STORE MANAGEMENT

MAJOR FUNCTIONS :

• Managing the Store

• Store Layout, Design & Visual Merchandising
• Customer Service
• Retail Selling

MANAGING THE STORE:

Nordstrom for Store Managers

“This is your business. Do your own thing. Don’t listen to us in Seattle,
listen to your customers. We give you permission to take care of your
customers.”
James Nordstrom, the CEO of Nordstrom’s

Responsibilites of Store Managers:

1. Managing Store Employees
-Recruiting & selecting
-Socializing & training
-Motivating
-Evaluating & providing constructive feedback
-Rewarding & compensating
2. Controlling Costs
-Increasing labor and productivity
-Reducing maintenance & energy costs
-Reducing inventory losses
3. Managing Merchandise
-Displaying merchandise & maintaining visual standards
-Working with buyers
.Suggesting new merchandise
.Buying merchandise
.Planning & managing special events
.Marking down merchandise
4. Providing Customer Service
Steps in the Employee Management Process:

1. Recruit & select employees

• Job analysis
• Job description
• Locating prospects
• Screening applicants
Application form, references, testing
• Selecting applicants
Interviewing candidates

2. Socialize & train new employees

• Orientation program
• Training
Where, when, what

3. Motivate & manage employees to achieve store performance goals

• Leadership
Task and group maintenance management
Participate and authoritarian
• Motivation
Setting goals
Maintaining morale

4. Evaluate employee performance & provide feedback

• Evaluation
Who, when, how often?
• Feedback
Performance outcome vs. process
Common Evaluation Errors
• Ratings unduly negative
• Rating unduly positive
• Using the same rating on all aspects of the evaluation
• Placing too much weight on recent events rather than evaluating
performance over the entire period
• Having the evaluation of a salesperson unduly influenced by the
evaluation of other salespeople
• Making errors in identifying causes of the salesperson’s
performance

5. Compensate & reward employees

Extrinsic vs. intrinsic rewards
Compensation
a. Type
i. Straight salary
ii. Straight commission
iii. Salary plus commission
iv. Quota bonus (Setting quotas)
b. Individual vs. group incentives

Controlling Costs:
• Labor scheduling
• Store maintenance
• Energy maintenance
• Reducing inventory loss

Sources of Inventory Shrinkage:

• Employee theft (38%)
• Shoplifting (36%)
• Mistakes and inaccurate records (19%)
• Vendor errors (6%)

Preventing Shoplifting:
• Store design
• Employee training
• Good customer service
Security measures
TV cameras
Prosecution
PRODUCTIONS AND OPERATIONS MANAGEMENT