Retail Operations and Store Management
Store operations is the daily machinery - opening, staffing, layout, service flow, closing and reporting - that lets a shop run consistently without the owner standing at the door. The exam tests layout types, KPI calculations and the manager's control routines.
Core routines
- Opening: disarm the alarm, log key control, switch on lighting and air-conditioning, complete POS start-of-day, count and sign for the cash float, walk the floor for safety and display compliance. Closing: cash reconciliation, till drop, dead-stock return, housekeeping, shutters and alarm.
- Layout: grid (supermarkets, maximum shelf space), free-flow (apparel, browsing), racetrack or loop (malls, guiding traffic past every zone), spine (central aisle). Aisles should stay at least about 90 cm wide for two people or a trolley.
- Fixtures: gondola, four-way, round rack, dump bin; end-caps carry the highest impulse value.
- People: roster against the footfall curve, not against staff convenience; hold a short daily huddle on targets, promotions and stock issues.
- KPIs: footfall, conversion = transactions ÷ footfall, ATV = sales ÷ transactions, UPT = units ÷ transactions, sales per sq ft, shrinkage %, audit score.
Worked example
A store records 1,200 footfall and 300 bills on a day with ₹1,50,000 sales and 480 units. Conversion = 300 ÷ 1,200 = 25%; ATV = ₹1,50,000 ÷ 300 = ₹500; UPT = 480 ÷ 300 = 1.6. To add ₹15,000 in sales without more footfall, the team can push add-ons: if 10% of the 300 bills take a ₹500 accessory, that is exactly ₹15,000.
Traps that cost marks
- Counting staff, delivery people and returns as footfall, which deflates conversion.
- Mixing ATV and UPT, or dividing sales by units instead of by bills.
- Skipping the opening float count, which makes the day's over/short unprovable.
- Blocking aisles or exits with promotional stock.