fusion point research Marketing Research Reports

Marketing to Store Management in Retail

Understanding Their Role

Every year, retailers lose billions of dollars in revenue due to pricing errors, stock-outs, promotional mistakes and other lapses in execution.1 In surveys, only a small percentage of shoppers rate their trips as “a complete success.” In order to execute effectively, retailer operators need to manage an almost overwhelming list of duties.2 They must:

 

  • Maintain the physical facilities3
  • Continuously shelve thousands of products4
  • Monitor & measure store data5
  • Successfully work with suppliers and vendor partners6
  • Correctly price products including promotions and sales7
  • Hire and train new employees8
  • Schedule employees' time correctly9
  • Use store space efficiently10

 

Operation blueprints and retail management software help stores execute all of the required responsibilities. Retailers conduct performance audits of their stores to provide useful information on store execution, particularly if done following a large promotion or sale.11 Retail organizations are increasingly using mobile technology that allows employees and suppliers to monitor and obtain execution real-time data.12

 

Suppliers also have a keen interest in the ability of stores to execute consistently, since they spend hundreds of billions of dollars a year on marketing, promotional and merchandising efforts with retailers. Vendors are concerned when retail stores fail to keep the shelves stocked, get displays out on time, or update pricing correctly.13 Most suppliers say there needs to be significant improvement in collaboration with retailers on in-store level execution.14

“A typical supermarket is a complex operating environment. It carries close to 39,000 SKUs… receives multiple deliveries every day … has about 100 promotions a week and serves close to 2,500 customers a day.... It takes a lot of operational expertise to get the right product on the right shelf at the right time.” – Zeynep Ton, MIT Sloan School of Management.15

1 Behar, Justin. “Effective Execution.” Retail Merchandiser 54, no. 1 (2014): 5 – 7. EBSCOhost(94263882).

2 Street, Rod. “Perfect In-Store Execution: Unlocking the Value for Retailers and Manufacturers. IRI. October, 2014. Available at: www.iriworldwide.eu/Portals/0/articlepdfs/POV/IRI-...

3 “What the CFO Needs to Know...(cover story).” Chain Store Age 90, no. 4 (2014): 10 – 22. EBSCOhost(97055927).

4 Behar, Justin. “Effective Execution.”

5 Ibid.

6 Johnsen, Michael. “Survey: Room to Improve.” Drug Store News 36, no. 4 (2014): 24. EBSCOhost(95991206).

7 Ibid.

8 Ton, Zeynep. “Why ‘Good Jobs’ are Good for Retailers.” Harvard Business Review 90, no. 1/2 (2012): 124 – 131. EBSCOhost(69949032).

9 Ibid.

10 Berman, Barry, and Joel R. Evans. Retail Management: A Strategic Approach 12th Ed. Edited by Pearson Education, Inc., Prentice Hall., 2013.

11 Ibid.

12 Bahramipour, Bob. “How the Smartphone Army is Disrupting Retail Execution.” Retailing Today, May 2, 2014. Available at: www.retailingtoday.com/article/how-smartphone-army...

13 Behar, Justin. “Effective Execution.”

14 Johnsen, Michael. “Survey: Room to Improve.”

15 Ton, Zeynep. “Why ‘Good Jobs’ are Good for Retailers.”

Feedback?

Not Required

Submitting Form...

The server encountered an error.

Message received. Thanks!

Copyright © 2016 Fusion Point Research, Inc.

In-store personnel must continuously execute many different tasks to meet customer expectations. Failures in execution are costly for retailers, and they invest significant resources to improve performance.
fusion point research Marketing Research Reports
In-store personnel must continuously execute many different tasks to meet customer expectations. Failures in execution are costly for retailers, and they invest significant resources to improve performance.
  • Maintain the physical facilities
  • Continuously shelve thousands of products
  • Monitor & measure store data
  • Successfully work with suppliers and vendor partners
  • Correctly price products including promotions and sales
  • Hire and train new employees
  • Schedule employees' time correctly
  • Use store space efficiently