What is Retail Management?

Ensuring that the day-to-day operations of a business are running as smoothly as possible will keep customers happy and a business profitable. There are many processes and systems that have to be put in place to ensure that a retail store is running effectively and efficiently and it is up to the retail manager to ensure this! Retail management is the process of managing the daily activities and systems within a retail outlet, ensuring that the services relating to customers and the selling of goods and services are operating well! The function of the retail manager is to ensure that these operations are handled effectively, leaving customers happy and employees working efficiently and productively. 

Why Does Retail Management Matter?

Retail management is imperative to the success of any retail store and the retail manager will have to ensure that all operations within the store run smoothly! So why is this so important? Ultimately, a store that is not managed well will reflect in the products, the marketing, customer satisfaction and the overall profit that a retail outlet makes. This is why jobs in retail management are considered to be a high priority for businesses! Retail management helps a store and its employees to set goals for the future, whether it is based on profits, returning customers or even customer satisfaction. Creating these goals and achieving them will ensure that a store is not just functioning effectively but also improving! 

What Are The Processes Involved in Retail Management?

Many different processes are involved in retail management and the retail manager must execute these processes well. You want to be certain that the service offered and products provided encourage customers to return and make future purchases. The following is a look at the different processes that are involved in retail management. 

Identify The Problem You Want to Solve

Most businesses are founded on the idea that they are looking to solve a certain issue, finding a gap in the market where they have found certain needs of customers need to be met. Having a good understanding of what the issues that you plan to solve are and structuring retail management processes around this can help to ensure that a retail outlet is specifically designed to understand the customer. Focusing on the problem rather than the solution you plan to offer is vital in business, particularly when it comes to retail management! 

When looking to identify problems that you plan to solve, it is also important to look at your competitors and see what they have on offer. Finding ways to differentiate your business from your competition, in terms of highlighting what your competitors have not been able to achieve with their product or service, can help a retail outlet to gain a different perspective on problem-solving. This different perspective can show how the product or service you have on offer is better or more effective than the competition!

Understand The People You Want to Help

The needs of the consumer are extremely important to understand and the next step of the retail management process is to gain better insight into the market. Having a better idea of the people you want to help within your target market can help retail managers to map out the customer experience in such a way that the needs of the market are fully met. When you understand the consumer and their needs, you are better prepared to market yourself and deliver a solution that fulfils these needs!

Develop and Test Your Product or Service

Now that you are aware of both the problem you are aiming to solve and the people who you are looking to help, the process moves to centre around the development and testing of the product or service that you offer. In the development phase, you want to be sure that you are giving your consumers the very best product for the lowest price. By assessing manufacturing and procurement costs, you can identify which supply chains offer the best prices for high-quality products. 

Once you have done this it is important to test the product or service to see where improvements and changes can be made. You need to once again check that what you have on offer is helping to solve a problem that your customers may have. One of the best ways to check whether the product or service you are offering is effective is by asking customers to fill out surveys with regard to customer satisfaction. These surveys should enquire as to whether the product and the service provided in the store was of a high standard. Any issues can then be reworked to ensure that future customers do not have the same problems. 

Address All Legal and Financial Matters

Ensuring that the product or service that a retail outlet supply is in compliance with the regulations set out is incredibly important. Staying compliant with the regulations set out will ensure that you are not breaking any laws and are providing the best possible product and service to your customers. This part of the process includes everything from cyber security to sales tax and it is imperative that the retail manager is on top of all legal and financial matters involved in the business. 

Specify and Prepare Administrative Needs

Retail management structures also include specifying and preparing all administrative needs for the business. Organising and ensuring the logistics around both retail inventory management and staff on hand is vital. Things like training your staff on processes and ensuring that they are kept up to date on any changes made can help a business remain functional and effective, which is so important when it comes to meeting the needs of your customers! Retail supply chain management is also an integral part of this process as a retail manager will need to ensure that products are ordered and shipped in the right quantities and at the right time. 

Promote Your Retail Brand, Product, or Service

A big part of retail management is also looking for the best ways to market yourself to your audience. There are many different ways that a retail manager can promote their brand, product or service be it through special events held at the store or even through collaborations with other brands! You also want to be sure that you are not just marketing to potential customers but also to customers that will hopefully return to your business. Through things like promotional offers and good service within your store, you can help to encourage customers to return! 

Always Ensure Continuous Improvement

This is unfortunately not a process that can be done once. The needs, desires and problems that a customer may have are constantly changing. It is the responsibility of the retail manager to ensure that as these changes within the target market become apparent, the retail outlet also changes its strategy. Continuously improving the products and services you offer ensures that you not only keep up with your competition but stay ahead of them! 

What are The Responsibilities of a Retail Store Manager?

When it comes to retail manager skills, it is important to assess what responsibilities this type of manager is accountable for. A good retail manager will ensure the following in their stores: 

  • Ensure employees are happy and equipped with the right skills: Keeping your employees happy and ensuring that they have the skills to get the job done is a vital part of any retail management structure. A retail manager also needs to focus on giving praise when it is earned, highlighting key players within the store and commending them on their success. This not only boosts the morale of employees but also inspires them to continue to do better! 
  • Monitor the store: Some of the best retail managers are those who are constantly involved in the different departments of a store! Being present in the running of operations can provide a retail manager with important information on the products the store sells, the employees and the service provided. This helps to keep the standard in the store high and reduces the number of mistakes that are made.
  • Train future retail managers: Retail management may differ from store to store and finding someone with the skills and know-how when it comes to retail management in your outlet can be hard. Training future retail managers can set them up for future roles and help you to delegate certain tasks to them when needed. This could also open up doors for the creation of new positions, for example; retail systems managers, retail wealth management, retail delivery management and retail design management. 

What is The Future of Retail Management?

There is no doubt that the world of retail has changed over the last few years, with more and more businesses moving to online stores and focusing on eCommerce. While this may be true, there will always need to be someone within a company that can look for problems that consumers may have and work to solve them with the products and services that a business offers! With the development of retail management software and retail management systems, there will still be a place for this important part of a business! While this job may look different in the future, there is no doubt that retail management is an integral part of a business!