Management Practices in Retail
Retail management is the process of overseeing operations in a retail store. Retail managers manage the staff and procedures to achieve desired financial goals, such as increased revenue, customer satisfaction, and employee relations. They may also work to control physical inventory that can be difficult to track if it isn’t visible behind a counter or on shelves.
According to Dr. Jordan Sudberg, a retail manager is responsible for planning, organizing, staffing, and leading the entire retail business operation. The manager communicates with employees, develops appropriate strategies, and maps out each employee’s role in a system for improved performance. A successful retail manager will protect the retailer from competitors and make independent decisions that help to spur profit growth.
5 Management Practices In Retail
1. Planning
Products move through a supply chain to the retail store. They need to be stocked, displayed, and priced when they get there. Retailers have many moving parts, so this process has to be carefully orchestrated. A lack of planning can lead to stock-outs or messy displays that discourage customers from entering the store. It can also lead to under or over-stocking, resulting in lost revenue if shelves are left empty to await products that arrive later than expected.
2. Organizing
A retailer is a place of work, so it needs to have a system for keeping track of everything from employees and payroll to daily specials. Retail managers organize the staff into departments and assign tasks according to employees’ skills, strengths, and passions. It allows businesses to maximize employee skillsets, improve customer service and boost profit.
3. Staffing
Retail managers hire employees with specific skills, personalities, or interests in mind. Employees are appraised on an ongoing basis to ensure their performance aligns with the retail business’s needs. Retail managers may also train new staff members to increase the talent pool for each position.
An important feature of retail management is the ability to organize, motivate and develop a cohesive team that works toward common goals and is a source of support for other team members.
4. Leading
A retail manager must be able to inspire, motivate and retain a motivated workforce. Retail managers lead using the correct language, offering support, and building daily morale. They also make decisions regarding the overall direction of the business, ensure long-term goals are being met, and evaluate employees’ performance regularly.
5. Running
Retail managers oversee every aspect of their business daily, from ordering supplies to hiring new employees to ensure store operations run smoothly and efficiently. A successful manager uses technology to keep track of inventory, collaborate with other staff members, and (for online retailers) track sales.
Dr. Jordan Sudberg believes that store management is an essential task for any retailer. It involves monitoring the daily events at a store, which is the most important thing about it. As a manager, you should be able to make well-informed decisions during your tenure as a store manager. At times, however, there could be confusion about what to do or how to handle a situation. It will help you respond effectively; per the procedure you must follow.