Karnataka II PUC Retail Vocational (KSEAB) cheat sheet

Retail = sale of goods or services directly to the final consumer for personal, non-commercial use; the retailer is the last link in the distribution chain.

Retailer functions: breaking bulk, holding stock, providing assortment, offering credit and services, and passing market information back to wholesalers and manufacturers.

Organised vs unorganised retail: organised retailers are registered, taxed and salaried-staff based (e.g., chain supermarkets); unorganised retailers are small owner-run outlets such as kirana stores and street vendors.

Store-based formats by size and assortment: convenience store (small, long hours, narrow range), supermarket (food and grocery, self-service), hypermarket (large, food plus non-food), department store (many departments under one roof), specialty store (narrow line, deep assortment).

Non-store formats: e-commerce, catalogue/mail order, direct selling, vending machines, telemarketing and TV shopping; no physical walk-in store is involved.

Ownership models: independent store, chain store (multiple outlets, central buying), franchise (franchisee pays fee and follows franchisor systems), and cooperative/consumer stores.

Key retail terms: assortment (range of products), SKU (stock keeping unit), footfall (number of visitors), basket size (units or value per transaction), and private label (retailer's own brand).

Indian retail context: the kirana store remains dominant in volume by number of outlets, while organised retail grows in urban areas; FDI rules differ by single-brand and multi-brand routes.

Service quality dimensions (RATER): Reliability, Assurance, Tangibles, Empathy, Responsiveness; reliability is rated most important by customers.

Gap between expectation and perception drives dissatisfaction; service recovery aims to close that gap after a failure.

Selling steps sequence: approach, probing needs, presentation/demonstration, handling objections, closing the sale, and follow-up.

Open questions (who, what, how) gather needs; closed questions confirm decisions; probing should precede product presentation.

Objection types: price, product, timing and need-based; acknowledge, clarify, respond with evidence, then confirm acceptance.

Upselling = offer a higher-value version; cross-selling = offer a complementary product; both must follow the customer's stated need.

Moments of truth are every customer touchpoint (entry, aisle, trial, billing, exit); the first and last contacts carry the strongest recall.

Complaint handling: listen fully, apologise for the experience, act to resolve, and follow up; escalation should follow the store's defined authority limits.

Merchandising = selecting and presenting the right product, at the right price, place and time, in the right quantity, to meet the target customer's demand.

Assortment breadth = number of product lines; depth = number of variants (size, colour, flavour) within a line.

Planogram = a diagram specifying the exact placement of products on fixtures, facings and shelf space allocated to each SKU.

Visual merchandising principles: balance, proportion, rhythm, emphasis (focal point) and harmony; a display should have one dominant focal point.

Eye-level shelf position (roughly 1.2-1.6 m) is the highest-selling zone; bottom shelves sell least and are used for bulk or heavy items.

Colour blocking groups products by colour family to create impact; the rule of three uses odd numbers of items for visual interest.

Window display types: closed-back (full background), open-back (view into store) and island (freestanding); they must be changed on a planned calendar.

Sales per square foot = net sales / selling area (sq ft); GMROI = gross margin / average inventory at cost - both measure merchandising productivity.

Reorder level = (average daily demand x lead time) + safety stock; the order is placed when stock on hand reaches this figure.

Economic Order Quantity (EOQ) = square root of (2 x annual demand x order cost / holding cost per unit per year).

Safety stock protects against demand and lead-time variability; higher service level requires more safety stock.

Inventory turnover = cost of goods sold / average inventory at cost; days of inventory = 365 / turnover.

FIFO issues oldest stock first (essential for perishables and expiry-dated goods); LIFO issues newest first; weighted average blends cost across receipts.

Perpetual inventory = continuous record updated at each transaction; periodic inventory counts stock at fixed intervals and computes COGS at period end.

Shrinkage = book stock minus physical stock; causes include theft, damage, expiry, mis-scanning and paperwork error.

Stock-taking steps: freeze movement, count in teams, record on count sheets, reconcile to system, investigate variances above tolerance, then adjust with approval.

Store opening checklist: deactivate alarm, lights and HVAC on, POS terminals tested, tills issued, displays checked, staff briefed, doors opened at scheduled time.

Store closing checklist: customer clearance announcement, cash counted and deposited in safe, POS reconciled, equipment off, alarm armed, doors locked.

Store layout types: grid (supermarkets, efficient), free-flow (boutiques, browsing), racetrack/loop (encourages full circuit) and herringbone (angled aisles).

Space productivity = sales / floor area; sales per employee = sales / number of staff; both are standard operations KPIs.

Staff scheduling matches roster to footfall curve; peak hours need more billing counters and floor staff.

Shrinkage control: EAS tags, CCTV, mirrors, receipt checks, restricted stockroom access and daily high-value counts.

Maintenance and housekeeping logs, temperature checks for chilled goods, and pest-control records form part of daily store audits.

Conversion rate = transactions / footfall; it links store operations, service and merchandising performance.

Cash drawer opening float is counted and signed for at shift start; the till is assigned to one cashier for accountability.

Cash handover steps: count notes and coins by denomination, match to POS shift report, record cash, card and UPI totals separately, sign the handover slip.

Tender types: cash, debit/credit card, UPI/digital wallet, gift card, store credit and loyalty points; each must be keyed to the correct tender key.

Change rule: state the amount received aloud, count change back to the customer, and place the note on the drawer ledge until the transaction is complete.

Card and UPI payments require matching the amount on the POS screen with the payment confirmation before printing the bill; a failed payment must not release goods.

Barcode scanning errors (wrong item, duplicate scan, unscanned item) are corrected by voiding the line with supervisor authorisation, not by editing the total.

Refund and exchange must follow the store policy on receipt, time limit and product condition; refunds are recorded against the original bill number.

End-of-day: run X report during the shift and Z report at close; Z report closes the day and resets totals, so it is run only once.

Gross profit = net sales - cost of goods sold; gross margin % = gross profit / net sales x 100.

Net profit = gross profit - operating expenses (rent, salaries, utilities, marketing) + other income - other expenses.

COGS = opening stock + purchases + direct expenses - closing stock.

Markup % on cost = (selling price - cost) / cost x 100; margin % on selling price = (selling price - cost) / selling price x 100; the two are not interchangeable.

Markdown = original selling price - reduced selling price; markdown % is usually expressed on the original price.

Double-entry rule: every transaction has equal debits and credits; sales increase revenue (credit) and cash or receivables (debit).

GST on a retail invoice: CGST + SGST for intra-state supply, IGST for inter-state; the tax is shown separately and is not retailer income.

Petty cash imprest system: a fixed float is issued, expenses are vouched, and the float is reimbursed by exactly the amount spent.

Communication process: sender, encoding, message, channel, receiver, decoding, feedback and noise; feedback confirms that the message was understood.

7 Cs of communication: clear, concise, concrete, correct, coherent, complete and courteous.

Active listening behaviours: maintain eye contact, nod, paraphrase, ask clarifying questions and avoid interrupting.

Non-verbal split commonly cited in training: body language and tone carry more of the emotional message than words alone; gestures must suit local custom.

Grooming and etiquette for retail staff: clean uniform, name badge, closed shoes, and greeting within a defined distance of the customer.

Employability documents: a resume states skills and achievements with evidence; a cover letter links the applicant's skills to the specific job.

Entrepreneurship basics: idea generation, market survey, business plan, funding sources (own savings, bank loan, MUDRA-type schemes), registration and licences.

Small-retail business skills: costing and pricing, supplier negotiation, bookkeeping, customer records and basic digital marketing.

Legal Metrology rules require correct net quantity, MRP inclusive of all taxes, manufacturer/packer details, batch and date of manufacture on the package.

FSSAI licence/registration is mandatory for food retail; packaged food must show veg/non-veg mark, ingredients, nutrition information and best-before/expiry date.

Consumer Protection Act 2019: consumer rights include safety, information, choice, redressal and education; complaints can be filed with the District, State or National Commission by value.

GST invoice essentials: supplier name, GSTIN, invoice number and date, HSN/SAC code, taxable value, tax rate and amount, and place of supply.

Weights and measures: verified and stamped weighing scales, tare correction, and no sale below the declared net quantity.

Fire safety: extinguishers serviced and marked, exits unobstructed, staff trained in evacuation, and no storage blocking sprinklers or exits.

Food hygiene: FIFO rotation, cold-chain temperature control, pest control records, staff health and hand-washing rules, and clean food-contact surfaces.

Ethical retail practice: no misleading discount claims, no sale of expired or banned goods, protection of customer data, and refusal of bribery or fake billing.