I’m willing to bet that Sears has touched almost everyone reading this post in one way or another. It’s worth looking up the history of the company online to get a feel for just how many facets of everyday life in the United States have, in some way, involved Sears. Read More
Retail can be generally defined as the sale of goods and services from companies directly to customers. Traditionally, a retailer will buy goods or products in large quantities from manufacturers, either directly from the manufacturer or indirectly through a wholesaler. These goods and services are then sold individually or in small quantities to the public, often in a store or similar center of business.
The retail store is the outlet by which products are offered to the consumer, allowing a means to offer products in a way that will maximize market availability while providing the consumer the greatest opportunity for value, variety and choice. Through the evolution of retailing, the concept of the store has progressed beyond the walls of a brick-and-mortar operation and into the realm of the Internet, with the emergence of e-commerce as an essential aspect of many retail operations.
Retail is a business, and the aim of a business is to make money and turn a profit. Yet the process is more complicated than simply buying a building, filling it with merchandise, putting in a register and hoping for sales. Upon looking at the retail industry from a global perspective, we must consider the elements that make a retail business successful and profitable:
- We have to establish an identity that will attract our core customers. Establishing our identity sets the tone for everything that follows.
- We want to provide a quality product at an attractive price. The basic principles of supply and demand: Provide a product that we know people will want to buy, and offer it at a price that we know they will pay.
- We need to display our product in a way that makes it desirable to purchase. This concept must reach beyond our visual display and extend to the appearance and efficiency of the store or site.
- Our entire approach to the business should have our customers in mind. We should take all necessary steps to make our customers feel that they are important, that we will take care of them, that we value their opinions and their business, and that we want them to return and offer us their future business.
- We should provide an environment where our customer feels welcome, comfortable, confident, safe and secure. Our business should provide an atmosphere where our customer wants to shop, and should reflect a culture that best fits the core customer.
The most successful retail operations apply these simple but critical concepts as essential aspects of their core business. Retail is a dynamic business, but it can also be a delicate business. Many retail operations that falter or fail do so because they have in some way lost sight of the core business model. Clear vision must permeate every aspect and every department within the organization in order for it to succeed.
Sales drive the retail industry. When we look to measure the overall success of the business, we look to sales first. Understanding this, it should come as no surprise that brand objectives, planning, and ideals are built around the concept of sales—whether via e-commerce channels or in a brick-and-mortar store. Yet while sales may provide the barometer for profits, it is ultimately profit that will determine the success or failure of a retail business.
Profit margins are precisely where loss prevention departments have the greatest opportunity to make an impact on the success of the business. Retail shrink is in fact lost profits. Successful loss prevention planning thus looks to maximize profits by limiting shrink and improving efficiencies while enhancing the impact on sales.
It is through the understanding of the fundamental concepts and operations of the retail industry that we develop strong and productive business partnerships. But understanding alone isn’t enough. There also must be an acceptance of these concepts, and that acceptance must be embedded in everything that we do and every decision that we make as part of the business.
EDITORS NOTE: Kevin Valentine, CFI, LPC, retired at the end of 2017 as senior vice president of internal audit, loss prevention, and enterprise risk management for Signet Jewelers. He spent more than 35 years with the company in various management roles. During his career, Valentine was active in the loss Read More
No pilot would ever dream of flying an airplane without the extensive use of pre-startup, pre-taxi and pre-takeoff checklists. Pilots know that checklists are the best way to ensure consistent operation—a necessary condition for safe flight. Read More
I don’t believe there is an accurate figure out there that gives a good indication of the cost impact of money laundering on the global economy, but I have seen figures estimating hundreds of millions to trillions. Read More
Today’s cash handling solutions offer a maze of options, and at the risk of being distracted by cat videos, YouTube provides useful tutorials on the range of choices and a chance to watch units in action. Read More
Some efforts that seem like a good idea don’t work. Just ask Walmart. Read More
The more retail e-newsletters and alerts you receive, the worse you may feel with the constant drumbeat of store closings, retailers filing bankruptcy, and elimination of jobs in our sector. Is this reality, or is it Chicken Little syndrome? Read More
More retail industry employers are using pre-employment screening tests to find better employees. Read More
Get the details on the hottest new trend in retail: Read our FREE Special Report, Top Omni-channel Retail Trends: A Guide to the Proven Value of an Omni-channel Retail Strategy.