Introduction to Retail Management

Introduction to Retail Management

1. Retail

   • is the last step in the distribution of goods, where products reach the final consumer through different channels.
   • Types
     • Store retailers (physical) and non-store retailers (such as e-commerce).
   • Example
     • RX Bars, as a DTC (Direct to Consumer) brand, sells directly to the consumer through its website and also through physical store retailers.
   • Categories
     • Stores are classified according to the products they offer, such as clothing, furniture, food, among others, following the U.S. industry classification system.

2. Business Model

   • It consists of buying in large quantities and selling in small quantities to the public at a higher price, which generates gross profit.
   • Innovation
     • Retailers can innovate by adjusting their business model, adding subscription or consignment components to increase revenue streams.

3. Company Functions

   • Core functions include procurement, merchandise, warehouse operations and retail operations, supported by marketing, human resources, finance and IT functions.

4. Retail Success

   • The three keys to success are the right number, customer experience and identifying an unmet need in the market.

5. KPIs for Retail

   • Like-store sales, gross margin, pre-tax profit margin and financial statements.

6. CATMAN

   • Collaborative process between manufacturers and distributors to manage product categories as strategic business units to improve results and provide value to the end consumer
   • Category Management is based on identifying.
   • What is it to be a captain?
     • To be a captain is: confidential,development of the category process, in-depth analysis of each category, assortments and shelf accommodation.

7. Difference between buyer and consumer

   • Often, the buyer is not the end consumer
   • The shopper often has multiple attitudes and purchase paths
   • The in-store behaviors that generate the different attitudes and shopping journeys
   • Shoppers they make and take the purchasing decisions