A retailer is an agent who links the manufacturer and the final consumer. He or she is involved in buying,grading and selling of the products.
Importance of retail management
- It makes it easy for customers to get their desired merchandise due to proximity of the retail stores.
- It ensures efficiency and no commotion and chaos while shopping.
- It minimizes shop lifting due to close monitoring of clients while shopping.
- It breaks the bulk as producers sell in small quantities.
- Ensures prices are stable as the retailers hold manufacturers stock, creating stability in the availability of products.
- Customers are able to access facilities such as home delivery and credit.
- The retailers are located in critical areas making accessibility easy.
- To ensure effective retail management, the retailers should;
- Keep good records of the stocks for good inventory.
- Plan the store layout well.
- Organize and categorize the items according to sizes, uses and brands.
- Allocate a code to each item for ease in tracking.
- Label the shelves for the customers to locate the items easily.
- Categorize similar products into small groups. This facilitates client self-service.
- Serve customers fast and in an appropriate way.
- Ensure there is enough stock in the store.
- Keep the store clean
- Carry out training and development of the employees.
- Track the cash flow daily.
Retail management challenges.
- Cost of adopting new technology is high.
- New entrants into the market lead to increased competition and price wars.
- Acquiring, retaining and growing talent is difficult.
- Innovation and competitive advantage is vital in retail though hard to get.