Retail Management

What is retail management?

Retail management is a process where those in charge of running a retail store are tasked with overseeing that store’s day-to-day operations and functions.

The goal of retail management is to be both customer and employee-focused. On the customer side, retail management is about helping customers find what they’re looking for, make purchases, and remain loyal to the business. For employees, retail management focuses on empowering and leading the team, encouraging them to work together to meet strategic business goals.

There are numerous tasks that fall under retail management, which is why most businesses choose to use dedicated retail management software to keep track of what needs working on. These tools help managers organize inventory purchasing and shipping, monitor sales activities, and provide real-time analytics and reporting about the store’s activities.

Types of retail management

There are different types of retail management to manage the wide variety of retail stores. These are typically arranged by: 

• Industry: Each type of store will face challenges that will require the retail manager to become a specialist in handling. For instance, a grocery store retail manager will need to know how to order and store inventory that may be perishable and maintain its freshness for as long as possible. A clothing store manager, though, will have to handle seasonal staffing to support busier times of the year and find ways to manage slow seasons.
• Organizational structure: The way a retail store is structured will also impact the type of management it has. Department stores may have independently managed brands that need to fit into a bigger organizational structure, which can impact the day-to-day work being done. Whereas standalone retail stores may have more flexibility in terms of how they’re managed and staffed as a one-off business.
• Inventory management approach: For those working with e-commerce platforms alongside a physical retail store, there will likely be a much heavier emphasis on technology and creating an omnichannel customer experience. Inventory management will be a critical part of this retail management experience, as information must be accurate across multiple stores and the warehouse that supplies website orders.

Basic elements of retail management

Retail managers have a long list of responsibilities. For most stores, the retail manager will oversee:

• Inventory and sales: One of the most important jobs a retail manager has is ordering stock according to customer demands and making sure everything is priced correctly. They must frequently communicate with suppliers and vendors and ensure that anything stocked in the store is easy to find.
• Warehouse operations: Retail managers often become the contact person between the offsite warehouse and the transportation team. This critical role ensures inventory is shipped correctly and of the expected quality.
• Payments and accounting: The retail manager is responsible for overseeing the daily financial status of the business. This includes monitoring sales figures, any return or exchange information, and ensuring that employees are paid correctly for the hours they’ve worked.
• Customer service: Keeping customers happy is one of the most important jobs a retail manager has. This can include helping them find what they’re looking for in the store, ordering items that may not be in stock, and resolving any problems or disputes the customer might have.

Benefits of retail management

Having an effective retail manager can make a significant difference in the success of a store. Some of the benefits that come with good retail management are:

• Improved customer satisfaction and loyalty: Happy customers will want to return to a store multiple times, and having a good shopping experience, thanks to the work put in place by a retail manager, can make the difference. A well-stocked and laid-out store can make shopping more pleasant for the customer, making them more likely to come back.
• Increased revenue for the store: When inventory is effectively managed, revenue can increase as there’s less wastage and customers aren’t stuck with products on backorder. The same is true of good pricing strategies. If the retail manager correctly times sales and promotions by analyzing market trends, the business can find the good balance needed to reach maximum profit.
• Enhanced competitive advantage: Knowing a retail business inside and out can help stores stand out in competitive marketplaces. Retail managers skilled at visual branding can offer innovative solutions that can boost a retail store’s presence in their local area.

Best practices for retail management

Managing a store well is a difficult skill to master. By following some simple best practices, retail managers can become more successful and grow their store’s revenue. These include:

• Hiring and training a great team: A good retail manager should be able to hire the best people to work with and provide them with training that makes their daily work easier. Hiring well can greatly impact the overall success of a retail business.
• Setting clear goals: It’s a good practice for retail managers to set daily goals for themselves and the wider team. These could be specific sales targets or tasks that must be completed before the close of business.
• Using technology effectively: There are plenty of apps and systems that can make a retail manager’s life much easier. Knowing which software to use that will ultimately create more time in the day and help the team and customers is an essential skill that retail managers should have.

Organize inventory more efficiently and gain a better understanding of online and offline merchandise with retail assortment planning software.