Introduction to Retail Management | Free Course with Certificate
Summary
TLDREste curso introductorio de gestión minorista, impartido por Rasha Muhammad, fundador y presidente de Retail Dogma, ofrece una visión general del sector minorista. Rasha comparte su experiencia de más de 14 años en el comercio electrónico en tres países y guía a los estudiantes a través de los fundamentos de la gestión minorista. Define lo que es la venta al por menor, los principales modelos de negocio, funciones y claves para el éxito. Explora KPIs claves como la margen bruta, la rotación de inventario y la experiencia del cliente. Además, Rasha discute cómo los negocios minoristas pueden innovar en su modelo de negocio y cómo las funciones principales y de apoyo trabajan juntas para entregar valor al cliente. Finalmente, Rasha ofrece consejos para quienes buscan comenzar una carrera en la gestión minorista, destacando los roles operativos y comerciales, y cómo desarrollar habilidades de liderazgo y entendimiento de negocios para progresar en su carrera.
Takeaways
- 🏢 **Identidad del Instructor**: Rasha Muhammad, fundador y presidente de Retail Dogma, con más de 14 años de experiencia en la industria minorista en tres países.
- 📈 **Concepto de Retail**: El retail es el último paso en la distribución de mercancías, donde los productos llegan al consumidor final a través de diferentes canales.
- 🛍️ **Tipos de Retailers**: Existen dos tipos principales: minoristas de tienda (físicos) y minoristas sin tienda (como el comercio electrónico).
- 🌐 **Ejemplo de DTC**: RX Bars, como marca DTC (Direct to Consumer), vende directamente al consumidor a través de su sitio web y también a través de minoristas de tienda física.
- 📊 **Categorías de Retail**: Las tiendas se clasifican según los productos que ofrecen, como ropa, muebles, alimentos, entre otros, siguiendo el sistema de clasificación de la industria de EE. UU.
- 💰 **Modelo de Negocio**: El modelo básico de retail consiste en comprar en grandes cantidades y vender en pequeñas al público a un precio más alto, lo que genera beneficio bruto.
- 📈 **Innovación en el Modelo de Negocio**: Los minoristas pueden innovar al ajustar su modelo de negocio, agregando componentes de suscripción o consignación para aumentar los flujos de ingresos.
- 👥 **Funciones de la Empresa**: Las funciones principales incluyen la adquisición, la mercadería, las operaciones de almacén y las operaciones de retail, apoyadas por funciones de marketing, recursos humanos, finanzas e IT.
- 📊 **Éxito en Retail**: Los tres claves para el éxito son el número adecuado, la experiencia del cliente y la identificación de una necesidad no satisfecha en el mercado.
- 📉 **KPIs para Retail**: Los indicadores clave de rendimiento incluyen las ventas en tiendas similares, el margen bruto, el margen de beneficio antes de impuestos y los estados financieros.
- 👩💼 **Carreras en Retail Management**: Las carreras en retail management comienzan en roles operativos y comerciales, donde el liderazgo y el conocimiento de negocios son fundamentales para el progreso.
Q & A
¿Quién es Rasha Muhammad y qué papel desempeña en el curso introductorio sobre gestión minorista?
-Rasha Muhammad es la fundadora y presidenta de Retail Dogma. Con más de 14 años de experiencia en la industria de la venta al por menor en tres países diferentes, Rasha ha trabajado en roles operativos en marcas de moda y belleza, y más tarde gestionó una marca de moda de manera integral como parte de un conglomerado de minoristas en el Medio Oriente.
¿Cuáles son las dos principales formas de venta en minoristas?
-Las dos principales formas de venta en minoristas son los minoristas de tienda, que son las tiendas físicas tradicionales, y los minoristas sin tienda, que incluyen negocios de comercio electrónico, casas de pedidos por correo, operadores de máquinas expendedoras y establecimientos de venta directa.
¿Cómo se define el modelo de negocio principal de la venta al por menor?
-El modelo de negocio principal de la venta al por menor consiste en comprar mercancías en grandes cantidades a precios bajos y venderlas en pequeñas cantidades al público general a precios más altos. La diferencia en el precio se conoce como beneficio bruto, que se utiliza para financiar y pagar los gastos de las operaciones y actividades clave del negocio.
¿Qué es el 'Canvas de Modelo de Negocio' y cómo se utiliza en el curso?
-El 'Canvas de Modelo de Negocio' es una herramienta utilizada para diseñar, comprender, construir, retocar o comunicar cualquier modelo de negocio. En el curso, se utiliza para analizar y explicar en detalle el modelo de negocio de una empresa hipotética llamada 'Organics', que es un minorista de alimentos orgánicos.
¿Cómo se definen las funciones principales y de apoyo dentro de un negocio de venta al por menor?
-Las funciones principales en la venta al por menor incluyen la adquisición, la mercadeo, las operaciones de almacén y las operaciones de venta al por menor. Las funciones de apoyo son aquellas que apoyan el negocio principal y construyen la infraestructura de la empresa, incluyendo marketing, recursos humanos, finanzas e información tecnológica.
¿Cuáles son las tres claves principales para el éxito de un negocio de venta al por menor?
-Las tres claves principales para el éxito de un negocio de venta al por menor son: tener los números correctos, ofrecer una experiencia de cliente excepcional y crear una propuesta de valor que satisfaga una necesidad no cubierta por otros negocios en el mercado.
¿Qué son los KPIs y cómo se utilizan para evaluar el rendimiento de un negocio de venta al por menor?
-Los KPIs, o indicadores clave de rendimiento, son medidas que se utilizan para evaluar el desempeño de un negocio. En la venta al por menor, KPIs como las ventas en tiendas similares (comps o lfl growth), el margen bruto, el margen de beneficio antes de impuestos y los estados financieros (hoja de ingresos, balance general y estado de flujo de efectivo) son utilizados para guiar y medir el rendimiento del negocio.
¿Cómo se define la trayectoria de carrera en la gestión minorista?
-La trayectoria de carrera en la gestión minorista comienza generalmente con roles operativos en tiendas, como asistente de tienda o gerente de tienda, y luego puede avanzar a roles de gerente de área o director de operaciones. Además, existen roles comerciales en adquisición y mercadeo, así como roles en mercadeo visual que también pueden llevar a posiciones de liderazgo y responsabilidad a nivel corporativo.
¿Por qué es importante la experiencia de cliente en el éxito de un negocio de venta al por menor?
-La experiencia de cliente es crucial para el éxito de un negocio de venta al por menor porque permite adquirir más clientes y mantener a los existentes, lo que a su vez ayuda a proteger el negocio de la competencia y a nuevos entrantes en el mercado. Una experiencia de cliente negativa puede hacer que los clientes elijan a la competencia en el futuro.
¿Cómo se pueden ajustar los modelos de negocio de venta al por menor para innovar y aumentar los flujos de ingresos?
-Los modelos de negocio de venta al por menor se pueden ajustar de varias maneras para innovar y aumentar los flujos de ingresos. Algunas estrategias incluyen agregar componentes de suscripción para entregas semanales, o implementar un modelo de consignación que permita a otros vendedores exponer y vender sus mercancías en la tienda en exchange de una comisión por cada venta.
¿Qué tipo de habilidades son necesarias para avanzar en una carrera en la gestión minorista?
-Para avanzar en una carrera en la gestión minorista, se requieren habilidades de liderazgo para gestionar equipos más grandes y múltiples equipos en diferentes tiendas. Además, a medida que se asciende a niveles más altos, se necesitan habilidades de agudeza empresarial para comprender y manejar aspectos financieros y de negocio, así como habilidades creativas y artísticas para roles en mercadeo visual.
¿Cómo se puede seguir el curso introductorio de gestión minorista más allá del video?
-Para seguir el curso introductorio de gestión minorista más allá del video, los estudiantes pueden completar el curso en el sitio web de Retail Dogma, tomar el examen final y, si lo desean, descargar el certificado de finalización del curso.
Outlines
😀 Introducción al manejo de tiendas
Rasha Muhammad, fundadora y presidenta de Retail Dogma, da la bienvenida a este curso introductorio sobre manejo de tiendas. Con más de 14 años de experiencia en la industria de la venta al por menor en tres países, Rasha cubre los conceptos básicos del manejo de tiendas, incluyendo la definición de lo que es la venta al por menor, los principales modelos de negocio, funciones y claves para el éxito en este tipo de negocio. Además, se discuten los KPIs clave y las carreras en el manejo de tiendas.
💰 Modelo de negocio de la venta al por menor
Se explica el modelo de negocio básico de la venta al por menor, que consiste en comprar mercancía a granel a precios bajos y venderla en pequeñas cantidades al público general a precios más altos. La diferencia se conoce como beneficio bruto. Se utiliza la plantilla del tablero de negocio de nueve bloques para explorar en detalle este modelo de negocio, utilizando un ejemplo hipotético de una tienda de alimentos orgánicos llamada Organics. Además, se discuten las posibles modificaciones en el modelo de negocio para innovar y aumentar los ingresos.
📈 Funciones principales y apoyo en la empresa de venta al por menor
Se describen las funciones principales y de apoyo dentro de una empresa de venta al por menor. Las funciones principales incluyen la adquisición, la mercadería, las operaciones de almacén y las operaciones de venta al por menor. Las funciones de apoyo incluyen marketing, recursos humanos, finanzas e informática. Se destaca la importancia de la planificación de la mercadería, el presupuesto de compras y la asignación y reposición de productos en las tiendas. Además, se mencionan las estrategias para acelerar la venta de mercancías y la generación de informes para tomar decisiones.
💼 Equipos de funciones trabajando juntos
Se explica cómo los diferentes equipos de funciones trabajan juntos para entregar la propuesta de valor a los clientes. El equipo de marketing se enfoca en atraer tráfico a las tiendas y construir la marca. El equipo de recursos humanos se encarga del reclutamiento y desarrollo de talento. El equipo de TI asegura la infraestructura adecuada de tecnología y el equipo financiero gestiona los aspectos financieros de la empresa.
🏆 Claves del éxito en la venta al por menor
Se presentan las tres claves principales para el éxito en una empresa de venta al por menor: números adecuados, experiencia del cliente y posición en el mercado. Se debe identificar un nicho de mercado no satisfecho y crear una oferta atractiva para ese segmento. Se destaca la importancia de los márgenes brutos y la rotación de inventario para generar beneficios. Además, se abordan las métricas y KPIs clave para medir el rendimiento de la empresa, como las ventas en tiendas similares, el margen bruto, la tasa de beneficio antes de impuestos y los estados financieros.
🚀 Carreras en el manejo de tiendas
Se exploran las dos áreas principales para comenzar una carrera en el manejo de tiendas: roles operativos y comerciales. Los roles operativos comienzan en la tienda con el puesto de asistente de venta y avanzan a puestos supervisores, gerentes de tienda y gerentes regionales. Los roles comerciales incluyen adquisición y mercadeo, donde se requiere un entendimiento profundo de los productos y el uso de la matemática de ventas. También se menciona el área de visual merchandising. Rasha comparte su propia experiencia enfocada y gratificante en la venta al por menor.
Mindmap
Keywords
💡Retail Management
💡Business Model
💡Key Performance Indicators (KPIs)
💡Product Assortment
💡Direct to Consumer (DTC)
💡
💡Gross Margin
💡Merchandise Planning
💡Customer Experience
💡Retail Categories
💡Careers in Retail
💡Operational Roles
Highlights
Rasha Muhammad, the founder and president of Retail Dogma, introduces the course on retail management with over 14 years of experience in the industry.
The course will cover the basics of retail management, defining retail, the main business model, functions, and keys to success.
Retail is the final step in the distribution of merchandise, with two main types: store retailers and non-store retailers.
The example of RX bars showcases a direct-to-consumer brand that also uses a wholesale channel to reach a broader market.
Retail categories are based on the types of products offered and can be categorized according to the North American Industry Classification System.
The basic business model of retail involves buying merchandise in bulk at low prices and selling it to the public at a higher price to generate gross profit.
The nine-block business model canvas template is introduced to detail the components of a retail business model.
Retailers can innovate and tweak their business models to grow, such as adding a subscription component or consignment sales.
Core retail functions include buying, merchandising, warehouse operations, and retail operations, while support functions are marketing, HR, finance, and IT.
The importance of merchandise planning and allocation to stores is emphasized for maintaining inventory levels and meeting sales targets.
Key success factors for retail include identifying a market need, having the right numbers (margins, inventory turnover), and providing a great customer experience.
KPIs such as same-store sales, gross margin, inventory turnover, and pre-tax profit margin are crucial for assessing retail business performance.
The career path in retail management can start from operational roles like sales associate and progress to higher managerial roles like district manager or director of operations.
Leadership skills are critical for career advancement in retail, along with business acumen when managing cost centers and having P&L responsibility.
Commercial roles in retail involve buying and merchandising, requiring a deep understanding of products and their performance.
Visual merchandising is another career path in retail that requires creativity and artistic skills, starting at the store level and developing into area or regional roles.
Rasha shares personal insights on the rewarding aspects of a retail career, including dealing with diverse suppliers and learning to think commercially.
The course concludes with an invitation to complete the course on Retail Dogma's website for a certificate of completion.
Transcripts
welcome to this introductory course on
retail management my name is Rasha
Muhammad and I'm the founder and
president of retail Dogma I have been
working in the retail industry for over
14 years across three different
countries
during this journey I worked in
operational roles at some of the most
exciting fashion and Beauty Brands and
was later on higher to fully manage a
fashion brand end to end as part of a
retail conglomerate in the Middle East
you can reach me at my own website or on
in this introductory course we are going
to go through the basics of retail
management
in particular we are going to Define
what retail is learn about the main
business model the main business
functions and the keys to success for
such a business
we will then go through the main kpis
that show how such a business is
performing and finally we will talk
about careers in retail management so
let's get started
what is retail retaining is the final
step in the distribution of merchandise
products get created every day by brand
owners that might or might not have
their own retail stores these products
then go through different channels and
phases in order to reach the final
consumer they might go directly from the
manufacturer to the retailer who buys
them in bulk or they can go first to a
distributor or wholesaler who buys them
in bulk and then sells them again to a
retailer also in bulk but at a higher
price
retailers then sell the merchandise
directly to the end consumer in small
quantities
there are two main types of retailers
store retailers these are the normal
brick and mortar retail stores
and non-store retailers these include
e-commerce businesses mail order houses
vending machine operators and direct
selling establishments
let's take an example of this protein
bar creator
RX bars has created a nice assortment of
protein products it then needed to get
those products in the hands of the
consumers and for this it used two
different channels
it has chosen to sell directly to
Consumer through its own website and
thereby becoming a non-store retailer
itself
such brands are also called direct to
Consumer brands or dtcs
but in order to reach a bigger Market of
consumers this DTC brand decided to sell
its products also through brick and
mortar store retailers
so it has created a wholesale Channel
where it sells to store retailers in
bulk at lower prices than the list price
and providing them with merchandising
and marketing support to help sell its
own products and these retailers then go
and sell those protein products to their
customers at small quantities and keep
the difference in price
so retailer could be selling its own
product Creations such as the case for
this DTC brand and also the case with
most fashion brands around the world
but a retailer could also be selling
products that belong to other brand
owners such as the case in grocery
stores convenience stores sporting goods
stores department stores small fashion
boutiques and many different types of
retail categories
retail categories are based on the types
of products the retailer is offering and
based on the National American industry
classification system we can categorize
the different retailers into the
following
clothing and Accessory stores furniture
and home furnishing stores building
materials and garden equipment and
supplies dealers electronic and
appliance stores food and beverage
stores and these include grocery stores
supermarkets convenience stores and
specialty food stores health and
personal care stores and these include
pharmacies Beauty Supplies cosmetics and
Optical Goods Sporting Goods hobby book
and music stores
general merchandise stores and these
include department stores Warehouse
clubs and Superstores
gasoline stations motor vehicle and
parts dealers
miscellaneous store retailers and these
include florists office supplies gifts
and used merchandise and finally
non-store retailers and this includes
electronic shopping which is e-commerce
mail orders vending machines and direct
selling
So based on what we have seen a retail
business serves the society in two ways
on one hand it gives exposure to product
creators and manufacturers so they can
reach the final consumer and on the
other hand it brings a relevant product
assortment closures to Consumers where
they can buy it in a convenient way
in the next lesson we are going to learn
how retail businesses make money
the basic business model of retail goes
like this buying merchandise in large
quantities from wholesalers or
manufacturers at low price and selling
it in small quantities to the general
public at higher price the difference in
price is called gross profit this gross
profit is then used to fund and pay the
expenses of the operations and Key
activities of the business in order to
provide such service to the public and
the remaining amount at the end is the
net profit
let's get deeper into the details of
such business model and we are going to
use the nine block business model canvas
template for that
and here I'm going to explain it through
a hypothetical retail business let's
call it Organics which is a store that
sells organic food and produce
we start by defining the value
proposition what is the unique value I
am providing the final consumers that
will make them come and buy from me
I am giving them a nice product
assortment of organic food I am giving
them a convenient way to shop such
products through the stores and our
website and I am committed to provide
them Fresh Products every day
what are the sales channels I'm going to
use I'm going to operate brick and
mortar stores I'm going to sell through
our e-commerce website and I might
launch pop-up shops from time to time
what are the customer segments I am
targeting
I'm mainly targeting health conscious
consumers who are interested in buying
organic food
what Key activities do I need to perform
in order to deliver this value
proposition through those channels to my
Target customer segment
I will need to Source Products
I will need to do marketing and branding
I will need to operate retail stores and
the e-commerce Channel I will need to
manage merchandise flow and finally I
will need to manage the sales process
so what are the key resources I'm going
to need to do all this
I need to run to retail stores I need to
rent a warehouse facility and finally I
will need human resources to perform all
the above mentioned activities
how am I going to manage customer
relationships I will probably need to
have customer service function and we'll
need to invest in a CRM software
what will be my key Partners in running
such a business
my key Partners will include the product
manufacturers the wholesalers and my
landlords
so now after we have laid out all the
different components of the business
model we come to the key part and that
is how are we going to make money
for that we need to identify our revenue
streams and our cost structure our
Revenue stream is the product sales
through the stores and the website and
our cost structure includes cost of
goods sold that's the merchandise cost
store rents paying for Logistics and
warehousing employee salaries and
marketing and advertising costs
this is an example of the main business
model for retailing however retailers
don't necessarily need to stick to this
business model alone they can get
creative by tweaking such business model
in order to grow the business or add
more revenue streams they can use the
same nine block template and start
testing different scenarios to tweak the
business
for example Organics might add a
subscription component where customers
can subscribe and get weekly deliveries
of their shopping list with free
shipping so in this case we can add the
subscription Revenue to the revenue
streams but in order to do this we need
to think about the other components and
see if we need to add to them as well
for example offering such subscription
might need us to invest in owning and
operating delivery trucks
so in this case we will add delivery
trucks to the key resources and delivery
to the Key activities
another tweak to the business model
could be to add a consignment component
to it that is by allowing other sellers
to come and showcase their merchandise
at Organics and sell to our customers in
return for a commission on each sale
in this case we are going to add
commission to the revenue streams and
add the sellers to the key partners
there are endless possibilities of how
retailers can innovate and tweak their
business models to grow their business
I'm going to leave a blank template for
this canvas for you to download from the
attachment so you can test different
business models and ideas and if you
want you can check out our retail growth
and expansion course where we get deeper
into business model Innovation and
present different Alternatives inspired
by other retail and non-retail
businesses so check it out
in the next lesson we are going to
explore the different functions inside
the retail business and learn about the
key responsibilities of each function
in order to deliver the value
proposition to the customers a retail
business needs to coordinate the
different functions of the business to
achieve the desired outcome
there are two types of functions the
core functions and the support functions
the core functions in retail are buying
merchandising Warehouse operations and
Retail operations the support functions
are the functions that support the core
business and build the firm's
infrastructure and these include
marketing HR finance and it
let's take a deeper look into how the
different functions integrate
in order for the business to create a
unique product assortment which is the
main value proposition of the business
it needs to identify and Source such
products at a reasonable cost price and
this is done by the buying function
however for that to happen the buying
function will need to have a buying
budget a dollar amount that they are
allowed to spend on sourcing the
merchandise
this is done through merchandise
planning which is also part of the
buying and Merchandising functions
merchandise planning creates an outline
for what needs to be sourced in order to
deliver the sales budget and gives the
buying team the amount to source with
and then they choose the individual
products and suppliers
but how does merchandise planning know
how much inventory we need to buy
this is based on two things the existing
inventory level that we currently have
and the forecasted sales that we are
expected to deliver
then a certain amount of new inventory
needs to be purchased to support those
sales figures and make sure the business
has enough inventory cover
the sales figures are obtained from the
final sales budget of the business which
is prepared by the finance function in
coordination with the operations
function
if you've worked in retail operations
you might have found an assignment
coming to you asking you to submit a
forecast of how much your particular
stores are expected to make for the next
period for example next year
this is used as an input to create the
final sales budget of the business which
is the main foundation for all the other
budgets including the final p l budget
as well as the buying budget
we explain this in more details in the
retail budgeting and planning course so
please refer to it on how to create such
budget
now that we have the buying budget and
merchandise plan and the buyers have
gone and chosen the products to Source
these products then get allocated to the
stores in adequate quantities that are
fit for each store and after the initial
allocation they get replenished on a
regular basis
the warehouse operations function
receives the order of allocation or
replenishment from the merchandising
function and stores processing it by
preparing the merchandise and then
delivering it to the stores
the operations function at the store in
coordination with the visual
merchandising function then takes the
merchandise from there and from here
another merchandise flow cycle starts
inside the store itself
the primary goal here is to send the
entire inventory allocated to the store
on time with minimal markdowns if
possible
this goal however is not always obtained
and in many cases the merchandising team
needs to use different strategies to
accelerate selling the merchandise on
time so that the new collections can be
launched in the stores also on time
to do this the merchandising team needs
to generate and monitor certain reports
on a regular basis to see what's selling
and what's not selling and to decide on
the options they need to take for those
products
apart from managing merchandise flow at
the store the operations team is also
responsible for delivering the sales
targets delivering a great customer
experience at the store and maintaining
the brand standards at the store by
operating according to the company's sop
throughout the entire process the
support functions operate behind the
scenes to support the core functions
for example the marketing team Works
mainly on driving traffic to the stores
and on building the brand equity and
positioning the brand in the minds of
the target market the HR team
facilitates the high rank of talent and
the talent management and development
process
the IT team makes sure the business has
the adequate I.T infrastructure and that
it's maintained all the time
the finance team manages all the
financial aspects from budgeting to
final reporting
this was in a nutshell how the different
functions work together to deliver the
value proposition to the customer
in the next lesson we are going to
explore the key success drivers for such
a business
there are three main keys to success for
a retail business these keys are they
need the right numbers and the customer
experience
in order to create a value proposition
the business first needs to identify a
need that is not filled by other
businesses in the market or is not
filled in the right way
to do this the business needs to
identify a specific Market segment to
serve and then create an assortment that
will appeal to this segment and then
position the brand in the Target
segment's mind so that they can identify
the retailer and buy from its stores
if we continue with the same example
Organics has identified an unmet need in
the market it realized that there is a
sizable segment of consumers who wish to
be able to eat organic food only and the
different grocery stores in the market
are not feeling this need for them at
the same time those consumers cannot go
and try to Source from Farm producers on
their own every time they need to buy
fresh produce so Organics has decided to
create a product assortment of organic
produce only and brings this assortment
closer to this target segment by opening
brick and mortar stores in their areas
and by serving them through its
e-commerce website
then the marketing team at Organics will
go out and create marketing activities
that will position the brand and the
minds of its Target consumers so that
they will come to the stores and become
customers
however in order for such business to
succeed all the numbers need to work
together
organic produce for example is not cheap
so Organics need to make sure it sells
this product at the right price and
maintain the right gross margin that
will allow you to pay for its operation
and generate a profit at the end
Organics customers are well off and can
afford the premium product like the one
Organics is selling they are also open
to pay for a premium delivery service on
subscription basis which will further
increase Organics Revenue
but what about a retailer serving
value-oriented customers which is a
bigger Market segment but will require
them to sell at low margins
a retailer that decides to serve
value-oriented customers with low price
products might find that in order to
deliver profit at the end the business
needs to turn its inventory faster so
that it can be able to sell at lower
margins and still deliver net profits
if you look at discount retailers for
example you will find that they have
higher inventory turnovers
same is the case for grocery stores and
pharmacies because they sell at low
gross margins
check out our benchmarks page for more
details I'm going to keep a link in the
attachment
so the key is not that the gross margin
needs to be high but rather how all the
numbers need to work together to
generate final profits this requires an
understanding of retail math and how all
the metrics are calculated and more
importantly how those metrics relate
together
we have compiled the cheat sheet for the
most used retail math formulas
I'm going to leave the link to it in the
attachment and for an in-depth study of
retail math and how the metrics work
together I encourage you to check out
our retail math fundamentals course
the final key to success is great
customer experience
you could find an unmet need and serve
it with a great assortment at healthy
margins but for the business to sustain
and grow and also to defend it against
the competition or new entrance you need
to be acquiring more customers and
keeping the existing ones without
churning the key to that is great
customer experience both at the stores
and afterwards this is done by building
and maintaining elaborate standards and
Sops for your retail business and hiring
a skilled operations team that knows how
to maintain this experience throughout
the different stores
a great customer experience completes
the cycle of the success triangle and
ensures that the next time the need
arises for your Target consumers they
will be choosing you again and giving
you even more profits otherwise if they
didn't have a good experience last time
they will escape your cycle and go to
the competition
so these have been the three main key
success factors for a retail business
how to know if a retail business is
doing well
there are different kpis that are used
to give a guidance on how a retail
business is performing these kpis
include
same store sales also known as comps or
lfl growth this metric shows if a retail
business is growing on like for like
basis like for like means that only the
sales of the stores that have been
operational last year and this year are
taken into account
it gives a good indication on the
trajectory of the business especially if
looked at over multiple consecutive
years
another metric for assessing performance
is gross margin
but as we explained earlier different
retail categories have different gross
margins because it depends on the type
of products and the frequency of
merchandise students that's why
assessing gross margins should be viewed
in light of the benchmarks for the
respective retail category and combined
with other inventory metrics
metrics related particularly to
inventory or inventory turnover and
gross margin return on inventory
investment they are combined with the
other metrics as we said to give a
better indication on the company's
returns and how efficiently it's
managing its inventory which is usually
the biggest asset for a retail business
the next metric is pre-tax profit margin
this gives an indication of the
company's profitability after all
expenses and before taxes
in the attached retail math formulas
sheet you will find all the formulas to
calculate the Matrix we just mentioned
finally to assess the financial
performance of the business the three
financial statements should be examined
most of the ratios we've just mentioned
are already calculated out of those
statements
these financial statements are
the income statement or p l the balance
sheet and the cash flow statement
the income statement gives a snapshot of
how the business has performed during a
particular period of time for example
last year or last quarter
when combined with the balance sheet we
can see a bigger picture of how this
business has been doing over the years
and cash flow statement shows us the
movement of cash in and out of the
business
of course there are also other metrics
and kpis that our department specific
and are used to further drill down into
the business performance and find out
what actually is happening and why
we get into the details of such analysis
in our course on retail business
performance analysis so make sure to
check it out when it's launched
there are two main areas to start a
career in retail management
operational roles and Commercial rules
we start with operational roles and get
deeper into it because this is where the
majority of people start their retail
careers
operational Rules start at the store and
the entry level position is the sales
associate
there is typically no experience
required for such a rule
people who show a certain level of
ownership and responsibility can then
progress to supervisory rules
then the next level and the first
managerial role is the assistant store
manager role
the assistant store manager is
considered to be a store manager in
training as he or she shares a lot of
responsibilities with the store manager
when the assistant store managers
develop their leadership skills to the
extent of being able to manage an entire
team and take full responsibility of a
retail store they are moved to store
manager rule
the store manager role is one of the
most important rules if not the most
important role in retail because it's
the link between the store and its team
and the corporate headquarters
the next step after managing a single
unit is to take responsibility of
multiple units and then officially
become an area manager or district
manager
typically a district manager is
responsible for three to five stores
a retail operations manager or regional
manager manages multiple districts
through the respective district managers
and finally the director of operations
is the one responsible for the entire
stool operations in all regions
as you go up this ladder you will need
to develop your leadership skills so
that you can manage bigger teams and
even multiple teams at multiple stores
the number of years of experience
doesn't matter here as much as the
degree to which you are able to
influence other people to get the job
done and how open they are to work for
you
many people get frustrated that they
have been in the business for many years
and seem to be stuck at one level and
not moving forward my advice to them is
always to work on the leadership skills
and show that they can actually lead
bigger teams
when you start moving past the store
level you will start to need other types
of skills in addition to leadership and
that is business Acumen when you aim to
take a management role and start being
responsible for cost centers with p l
responsibility you will need to
understand business because now you will
start to be a business manager rather
than just team leader managing
operational tasks on a daily basis
when it comes to commercial rules these
are roles in buying and Merchandising
they typically start at assistant level
for example a system buyer an assistant
merchandiser and then develop into
bigger roles and reach management level
where the manager is responsible for
multiple buyers or merchandisers for
different categories of products
what matters and Commercial roles is a
deep understanding for the different
products the business is selling and how
they are performing and contributing to
the business Top Line and bottom line
particularly for merchandising rules
understanding retail math is very
important as well as being comfortable
working with numbers and using Advanced
Excel functionalities to generate and
analyze reports
another career area within retail
related to merchandising is visual
merchandising it typically starts at
store level as visual merchandiser and
then VM manager and after that just like
operational rules it develops into area
visual merchandising manager and
Regional visual merchandising manager
where area and Regional VM managers are
responsible for VM across multiple
stores
working on the VM team requires being
more creative and artistic
starting a career in retail could be
very rewarding if you intentionally
manage your own career journey and know
where you want to go and work on your
own development for me personally it has
been a very rewarding Journey that took
me to many countries around the world
attending fashion shows dealing with
suppliers and sourcing products it
taught me how to deal with all the
different kinds of people from different
nationalities and backgrounds and above
all it taught me how to think
commercially and manage a business with
all its different aspects
this brings us to the end of this
introductory course on retail management
thank you for watching this course on
YouTube if you want you can complete the
course on our website for free by taking
the final assessment so that you can
download the certificate of completion
for the course
thank you very much and see you next
time
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