Unit 3: Store operations & layout

Recruiting and selecting

• Job analysis identifies the activities of the job; the job description lists duties; the job specification lists required qualities (communication, honesty, product interest).
• Sources: walk-ins, referrals, campus drives, job portals, social media.
• Selection tools: application form, interviews, references, tests; avoid discrimination.

Socialising and training

• Socialisation: the process by which new employees learn the store's values, norms and behaviours — reduces early turnover.
• Training methods: on-the-job (shadowing a senior), classroom, role plays, e-learning modules, structured product training by brands.
• Training content: product knowledge, selling skills, handling complaints, cash and POS, loss prevention, visual merchandising.

Motivating and evaluating

• Set specific, achievable sales goals; use incentive schemes (commission, contests), recognition (employee of the month) and a good climate.
• Evaluation: who evaluates (manager), how often (quarterly/annually), formats (graphic rating scale, sales per hour, mystery shopper scores).
• Common evaluation errors: halo effect, recency effect, leniency.

• Implement the retail strategy: design matches target customers and positioning (luxury vs discount).
• Influence customer buying behaviour: attract customers in, keep them longer, expose them to more merchandise.
• Provide flexibility: easy to change for new merchandise and seasons.
• Control design and maintenance costs.
• Meet legal requirements: fire safety, accessibility for differently-abled customers.

Trade-off: easy navigation for quick shopping vs exposure to more products for impulse buying.

• Free-form (boutique) layout: fixtures and aisles arranged asymmetrically; relaxed browsing, high cost, used in speciality stores and luxury boutiques.
• Feature areas: windows, entrance, freestanding displays, end caps (ends of aisles), promotional aisles, point-of-purchase counters, walls.

Space planning decides how much space to give each merchandise category and where to place it.

• Factors: sales and profit per square foot (productivity), inventory turnover, impact on store traffic, complementary products (shirts near ties), seasonal needs.
• Location within the store: impulse and high-margin items near the entrance and checkout; destination categories (milk, staples) at the back to pull customers through.
• Vertical placement: eye level is "buy level" — premium brands at eye level, cheaper or bulky items at bottom shelves.
• Planogram: a diagram showing exactly where each SKU should be placed on the shelf.

• Vertical merchandising: displaying vertically to match the eye's natural movement.
• Tonnage merchandising: large quantities stacked to signal low price (festive sales).
• Frontal presentation: showing the most of a product to catch attention (book covers facing out).
• Fixtures: straight rack, rounder, four-way, gondola.
• Atmospherics: lighting, colour, music, scent, temperature that influence mood and time spent.