Retail Management

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Retail Management has become a very challenging job as the organisations are to face a rapidly changing socio-economic environment and to face stiff competition due to globalisation. Many universities in India have included retail management as a subject of study in the fields of Commerce at various levels.

Retail Management is universally relevant. The commerce curriculum is incomplete without a paper on retail management. Important retail management concepts have been explained in simple terms. Charts and diagrams have been given wherever necessary.

Retail Management focuses on the entire organization from both a short and a long-term perspective. Management aims to increase the effectiveness of organizations.

The principles of retail management are flexible, not absolute, and must be usable regardless of perspective.

Retail management

The word retail is derived from the French word retail, meaning to cut a piece off or to break bulk. In simple terms, it implies a first-hand transaction with the customer.

Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable.

Retailing involves a direct interface with the customer and the coordination of business activities from end to end- right from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today. 

In order to be sound, and effective, an organization must be governed by the following basic principles: 1. Clear definition of objectives and policies
According to this principle of retail organization, each employee must understand the objectives and policies of the store.

2. Duties and Responsibilities
According to this principle, the duties and responsibilities of each and every employee working at various levels in the retail store should be clearly defined. The line of authority must be clear from the highest to the lowest positions. All employees must be informed of their respective position, responsibilities in the retail organization and the persons to whom they are answerable and who reports to them.

3. Unity of Command
According to this principle, one employee working at junior level should be responsible to one direct supervisor. The purpose is to avoid any conflict regarding responsibilities of employees receiving orders from more than one supervisor.

4. Supervision and Control
According to this principle, even after delegating the authority, the supervisor still will be responsible for a manager's or employees' mistakes. He cannot get rid of the mistake done by his juniors or those who are to achieve the goal.

5. Interest in employees
According to this principle, the retail organization should show continuous interest in its employees, job promotion, employees' participation in management, internal promotion, efforts job recommendation, job enrichment, induction and so on; improve employee morale and efficiency.

6. Monitoring of Human Resource
According to this principle, issues related to employees like attendance, employee turnover, punctuality and absenteeism should be regularly monitored otherwise they can create problems for the retail organization.

7. Rule of Simplicity
According to this principle, simplicity in all sorts of operations is must for running a retail organization properly. There should be a limit to the number of employees'manager could directly supervise.

8. Responsibility and Authority...
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