Although the limits of retailing have expanded over time, the basic elements that need to be known remain crucial. It is necessary to analyze the system based on balance, strategy and optimum process management in order to achieve success. The framework of the retailing system, where the customer element is located at the focal point, consists of concepts such as service, product quality, perception management, turnover, profitability and efficiency. The way to be successful in macro and micro retailing is to provide creative and distinctive services.
It is possible to establish the foundations of success in retailing through an effective communication and expectation-oriented working system. But it is also important to blend the underlying concepts. Because, a lot of dynamics play an important role in the purchasing decision of the customer, from the departments to the price policy, from the audience analysis to the sales planning.
We gathered four different concepts that we think will help you understand retailing better.
Stock Keeping Unit (SKU)
These are the special codes and numbers given to the products in order to ensure easy tracking of the product inventory. These numbers also prevent products from intermingling. SKU is referred to as the Stock Keeping Unit in English. You can make all the determinations for the stock code yourself. You can simplify your business management by creating your own codes. At this point, it is important to manually enter the stock code. Automated systems can generate random letters and numbers. This can lead to confusion. At the beginning of the inventory code, 0 (zero) and “L and I” should be used. Setting standards with a strict system at the beginning and giving importance to the stock code allows you to progress regularly from shelf order to order follow-up. This is one of the key elements of success in retailing.
As it can be understood from the name, the store is removing the product from the list. After this stage, the order is no longer available for that product. Delist for purchasing units is not a sudden decision. Managers do not choose to apply this route unless they are obliged. Because every delist transaction is reflected as a negative impact on company turnover. However, there may be problems between the demand and the supply side such as shipment, price or discount disagreements that may lead authorities to delisting. To put it another way, managers use this method to approach their procurement procedures. Therefore, unless the problem is caused by the suppliers, the delist situation is usually solved in a short time.
“First In, First Out”. Shelf arrangement is based on the arrival date of the product, which is a crucial procedure for food retailing. First-time goods are always sold first. The goods in stock are used sequentially starting from the first purchased goods. FIFO is a kind of cost method. It is the system that helps businesses to present their goods efficiently and not to harm their brand perception. In short, it is based on the principle that the goods entering the stocks are removed from the stock according to the reverse order of entry.
Retail sales are defined as a process that operates on the axis of these important concepts. In order to achieve the ultimate success in retailing, the service flow from manufacturers and wholesalers to consumers needs to proceed on a solid basis. Many factors such as mergers between stores, changing hands of stores, differentiation in scale or transition to chain store structure shape this structure.
Retailers who combine business forms with the dynamics of the past with today’s modern dynamics are always profitable. On the other hand, the dynamics that are becoming obsolete only pull stores back.
We all know customer satisfaction is at the core of retailing. However, each stage that is put into practice has its own subtleties. Pro-active practices and the ability to focus are the key elements of the path to success. In addition to brand management for changing customer perceptions, it is also important to create a realistic and reassuring brand culture. It is necessary to work with creative agencies and manage retailing with a serious general visual layout plan.
In short, professionalism is valuable at the point where horizontal and vertical display areas take place, where customer traffic is the most important point and metric tracking of sales performances is important. In order to reach professionalism in retailing, it is necessary to read the messages of the age in the most accurate way.