Retail store optimization

India is becoming global power. There are changes in  economic policy and so to say we are opening up our economy.But one of the sector retail is still not opened.So to say the retail is more unorganized.There are more haats,kirana stores and unorganized retail.Organized retail constitute nearly 2% of India retail .There is huge market and potential for organized retail.

Many business tycoons have identified this and future group,shoppers stop aditya birla group and tata have eneterd this sector.But still there is lack of reach and people prefer to buy in kirana store then in any supermarket..Optimizing retail store is one of the biggest headaches faced by owners.

Only spencers group is expected to  reach break even on 2013.Rest all supermarkets are performing  dull and there are less foothalls in this supermarkets.Because of this these supermarkets  suffer from high inventory cost,carrying cost etc.

There are  simple techiques that will helpful in optimizing retail store:-

1.ABC analysis:This helps in monitoring inventory levels periodically.  This is a simple and powerful technique in order to monitor inventory.Essentially doing pareto analysis 'A' items will typically account for a large proportion of the overall value but a small percentage of number of items.

 2.Servqual model:India is famous for its customer service .But there are some stores/supermarkets that do not have efficient customer service.SERVQUAL model which measures service quality in any place.This helps in finding out service quality gaps and measuring service on 5 dimensions:-Tangibles,Reliability,Responsiveness,assurance and empathy.

3.Visual merchandizing: Visual merchandising is the activity and profession of developing floor plans and three-dimensional displays in order to maximise sales.This is not done to an extent that is required.Many hypermarkets/supermarkets do not have good layout design and also there is lack of cross docking