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Retail Management Strategies And Practices Multiple Chapters

Retail Management Best practices in the retail industry come down to ensuring that employees are well-trained, adequately motivated, and that there is a high level of quantitative management with respect to both staffing levels and with respect to merchandising. Getting to know the employees is a good start to developing best practices in the industry. Star merchandisers like Sam Walton and Jim Sinegal spend time on the retail floor. They know where things are in the store, they ensure that the employees are educated and working hard, and they consistently drill lower-level managers to ensure that those managers know their stores at the finest level of detail. Also, having specific programs for employee motivation, especially ones that can be tracked. This will ensure that the workers are giving their best to the company. That alone can drive more sales, because service levels are higher, but it can also reduce costs, because a few great workers can be more effective than many lousy workers.

The most important best practice in modern retail management is the use of technology to assist with understanding...

Wal-Mart uses sophisticated feedback mechanisms as the core of its retail management strategy. Thus, store managers receive figures on sales in real time, and these are transmitted to distribution warehouses and head office frequently. As a result, the manager understands the state of the business at all times. It is also a good practice to act on this information. For example, knowing that shovels are selling quickly because snow is expected is great, but it adds value to the business when management uses this information to ensure that shovels are sent to the area and put on shelves before the storm hits.
Leading retailers utilize a variety of strategies, of which technology is just one, to optimize their businesses. Wal-Mart drives a lot of its value from purchasing and logistics. It uses its size to bargain with its suppliers, but it also knows a lot about the business of the suppliers. This gives it better bargaining position and that delivers the lowest prices. They have an extensive, sophisticated logistics network and that allows them to save money in inventory, but also to…

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