RBSE Prav Voc Retail cheat sheet

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

Retail formats: department store (many categories, departmental buying), supermarket (food plus household, high volume low margin), convenience store (long hours, small basket, high unit price), specialty store (narrow category, deep assortment), discount store (low price, limited service), hypermarket (food plus general merchandise under one roof), e-commerce and D2C (direct-to-consumer).

Channel types: physical (brick-and-mortar), online, and omnichannel where stock, pricing, and returns are integrated across both.

The retail mix has six elements: merchandise, price, location, promotion, presentation (store atmosphere), and customer service.

Retailers create value through breaking bulk, holding assortment, providing convenience of place and time, and offering information and after-sales service.

Organised vs unorganised retail: organised retail operates under legal licensing, formal employment, and standardised systems; unorganised retail (kirana, hawker, weekly market) is owner-run and largely informal.

Factors in the retail environment: economic (income, inflation, interest rates), social and demographic (age mix, urbanisation, family size), technological (UPI, e-commerce, self-checkout), legal (licensing, GST, consumer protection, weights and measures), and competitive.

Retail shrinkage is loss from theft (customer and employee), supplier fraud, administrative error, and damage; it is measured as shrinkage value divided by net sales, expressed as a percentage.

Service sequence: greet, probe needs, present options, handle objections, close, and confirm after-sales support; each step has a defined customer-facing action.

Open questions (what, how, which) uncover needs; closed questions confirm facts such as size, quantity, or budget; leading questions suggest an answer and should be avoided in needs discovery.

The sales funnel is approach, needs identification, presentation or demonstration, objection handling, closing, and follow-up; conversion rate equals sales closed divided by customers served.

Objection types are price, need, trust, timing, and product-fit; the response is acknowledge, clarify the real objection, answer with evidence, and confirm resolution.

Closing techniques: direct ask, alternative choice (would you prefer this or that), summary close, and assumptive close used only after buying signals.

Features are what the product has; benefits are what the customer gains. Benefit-led selling links each feature to a stated customer need.

Complaint handling: listen without interruption, apologise for the experience, clarify the facts, offer a specific remedy within policy, act, and follow up.

Customer lifetime value (CLV) estimates total profit from a customer over the relationship; retaining an existing customer usually costs less than acquiring a new one.

Service quality dimensions commonly assessed are reliability, responsiveness, assurance, empathy, and tangibles (physical evidence such as cleanliness and staff appearance).

Product information to master: composition or material, dimensions and weight, country of origin, brand, model or SKU, care and handling instructions, warranty terms, and price including tax.

SKU (stock keeping unit) is the smallest uniquely identifiable unit of stock, defined by a combination of attributes such as style, size, colour, and pack.

Barcode: EAN-13 carries 13 digits; the first digits identify the country of registration (GS1 prefix), the next identify the manufacturer, then the item reference, and the last digit is a check digit.

Care-label symbols: washtub with a number is the maximum wash temperature; triangle means bleaching permitted, crossed triangle means no bleach; square with circle is tumble drying; iron symbol dots give temperature; circle means dry cleaning.

Shelf life and date marks: 'best before' relates to quality, 'use by' relates to safety and must not be sold or used after the date.

FEFO (first expired, first out) applies to perishables and dated stock; FIFO (first in, first out) applies to general stock rotation.

Nutrition labelling on packaged food typically states energy, protein, carbohydrate, fat, and salt per 100 g or per serving, which allows like-for-like comparison.

Warranty and guarantee are seller or manufacturer promises to repair, replace, or refund within a stated period; they are additional to statutory consumer rights, not a replacement for them.

Product demonstration must follow the manufacturer's instructions and safety limits, and any claim made to a customer must be accurate and verifiable.

Planogram: a diagram specifying the exact position, facings, and space for each SKU on a fixture; compliance is measured as the proportion of positions matching the planogram.

Visual merchandising principles: balance (symmetrical or asymmetrical), emphasis or focal point, proportion, rhythm or repetition, and colour harmony.

Display levels: the golden zone (roughly waist to eye level) holds the highest-margin impulse items; the top shelf is for display and light stock; the bottom shelf holds bulk and heavy items.

Impulse items belong at the till point and at the end of aisles; destination categories are placed at the back to draw customers through the store.

Facing (fronting up) means pulling products to the front edge of the shelf; a facing count is the number of units of a SKU visible across the shelf width.

Shelf space allocation is driven by sales per linear metre or per square metre, gross margin per unit of space, and rate of sale.

Cross-merchandising places complementary items together (for example, batteries beside toys) to increase basket size.

Anchor pricing and price-point lining: a low-priced known-value item draws traffic, and products are grouped at consistent price points to simplify choice.

Signage must match the product and price on display; a price mismatch is a consumer-protection issue and must be corrected immediately.

Inventory turnover equals cost of goods sold divided by average inventory at cost; days of inventory equals 365 divided by turnover.

Reorder level equals average daily demand multiplied by lead time in days, plus safety stock.

Economic order quantity (EOQ) = square root of (2 × annual demand × ordering cost ÷ holding cost per unit per year).

Safety stock protects against demand and lead-time variability; it rises with higher service-level targets and higher variability.

Stock-count methods: periodic (full physical count at set intervals) and perpetual (continuous system record updated at each transaction); cycle counting checks a subset on a rotating schedule.

Variance equals book stock minus physical stock; a negative variance is a shortage, a positive variance is a surplus, and both require investigation before adjustment.

ABC analysis classifies stock by value of consumption: A items are few but high value and need tight control, C items are many but low value and need simple control.

A supply chain runs from raw material supplier to manufacturer, distributor or wholesaler, retailer, and consumer; the bullwhip effect is the amplification of demand variation upstream.

Goods receipt checks quantity against the delivery note and purchase order, checks quality and damage, and records the GRN before stock is entered into the system.

Opening till float is counted and recorded at shift start; at close, expected cash equals opening float plus cash sales minus refunds and cash paid out.

Cash variance equals counted cash minus expected cash; any variance is recorded and reported, never absorbed silently by the cashier.

POS billing sequence: scan or enter the item, verify price and quantity, apply discounts or offers, select payment mode, take payment, generate the bill, and hand over change and receipt.

GST invoice contents in India: supplier name, address and GSTIN, invoice number and date, customer details where registered, HSN or SAC code, description, quantity, taxable value, rate and amount of CGST, SGST, IGST or cess, and total.

Payment modes: cash, card (debit or credit), UPI, wallet, and gift card; each must be reconciled separately in the day-end settlement.

Tendering rules: state the amount received, count change back aloud, and never put customer cash into the drawer before the amount is confirmed.

Card and UPI transactions are confirmed only after the terminal or app shows success; a printed slip or on-screen confirmation is retained for reconciliation.

Refund and exchange must follow store policy and be recorded against the original bill; voided transactions require authorisation and a reason code.

Cash-drawer security: keep the drawer closed between transactions, limit cash above a set threshold by drop to the safe, and never share login credentials at the POS.

Store opening checklist: disarm alarm, check premises and fittings, count float, switch on POS and lights, verify signage and price tags, and confirm staff attendance.

Store closing checklist: reconcile till, secure cash in safe, back up or close POS day, check fitting rooms and back areas, switch off equipment, and arm alarm.

Stockroom rules: heavy items low, light items high, clear gangways, labelled locations, and no stock blocking fire exits or extinguishers.

Fire safety: extinguishers are matched to the fire class (water for Class A solids, foam for flammable liquids, CO2 for electrical), and exits must stay unobstructed.

Manual handling: keep the load close to the body, bend the knees not the back, avoid twisting while lifting, and use a trolley or ask for help above a safe weight.

Slips, trips, and falls are controlled by immediate spill cleaning with a wet-floor sign, clear aisles, and cable management.

Incident reporting: record date, time, place, people involved, and action taken in the incident register; report serious injuries to the responsible authority as required by law.

Shrinkage controls: EAS tags, CCTV, till-point vigilance, receipt checks, restricted access to stockrooms, and daily reconciliation of high-value lines.

Key performance indicators for store operations include sales per square metre, sales per employee, footfall, conversion rate, average transaction value, and shrinkage percentage.

Percentage change equals (new value minus old value) divided by old value, multiplied by 100; a negative result is a decrease.

Markup on cost equals (selling price minus cost) divided by cost; margin on selling price equals (selling price minus cost) divided by selling price; the two are different and must not be interchanged.

Discount: final price equals marked price multiplied by (1 minus discount rate); successive discounts of a% and b% give a net factor of (1 − a/100)(1 − b/100), not a + b.

Average transaction value equals total sales value divided by number of transactions; units per transaction equals units sold divided by number of transactions.

GST-inclusive price: taxable value equals inclusive price divided by (1 plus GST rate); the tax amount is inclusive price minus taxable value.

Communication model: sender, message, channel, receiver, feedback, and noise; active listening requires paraphrasing and confirming understanding.

Digital skills for retail: operating POS and inventory software, handling email and chat with customers, using spreadsheets for stock and sales data, and following data-privacy rules when handling customer details.

Data privacy basics: collect only necessary customer data, do not share it, and store it securely; sharing a customer's phone number or address without consent is a breach.

Workplace documents: a purchase order requests goods, a delivery note accompanies goods, an invoice demands payment, and a credit note reverses or reduces a charge.

Business plan sections: idea and value proposition, market and competitor analysis, operations plan, marketing plan, financial plan, and risk assessment.

Break-even quantity equals fixed costs divided by (selling price per unit minus variable cost per unit); break-even sales value equals fixed costs divided by contribution margin ratio.

Working capital equals current assets minus current liabilities; retail businesses are working-capital intensive because stock ties up cash.

Legal registrations commonly needed in India: shop and establishment registration, GST registration above the turnover threshold, trade licence, and FSSAI licence for food.

Sources of finance: owner's capital, bank term loan, working-capital limit, microfinance or self-help group, and government schemes for small retailers.

Retail career paths: sales associate, senior sales associate, cashier, visual merchandiser, stock controller, department supervisor, store manager, and category or buying roles.

A retail CV should show measurable achievements (sales achieved, shrinkage reduced, average basket increased) rather than only listing duties.

Interview preparation for retail roles: know the store's format and products, prepare examples of handling a difficult customer, and be ready for a short numeracy or role-play test.

Customer acquisition cost equals total acquisition spend divided by number of new customers acquired; compare it with customer lifetime value before scaling spend.

A vocational project report contains title, objectives, scope, methodology, observations or data, analysis, conclusion, and annexures such as photographs and checklists.

Assessment weightings in vocational components typically combine project report, practical file or record book, viva voce, and workplace or lab performance; confirm the exact split from the current scheme of assessment.

Viva answers should be short, evidence-based, and tied to what was actually done: state the action, the reason, and the result.

Record-book entries must be dated, signed by the supervisor, and describe the task, tools used, and outcome; unattested entries may not be accepted.

Common practical tasks assessed: billing on a POS, cash reconciliation, shelf display to a planogram, stock count and variance calculation, and handling a customer complaint as a role-play.

Use correct technical vocabulary in the viva: planogram, facing, shrinkage, GRN, FEFO, variance, conversion rate, and average transaction value.

Data in the project must be real or clearly labelled as simulated; fabricated figures and copied reports are treated as malpractice.

Safety and hygiene during practical work: follow the store's SOP, wear the uniform and ID, and record any incident in the register.

Evaluation of a project often includes relevance to retail operations, accuracy of calculations, quality of presentation, and ability to answer questions on the method used.