MATSEC SEC Retail cheat sheet

Retail is the sale of goods or services directly to the final consumer for personal or household use, not for resale; the retailer is the last link in the distribution chain between producer and consumer.

Multiple retailers (chains) operate many outlets under common ownership and central buying; independents are single-outlet businesses, often owner-managed, frequently buying through a symbol group or wholesale group.

Department stores sell many product categories in separate departments under one roof; variety stores and discounters sell a narrower, fast-moving range at low prices with minimal service.

Convenience stores trade from long hours in accessible locations with a limited range and higher unit prices; supermarkets sell mainly food and household goods on a self-service basis.

Specialist (category) retailers concentrate on one product area, giving depth of range and trained staff; category killers are large specialists that dominate a product category on price and range.

Non-store retailing includes e-commerce, mail order, direct selling (party plan) and vending; it competes with physical outlets on convenience, range and price transparency.

Franchising: the franchisor licenses its brand, systems and supply to the franchisee, who pays an initial fee plus continuing royalties and follows set operating standards.

The retail mix combines product range, price, location, promotion, store layout and service level; consistency between these elements gives a clear retail positioning.

Service quality is judged on five dimensions: reliability, responsiveness, assurance, empathy and tangibles; reliability (doing what was promised) is consistently rated most important.

The service gap model: gaps arise between customer expectation and management perception, between perception and service standards, between standards and delivery, and between delivery and promises made.

Moments of truth are every point where the customer meets the business (entrance, shelf, till, returns desk); each is a chance to confirm or break the promise.

Complaint handling sequence: listen without interrupting, acknowledge and apologise for the experience, establish the facts, agree a remedy within policy, act promptly, then follow up.

Customer lifetime value = average purchase value x purchase frequency per year x average retention years; it justifies spending more to keep a good existing customer than to recruit a new one.

A service recovery paradox occurs when a well-handled complaint leaves the customer more loyal than before the failure, but only if the recovery is fast and fair.

Internal customers are colleagues and other departments who depend on each other's work; poor internal service shows up as stock errors, wrong prices and delays at the till.

Customer expectations are shaped by past experience, word of mouth, advertising promises and price; over-promising in advertising widens the expectation-delivery gap.

Product knowledge covers features (what the product has), advantages (what the feature does) and benefits (what it means for the customer); selling links features to benefits.

Merchandising principles: place the right product, in the right quantity, at the right place, at the right time, at the right price, presented to maximise sales.

Planogram: a diagram specifying the exact position and facing count of each product on a fixture; compliance is checked against it during merchandising audits.

Facing (blocking) means pulling products to the front edge of the shelf and aligning labels; it improves visibility and gives the impression of full stock.

Vertical merchandising places a category up and down the fixture; horizontal places it along the shelf; the golden zone (roughly waist to eye level) is reserved for high-margin or high-impulse lines.

Shelf-edge labels must match the product and the till price; a mismatch is a pricing error and a legal risk under price display rules.

Stock rotation: first in, first out (FIFO) for long-life goods and first expired, first out (FEFO) for date-coded goods; expired or damaged items are withdrawn immediately.

Cross-merchandising and related-item display place complementary products together (for example, accessories beside the main item) to raise basket value.

Selling process stages: approach, needs discovery (questioning and listening), presentation of the solution, handling objections, closing the sale, and after-sales follow-up.

Open questions begin with what, how or why and gather information; closed questions invite yes/no and confirm detail; probing follows up on an earlier answer.

Feature-advantage-benefit (FAB) technique: state the feature, explain what it does, then translate it into a benefit relevant to the need the customer stated.

Objections fall into categories such as price, need, timing, product suitability and trust; an objection is handled by acknowledging it, clarifying it, answering it with evidence, then confirming it is resolved.

Closing techniques include the direct close, the alternative-choice close, the summary close and the assumptive close; a trial close tests readiness before committing.

Upselling offers a higher-value or upgraded version of the chosen product; cross-selling offers a related, complementary product.

The sales funnel runs from awareness to interest, evaluation, purchase and repeat purchase; conversion rate = sales / customer contacts x 100.

Average transaction value = total sales value / number of transactions; items per transaction = units sold / number of transactions.

Cash handling controls: count the float at the start of the shift, keep the till closed between transactions, record every transaction, and reconcile at close against the POS report.

Cash variance = counted cash minus expected cash (opening float + cash sales - refunds - paid-outs); a negative variance is a shortage, a positive one is an overage.

Card payments: the terminal checks the card, requests authorisation, and the transaction is settled later through the acquirer; the customer should never lose sight of their card.

Card security rules: never write down the full card number or the CVV, never accept a card in someone else's name without authorisation, and check the signature or PIN entry.

Refunds are processed to the original payment method where possible; a refund in cash for a card purchase creates fraud and reconciliation risk.

Void (cancel a transaction before settlement) and refund (return money after settlement) are different operations and are recorded differently in the POS.

End-of-day procedure: close the till, count cash, complete the banking summary, seal the cash for collection, and secure the float for the next shift.

Common POS frauds include under-ringing, sweethearting, false refunds, void abuse and till dipping; segregation of duties and till audits are the main controls.

Stock turnover (inventory turnover) = cost of goods sold / average stock value; days of stock = 365 / stock turnover.

Reorder level = (average daily sales x lead time in days) + safety stock; the economic order quantity balances ordering costs against holding costs.

Receiving procedure: check the delivery against the purchase order and delivery note, inspect for damage and correct quantity, record discrepancies, sign only for what is correct, then store.

Stock takes may be periodic (full count at set intervals) or perpetual (continuous counts by category); discrepancies are investigated as variances.

Shrinkage is the difference between recorded stock and actual stock; main causes are theft (customer and staff), administrative error, supplier error, damage and waste.

Storage rules: heavy items low, light items high, clean and dry conditions, correct temperature for perishables, stock rotated FIFO/FEFO, and aisles kept clear.

Date codes: 'use by' is a safety date and food must not be sold after it; 'best before' is a quality date and food may still be sold after it if safe and of acceptable quality.

Perishable goods need the cold chain kept unbroken; chilled and frozen items are checked for temperature on receipt and moved to storage immediately.

Employer duties include a written risk assessment for significant hazards, safe systems of work, training, protective equipment where needed, and a recorded accident procedure.

Employee duties: take reasonable care of yourself and others, follow training and safety signs, report hazards and accidents, and do not misuse equipment.

Fire safety: keep escape routes and fire doors clear, know the assembly point, use the correct extinguisher for the fire class, and never use water on electrical or cooking-oil fires.

Manual handling: assess the load, keep the back straight, bend the knees, hold the load close, avoid twisting, and use a trolley or ask for help for heavy items.

Slips, trips and falls are the most common retail accidents; causes include spillages, trailing cables, wet floors and obstructed aisles, controlled by prompt cleaning and signage.

Security measures: CCTV, mirrors, electronic article surveillance tags, security guards, till and key controls, and staff vigilance; staff must never physically detain a suspect, only observe and report.

Lone working and cash-in-transit carry specific risks; procedures cover timed check-ins, varying routes and times, and never counting cash in view of customers.

First aid and accident reporting: know the location of the first-aid kit and trained first-aider, and record every accident in the accident book.

Goods must be as described, of satisfactory quality (fit for purpose, acceptable appearance and finish, safe and durable) and fit for any particular purpose made known to the seller.

A consumer who buys faulty goods from a trader has a short-term right to reject and a full refund; after that, repair or replacement, then a price reduction or final rejection may apply.

Distance and off-premises sales normally carry a cooling-off cancellation right; the trader must give prescribed pre-contract information, and exemptions apply to personalised or sealed goods.

Unfair commercial practices include false claims about a product, misleading price comparisons, bait advertising and aggressive pressure selling; they are prohibited.

Prices and labels: the price displayed must be honoured, unit pricing must be shown where required, and misleading price indications are an offence.

Age-restricted products (alcohol, tobacco, solvents, knives, certain fireworks) must not be sold to under-age customers; staff must check identification and refuse where in doubt.

Data protection: personal data must be collected for specified purposes, kept accurate and secure, and used only as permitted; card details and customer records are confidential.

Ethics in retail covers honest advertising, fair treatment of suppliers, no exploitation of staff, environmental responsibility and refusing to sell unsafe or counterfeit goods.

The communication process: sender encodes a message, a channel carries it, the receiver decodes it, and feedback confirms understanding; noise is anything that distorts the message.

Active listening means paying full attention, not interrupting, noting key points, and reflecting back or summarising to confirm understanding.

Non-verbal communication (eye contact, posture, tone, gestures, personal space) carries meaning alongside words and must match the spoken message.

Questioning types: open, closed, probing, reflective and leading; open and probing questions gather information, closed questions confirm it.

Team roles in a retail team include supervisor, sales assistant, cashier, stockroom staff and visual merchandiser; clear role boundaries prevent duplicated or missed tasks.

Handover and briefing: record tasks not completed, stock issues, security incidents and customer complaints so the next shift starts informed.

Assertiveness differs from aggression: it states the need clearly and respectfully without blaming, and it protects both customer service and colleague relationships.

Barriers to communication include jargon, noise, language differences, assumptions, emotional state and information overload; each is reduced by plain language and checking understanding.