your stockroom becomes disorganized and several pairs of
shoes are left scattered on the selling floor. On busy days, there's not only the risk
of customers tripping over shoes and boxes, but also of theft. It's too important to
ignore, so you page an "all hands" to the department for a quick recovery effort.
The cold weather continues, and sales of boots continue to rise. Finally, your full
shipment arrives. You're exceeding your sales projections and are performing better
than other stores. The Buyers and Planners noticed your success, and you were sent
another shipment of 100 boots, mostly black leather. The boots were also featured
in another ad.
Unfortunately, your customers wanted bolder colors. The Anniversary event is over,
and 50% of the new boots originally priced at $79 didn't sell. Now you'll need to sell
the remaining boots at a markdown price of $59.
At the end of the season, you look back at how the boots performed.
Think about the story and how many different activities and events
impacted the business. This story was only about one classification
of products! In your department or store, you will be responsible
for many more products, each of which may be at a different point
in its life cycle. Read the questions below and think about how this
kind of analysis will help drive sales.
-What were actual sales? What are profit projections?
-Which styles and price points sold the best, and which were the
poorest performers?
-What did customers want that the store didn't have?
-What helped maximize the business?
-How many customers were lost when the merchandise was not there
on time?
-What factors negatively impacted sales?
-Were the boots displayed appropriately to present the right message
to our customers?
-What could have been done differently to improve business?
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Notes:
Module 2: Introduction to Retailing
Lesson 3: The Retail Business Cycle continued
In the story about the boots, what made the department successful or not
successful?
While there are many things that influence sales, three fundamental elements must
always be addressedthe people, the products, and the presentation.
When customers consider making a purchase, they have many different shopping
options from which to choose. Where they make their purchases often depends on
the kinds of shopping experiences they have had in the past. Customers are
influenced by the people who help them make a purchase, what products are
available, and how the merchandise is presented.
People
Having the right people in the right places at the right time helps ensure that you
meet your sales goals and that customers receive the level of service they
expect.
Product
Providing the right product, at the right time, in the right quantity, and at the
right price is key for any retailer. In many retail companies, the merchandising
organization is responsible for merchandise planning, buying, pricing, and
promotions.
Presentation
Presentation includes all of the visual and environmental elements in the store
that send a message to customers and support their decision to buy there. All
retailers are required to comply with regulatory practices regarding ticketed
prices on their merchandise. Signage must be easily understood, informative,
compelling to the customer, and 100% correct.
As a customer, how are you influenced
-by the people who help you make a purchase?
-by the various products the store offers?
-by the way merchandise is presented, displayed and
signed?
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Notes:
Module 2: Introduction to Retailing
Objectives:
- Understand the seasonality of the retail business.
- Understand why planning is important to the business.
Lesson 4: The importance of Planning and the Retail Calendar
Retailers make strategic decisions about their business based on merchandise and
financial plans. This long-term planning is essential to retail success and involves
people throughout the organization such as Buyers, Financial Planners, and
executive leadership.
As a Retail Manager, you'll need to be aware of the merchandise and financial
planning process for your store, your department, and your products. You'll be
using that information to make plans and decisions of your own.
WHAT is the retail planning process?
Merchandise plans involve asking questions such as:
-Which products should we buy? What's hot and what's not?
-How many of those products should we buy?
-What is the pricing strategy for those products? Regular price? Marked down
price?
-How should the products be allocated to our stores?
Financial plans involve asking questions such as:
-What is the sales goal?
-What is the projected profit margin?
-What will the Return on Investment be?
-What are the projected expenses?
As a Retail Manager, you'll use the answers to these questions to plan for things
such as:
-Special events
-How to meet sales goals
-How to assign Sales Associates on the floor and rally them at morning sales
meetings
-Product placement
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Notes:
Module 2: Introduction to Retailing
Lesson 4: The importance of Planning and the Retail Calendar continued
WHEN does planning take place?
Planning takes place well before the merchandise hits stores. Depending on
the type of product and retail industry, it could be 3-6 months from the time
the vendor manufactures the product to when the Buyer buys it, to when the
customer is ready to purchase it.
This buying and distribution process demands long-range planning. Decisions
about what will be in the stores in the fall have already been made by early
spring.
Think about the story from the previous lesson. The Buyers began planning
months in advance for which boots to buy, for which stores, at what price, and
how many.
HOW is the planning done?
Planning is based on research and analysis, including:
-Store and company sales data
-Industry and trade data
-Trends
-Feedback from customers and associates
-Mystery shopper reports
Are you surprised to learn the hot item you bought last season was
planned for an entire year before it ever appeared in the store?
Think about the merchandise offerings in the stores where you shop.
How many people and processes do you think were involved in
making these products available for you at the right time?
Think about what types of products, styles, and merchandise are in
process now for next season?
14
Notes:
Module 2: Introduction to Retailing
Lesson 4: The importance of Planning and the Retail Calendar continued
The Retail Calendar (4-5-4 Calendar)
To help with planning, retailers use a modified calendar referred to as a 4-5-4
calendar. This calendar was designed to suit the particular needs of the retail
industry. The calendar is broken up differently than a traditional calendar in
order to avoid fractions of weeks in any given month. The structure of the
calendar simplifies retail processes, such as:
-Buying and distribution
-Analysis of payroll costs
-Preparation of sales forecasts and operating budgets
-Reporting accurate inventory counts
The retail calendar divides the year into two seasons Spring and Fall
The year begins in February with the beginning of the Spring season, and ends
in January, with the end of the Fall season. Each season consists of two
quarters, each with 13 weeks. The first quarter is from February to April; the
second quarter is from May to July; the third quarter is from August to
October; and the fourth quarter is from November to January. There are six
months in a season and three months in each quarter. The first month of
each quarter has four weeks, the second month of each quarter has five
weeks, and the third month of each quarter has four weeks.
Working from a 4-5-4 or retail calendar, it makes sense for some
retailers to have swimwear available in February and Halloween
dcor stocked in August!
Retail Managers should have strong planning skills and be
strategic thinkers. Consumers are focused on whats now
while the retail industry is focused on whats next.
What questions do you have about the retail calendar?
15
Notes:
Module 2: Introduction to Retailing
Objectives:
Understand the Retail Managers role in the retail business and the areas
of accountability.
Lesson 5: The Retail Managers Role
At any given time, some of your products will be in the planning stage at
corporate, and others will be en route to your store. You'll have new
merchandise delivered to the store, ready to be processed and moved to the
sales floor. The products in your department will be going through each of
these stages at different times. As a Retail Manager, it's your responsibility to
be aware of and oversee it all to make sure everything goes well and according
to plan.
Receiving
The product is processed, tagged, and prepared to be placed on the sales floor.
-Be aware of when merchandise will arrive at the store.
-Ensure adequate staffing on truck days.
-Have a plan for quickly moving goods to the selling floor.
Merchandising
The merchandise is placed on the sales floor in preparation for sale.
-Ensure merchandise is placed according to the plan.
-Ensure merchandise is presented to communicate the desired message
-Ensure Sales Associates are trained on products.
-Ensure key items are front and forward; accommodate new receipts
Sales
In this stage, customers are purchasing the merchandise.
-Ensure Sales Associates provide excellent customer service
-Ensure Sales Associates have adequate product knowledge
-Ensure Sales Associates are trained in recovery procedures
-Ensure the sales event is "set."
Managing Inventory
Throughout a product's life cycle:
-Make sure merchandise is marked down correctly.
-Prevent theft and monitor losses.
-Process returns to vendors (RTVs) and damaged goods.
-Continually recover and shift merchandise as needed
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Notes:
Module 2: Introduction to Retailing
As you can see, there's a lot going on in the life of a Retail Manager! It's a
dynamic and fast-paced career that requires flexibility, adaptability, and self-
motivation. It also requires the ability to work with a team, a commitment to
building customer loyalty, and strong organizational and planning skills. As in
every profession, there is a degree of accountability involved. There are five
primary areas of Manager accountability that are integrated into the retail
process. These can be categorized into the following areas:
Selling and Service - Driving sales and inspiring customer loyalty.
Merchandising - Managing the 3 P's - People, Product, and Presentation so
that you have the right product at the right price at the right time.
Operations - Managing all of the functions that support service and selling.
Human Resources - Selecting, training, retaining, and building a productive
sales team.
Financial Reporting - Tracking sales and driving sales growth.
You'll learn more about these areas in future courses, but for now, be aware
that the more attention you give to these areas, the more successful you'll be.
Lesson 5: The Retail Managers Role continued
17
Notes:
Module 3: The Shopping Experience

Objectives:
-Describe the key drivers that contribute to a great shopping experience.
-Explain the various service levels in retail.
-Understand customer shopping habits, motivations and expectations.
Lesson 1: The Customers Perspective
A first-time customer is a first-time customer only once - a store doesn't get a
second chance to make a good first impression. Successful retailers know how
to make the shopping experience fun and engaging. A great shopping
experience leads to customer satisfaction, which drives customer loyalty.
The drivers of customer loyalty are as diverse as customers themselves. Some
customers don't mind bagging their own groceries or waiting in long lines if
they're paying the lowest prices in town. Other customers may return to an
upper-end store over and over because they want exclusive merchandise and
personalized shopping assistance. As a Retail Manager, you're responsible for
meeting the needs and expectations of your market's customer base.
Retailers are responsible for knowing what is most important to their
customers, what types of products and services to provide, how to make sure
their customers are satisfied, and how to recover from mistakes. As a Retail
Manager, you'll be executing that strategy, so you should be familiar with the
expectations your own customers may have.
Customer expectations can be split into two categories. There are basic
expectations that most customers have regardless of where they shop, from
convenience stores to upper-end retailers. There are also service level
expectations that differ according to the type of store.
Service level expectations vary according to where a customer shops. In
general, the higher the retail level, the more customers expect. You need to
gauge what type of service to provide to satisfy your customers.
18
Notes:
Module 3: The Shopping Experience
Lesson 1: The Customers Perspective continued
Convenience / One-stop Shopping customers:
-value saving time
-want to buy basic products in one place
-do not expect sales help or upscale fixtures
Right Product at the Right Price Shopping customers:
-value product in conjunction with price
-expect knowledgeable sales associates
High Service Level Shopping customers:
-shop for designer and upper-end merchandise
-consider price secondary to the product and service received
-expect highly personalized customer service
Consider the stores you shop in most frequently. What are
your service expectations, self service or personalized
service?
What specific service do you expect?
To what degree does a stores service level influence your
decision to shop at that store?
When you shop, do you prefer a hands-on helper, assisting
you from entrance to exit or do you prefer Sales Associates
to wait until you approach them?
19
Notes:
Module 3: The Shopping Experience
Lesson 1: The Customers Perspective continued
The Why Behind the Buy
You now know what customers expect out of the shopping
experience, but why and how do they buy?
Consumers "buy things today more than ever based on trial and
touch." Shoppers generally spend more time considering products
that offer possibilities or invite comparison.
Diverse lifestyles have made consumers more individualistic, and not
so prone to blindly believing in the company behind a brand. They
have to "see it to believe it.
Clothing is the biggest trial and touch category. Customers want to
try something on, scrunch material in their hand to test how easily it
wrinkles, or see how it looks paired with their favorite jeans.
Possession begins with examining the merchandise. The easier it is to
try, the more likely they are to buy.
What are some of the factors that influence you to make
a purchase?
20
Notes:
Module 3: The Shopping Experience
Lesson 2: Staying Ahead of the Competition
Just because a retailer is satisfying customer demands today doesn't mean a
competitor won't do it better tomorrow. With so many shopping options
available, retailers must continuously strive to differentiate themselves from
the competition and gain market share.
Profitability and relative market share go hand in hand. The higher your
market share, the more money you're making. That's one reason retailers must
push the envelope to stay ahead of the competition and attract new
customers.
It's far less expensive to keep an existing customer than it is to acquire a new
one. As a Retail Manager, you can't ignore the value of customer loyalty and
repeat business. In addition to helping attract new customers, your goal is to
keep repeat customers. Loyal customers tend to shop more often, at higher
price points and are more likely to tell their friends about your store.
Objective:
Understand why it is important to maintain repeat customers and adapt to
changing demands to differentiate yourself from the competition.
In what stores are you a loyal customer?
What influences your loyalty in those stores?
How do these store differentiate themselves against their
competition?
What services, conveniences or products would you like to see
in this store to increase your loyalty?
21
Notes:
Module 3: The Shopping Experience
Lesson 3: The Managers Role in the Shopping Experience
As Retail Managers, we are responsible for translating the corporate vision
into something Associates can execute. You and your team are the face of
the company, so it's up to you to create an environment that keeps customers
coming back.
By focusing on customer expectations related to satisfaction and operational
efficiencies, you can improve the shopping experience for your customers
and help your company be a leader in the marketplace.
Customers today have more shopping options to choose from than ever
before.
As a Manager, here's what you can do to help make sure they choose your
store.
Lead by Example: Managers are role models. Demonstrating the level of
performance you expect from your Associates sends a powerful signal to the
Associate team and your Managers that you're serious about your new role.
Remember the three Ps: People, Product, and Presentation are the
fundamental elements of all retail businesses. When all of these are done
right, you meet your sales goals and customers receive the level of service
they expect.
Objective:
Understand the Managers role in influencing the shopping experience.
In the stores where you frequently shop, how have the Managers
influenced your shopping experience?
How were they interacting with their staff members and
customers?
What did they do about having the right products in the store?
How did they improve the presentation of merchandise and the
overall stores appearance?
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Notes:
Module 4: Retail People and Positions
Lesson 1: Management Roles
What makes a Great Retail Manager?
A Retail Manager must have a talent and instinct for retail. What does
this mean? Successful Retail Managers think like entrepreneurs. For
them, their store is their business, and they thrive on finding success in
the retail marketplace.
A truly successful Retail Manager uses a variety of talents to do the job
well. Successful Retail Managers:
-have strong planning and organizational skills
-listen objectively
-are customer focused
-have strong interpersonal skills
-are accountable and able to manage themselves
-lead and develop others
-are results oriented
-are flexible
Objectives:
Learn the attributes for retail management that best match the job
requirements.
Describe the main job responsibilities of retail management roles.
What talents do you think are most important to be a
successful Retail Manager?
Which of the above talents are your strengths?
Which of the above talents are opportunities for you?
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Notes:
Module 4: Retail People and Positions
Lesson 1: Management Roles continued
If you are interested in retail, there are many career paths you can follow.
However, to get a good sense of retail store management, you should spend some
time working in a retail store.
If you start out in sales, you'll probably begin your store management career as
a Department or Sales Manager. You will be in charge of a section or segment of
the store, and you will be responsible for fulfilling the sales plan for that segment
of the store's business. As your skills grow, expect your responsibilities to grow.
Many Managers begin with a small department and gradually gain responsibilities
for a larger department or several areas. You may also move to a larger volume
store.
Sales Managers report to an Assistant Store Manager. Smaller retail stores may
only have one Assistant Store Manager, but in a larger retail store, there may be
three to six Assistant Store Managers, each in charge of a different store function,
such as operations, human resources, and merchandising.
Each Manager has a different focus, depending on the function that they oversee.
For example, an Operations Manager is primarily concerned with keeping expenses
low and processes running smoothly. A Human Resources Manager is concerned
with employee turnover, retention, and productivity. A Merchandising Manager is
focused on sales and profit margins and supervises the Sales Managers.
All Assistant Managers report to the Store Manager, who is completely responsible
for the store and its operations. The Store Manager's driving focus is sales and
profitability.
The Regional Director of Stores is responsible for several stores based on sales
volume, store size, and geography. The actual number varies according to the type
of retail business, but the average is 5-15 stores. The focus is also on sales and
profitability, but for the entire group of stores in the region.
The Senior Vice President of Stores works at the corporate office and is in charge
of the operations and performance for an entire division of retail stores. This
person sets the tone and leads the development of Regional Directors and Store
Managers in defining the culture and environment of all the stores.
The CEO is the leader of the entire organization and is primarily concerned with
strategy, growth, and profitability for the retail corporation. The CEO makes
decisions that influence corporate structure, market positioning, and company
policy.
What questions do you have about Retail Management positions?
24
Notes:
Module 4: Retail People and Positions
Lesson 2: People Impacting Success
Objective:
Identify key retail positions and how they contribute to the customers
shopping experience and the success of the business.
What retail positions interested you the most and why?
How do you see those positions impacting the success of retail
stores?
Please review the exercise in module 4, lesson 2.
25
Notes:
Module 4: Retail People and Positions
Lesson 3: Career Paths and Compensation
In the first lesson of this module, you learned about the different management
roles and what a typical career path would be if you entered management through
a sales role. But how do you get into a management position?
There are, of course, many other ways to rise within the company.
One common route is through merchandising. If you are interested in a career as a
merchant, you will usually start in the Executive Trainee program and then
advance to an Assistant Buyer position. After a year or two in that role, you will
likely be promoted to either a Buyer or a Planner, depending on your interests.
Both the Buyer and the Planner report to the Divisional Merchandise Manager
(DMM), who reports to the General Merchandise Manager (GMM). The GMM reports
to the CEO.
Other important management career opportunities include Loss Prevention,
Human Resources, merchandise planning and allocation. Many Retail Managers
advance by taking on larger volume stores or even multiple stores as Regional
Managers. Each step means growth, different challenges and demands and greater
rewards.
No matter which route you choose for your career, if you show initiative and seek
to develop your talents, the doors will open to you with many exciting
opportunities.
Objectives:
Learn about retail management career paths.
Which career path is most interesting to you and why?
What additional information would be helpful to know
about that career path?
26
Notes:
Module 4 Retail People and Positions
Compensation
Compensation differs among retail companies. Most Retail Managers are paid a
base salary, along with a bonus that is based on a number of factors, including the
sales plan, the profit plan, the quality of customer service, employee turnover,
expense control, and attention to safety and loss prevention. Some Retail
Managers are paid a base salary with a bonus that is strictly based on sales and
profit.
Lesson 3: Career Paths and Compensation continued
What other questions do you have about compensation
for a Retail Manager?
27
Notes:
Module 5: Summary of the Managers Role
Lesson 1: How you Impact Sales and Profit
Factors Affecting Profitability
What do you think of the dynamic world of retail management? You've heard how
retailing works, the factors that affect its success, and how Managers influence
the shopping experience. You were also introduced to the many career
opportunities available in retail management and the skills and traits that make a
Manager successful.
As a Manager, you're an essential part of running a successful businessand the
ultimate goal of a business is to make a profit. The factors introduced in this
course work together to achieve that goal. Your success lies in focusing on
generating sales and concentrating on those things you can control.
Objectives:
Understand the Retail Managers Role in achieving sales volume and building
sales growth
Surveying the Retail Landscape
As products are received, merchandised, sold, and maintained, you'll constantly
work to drive sales and maximize profits in your store.
The Retail Landscape
Retailers face a variety of challenges in a fast-paced, competitive environment,
and must constantly adapt to customers' needs and shopping habits. Managers
play a part in anticipating trends, taking advantage of marketing opportunities,
and giving customers what they want, often pushing the envelope to maintain
an edge on the competition.
Influencing Retail Success
Factors that influence retail success are grouped into two categories: external
and internal. You can't control all of these factors, but you need to be aware of
how each one can impact your business.
The biggest influencing factor is your customers. Customers come from many
diverse demographic groups, and each group creates a market whose needs and
expectations must be met. Your goal is to do all you can to gain and maintain a
share of each of those markets.
28
Notes:
Module 5: Summary of the Managers Role
Lesson 1: How You Impact Sales and Profit continued
The Retail Business Cycle
The story about the boots gave you a glimpse of the situations Managers
experience as product moves through the product life cycle. In that story, you had
to be flexible and expect the unexpected. You compensated for the boots that
were delayed at the Distribution Center, managed a short-staffed department on a
busy day, trained your staff to be knowledgeable about the product and to be
customer focused, and handled various other good news-bad news situations. You
saw what positively and negatively affected sales, and how being a proactive and
involved Manager led to a successful outcome.
The story also highlighted how customers are influenced by what products are
available, how the merchandise is displayed, and by the people who help them
buy. As a Manager, you'll ensure these elements work together to create a positive
experience that encourages customers to buy regularly from your store.
Planning and the Retail Calendar
Retailers make strategic decisions about their business based on merchandise
and financial plans. This long-term planning is essential to retail success. As a
Manager, you need to be aware of these plans and use them to make informed
decisions for your store and your department.
29
Module 5: Summary of the Managers Role
Notes:
Enhancing the Shopping experience
Lesson 1: How You Impact Sales and Profit continued
To be effective as a Manager, you need to understand your customers'
perspective of a great shopping experience, and then work to meet and exceed
their expectations.
Now more than ever, competition for customers is fierce. With so many shopping
options available, retailers must continuously strive to differentiate themselves
from the competition. Customer loyalty is essential to a retailer's survival, so one
of your goals is to keep repeat customers. As the face of the company, it's up to
you and your associates to create an environment that keeps customers coming
back.
Lead by Example:
Recognize that you are a role model to your Associate team and demonstrate the
level of performance you expect from your staff. Be what you want to see.
Execute the three Ps:
By ensuring that People, Products, and Presentation are in line with the
company's strategic direction, you can meet your sales goals and ensure
customers receive the level of service they expect.
-Place the right people where they need to be and when they need to be there.
-Feature the right product for your customer base.
-Present the merchandise attractively and appropriately.
Retail management offers you an exciting career in which you can use your talents
and interests to make a real, measurable impact on business success. In the retail
business world, you will interact with people in many different roles and you can
build your career in a number of different functional areas.
What does the retail industry look for in a Manager? You need to be flexible and
adjust easily to change. You need to have a total focus on your customer and a
keen awareness of sales and margins. You need to be a great listener and have
well-developed interpersonal skills. You need the enthusiasm and commitment to
deliver your best, not only when things are going well but also when they're not.
More importantly, you need to be able to generate that same level of enthusiasm
and commitment in your staff. You need an understanding of and interest in every
item of merchandise you deal with.
In the fast-paced, ever-changing business of retail management, vision, energy,
and determination are prized assets. If you possess these qualities, you have
unlimited potential to enjoy success.
30
Notes:
Module 5: Summary of the Managers Role
Lesson 1: How you Impact Sales and Profit continued
The following are the most important areas to learn more about as a
Retail Manager:
As a shopper, what would you do to enhance your shopping
experience?
As a shopper, look for a retail strategy for market differentiation.
As a shopper, look for a strategy for retaining loyal customers.
As a shopper, look for how Managers model the behaviors expected
from Sales Associates.
As a shopper, look for how the three Ps are executed:
-ensures the right people are in place
-ensures the right product is available
-ensures product displays are presentation correctly