Store Manager a mini CEO: Understanding Roles & Responsibilities

Transcription

1 Store Manager a mini CEO: Understanding Roles & Responsibilities

2 What according to you is the role of a CEO??

3 Mini CEO - Roles & Responsibilities CUSTOMER PEOPLE PROCESS FINANCE

4 CUSTOMER Customer Satisfaction Customer Loyalty program Customer Adoption (Know your BIG customers) Customer recovery process Customer listening program (FGD s)

5 CUSTOMER The Golden Rule Always think: How will it affect my customer? If I was in the customer s place, how would I feel? What do you see? What don t you see Is everything clearly marked? Is there someone to help you? What do you like? What don t you like? What would you like to change

6 CUSTOMER Customer Satisfaction Make customers feel comfortable by paying attention to every detail of the experience Customer Listening Program (FGD s) Understand the customer s concern in an environment which facilitates open talk Customer Loyalty Program Religiously make more loyalty members for long term relationship (Shopper Stop-72%, Lifestyle-55%) Relationships are the essence of customer service. Service = Sell Relationships

7 CUSTOMER Customer Adoption (Know your BIG customers) How many customers do I know personally? How many my team members know? Do I only talk business with them or make them be a part of my store -Holi celebration, sale previews, Anniversaries, etc Customer recovery process Speedy customer complaint redressal e.g: First customer in MM Forum value mall.

8 Attractive displays, Convenient floor plan & world class ambience are key to success I am willing to pay more if am comfortable Customer e.g. Volvo buses, Multiplexes, DTH, Lifestyle, Shoppers Stop, Central, Exclusive Brand stores

9 Kids section - Before

10 Kids section - After

11 PEOPLE Hiring Motivation / Empowering Training Performance Evaluation Listening (FGD s) Acting

12 Hiring: PEOPLE Hire The Smile Train The Skill Hire The Personality And The Confidence Motivating/Empowering: Push decision-making responsibility and authority down to the lowest level possible Appropriate and timely incentives Recognition reinforces the areas that should be continued Recognition meetings

13 PEOPLE TRAINING Training is required not only on the basics of running the store, or departments but also on ways to improve store s performance. (The best training programs answer the what, when and how. What additional training is necessary to continuously improve the skills of the store team. When should training occur? How should training occur to ensure an efficient and timely process) Performance Evaluation: Evaluate team s performance on weekly basis Enable them to function smoothly by addressing the roadblocks Act as a mentor not as a Boss

14 PEOPLE Listening (FGD s) Involve frontline staff in Problem Solving as well as Execution Store managers should establish formal store-level processes that allow staff to capture an evaluate ideas AI Research Acting Act on what you listen!!

15 PROCESS Inventory accuracy and forecasting Retail shrink as a percentage Compliance to statutory requirements Retail Operational Effectiveness

16 PROCESS Retail Operational Effectiveness: Improving bottom line/top line and customer service through enhanced operational effectiveness. Field managers and store managers need a toolkit of their own that guides them in creating and applying cost-reduction solutions. E.g.: 1. BREAKING DOWN PROCESSES INTO SUFFICINET DETAIL TO IDENTIFY ROOT CAUSES OF POOR PERFORMANCE 2. APPLYING THE OPERATIONS EFFECTIVNESS TOOL LEAN PRODUCTION TO THE CHECKOUT PROCESS

17 Operational Effectiveness involves breaking down processes into sufficient detail and identify root causes for poor performance Core Process Merchandise Flow Hours Per week In-store activities Hours per week Unload Stock 1000 Back stock 500 Tasks. Unload trailer. Checking. Preprocessing. Move to floor. Put away. Collect. Put in wareouse. Locate Hours per week Database Benefits Provides sufficient detail to Identify root causes of poor Performance Recasts economics along Process lines to eliminate The problem of different Job responsibilities In-store merchandising Change display Place Signs Price 200Changes Set Planogarm. Stock merchandise. Revise Planogram. Change and caps. Put up and remove. Maintain. Audit Allows for peer-to-peer comparisons Provides detail to quantify And value savings

18 BEFORE AFTER RESULT Checkout overcapacity Long Checkout Lines Applying the Operational Effectiveness tool LEAN production to Checkout process Cashier Supply Long checkout lines Checkout Demand > Checkout was viewed as a key function > Cashiers were staffed based on gut feel of the expected workload > There was limited assessment of checkout productivity and customer service > A mismatch existed between supply and demand, which resulted in - Low productivity - Pockets of poor service - Checkout overcapacity > Checkout is now viewed as core process across departments to facilitate flexible staffing > Staffing needs are analyzed day by day, hour by hour, based on queue length rather than throughput > Explicit overall and individual productivity and service targets were established Improved productivity 10-15% Enhanced service levels Raised employee morale

19 PROCESS Retail shrink as a percentage: Retail Shrink is the store level manifestation of a poor corporate profit plan Following global count as a process on daily basis and scan audit on a quarterly basis Loss prevention team and adapting best practices to control and reduce the same. Compliance to statutory requirements To ensure the all the statutory requirements and fees, licenses, etc.. are maintained and updated on regular intervals as required.

20 FINANCE Sales Per sq. ft. Gross Retail Margin(Private Label / High Stock Turns) Manpower cost as a percentage Sales/ Customer EBIDT

21 FINANCE Sales Per Sq. ft.: Total Net Sales Sq. ft. Manpower Cost as Percentage GMROL (Gross Margin return on Labor) Sales / Customer Result of store Conversions and Cash Memo size Total Net Sales Total Customers

22 Tips to increase Conversion Ensure each and every customer in the store is wished and greeted Never show back to the customers and work while customers pass through the aisle Ensure full options are at eye level display Make the section easy for customers to browse. ( ticketing and promo communication Usage of nesting table on new arrivals prominently near the aisle with bust on top of the nesting table, biz from all the nesting tables to be monitored. Ensure CSA s get the list of ratios on a weekly basis. E.g... Shirts vs. ties, trousers vs. belts, western wear top vs. bottoms, shirts vs. trouser etc.,. Ensure all the cut options are displayed in the last two racks with a tag mentioning as top seller, display them size wise. Schemes and promotions to be communicated to customers either by CSA s or by proper signage's at eye level. Section to be color blocked and size blocked always. Ensure you know the details mentioned on the tag of a product. Excess stocks should not be dumped on the floor. All the impulse products are neatly displayed as its a velocity item ( in bulks)

23 When the store conversions are low following to be identified and addressed. PRODUCT Ensure CSA s on the floor knows the store completely. Take CSA s store tour every month.( every one should know the store thoroughly). Ensure signage's are customer friendly Make customers spend more time in the store by various activity. Identify the bottle necks and constantly remove the same. ( lead time to be analyzed in all the area s) Ensure sections are adequately lit ANALYSIS Compare your store brand wise piecewise with higher conversion store. Analyze your own store brand/ sub class on higher conversion day vs. lower conversion day. Ensure high selling brands have adequate space to move around and adequate manpower to handle. Ensure all the CSA s are trained in basic product knowledge (customers are well informed). Analyze no of CSA s fully trained vs. new ones.

24 FINANCE The power of 10!! Target 90% 100% 110% Net Sales Gross Margin Operating Expenses EBIDT % to planned profit -60% 60% Since operating expenses are fixed, the margin - even a 10% drop in sales could result in a loss to the Company similarly, a 10% increase in sales would fetch the company good returns.

25 THANK YOU