Prepare Products For Display CBLM LO1

Sector: Wholesale and Retail Trading
Qualification:
CUSTOMER SERVICES NC II
Unit of Competency:
PREPARE PRODUCTS FOR DISPLAY
Module Title:
PREPARING PRODUCTS FOR DISPLAY
SAN PEDRO TECHNOLOGICAL INSTITUTE

Crismor Ave., Elvinda Village, San Pedro Laguna
C S N C I I - PREPARING PRODUCTS FOR DISPLAY Page i

HOW TO USE THIS MODULE
Welcome to the Module “Preparing Products for Display”. This module

contains training materials and activities for you to complete.
The unit of competency “Prepare Products for Display” contains knowledge,

skills and attitudes required for a Customer Services NC II course.
You are required to go through a series of learning activities in order to complete

each of the learning outcomes of the module. In each learning outcome there are
Information Sheets, Operation Sheets, Job Sheet and Activity Sheets. Follow
these activities on your own and answer the Self-Check at the end of each learning
activity.
If you have questions, don’t hesitate to ask your trainer for assistance.
Recognition of Prior Learning (RPL)
You may already have some of the knowledge and skills covered in this module
because you have:
been working for some time

already have completed training in this area.
If you can demonstrate to your trainer that you are competent in a particular
skill or skills, talk to him/her about having them formally recognized so you don’t have
to do the same training again. If you have a qualification or Certificate of Competency
from previous trainings show it to your trainer. If the skills you acquired are still current
and relevant to this module, they may become part of the evidence you can present
for RPL. If you are not sure about the currency of your skills, discuss it with your trainer.
After completing this module ask your trainer to assess your competency.
Result of your assessment will be recorded in your competency profile. All the learning
activities are designed for you to complete at your own pace.
Inside this module you will find the activities for you to complete followed by
relevant information sheets for each learning outcome. Each learning outcome may
have more than one learning activity.
CBLMs on Customer Services Date Developed: Document No.

NC II May 2017 Issued by:
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SUMMARY OF COMPETENCY-BASED LEARNING MATERIALS

Prepare Products for Display WRT522301
Display
Selling Products and
Sell Products and Services WRT522302
Services
Interact with Customers Interacting with Customers WRT522303
Operate Retail Equipment Operating Retail Equipment WRT522304
Balance Register/Terminal Balancing Register/Terminal WRT522305
Performing Stock Control
Perform Stock Control Procedures WRT522306
Procedures

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TABLE OF CONTENTS
HOW TO USE THIS COMPETENCY-BASED LEARNING MATERIAL ………….. ii
LIST OF COMPETENCIES………………………………………………………….. iii
TABLE OF CONTENTS ………………………………………………………….. 4
MODULE CONTENT………………………………………………………………. 8
LEARNING OUTCOME #1 Demonstrate appropriate usage and understanding of words 7
LEARNING EXPERIENCES ………………………………………………………….. 4
Information Sheet 1.1-1: The Communication Process 9

Self-Check 1.1-1 14
Answer Key 1.1-1 15
Task Sheet 1.1-1 16
Performance Criteria Checklist 1.1-1 17
Information Sheet 1.1-2 Improving your vocabulary 18

Self-Check 1.1-2 30
Answer Key 1.1-2 33
Information Sheet 1.1-3 Common Idiomatic Expressions 34
Self-Check 1.1-3 37
Answer Key 1.1-3 38
Task Sheet 1.1-3 39
Performance Criteria Checklist 1.1-3 40
Information Sheet 1.1-4 Basic English Grammar 41
Self-Check 1.4-1 59
Answer Key 1.4-1 60
Information Sheet 1.1-5 Building Confidence in Speaking the English Language 61
Self-Check 1.1-5 63
Answer Key 1.1-5 64
References 65

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MODULE CONTENT
QUALIFICATION CUSTOMER SERVICES NC II

UNIT OF
Prepare Products for Display
COMPETENCY
MODULE TITLE Preparing Products for Display
INTRODUCTION:
This module involves the arrangement and presentation of merchandise within
the store. It includes the setting up and maintenance of displays and the labeling or
pricing of stock.
LEARNING OUTCOMES:
1. Place and arrange merchandise
2. Prepare display labels/tickets
3. Place, arrange and display price tickets and labels
4. Maintain displays
5.Protect merchandise
ASSESSMENT CRITERIA:
1. Merchandise are unpacked in accordance with store policy
2. Merchandise are placed on floor, fixtures , shelves and in determined
locations in accordance with store policy
3. Merchandise are displayed to achieve a balanced, fully stocked
appearance and promote sales
4. Damaged, soiled, or outdated stock are identified and required
corrective action are taken in accordance with store procedures
5. Stocks are rotated in accordance with stock requirements and store
procedures
6. Stock are presented in conformity with special handling techniques and
other safety requirements
7. Customer’s objectives desires and problems related to products or
services are identified and utilized follow-up questions.
8. The needs of different characteristics and personalities of customers
are met using an appropriate approach.
9. Verbal communication is translated into written or electronics
communication accurately and efficiently.
10. Written communication is produced according to accepted format
11. Active listening techniques to enhance the message reception are used.
12. Encoding is undertaken accurately and proficiently in accordance with
established standards.
Prerequisite:

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LEARNING OUTCOME SUMMARY
LEARNING
Place and Arrange Merchandise
OUTCOME #1
CONTENTS:
 Principles of display
 Elements and principles of design
 Trends in retail design
 Store policies and procedures regarding merchandising of stock
 Safety requirements related to the transport, storage and handling
of goods
 Relevant considerations such as but not limited to
o Location of display areas
o Availability and use of display materials
o Stock rotation / reshuffle
o Stock replenishment
o Stock classification or range
o Store promotional themes, including advertising, catalogues,
and special offers
1. Merchandise are unpacked in accordance with store policy
2. Merchandise are placed on floor, fixtures , shelves and in determined
locations in accordance with store policy
3. Merchandise are displayed to achieve a balanced, fully stocked
appearance and promote sales
4. Damaged, soiled, or outdated stock are identified and required
corrective action are taken in accordance with store procedures
5. Stocks are rotated in accordance with stock requirements and store
procedures
6. Stock are presented in conformity with special handling techniques and
other safety requirements
CONDITION:
Student/trainees must be provided with:
 References on principles of display

 References on elements and principles of design and on trends in
retail design
 Manuals on company policies and procedures regarding
merchandising of stock
 References on safety requirements related to the transport, storage
and handling of goods
 Company policies and procedures related to
o Location of display areas
o Availability and use of display materials
o Stock rotation / reshuffle
o Stock replenishment

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and special offers
EVALUATION METHOD:
 Written test / case study or scenario or situation analyses
 Oral questioning / interview
 Portfolio / third-party report
 Demonstration / practical test

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Learning Experiences
Learning Outcome 1
Place and Arrange Merchandise.
Learning Activities Special Instructions
Read and understand the information sheet and
1.Read Information Sheet 1.1-1 on Visual check yourself by the self-check. You must
Merchandising answer all questions correctly before proceeding
to the next activity.
2.Answer Self-check 1.1-1
Compare answer with answer key 1.1-1
3. Read Information Sheet 1.1-2 on Elements

and Principles of Display In this Learning Outcome you shall demonstrate
proper usage and understanding of words, apply
4. Answer Self check 1.1-2 the rules of basic grammar, basic communication
Compare answer with answer key 1.1-2 and rules of effective business communication in
customer service.
5. Read Information Sheet 1.1-3 on Trends in
Retail Design Go through the Information Sheets and answer
6. Answer Self check 1.1-3 the self-checks to ensure that knowledge of the
Compare answer with answer key 1.1-3 Standards in competency-based training are
7.Read information sheet 1.1-4 on Store acquired
Policies and Procedures
8. Answer Self check 1.1-4
After doing all activities of this LO, you ready to
proceed to the next LO
9.Read information sheet 1.1-5 on Stock
Rotation

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INFORMATION SHEET 1.1-1
Visual Merchandising
Learning Objective:
After reading this information sheet you should be able to:
1. Explain how the principles of display affect the marketability of the products
2. Demonstrate the different visual merchandising techniques.
Visual – relating to the sense of sight

Merchandising – Is a marketing practice in which the brand of image from one product or service is
used to sell one another
What is Visual Merchandising?

- Coordination of physical elements in place of
business, so that its project the right image to
its customers
- Change a “passive looker into active buyers”
- Responsible for total merchandise
- Overall business image
- Placements of design elements
- It is the activity and profession of developing
the floor plans and three dimensional displays
in order to maximize their sales
- The display of products which makes them
appealing and attractive
- It utilizes displays, colors, lighting ,smells and sounds
The Purpose of Visual Merchandising
 The purpose is to attract ,engage, motivate the customers towards making a purchase
 Both goods and services can be displayed to highlight their features and benefits
Principles of Visual Merchandising

 Make it easier for the customer to locate the
desired category and merchandise
 Make it easier to self-select
 Make it possible to coordinate and accessorize
 Educate about the product in an effective and
creative way
 Make proper arrangements in such a way to
increase the sale of unsought goods
Importance of Visual Merchandising
 Purposes are to sell products and promote store image
 Should always try to be different, new, and creative
 Change a “passive looker” into an “active buyer”
 Enhances brand image
 Generates impulse sales
 Overall business image
Errors to Avoid in Visual Merchandising

 Too much signage
 Confusing traffic patterns
 Too much propping

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 Disconnection
 between exterior
window and store
contents
 Poor lighting
 No point of view
 Inconsistency in visual executions

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SELF-CHECK 1.1-1
1. What is Visual Merchandising?

2. What is the purpose of Visual Merchandising?

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ANSWER KEY 1.1-1
1. Coordination of physical elements in place of business, so that its project the right
image to its customers
2. The purpose is to attract ,engage, motivate the customers towards making a
purchase

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Elements and Principles of Display
Learning objective
After reading this information sheet you should be able to:

1. Demonstrate the principles of display through arrangement of merchandise
2. Apply knowledge in Visual Merchandising
Objectives of a Good Store Design

Design should:
 be consistent with image and strategy
 positively influence consumer behavior
 consider costs versus value
 be flexible
 recognize the
needs of the
disabled
Objectives of the Store Environment
 Get customers into the store
(store image)
 Serves a critical role in
the store selection
process
 Important criteria include
cleanliness, labeled
prices, accurate and
pleasant checkout
clerks, and well-stocked
shelves
 The store itself makes
the most significant and
last impression
Once they are inside the store,
convert them into customers
buying merchandise (space
productivity)

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 The more merchandise customers are exposed to that is presented in an orderly
manner, the more they
tend to buy
Apparel Wall Presentation of the
Merchandise
INCORRECT
Fashion apparel wall presentation.
In the correct example, formal balance
is achieved by creating a mirror image
of garment on both sides of a center
line. This does not occur in the
incorrect example
INCORRECT
In this, Informal balance is achieved

because an equal amount of space is
filled on either side of a center line.
This does not occur in the incorrect
example.
SELF- CHECK 1.1-2
1. What are the elements of a

good store design?

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ANSWER KEY 1.1-2
 be consistent with image and strategy

 positively influence consumer behavior
 consider costs versus value
 be flexible
 recognize the needs of the disabled

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Trends in Retail Design
After reading this Information Sheet you should be able to:
1. Identify what are the latest trends in retail designing

2. Analyze the techniques in retail design
MERCHANDISE PRESENTATION
 The ways goods are hung, placed on shelves, or
otherwise made available to customers
 Shoulder-out
 Only one side shows
 Face-forward
 Hanging garment so full front faces viewer
METHODS OF DISPLAY
 Shelving
 Hanging
 folding
 Pegging
 Dumping
DISPLAYED
MERCHANDISE
 Should be current
 Represent styles and lines
 Should be well stocked
 In demand
 New (inform customers of what is available)
 Encourage additional purchases
 Promote current theme
 Look good on display
ELEMENTS IN VISUAL MERCHANDISING

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1. STORE FRONT
The exterior of a business. It
includes:
o Signs
 There are four
different types of
signs are:
a) Promotional Signs- For off-price
events or specials.
b) Location signs- For direction to
specific departments
c) institutional signs- Signs for the store policies
d) Informational signs-For product related benefits/ features/ prices etc.
o Marquee-The sign that is used to display the store name

o Entrances- Designed with customer convenience and store
security in mind.
There are several types of entrances each portraying a
certain image
 Revolving – upscale stores
 Push-Pull – full service stores often with fancy
handles
 Electronic – Self-serve stores, with carts such as
Wal-Mart, Meijer, and Kroger.
 Climate Controlled – shopping malls.
o Window Display
 The store’s FIRST IMPRESSION with the customer.
 Begin the selling process even before the customer enters
the store.
 Suggests the type of merchandise carried in the store
TYPES OF WINDOWS DISPLAYS
1. Promotional – promote the sale of one or more items by
using special lighting and /or props.
Skiwear with fake snow for accents
2. Institutional – promote store image rather than specific
items.
Designed to build customer good will, show that the
business is interested in the community
2. STORE INTERIOR
Affects the store’s image. Includes items such as:
o Floor & wall coverings
o Lighting- Used to direct customer’s attention to
the display and creates mood.
-Use more light for dark colors, less light for
light colors.
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-Beam spread; the diameter of the circle of
light.
 Flood lightning-Ceiling lights to direct
lights over an entire wide display area.
 Spot lightning-focuses attention on specific
areas or targeted items of merchandise
 Pinpointing- focuses a narrow beam of light
on a specific item
Colors-Color selection should be perfect.
o Help to make merchandise look more interesting.
o Color schemes help to create moods.
o Capture shoppers’ attention.
Example; in Christmas displays only complementary color scheme i.e. reds and
greens are placed next to each other in setting as no other scheme can accomplish
this
Fixtures- To make store’s wall merchandisable, wall usually covered with a skin that
is fitted with vertical columns of notches.
Most common types of fixtures:
Stands- Used in a variety or assortment window- from glass line to the back of the
display window
Platforms and Elevations- Platforms or Elevations can be tables and other pieces
of furniture that can be used to raise up a mannequin, a form or arrangement of
merchandise
Round rack- Circular racks on which garments are hung around the entire
circumference
Bin- A rimmed table or bin used to hold sale or special merchandise on the sales
floor, especially in discount operations; it has no formal arrangement
T-Stand- Freestanding, two-way stand in the shape of a T, that holds clothes on
hangers, sometimes with one straight Arm and one waterfall
Four way face out- A fixture with four extended arms, that permits accessibility to
hanging merchandise all the way around
 It is important to create a relaxing, comfortable place for customers to shop

 Customers shop longer & are more relaxed and spend more when they are
not pressed by crowds, delays & long line
3 STORE LAYOUT- The way the floor space is used to facilitate and promote
sales and best serve the customer
TYPES OF FLOOR SPACE
Selling Space- Includes:
o Interior displays
o Sales demonstration areas
o Sales transaction areas (wrap desk)
Merchandising Space- Allocated to items that are kept in inventory
o Selling floor
o Stock room area
o Personnel Space- Space for employees:
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1. break rooms
2. lockers
3. restrooms
o Customer Space- Comfort and convenience of customers:
4. Restaurants
5. Dressing rooms
6. Lounges
7. Restrooms
8. Recreation area for children
Once the floor space has been allocated, management & visual personnel spend a
lot of time planning the effective use of the space.
VISUAL DECISIONS
 What product are to go where
 Agencies – what products should be next to each other
 Where to put seasonal merchandise such as coats, swimwear and Christmas
items
 Traffic patterns
FLOOR LAYOUT
STRAIGHT FLOOR LAYOUT (Grid Design)
 Best used in retail environments in which
majority of customers shop the entire store
 Can be confusing and frustrating as it is difficult
to see over the fixtures to other merchandise
 Forcing customers to back of large store may
frustrate and cause them to look elsewhere
 Most familiar examples for supermarkets and drugstores
DIAGONAL FLOOR LAYOUT

 Good store layout for self-service type retail
stores
 Offers excellent visibility for cashier and
customers
 Movement and traffic flow in the store is smooth
ANGULAR FLOOR LAYOUT (Curve/Loop/Racetrack

Design)
 Best used for high-end stores
 Curves and angles of fixtures and walls makes for
more expensive store design
 Soft angles create better traffic flow throughout
the retail store
GEOMETRIC FLOOR LAYOUT (Spine Design)

 Is a suitable store design for clothing and apparel shops.
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 Uses racks and fixtures to create interesting and out- of- the – ordinary type
of store design without a high cost

MIXED FLOOR LAYOUT( Free Flow Design)

 Incorporates the straight, diagonal and angular
plans
 Helps generates the most functional store
design
 Layout moves traffic towards walls and back of
the store
KINDS OF DISPLAYS
1. Closed Displays
2. Open Displays
3. Architectural Display
4. Point-of-Purchase
5. Store Decorations
Store decorations
 Decorations for holidays such as Christmas, Halloween and Valentine’s Day
 Interior displays use fixtures and props to showcase merchandise
 Props are generally classified as decorative or functional
 Objects added that support the theme of the display
Types of Props
 Functional Props - practical items for holding merchandise such
as mannequins and shirt forms
 Decorative Props -Only purpose is to enhance merchandise.
Items such as trees, tables, cars.
 Structural Props -used to support functional and decorative props
and change the physical makeup of displays. (boxes, rods, stands,
stairways, etc)
IMPORTANCE OF INTERIOR DISPLAYS
 Show the customer what’s new
 Show customer how to put together a total look
 A good display helps create multiple sales
 Customers want to look like the display
 Customers want you to show them what to wear
 Often convey a common theme through out the store
 Animal prints, patriotic theme
 Used to tell a color story
 The large display in a store including the mannequins & wall displays are
usually set up by visual department
 Small table displays and fixture top displays are usually set up & maintained
by the individual department staff
 It is important to change departmental displays frequently
INTERIOR DISPLAY LOCATIONS
 Should be chosen to maximize merchandise exposure

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 Just inside store entrance
 At entrances to departments
 Near cash/wrap counter
 Next to related items
 By elevators and escalators
 Open-to-mall areas
WHEN TO CHANGE THE DISPLAYS
 When new merchandise comes in
 Just to change around the pieces of a group that has been on the floor for
awhile
Gives the group a new look
 The same customers walk through your department every week – you want it
to look fresh
 You want to give them a reason to buy
WHAT TO USE FOR SUCCESSFUL DISPLAYS
 Mannequins
 Realistic
 Semi realistic
 Abstract
 Semi-abstract
 Headless
 Alternatives to mannequins
 Three quarter forms
 Articulated artist’s figures
 Dress forms and suit forms
 Drapers
 Hangers
 Lay down techniques
 Pin up techniques
 Flying techniques
 Fixtures
Atmospherics
The design of an environment via:
 visual communications
 lighting
 color
 Sound
 Music viewed as valuable marketing tool
 Often customized to customer demographics
 Can use volume and tempo for crowd control
Scent
 Smell has a large impact on our emotions
 Victoria Secret, The Magic Kingdom, The Knot Shop
 Can be administered through time release atomizers or via
fragrance-soaked pellets placed on light fixtures

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 To stimulate customers’ perceptual and emotional responses and ultimately
influence their purchase behavior
Visual Communications
 Name, logo and retail identity
 Institutional signage
 Directional, departmental and category signage
 Point-of-Sale (POS) Signage
 Lifestyle Graphics
 Coordinate signs and graphics with store’s image
 Inform the customer
 Use signs and graphics as props
 Keep signs and graphics fresh
 Limit sign copy
 Use appropriate typefaces on signs
 Create theatrical effects
CONCLUSION
 Visual merchandising is first and foremost strategic activity.
 Put your best-selling merchandise in your best-selling space.
 If you only do one thing with your store, make it professional.
 The storefront, tell the right story about what kind of merchandise is available
 Invest proper signage to take your store to the next level.

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SELF-CHECK 1.1-3
Essay: What is the importance of interior display?

:

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ANSWER KEY 1.1-3
 Show the customer what’s new

 Show customer how to put together a total look
 A good display helps create multiple sales
 Customers want to look like the display
 Customers want you to show them what to wear
 Often convey a common theme through out the store
 Animal prints, patriotic theme
 Used to tell a color story

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Store Policies and Procedures
Learning objectives:
After reading this Information Sheet you should be able to:
1. Apply the concepts of design according to store policies and procedures

2. Understand the importance of following the store policies and procedures for
preparing merchandise
The way that a store maintains merchandise displays will vary, depending on store
size, location and a range of other factors. Large stores may have policies and
procedures in place for how and when they monitor stock levels, rotate and move
stock, discount prices and take down the display.
Monitoring stock levels

All stock on display will have an optimal display level, ie the number of each item that
should be on display. The table gives some of the reasons why optimal display levels
vary from store to store.
REASON FOR VARIATION EXPLANATION

In a clothing store, a range of shirts comes in sizes 8 to 16 and the store keeps two of
each size displayed on the rack. This is because customers tend to only buy one shirt
at a time, therefore the stock turns over relatively slowly.
Type of stock In a supermarket the policy is to have 12 cans of soup displayed on the shelf because
customers often buy several at a time, therefore the stock turns over relatively quickly.
Amount of space The size of the store and range of products carried can limit how many
individual items can be displayed.
Seasonal variations/special Events such as Christmas will affect the type and amount of stock that is
events displayed.
Shelf coverage The size and type of shelves and fixtures in the store can have an effect on
how much stock is displayed. Stores aim to make shelves look full to help
create a full, attractive and balanced display.
Displays should be regularly monitored and items should be replenished to the

required optimal display level when stocks run low. This should continue until the stock
is sold, the promotion ends, or according to store policy.
Rotating stock
It's a common practice in many stores to rotate stock. This means moving stock that
has been on display the longest to the front of the display. Any stock brought from
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storage to replenish a display should be placed behind existing stock on the shelf. This
is particularly important for perishables with a use-by date. This is known as the FIFO
policy – First in, First out. More information about FIFO can be found in the Stock topic
of the Policies and procedures training room.
Moving stock
Some displays, especially the more portable ones such as gondola racks, can be
moved around different locations in the store during a promotion to take advantage of
the traffic flow in the store. This can be done to make way for newer displays, when
items are discounted for quick sale, or according to store policy.
Tidying stock
As well as monitoring for stock levels, retail operators should check displays regularly
to make sure stock is neat, tidy, safe and within reach of customers.
If a store is busy or a promotional display is popular, then items may be out of place
or messy. A table full of jumpers on display may need to be folded and placed back in
size order. A dress may have slipped off a hanger and be on the floor. A box of cereal
may have been picked up by a customer and put down again in the biscuit aisle.
If left, these examples could lead to:

o a tripping incident or accident
o damage to stock
o the store looking messy
o frustrated customers because they can't find what they're looking for.
Discounting stock
Stock is discounted for a number of reasons, e.g. to clear it and make way for new
merchandise, as part of a special promotion, or to sell excess stock.
Often, stock that is part of a display will be discounted towards the end of its display
cycle. Sometimes, it may be discounted twice – 'marked down' and then 'priced to
clear'. This strategy is particularly used for perishables that might be nearing their use-
by date.
Think about the signs you might have seen:

o Priced for quick sale
o Priced to clear
o Marked down
o Old stock
o Clearance.
Chances are these signs have been displayed as part of the discount stage of a
merchandising cycle.
Removing the display

This is the last stage of the merchandising cycle. Goods might be almost sold out or
new stock may have arrived to take their place. The season in which the stock has

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been sold may be coming to an end and it's no longer appropriate to replenish the
shelves or discount remaining stock.
Just as when you set up a merchandising display, the most important thing to
remember when removing the display is safety.
Try to remove the display with minimal impact on the customers and other staff in the
store. This might mean waiting until closing time in a busy store.
Use lifting equipment if the items you are removing are heavy.
Be careful if you need to remove props and stock that are on high shelves. Use a safe
step ladder or something similar. Don't climb on shelves or counters that may not be
able to hold your weight.
Once you have removed stock on display, you need to store or discard it. Follow store
policies and procedures for this stage of the display cycle.

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SELF-CHECK 1.1-4
1. What is FIFO?
2. Why do we need to rotate stocks periodically?

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ANSWER KEY 1.1-4
1. FIFO means First In First Out.
2. It is effective to rotate stocks to show that products are always fresh and are made
available to customers

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LEARNING
Prepare display labels/tickets
OUTCOME #2
CONTENTS:
 Manual and electronic ticketing equipment and corresponding
manufacturers’ instructions and design specifications, including those on
use, maintenance, and storage
 Manual and electronic ticketing equipment and corresponding company
policies and procedures on security
 Pricing requirements and corresponding manufacturers’ instructions and
design specifications, including those on use and maintenance
 Store procedures on preparation of tickets
 Enterprise standards regarding the quality of labels and tickets
 Enterprise policies regarding the preparation of labels and tickets for
window, wall, and floor displays
1. Electronic ticketing equipment and pricing requirements are used and
maintained in accordance with manufacturers’ instructions and design
specifications
2. Tickets are prepared in accordance with store procedures
3. Soiled, damaged, illegible or incorrect labels/tickets are Identified and
corrective action taken
4. Labels/tickets for window, wall or floor displays are prepared in
accordance with store policy,
5. Ticketing equipment are maintained and stored in a secure location
CONDITION:
Students/trainees must be provided with the following:

 Ticketing equipment and pricing requirements such as but not limited to
o Pricing gun
o Shelf tickets
o Shelf talkers
o Written labels
o Swing ticketing
o Bar coding
o Price boards
o Header boards
 Users’ manual per electronic ticketing equipment
 Reference on company policies and procedures regarding use,
maintenance, storage, and security of ticketing equipment
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 Reference on company policies and procedures on the preparation of
tickets
 Reference on company standards on the quality of labels and tickets
 Reference on company policies on the preparation of labels and tickets
for window, wall, and floor displays
 References on relevant legislative requirements, including Goods and
Services Tax (GST) requirements

and special offers
EVALUATION METHOD:

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Learning Outcome 2
Prepare display labels/tickets.
Read and understand the information
1.Read Information Sheet 1.2-1 on sheet and check yourself by the self-
Operating the Ticketing Machine check. You must answer all questions
correctly before proceeding to the next
2.Answer Self-check 1.2-1 activity.
Compare answer with answer key 1.2-
1
3. Read Information Sheet 1.2-2 on

Using the Ticketing Machine In this Learning Outcome you shall
demonstrate proper usage and
4. Answer Self check 1.2-2 understanding of words, apply the rules
Compare answer with answer key 1.2- of basic grammar, basic communication
2 and rules of effective business
communication in customer service.
Pricing Requirements Go through the Information Sheets and
6. Answer Self check 1.2-3 answer the self-checks to ensure that
Compare answer with answer key 1.2- knowledge of the Standards in
3 competency-based training are acquired
7.Read information sheet 1.2-4 on
Ticketing and Labelling
Compare answer with answer key 1.2- After doing all activities of this LO, you
4 ready to proceed to the next LO
9.Read information sheet 1.2-5 on
Quality of Tickets and Labels
5
11. Perform Job Sheet 1.2-1

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Operating the Ticketing Machine
Label dispensers and label applicators are

machines built to simplify the process of
removing a label from its liner or backing tape.
Some are bench-top for dispensing the labels
while others include the application of the label
to the item (such as a package).
Label dispensers are generally intended to
dispense a label to an operator who manually
applies the label to the package. They are
designed with varying sizes and features which
are often specific to the type of label they can
dispense and to the degree of automation
desired.
Label applicators are usually part of a larger
packaging line. They receive the package from a previous automation stage, apply
the label, and feed the package to the next stage in the packaging line.
Label dispensers have many uses. Imagine how many items you purchase have
labels, almost everything. Those labels were either applied by a machine or by hand,
and most likely were peeled from the backing paper using some sort of label dispenser.
Some of the more popular are bulk mailing, manufacturing, packaging, food and
beverage, fast food, photo labs, and more.
A price gun is a tool used in small and large retail outlets to label products with price
stickers of varying sizes. While there are a wide variety of pricing gun manufacturers
that offer different styles and features, most pricing guns operate in a similar manner
i.e. dispensing price labels from a roll.
Using a price gun enables speedy price-marking for products and over-pricing for
price reductions for sales or special offer items etc. One of the best benefits of the
hand-held price gun is its efficiency and mobility i.e. they are small and lightweight
and can be easily taken to the location where the products need to be labelled in
store. The gun is held in one hand and by pulling the handle upwards the leading-
edge of the roll of labels is pulled through the gun by its internal mechanism and
thereby partly ejects one sticker out of the 'mouth' of the gun ready to be applied
directly onto the product. The used backing paper is automatically separated from
the labels as they are dispensed and that generally comes out the rear of the price
gun ready for tearing off as required by the operative. Please see image and
explanation.[1]

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There are two types of tagging guns, fine fabric and standard. Fine fabric guns are
used for delicate materials such as silk and standard is generally used for general
garments e.g. coats and knitwear etc. 'Taggers', as they are often referred to, are used
widely in the retail industry for applying card material, store branded swing tickets,
preprinted with product details and price etc., onto garments of all kinds.
Electric Semi-automatic label dispensers were first patented in the early 1970s.
They were originally designed for multiple-row address labels for bulk mailing houses.
On average a good mailing house employee could apply approximately 500 labels per
hour to envelopes. The label dispenser increased this to over 2,000 per hour. These
dispensers advance individual or multiple-row labels and remove them from their lining
similar to a manual dispenser, but instead of manually pulling on the liner, label
advancement occurs when a trigger on the dispenser detects the absence of a label,
such as when the operator removes the label. The sensor then closes the circuit and
engages the motor, dispensing the next label until the sensor once again detects the
label which opens the circuit. The first electric dispenser was designed with the limit
switch on the left of a 16" wide machine. 4-up multiple-row labels were loaded into the
machine and once activated would advance one row of labels. The operator would
take the labels from right to left, so that when the leftmost label was taken, the next
row advanced, automatically providing a constant supply of labels to apply. The labels
are also peeled without the natural curl that will happen when pulled from the backing
paper with fingers. Also, only one hand was needed to take the label, the other hand
could be used to move the material the label was being applied to.
Semi-automatic label dispensers are often built to withstand industrial conditions.
Label applicators are fully automated and can range from simple slower speed models
to large machines capable of applying hundreds or even thousands of labels per
minute.
Applicators advance the label stock over the peeler plate until a portion of the label,
called the "flag," is extended into the path of the oncoming package. When the
package engages the label flag, the label web is advanced to match the speed of the
package and label is either tamped or wiped on to assure adhesion. Proper alignment
of the label on the package depends on sensors that sense the location/orientation of
the package and label sensors that detect the location of the label edge. Package
sensors can be a variety of Position sensors, often optical sensors or Ultrasonic
sensors. Label sensors are usually photoelectric sensors because they are
inexpensive. But clear labels cannot be detected by photoelectric sensors. Capacitive
and ultrasonic technologies are used for clear label detection

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SELF CHECK 1.2-1

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ANSWER KEY 1.2-1

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Using the Ticketing Machine
The retail industry is a highly competitive industry. To maintain this competitiveness

the industry has always been at the forefront of new technologies. Retail equipment
has become so sophisticated that one piece of equipment has not only replaced
several older pieces but it has also reduced the number of staff needed to run the
store.
Today, computer based systems are so multi-functional that many tasks have
become automated. Self-Checkouts or checkouts totally operated by the customer
are now being assessed in Australia and if successful will also reduce the need for
many Point of Sale operators. These systems operate in European countries and
operate in many Australian Libraries and Capitol city Airports
Many larger retail stores use electronic ticketing equipment to create price tickets.
Sometimes the tickets are created in Head Office so that all the stores within that
company have price and ticket conformity.
Price tickets usually include the following information, whether they're printed or
written by hand:
 size, or quantity, of the merchandise

 date code
 bar code
 price per unit
 identification code

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SELF CHECK 1.2-2

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ANSWER KEY 1.2-2

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Pricing Requirements
Display tickets will be provided by the Visual Merchandising Manager upon request.
This will ensure that company standards for display are maintained. No handwritten
display tickets are to be seen at Harriotts. To request a display ticket, the following
information must be provided:
There are five basic parts of a display ticket.
1. The lead line – a short, catchy line eg. ‘Today only’, ‘Reduced’ or ‘New’.
2. The head line - this should identify the merchandise, eg. ‘New Summer Suits’.
3. The descriptive line - this tells the customer about the merchandise especially
the benefits that aren’t obvious, eg. “Made from cool wool”.
4. The price line - tells customers the price of the merchandise. The cents are
written smaller than the dollars to avoid confusion.
5. The base line - describes the quality, conditions or weight of the merchandise,
eg. “While stocks last”.
The Visual Merchandising manager will provide coordinated display material for all
store-wide promotions. Department managers will be given guidelines for the erection
of store-wide promotional material.
8. Maintaining Correct Pricing Information

There are government regulations to ensure that information on tickets is accurate
and appropriate for the goods they describe.
Harriotts must adhere to the Fair Trading Laws. These laws are:

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I. All tickets must describe the merchandise truthfully in terms of the
standard, quality, value, grade, composition, style, price or model.
II. If a ticket has more than one price on it then it is unlawful to sell the
goods for more than the lowest price. The goods can either be sold at
the lowest price or withdrawn from sale.
III. A ticket must state the item that is for sale and the full cash price for that
item, including all parts of that item.
There is a second regulation that applies to supermarkets. This is the Australian code
of practice for computerised checkout systems in supermarkets. This code doesn’t
apply to Harriotts but it’s handy to know what it covers. This code states that:
I. If the price displayed at the checkout and on the receipt is higher than
the shelf label or ticketed price, then the customer is entitled to receive
that item free of charge.
II. If multiple items are scanned and the scanned price is higher than the
shelf label or ticketed price, then the first item is given free and the
remaining items are charged at the lower price.

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SELF CHECK 1.2-3

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ANSWER KEY 1.2-3

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Ticketing and Labelling
Correct pricing of merchandise is essential to the efficient running of a retail business.

With the advances in technology this task has become very automated and equipment
such as that above is now commonplace in many businesses. These devices are
accurate, cost saving and labor saving.
Retailers understand that selling the right product for the right price at the right time
is what makes a business profitable. While retail pricing strategies may vary from
one business model to the next, implementing good pricing practices should be a
standard for all retailers. Not only do good pricing practices improve customer
satisfaction but it also assures compliance with the law.
Pricing errors can cost a retailer much more than a dissatisfied customer.
Poor pricing practices can result in undercharges that drain a retailer's profit.
Haphazard or inefficient pricing can also lead to civil or criminal fines if a retailer is
convicted of charging more than the advertised shelf price.
And then there is the vendor MAP pricing to contend with. MAP or minimum
advertised pricing policies are set by vendors to ensure the integrity of the pricing its
products is maintained at retail level. Simply stated, the vendor sets a maximum
price you can advertise a product for in your ads or on your website. If you go below
this price, they have the right to refuse to sell to you.
Here are some tips in pricing
1. Develop written procedures for all forms of pricing activity in your store.
Include ways to ensure that the price in the store's computer matches the
posted or advertised price. Remember that your customer expects to receive
the lowest price posted or advertised.
2. Develop training programs for store employees that stress your commitment
to accurate pricing.
1. Designate a pricing coordinator for your store. Usually best for the Assistant
Manager to do this since it is also a great development opportunity for him or
her.
2. Give one employee responsibility for the accuracy of prices of all Direct Sale
Delivery items. Make sure DSD vendors check with the pricing coordinator
before they do any pricing.
3. Check prices of a random sample of items - 50 or so - every day to ensure
that the price in the store's computer matches the posted or advertised price.
4. Make sure prices in every aisle, section or area of the store are checked
several times a year. This is the only way you will find all of the undercharges.

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5. Have the inventory audit team conduct a pricing audit while they're doing an
inventory audit.
6. Use hand-held scanners to speed price audits. Your wholesaler may be able
to provide them.
7. Use a portable label printer during price audits to immediately replace
incorrect or missing shelf labels.
8. Offer your customers a reward if they are overcharged. Giving one item free
(up to a maximum dollar value) to any customer who correctly reports an
overcharge builds customer loyalty and support.

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SELF CHECK 1.2-4

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ANSWER KEY 1.2-4

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Quality of Tickets and Labels
A "label" is any label, mark, sign, device, imprint, stamp, brand, ticket or tag.
Labelling
1. FALSE AND MISLEADING REPRESENTATIONS

Section 7 Act
Section 7 of the Act prohibits false and misleading representations relating to
prepackaged products. All information on a package, whether in symbols or words,
must be neither false nor misleading to the consumer.
Misleading representations can come in many forms. These include, but are not
limited to, the following:
1.1 Net quantity representations

Subsections 7(2)(a), 7(3) Act Sections 38, 39(4), Schedule I Regulations
Any representation which gives the impression that a package contains more
product than is actually contained in it may be a violation of this section.
 Misleading Pictorial Representations

For example, a package that is correctly labelled as containing 4 plastic place
mats that also has a picture of a table setting with 6 plastic place mats may,
without further qualification, be in violation of the Act.
 Qualifying Statements
Any representations which may reasonably be regarded as qualifying the net
quantity of a product, for example "Family sized litre", may be in violation of
the Act.
 Incorrect Net Quantity Declaration
The actual contents of packages must not be less, on average, than the
declared net quantity. In addition, only a limited number of packages are
allowed to contain less than declared quantity by more than the prescribed
tolerance which is set out in Schedule I of the Consumer Packaging and
Labelling Regulations. Detailed information on the accuracy requirements for
net quantity determination is available from the Competition Bureau, Industry
Canada.

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1.2 Product composition representations
Any representation which deceives a consumer with respect to the composition of a
product may be a violation of this section.
 Included Substances
A prepackaged product should not claim that it contains a substance when in
fact it does not. For example, if the label on a product claims that it
"contains lemon" when it contains no lemon, then the label may be found to
be misleading.
 Excluded Substances
A prepackaged product may not claim that it does not contain a substance
when it actually does. This same product label may also claim that it contains
"no irritants". If it can be shown that the product contains a known irritant, then
the label may be found to be misleading.
1.3 Other descriptions or illustrations

The product must conform with any other claims made which may, for example,
relate to its type, quality, performance, function, origin, or method of manufacture.
Some examples of claims include:
Quality
Refurbished telephones being represented as "new"
Method of Manufacture
A product being represented as "hand made"
Origin
"Made in Canada"
Function
Environmental claims such as biodegradable, recyclable
Performance
 A product which claims to improve gas mileage in a car

 Minimum system requirements to run a software package
 Freezing point of windshield washer antifreeze
Capacity
A 2 litre kettle
2. MANDATORY LABEL INFORMATION

Section 10 Act

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There are three mandatory statements which must be shown on a label. The
regulations specify the manner and location in which the following statements must
appear:
 product identity
 product net quantity
 dealer's name and principal place of business
Example of Liquid and Viscous Products with Mandatory Label Information:
A. Product Identity Declaration

B. Net Quantity Declaration
C. Dealer Name and Place of Business
2.1 Product identity declaration

The product identity declaration is a statement of the product's common or generic
name, or it may be defined in terms of its function.
2.1.1 Definition
Section 10 Act Section 30 Regulations
The product indentity declaration is a statement of the product's common or generic
name, or it may be defined in terms of its function.
2.1.2 Language

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Subsection 6(2) Regulations
The product identity must be shown in English and French. In some cases a product
identity declaration is bilingual in and of itself, such as "cologne" or "serviettes".
2.1.3 Location
Section 12 Regulations
The product identity must be shown on the "principal display panel" of the package.
Refer to Section 2.5 for the definition.
Where there are two or more principal display surfaces that are of equal size and
prominence as the principal display panel, the product identity and net quantity
declarations can be shown in only one of the official languages on one surface if
such information is shown in the other official language on one of those other
surfaces.
2.1.4 Type face

There is no restriction on the type face which may be used. However, this
information must be easily legible to the consumer.
2.1.5 Type height

Sections 14, 15 & 16 Regulations
The type height must be a minimum of 1.6 mm (1/16 inch) where upper case letters
only are used. If upper and lower case, or only lower case letters are used, the type
height should be measured in relation to the lower case "o". For example, whether
the product identity is shown as "Shampoo", "Shampoo" or "shampoo", the type
height for the letter "o" must be a minimum of 1.6 mm.
In certain cases, where the container has a principal display surface of 10 square
centimetres (1.55 square inches) or less, the minimum type height may be reduced
to 0.8 mm (1/32 inch). Refer to section 16 of the Regulations for details.
2.1.6 Exemptions
Subsections 5(1) & 5(3) Regulations
Under certain conditions, when the product is usually sold by count and is packaged
in such a way that it is visible and identifiable, or the label has an accurate pictorial
representation of the package contents, an exemption from declaring the product
identity may apply. Please refer to subsections 5(1) and 5(3) of the Regulations for
details.

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2.2 Net quantity declaration
2.2.1 Manner of declaring

Subsection 4(1) Act Sections 21, 22, 23 & 36 Regulations
Generally the net quantity should be expressed:
 in metric units of volume, when the product is a liquid, a gas, or is viscous; or

 in metric units of weight, when the product is solid; or
 by numerical count when the product is sold by individual units.
However, if there exists an established trade practice with respect to the manner of
declaring the net quantity, it must be expressed in accordance with such established
trade practice.
Example of Product Sold by Length:

Where a product is declared by count, and the package contains only one unit, the
net quantity may be considered declared by the product identity declaration in its
singular form. Where this option is exercised, it is advisable to display the product
identity using the minimum type height specified for the net quantity declaration
(Please refer to Table 1).
Example of Label for a Product not Requiring Net Quantity Declaration:
 A. Product Identity Declaration

 C. Dealer Name and Place of Business

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Certain exceptions to these general rules are also prescribed by the Regulations:
 the net quantity of aerosols are declared by weight (propellant + ingredients).

Refer to section 22(1) of the Regulations.
Example of Aerosol Label:

 the net quantity of certain bidimensional products (i.e. wrapping paper, toilet
tissue, etc.) are declared by number of rolls or sheets, length and width, area,
and number of plys or perforated units where applicable. Refer to
subsections 23(1) and 23(2) of the Regulations for details.
Examples of Labels for Products Sold by Sheets and Rolls:

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The use of an additional non-metric quantity declaration is permitted providing that it

is not false or misleading to the consumer.
2.2.2 Language
Subsection 6(2) Regulations
The net quantity declaration must be in English and French. Please note that a net
quantity declaration using only numbers and metric symbols is considered bilingual.
2.2.3 Location and manner of presentation

Subsection 4(2) Act Sections 12 & 17 Regulations
The net quantity declaration must be displayed clearly and prominently on the
"principal display panel" (refer to Section 2.5 for definition) of the label and must be
easily legible and in distinct contrast to any other information or representation
shown on the label. See also Section 2.1.3.
Example of Label on Principal Display Panel:


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2.2.4 Type face

The numerical portion of the net quantity declaration must be in bold face type.
There is no restriction on type face for any other information included in the net
quantity declaration (i.e. units of measurement statements, abbreviations, symbols,
etc.) However, this information must be easily legible to the consumer.

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SELF CHECK 1.2-5

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ANSWER KEY 1.2-5

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LEARNING
Place, arrange and display price tickets and labels
OUTCOME #3
CONTENTS:
 Industry codes of practice, legislative requirements, store policies
related to the positioning and visibility of tickets/labels on merchandise
 Store policy on the replacement of tickets/labels
Store procedures, industry codes of practice, legislative requirements
related to pricing and to information required to be provided on merchandise
1. Tickets/labels visible on merchandise and are placed in accordance with
store policy
2. Labels/tickets are replaced in accordance with store policy
3. Correct pricing and information on merchandise are maintained in
accordance with store procedures, industry codes of practice and legislative
equipment are maintained and stored in a secure location
CONDITION:
Students/trainees must be provided with:
 Company policies and procedures manuals on preparing and displaying

tickets / labels
 References on industry codes of practice related to pricing and to
information required to be provided on merchandise
 Legislative requirements related to pricing and to information required to
be provided on merchandise such as but not limited to
o Pricing requirements including Goods and Services Tax (GST)
requirements
o Discounted items
o Trade practices and fair trade acts
EVALUATION METHOD:

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Learning Outcome 3
Place, arrange and display price tickets and labels
Placement of Tickets and Labels check. You must answer all questions
1

Replacement of tickets and labels In this Learning Outcome you shall
Pricing Information Go through the Information Sheets and
answer the self-checks to ensure that
knowledge of the Standards in
competency-based training are acquired
After doing all activities of this LO, you

ready to proceed to the next LO
3

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Placement of Tickets and Labels
Minimum Labeling Requirements for Consumer Products. - All consumer products

domestically sold whether manufactured locally or imported shall indicate the following
in their respective labels of packaging:
(a) its correct and registered trade name or brand name;
(b) its duly registered trademark;
(c) its duly registered business name;
(d) the address of the manufacturer, importer, repacker of the consumer product in the
Philippines;
(e) its general make or active ingredients;

(f) the net quality of contents, in terms of weight, measure or numerical count rounded
of to at least the nearest tenths in the metric system;
(g) country of manufacture, if imported; and
(h) if a consumer product is manufactured, refilled or repacked under license from a

principal, the label shall so state the fact.
The following may be required by the concerned department in accordance with the
rules and regulations they will promulgate under authority of this Act:
(a) whether it is flammable or inflammable;
(b) directions for use, if necessary;
(c) warning of toxicity;
(d) wattage, voltage or amperes; or
(e) process of manufacture used if necessary.

Any word, statement or other information required by or under authority of the
preceding paragraph shall appear on the label or labeling with such conspicuousness
as compared with other words, statements, designs or devices therein, and in such
terms as to render it likely to be read and understood by the ordinary individual under
customary conditions of purchase or use.
The above requirements shall form an integral part of the label without danger of being
erased or detached under ordinary handling of the product.
Art. 78. Philippine Product Standard Mark. - The label may contain the Philippine
Product Standard Mark if it is certified to have passed the consumer product standard
prescribed by the concerned department.

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Art. 79. Authority of the Concerned Department to Provide for Additional Labeling and
Packaging Requirements. - Whenever the concerned department determines that
regulations containing requirements other than those prescribed in Article 77 hereof
are necessary to prevent the deception of the consumer or to facilitate value
comparisons as to any consumer product, it may issue such rules and regulations to:
(a) establish and define standards for characterization of the size of a package
enclosing any consumer product which may be used to supplement the label
statement of net quality, of contents of packages containing such products but this
clause shall not be construed as authorizing any limitation on the size, shape, weight,
dimensions, or number of packages which may be used to enclose any product;
(b) regulate the placement upon any package containing any product or upon any label
affixed to such product of any printed matter stating or representing by implication that
such product is offered for retail at a price lower than the ordinary and customary retail
price or that a price advantage is accorded to purchases thereof by reason of the size
of the package or the quantity of its contents;
(c) prevent the nonfunctional slack-fill of packages containing consumer products.

For purposes of paragraph (c) of this Article, a package shall be deemed to be
nonfunctionally slack-filled if it is filled to substantially less than its capacity for reasons
other than (1) protection of the contents of such package; (2) the requirements of
machines used for enclosing the contents in such package; or (3) inherent
characteristics of package materials or construction being used.
Art. 80. Special Packaging of Consumer Products for the Protection of Children. - The
concerned department may establish standards for the special packaging of any
consumer product if it finds that:
(a) the degree or nature of the hazard to children in the availability of such product, by
reason of its packaging, is such that special packaging is required to protect children
from serious personal injury or serious illness resulting from handling and use of such
product; and
(b) the special packaging to be required by such standard is technically feasible,

practicable and appropriate for such product. In establishing a standard under this
Article, the concerned department shall consider:
(1) the reasonableness of such standard;
(2) available scientific, medical and engineering data concerning special packaging
and concerning accidental, ingestions, illnesses and injuries caused by consumer
product;
(3) the manufacturing practices of industries affected by this Article; and
(4) the nature and use of consumer products.

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SELF-CHECK 1.3-1

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ANSWER KEY 1.3-1

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Replacement of Tickets/Labels
It shall be unlawful to offer any consumer product for retail sale to the public without
an appropriate price tag, label or marking publicly displayed to indicate the price of
each article and said products shall not be sold at a price higher than that stated
therein and without discrimination to all buyers: Provided, That lumber sold,
displayed or offered for sale to the public shall be tagged or labeled by indicating
thereon the price and the corresponding official name of the wood: Provided, further,
That if consumer products for sale are too small or the nature of which makes it
impractical to place a price tag thereon price list placed at the nearest point where
the products are displayed indicating the retail price of the same may suffice.
Art. 82. Manner of Placing Price Tags. - Price tags, labels or markings must be
written clearly, indicating the price of the consumer product per unit in pesos and
centavos.
Art. 83. Regulations for Price Tag Placement. - The concerned department shall
prescribe rules and regulations for the visible placement of price tags for specific
consumer products and services. There shall be no erasures or alterations of any
sort of price tags, labels or markings.
Art. 84. Additional Labeling Requirements for Food. - The following additional
labeling requirements shall be imposed by the concerned department for food:
(a) expiry or expiration date, where applicable;
(b) whether the consumer product is semi-processed, fully processed, ready-to-cook,

ready-to-eat, prepared food or just plain mixture;
(c) nutritive value, if any;
(d) whether the ingredients use are natural or synthetic, as the case may be;
(e) such other labeling requirements as the concerned department may deem
necessary and reasonable.
Art. 85. Mislabeled Food. - A food shall also be deemed mislabeled:
(a) if its labeling or advertising is false or misleading in any way;
(b) if it is offered for sale under the name of another food;
(c) if it is an imitation of another food, unless its label bears in type of uniform size
and prominence, the word "imitation" and, immediately thereafter, the name of the
food imitated;
(d) its containers is so made, formed, or filled as to be misleading;

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(e) if in package form unless it bears a label conforming to the requirements of this
Act: Provided, That reasonable variation on the requirements of labeling shall be
permitted and exemptions as to small packages shall be established by the
regulations prescribed by the concerned department of health;
(f) if any word, statement or other information required by or under authority of this
Act to appear on the principal display panel of the label or labeling is not prominently
placed thereon with such conspicuousness as compared with other words,
statements, designs or devices in the labeling and in such terms as to render it likely
to be read and understood by the ordinary individual under customary conditions of
purchase and use;
(g) if it purports to be or is represented as a food for which a definition or standard of

identity has been prescribed unless:
(1) it conforms to such definition and standard; and
(2) its labels bears the name of the food specified in the definition or standards, and
insofar as may be required by such regulations, the common names of optional
ingredients other than spices, flavoring and coloring, present in such food;
(h) if it purports to be or represented as:
(1) a food for which a standard of quality has been prescribed by regulations as
provided in this Act and its quality fall below such standard, unless its label bears in
such manner and form as such regulations specify, a statement that it falls below
such standard; or
(2) a food for which a standard or standards or fill of container have been prescribed
by regulations as provided by this Act and it falls below the standard of fill of
container applicable thereto, unless its label bears, in such manner and form as such
regulations specify, a statement that it falls below such standard;
i) if it is not subject to the provisions of paragraph (g) of this Article unless its label
bears:
(1) the common or usual name of the food, if there be any; and
(2) in case it is manufactured or processed from two or more ingredients, the

common or usual name of such ingredient; except the spices, flavorings and
colorings other than those sold as such, may be designated as spices, flavorings and
colorings without naming each: Provided, That to the extent that compliance with the
requirement of clause (2) of this paragraph is impracticable or results in deception or
unfair competition, exemptions shall be established by regulations promulgated by
the concerned department of health;
(j) if it purports to be or is represented for special dietary uses, unless its label bears
such information concerning its vitamin or mineral or other dietary properties as the
concerned department determines to be, or by regulations prescribed as necessary
in order fully to inform purchasers as its value for such uses;

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(k) if it bears or contains any artificial flavoring, artificial coloring, or chemical
preservative, unless it bears labeling, stating that fact: Provided, That to the extent
that compliance with the requirements of this paragraph is impracticable, exemptions
shall be established by regulations promulgated by the concerned department. The
provisions of this paragraph or paragraphs (g) and (i) with respect to the artificial
coloring shall not apply in the case of butter, cheese or ice cream.
Art. 86. Labeling of Drugs. - The Generics Act shall apply in the labeling of drugs.
Art. 87. Additional Labeling Requirements for Cosmetics. - The following additional
requirements may be required for cosmetics:
(a) expiry or expiration date;
(b) whether or not it may be an irritant;
(c) precautions or contra-indications; and
(d) such other labeling requirements as the concerned department may deem
necessary and reasonable.
Art. 88. Special Labeling Requirements for Cosmetics. - A cosmetic shall be deemed
mislabeled:
(a) if its labeling or advertising is false or misleading in any way;
(b) if in package form unless it bears a label conforming to the requirements of

labeling provided for in this Act or under existing regulations: Provided, That
reasonable variations shall be permitted, and exemptions as to small packages shall
be established by regulations prescribed by the concerned department;
(c) if any word, statement or other information required by or under authority of this
Act to appear on the label or labeling is not prominently placed thereon with such
conspicuousness, as compared with other words, statements, designs or devices in
the labeling, and in such terms as to render it likely to be read and understood by the
ordinary individual under customary conditions of purchase and use;
(d) if its container is so made, formed or filled as to be misleading; or
(e) if its label does not state the common or usual name of its ingredients.
Art. 89. Mislabeled Drugs and Devices. - A drug or device shall be deemed to be
mislabeled:
(a) if its labeling is false or misleading in any way;
(b) if its in package form unless it bears a label conforming to the requirements of
this Act or the regulations promulgated therefor: Provided, that reasonable variations
shall be permitted and exemptions as to small packages shall be established by
regulations prescribed by the concerned department.

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(c) if any word, statement or other information required by or under authority of this
Act to appear on the principal display panel of the label or labeling is not prominently
placed thereon with such conspicuousness as compared with other words,
statements, designs or devices in the labeling and in such terms as to render it likely
to be read and understood by the ordinary individual under customary conditions of
purchase and use;
(d) if it is for use by man and contains any quantity of the narcotic or hypnotic
substance alpha-eucaine, barbituric acid, beta-eucaine, bromal, cannabis,
carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, opium,
paraldehyde, peyote or sulfonmethane, or any chemical derivative of such
substance, which derivative has been designated by the concerned department after
investigation, and by regulations as habit forming; unless its label bears the name
and quantity or proportion of such substance or derivative and in juxtaposition
therewith the statement "Warning-May be habit forming";
(e) its labeling does not bear:
(1) adequate directions for use; and

(2) such adequate warning against use in those pathological conditions or by
children where its use may be dangerous to health, or against unsafe dosage or
methods or duration of administration or application, in such manner and form, as
are necessary for the protection of users: Provided, That where any requirement of
clause (1) of this paragraph, as applied to any drug or device, is not necessary for
the protection of the public health, the concerned department may promulgate
regulations exempting such drug or device from such requirement;
(f) if it purports to be a drug the name of which is recognized in an official

compendium, unless it is packaged and labeled as prescribed therein: Provided,
That the method of packing may be modified with the consent of the concerned
department;
(g) if it has been found by the concerned department to be a drug liable to

deterioration, unless it is packaged in such form and manner, and its label bears a
statement of such precautions, as the concerned department, shall by regulations,
require as necessary for the protection of the public health;
(h) (1) if it is a drug and its container is so made, formed or filled as to be misleading;
or
(2) if it is an imitation of another drug; or
(3) if it is dangerous to health when used in the dosage, or with the frequency of
duration prescribed, recommended or suggested in the labeling thereof;
(i) if it is, purports to be or is represented as a drug composed wholly or partly of

insulin or of any kind of penicillin, streptomycin, chlortetracycline, chloramphenicol,
bacitracin, or any other antibiotic drug, or any derivative thereof, unless:

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(1) it is from a batch with respect to which a certificate of release has been issued
pursuant to regulations of the concerned department; and
(2) such certificate of release is in effect with respect to such drug: Provided, That
this paragraph shall not apply to any drug or class of drugs exempted by regulations
promulgated under Authority of this Act.
Art. 90. Regulation-making Exemptions. - The concerned department may
promulgate regulations exempting from any labeling requirements of this Act food,
cosmetics, drugs or devices which are, in accordance with the practice of trade, to
be processed, labeled or repacked in substantial quantities at establishments other
than those where originally processed, labeled or packed on condition that such
food, cosmetics, drugs or devices are not adulterated or mislabeled under the
provisions of this Act and other applicable laws upon approval from such processing,
labeling and repacking establishments.
Art. 91. Mislabeled Hazardous Substances. - Hazardous substances shall be

deemed mislabeled when:
(a) having been intended or packaged in a form suitable for use in households,
especially for children, the packaging or labeling of which is in violation of the special
packaging regulations issued by the concerned department;
(b) such substance fails to bear a label:
(1) which states conspicuously:
(i) the name and the place of business of the manufacturer, packer, distributor or
seller;
(ii) the common or usual name or the chemical name, if there be no common or
usual name, of the hazardous substance or of each component which contributes
substantially to the harmfulness of the substance, unless the concerned department
by regulation permits or requires the use of the recognized generic name;
(iii) the signal word "danger" on substances which are extremely flammable,
corrosive or highly toxic;
(iv) the signal word "warning" or "caution" with a bright red or orange color with a
black symbol on all other hazardous substances;
(v) a clear statement as to the possible injury it may cause if used improperly;
(vi) precautionary measures describing the action to be followed or avoided;
(vii) instructions when necessary or appropriate for first-aid treatment;
(viii) the word "poison" for any hazardous substance which is defined as highly toxic;

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(ix) instructions for handling and storage of packages which require special care in
handling and storage; and
(x) the statement "keep out of the reach of children", or its practical equivalent, if the
article is not intended for use by children and is not a banned hazardous substance,
with adequate directions for the protection of children from the hazard involved. The
aforementioned signal words, affirmative statements, description of precautionary
measures, necessary instructions or other words or statements may be in English
language or its equivalent in Filipino; and
(2) on which any statement required under clause 1) of this paragraph is located
prominently in bright red and orange color with a black symbol in contrast
typography, layout or color with the other printed matters on the label.
Art. 92. Exemptions. - If the concerned department finds that for good or sufficient
reasons, full compliance with the labeling requirements otherwise applicable under
this Act is impracticable or is not necessary for the adequate protection of public
health and safety, it shall promulgate regulations exempting such substances from
these requirements to the extent it deems consistent with the objective of adequately
safeguarding public health and safety, and any hazardous substance which does not
bear a label in accordance with such regulations shall be deemed mislabeled
hazardous substance.

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SELF-CHECK 1.3-2

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ANSWER KEY 1.3-2

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Pricing Information
Article 81. Price Tag Requirement. – It shall be unlawful to offer any consumer
product for retail sale to the public without an appropriate price tag, label or marking
publicly displayed to indicate the price of each article and said products shall not be
sold at a price higher than that stated therein and without discrimination to all buyers:
Provided, That lumber sold, displayed or offered for sale to the public shall be tagged
or labeled by indicating thereon the price and the corresponding official name of the
wood: Provided, further, That if consumer products for sale are too small or the
nature of which makes it impractical to place a price tag thereon price list placed at
the nearest point where the products are displayed indicating the retail price of the
same may suffice.
Article 82. Manner of Placing Price Tags. – Price tags, labels or markings must be
written clearly, indicating the price of the consumer product per unit in pesos and
centavos.
Article 83. Regulations for Price Tag Placement. – The concerned department shall
prescribe rules and regulations for the visible placement of price tags for specific
consumer products and services. There shall be no erasures or alterations of any
sort of price tags, labels or markings.

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SELF-CHECK 1.3-3

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ANSWER KEY 1.3-3

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LEARNING
Maintain displays
OUTCOME #4
CONTENTS:
 Merchandise as characterized by type, brand, size, customer
needs, color, price
 Handling techniques as varied in accordance with stock
characteristics and industry codes of practice
 Store policies and procedures regarding housekeeping
1. Special promotion areas are reset and maintained in accordance with
workplace policies and procedures
2. Supervisor’s assistance in selection of merchandise for display is
accepted
3. Merchandise are arranged as directed and/or in accordance with layout
specifications and load-bearing capacities of fixtures
4. Identifies, resets and/or removes unsuitable or outdated displays as
directed
5. Identifies optimum stock levels and replenishes stock in accordance with
store policy
6. Display areas are maintained in a clean and tidy manner
CONDITION:
 References on merchandise as characterized by type, brand,

size, customer needs, color, price
 References on handling techniques as varied in accordance with
stock characteristics and industry codes of practice
 References on safety requirements related to
o the transport, storage and handling of goods
o hazardous substances
o the labeling of workplace substances
 Manual of store policies and procedures regarding the
identification of and corrective action regarding damaged, soiled,
and outdated stock
identification of optimum stock levels and the replenishment of
stock
 Manual of store policies and procedures regarding the setting of
new displays and the maintaining of existing ones
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 Manual of store policies and procedures on housekeeping
 References on the correct manual handling, storage and display
techniques as appropriate to stock characteristics and in
accordance with industry codes of practice, occupational health
and safety, and legislation/regulations
 The appropriate equipment, materials, and supplies for the
correct handling, storage, display, and documentation of stock
 The corresponding users’ manuals for the proper use of these
equipment, materials, and supplies
EVALUATION METHOD:

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Learning Outcome 4
Maintain display
Placement of Arrangement of check. You must answer all questions
Merchandise correctly before proceeding to the next
activity.
2.Answer Self-check 1.4-1
1

Handling Techniques In this Learning Outcome you shall
Housekeeping in the Store Go through the Information Sheets and
answer the self-checks to ensure that

3

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Principles of Arrangement and Merchandise
Placement of Merchandise within the Store

New merchandise and advertised lines need to be placed in the areas that will attract
most customer attention:
 In areas of greatest customer traffic flow.

 At the front of the department.
 Near the counter.
Merchandise that sells well or has a high profit margin must be placed in the prime
retail position. This is the position on a fixture that is between the eye and hip area.
Make sure that fixtures are placed in a position that allows easy access for customers,
prams and wheelchairs within each department.
Follow these guidelines when placing and arranging merchandise for display.
1. Have enough facings of each product. Facings are the number of each product
that is displayed on the shelf. You would have more facings of a best-selling
product than a product that sells less frequently.
2. Maintain flat lines. If possible, do not stack products on top of each other. This
will ensure that products do not fall and are also easily accessible by customers
and staff.
3. Bring all stock to the front of the shelf. Fixtures are more attractive and appear
to be fully stocked when merchandise is brought to the front.
4. Merchandise horizontally rather than vertically. Place a variety of product lines
along each shelf rather than having one product line per shelf. This allows greater
exposure of a variety of product lines in the prime retail position.
5. Place products in sizes from smallest to largest. When displaying a product
line that has several sizes, place the smaller products on the top shelves and the
larger items on the lower shelves.
6. Hang merchandise from smallest to largest. Clothing should be hung on racks
in sizes within each colour. Sizes must go:
 from left to right starting with the smallest size on the left to the largest size
on the right, or
 from front to back starting with the smallest sizes at the front to the largest
size at the back.
7. Match product to ticket. All products must have a price ticket or barcode. All price
tickets that are to be placed on a shelf must be positioned under the left-hand side
of the corresponding product line.

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Unsuitable Merchandise for Display
All merchandise on display should be appropriate for the image of Harriotts. The
following merchandise should not be on display:
 Items that are damaged, dirty, or faded.

 Items that are out of date, or out of season items, eg, Christmas stock should
not be on display after January.
Any items that are unsuitable should be removed from display immediately.
A Clean Image
Visual merchandising is enhanced by colorful cardboard displays and sound or
lighting effects, but the foundation of a good visual marketing campaign is the overall
appearance of your business. All aspects of your visual marketing displays become
enhanced when you keep your retail store clean. Develop a comprehensive cleaning
schedule that is dedicated to following local health department laws and keep all of
the areas that customers will see clean. Customers will be more inclined to notice,
and be negatively affected by, a collection of noticeable debris in your store than a
colorful merchandising display.
Eye Level
To maximize visual impact, keep visual displays at the eye level of your target
audience. For example, electronic displays that rotate information regarding pricing
specials on car accessories should be at an adult eye level. Animated cardboard
displays that promote the newest video game or toy should be at the eye level of the
target age group. For example, marketing displays for toys targeted for young
children will sit at a lower eye level than video game displays intended for teenagers.
Shelving
Customers in a retail store commonly search the shelves from left to right instead of
top to bottom, according to Joanna Lefebvre, writing for the "Food Management"
website. This is because the average person in the United States is taught to read
left to right. This means that a flat visual merchandising display will not be as
effective as a vertical one. A vertical display can more easily catch the eye of a
client, whereas a flat display does not allow for easy left-to-right analysis from across
the aisle.
Change
Maintaining the same visual merchandising displays for weeks on end will not help
improve store revenue. Customers want to feel like they are getting introduced to
something new when they come to your store, so you should change your visual
displays at least once a week, according to the "Discovery Based Retail" website.

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Find new products to feature each week and encourage your manufacturers to send
you new displays to help make your visual merchandising more appealing.

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SELF-CHECK 1.4-1

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ANSWER KEY 1.4-1

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Handling Techniques
Occupational Health and Safety Standards

Staff must observe the store’s policy on occupational health and safety standards
when unpacking, arranging and storing merchandise.
 Use correct manual handling techniques.

 Use a safety knife for opening packages.
 Cut away from the body when using a safety knife
 Don’t block aisles when unpacking.
 Check that shelves and fixtures are safe before displaying stock.
Special requirements for employees in food handling departments:
 Employees must not handle food with bare hands – gloves and tongs will
be used at all times.
 All employees must wash their hands after visiting the bathroom, smoking,
or touching their face/hair or returning from a break.
 Employees in these departments must wear the caps that are provided.
 All food items will be displayed under plastic, glass or perspex coverings.
No food will be displayed without cover.
 Food areas will be cleaned regularly with the anti-bacterial cleaning fluids
that are provided.
2. Housekeeping for Display

Merchandise and the fixtures must be kept clean and attractive at all times. Please
refer to the manual on ‘Perform Routine Housekeeping Duties’ for further detail.
These guidelines must be observed when unpacking and displaying stock:
 Apply the ‘clean as you go’ principle when unpacking merchandise.

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 Cartons should be collapsed and taken to the compactor.
 Other packing material should be recycled if possible.
 All shelves and merchandise, in each department, must be cleaned daily.
 All price and display tickets must be replaced when they become dirty or
tattered.

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SELF-CHECK 1.4-2

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ANSWER KEY 1.4-2

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Housekeeping in the Store
Housekeeping for Display

Merchandise and the fixtures must be kept clean and attractive at all times. Please
refer to the manual on ‘Perform Routine Housekeeping Duties’ for further detail.
These guidelines must be observed when unpacking and displaying stock:
 Apply the ‘clean as you go’ principle when unpacking merchandise.

 Cartons should be collapsed and taken to the compactor.
 Other packing material should be recycled if possible.
 All shelves and merchandise, in each department, must be cleaned daily.
 All price and display tickets must be replaced when they become dirty or
tattered.
Occupational Health and Safety Standards

Staff must observe the store’s policy on occupational health and safety standards
when unpacking, arranging and storing merchandise.
 Use correct manual handling techniques.

 Use a safety knife for opening packages.
 Cut away from the body when using a safety knife
 Don’t block aisles when unpacking.
 Check that shelves and fixtures are safe before displaying stock.
Special requirements for employees in food handling departments:
 Employees must not handle food with bare hands – gloves and tongs will
be used at all times.
 All employees must wash their hands after visiting the bathroom, smoking,
or touching their face/hair or returning from a break.

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 Employees in these departments must wear the caps that are provided.
 All food items will be displayed under plastic, glass or perspex coverings.
No food will be displayed without cover.
 Food areas will be cleaned regularly with the anti-bacterial cleaning fluids
that are provided.

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LEARNING
Protect Merchandise
OUTCOME #5
CONTENTS:
 Safety requirements related to the transport, storage and
handling of goods; to hazardous substances; and to the labeling
of workplace substances
 Store policies and procedures regarding the identification of and
corrective action regarding damaged, soiled, and outdated stock
 Store policies and procedures regarding the identification of
optimum stock levels and the replenishment of stock
 Store policies and procedures regarding the setting of new
displays and the maintaining of existing ones
 Correct manual handling, storage and display techniques as
appropriate to stock characteristics and in accordance with
industry codes of practice, occupational health and safety, and
legislation/regulations
1. Excess packaging are removed from display areas
2. Correct handling storage and display techniques are identified and
used, as appropriate to stock characteristics and in accordance
with legislative requirements
CONDITION:
 References on merchandise as characterized by type, brand,

size, customer needs, color, price
 References on handling techniques as varied in accordance with
stock characteristics and industry codes of practice
 References on safety requirements related to
o the transport, storage and handling of goods
o hazardous substances
o the labeling of workplace substances
identification of and corrective action regarding damaged, soiled,
and outdated stock
identification of optimum stock levels and the replenishment of
stock

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EVALUATION METHOD:

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Learning Outcome 5
Protect Merchandise
Requirements of Handling Goods check. You must answer all questions
1

Damaged, Soiled and Outdated Stocks In this Learning Outcome you shall
Identification and Replenishment of Go through the Information Sheets and
Stock answer the self-checks to ensure that

3
. Read Information Sheet 1.5-4 on

Setting New Displays
4

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Requirements of Handling Goods
Handling refers to coordination and integration of operations such as un-packing, re-

packing, packaging, and movement of materials or goods over short distances.
Goods that arrive at the store need to be received and processed correctly.
Receiving goods involves checking that the number of cartons delivered corresponds
with the delivery docket. Processing involves unpacking the goods, checking and
validating them, and then dispatching them to the right area or department.
When working in the retail industry, you need to know how to process goods that are
delivered to your store.
The receiving bay

Stock that arrives at your store comes to the receiving bay. The receiving bay at a
department store like MegaMax is the delivery dock at the back of the store where
trucks pull in to unload cartons. A small store like MaxSurf may not have a delivery
dock. Instead, the goods are received in the reserve at the shop.
The receiving bay must be kept clean and orderly so that stock can be brought in and
processed quickly and efficiently.
Stock receiving area

The area where goods are delivered to a retail store is generally referred to as the
dock. It can also be referred to as the delivery bay, the delivery dock, the loading dock
or bay. Regardless of the term used, and even if it is only a small space on the floor,
this area should be kept clean and tidy as much as possible. There are a number of
reasons for this:
Unpacking stock safely

Stock that has been delivered must be unpacked safely and the packaging disposed
of appropriately, according to your store's procedures. The procedures for doing this
can be found in your workplace manual.
Safety (OH&S)
 Boxes, cartons, packing materials, trolleys and other obstructions are trip
hazards.
 Keeping the stock receiving area clean helps prevent goods becoming soiled
(dirty) and stops staff becoming dirty. Dirty staff and dusty, grubby looking
goods on the shelves look bad and create a negative impression for the
customers.
 A tidy receiving area means that when goods are delivered they can be easily
identified, mistakes will be minimised and checking the deliveries is made
easier.
 Shelving should be kept tidy so that goods can be placed directly on them.
Goods and cartons should not protrude where they can be knocked over or
damaged.
 If accidents occur, spills should be cleaned up straight away so that staff do not
slip on them or walk the liquid into other parts of the store.
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 Equipment such as pallet jacks and trolleys should be stored safely when not
in use.
Security
 The delivery area door should always be kept locked when not in use to prevent
unauthorized entry and the possibility of theft.
 All cartons should be checked for goods, flattened and disposed of as soon as
possible to prevent waste and theft.
Checking stock
When a delivery arrives, the driver will present a delivery docket with the goods. The
retailer needs to check that the store and address on the delivery docket are correct.
Then the number of cartons received must correspond with the number of cartons on
the delivery docket. The retailer also counts the cartons before signing for the delivery.
The next step is to confirm that these goods were actually ordered and that every item
ordered has been delivered. The store sends a purchase order to order the goods and
the supplier sends an invoice with the delivery. The invoice lists every item in the
delivery.
Goods that have been unpacked need to be checked against the purchase order and
invoice. If the information in the purchase order matches the information in the invoice,
the store can pay the supplier. If not, then the store needs to withhold payment and
inform the supplier.

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SELF-CHECK 1.5-1

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ANSWER KEY 1.5-1

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Damaged, Soiled and Outdated Stocks
Dealing with excess stock
What do you think should happen to the excess stock that is kept to fill the
fixtures that become empty in the store?
Here is a list of suggestions from the sales assistants at MegaMax about what to
do with excess stock. Decide if each suggestion is suitable or not.
Staff Member Idea Good Suggestion?
You can store small items like Yes, this is the method used in some
scarves, pantyhose, cosmetics, stores where there are drawers and
etc. in drawers or cupboards cupboards under the fixtures
under the fixtures for easy
access.
Put excess stock behind the This is not a good idea. The point of sale
point of sale area, or counter, for area will very untidy and crowded with
easy access. sales assistants trying to serve customers
and gain access to stock.
Keep excess stock on the Yes, this is a good idea. This keeps the
shelves in the back reserve. reserve tidy and the goods are still
accessible when needed.
Stock in the reserves should be This is a good idea. The stock is then
labelled with prices, codes, ready to use and staff can read the dates
dates, and/or barcodes to see which stock to take first.
You can send excess stock back Linda's idea isn't a good one. The stock
to the supplier until it is required might be needed soon and it is a waste of
delivery costs to send it back. If there was
too much stock delivered in the first place
then the ordering system needs to be
reviewed
Store perishable goods Yes, this is definitely a good idea. This is
according to temperature important, as stores must not sell food
requirements. that has perished or become
contaminated.
Using safe lifting and carrying techniques

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Stock replacement is a daily activity in retail stores. It can involve lifting and carrying
merchandise. It's important that you use the correct manual handling techniques when
lifting and carrying to prevent injuries.
These manual handling techniques should be followed even for lifting and carrying stock
that isn't large or heavy. It's the technique that's important, not the size of the item.
Here are some tips for moving large items
1) Work with a partner
2) Use a trolley
3) Use machinery, like a conveyor belt, a hand-driven forklift, or a trolley jack, if it's
available

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SELF-CHECK 1.5-2

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ANSWER KEY 1.5-2

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Identification and Replenishment of Stock
TYPES OF STOCK
Everything you use to make your products, provide your services and to run your
business is part of your stock.
There are four main types of stock:
 raw materials and components - ready to use in production

 work in progress - stocks of unfinished goods in production
 finished goods ready for sale
 consumables - for example, fuel and stationery
The type of stock can influence how much you should keep - see the page in this guide
on how much stock you should keep.
Stock value
You can categories stock further, according to its value. For example, you could put
items into low, medium and high value categories. If your stock levels are limited by
capital, this will help you to plan expenditure on new and replacement stock.
You may choose to concentrate resources on the areas of greatest value.
However, low-cost items can be crucial to your production process and should not be
overlooked.
HOW MUCH STOCK SHOULD YOU KEEP?

Deciding how much stock to keep depends on the size and nature of your business, and the type of
stock involved. If you are short of space, you may be able to buy stock in bulk and then pay a fee to
your supplier to store it, calling it off as and when needed.
Keeping little or no stock and negotiating with suppliers to deliver stock as you need it
Advantages Disadvantages
Efficient and flexible - you only have what youMeeting stock needs can become
need, when you need it complicated and expensive
You might run out of stock if there's a hitch
Lower storage costs
in the system
You can keep up to date and develop new productsYou are dependent on the efficiency of your
without wasting stock suppliers
This might suit your business if it's in a fast-moving environment where products develop rapidly, the
stock is expensive to buy and store, the items are perishable or replenishing stock is quick and easy.
Keeping lots of stock
Advantages Disadvantages
Easy to manage Higher storage and insurance costs
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Low management costs Certain goods might perish
You never run out Stock may become obsolete before it is used
Buying in bulk may be cheaper Your capital is tied up
This might suit your business if sales are difficult to predict (and it is hard to pin down how much stock
you need and when), you can store plenty of stock cheaply, the components or materials you buy are
unlikely to go through rapid developments or they take a long time to re-order.
Stock levels depending on type of stock
There are four main types of stock:
Raw materials and components
Ask yourself some key questions to help decide how much stock you should keep:
 How reliable is the supply and are alternative sources available?

 Are the components produced or delivered in batches?
 Can you predict demand?
 Is the price steady?
 Are there discounts if you buy in bulk?
Work in progress - stocks of unfinished goods
Keeping stocks of unfinished goods can be a useful way to protect production if there are problems
down the line with other supplies.
Finished goods ready for sale
You might keep stocks of finished goods when:
 demand is certain
 goods are produced in batches
 you are completing a large order
Consumables
For example, fuel and stationery. How much stock you keep will depend on factors such as:
 reliability of supply
 expectations of price rises
 how steady demand is
 discounts for buying in bulk
STOCK CONTROL METHODS
There are several methods for controlling stock, all designed to provide an efficient system for deciding
what, when and how much to order.
You may opt for one method or a mixture of two or more if you have various types of stock. For further
information, see the page in this guide on types of stock.
 Minimum stock level - you identify a minimum stock level, and re-order when stock reaches that level. This is
known as the Re-order Level.
 Stock review - you have regular reviews of stock. At every review you place an order to return stocks to a
predetermined level.

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Just In Time (JIT) - this aims to reduce costs by cutting stock to a minimum. Items are delivered when
they are needed and used immediately. There is a risk of running out of stock, so you need to be
confident that your suppliers can deliver on demand.
These methods can be used alongside other processes to refine the stock control system. For example:
Re-order lead time - allows for the time between placing an order and receiving it.
Economic Order Quantity (EOQ) - a standard formula used to arrive at a balance between holding too
much or too little stock. It's quite a complex calculation, so you may find it easier to use stock control
software.
Batch control - managing the production of goods in batches. You need to make sure that you have the
right number of components to cover your needs until the next batch.
If your needs are predictable, you may order a fixed quantity of stock every time you place an order, or
order at a fixed interval - say every week or month. In effect, you're placing a standing order, so you
need to keep the quantities and prices under review.
First in, first out - a system to ensure that perishable stock is used efficiently so that it doesn't
deteriorate. Stock is identified by date received and moves on through each stage of production in strict
order.
STOCK CONTROL SYSTEMS - KEEPING TRACK MANUALLY
Stocktaking involves making an inventory, or list, of stock, and noting its location and
value. It's often an annual exercise - a kind of audit to work out the value of the stock
as part of the accounting process.
Codes, including barcodes, can make the whole process much easier but it can still
be quite time-consuming. Checking stock more frequently - a rolling inventory - avoids
a massive annual exercise, but demands constant attention throughout the year.
Radio Frequency Identification (RFID) tagging using handheld readers can offer a
simple and efficient way to maintain a continuous check on inventory. See the page in
this guide on using RFID for inventory control, stock security and quality management.
Any stock control system must enable you to:
 track stock levels

 make orders
 issue stock
The simplest manual system is the stock book, which suits small businesses with few
stock items. It enables you to keep a log of stock received and stock issued.
It can be used alongside a simple re-order system. For example, the two-bin system
works by having two containers of stock items. When one is empty, it's time to start
using the second bin and order more stock to fill up the empty one.
Stock cards are used for more complex systems. Each type of stock has an
associated card, with information such as:
 description
 value
 location
 re-order levels, quantities and lead times (if this method is used)
 supplier details
 information about past stock history
More sophisticated manual systems incorporate coding to classify items. Codes
might indicate the value of the stock, its location and which batch it is from, which is
useful for quality control.
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STOCK CONTROL SYSTEMS - KEEPING TRACK USING COMPUTER SOFTWARE
Computerised stock control systems run on similar principles to manual ones, but are
more flexible and information is easier to retrieve. You can quickly get a stock valuation
or find out how well a particular item of stock is moving.
A computerised system is a good option for businesses dealing with many different
types of stock. Other useful features include:
 Stock and pricing data integrating with accounting and invoicing systems. All the
systems draw on the same set of data, so you only have to input the data once. Sales
Order Processing and Purchase Order Processing can be integrated in the system
so that stock balances and statistics are automatically updated as orders are
processed.
 Automatic stock monitoring, triggering orders when the re-order level is reached.
 Automatic batch control if you produce goods in batches.
 Identifying the cheapest and fastest suppliers.
 Bar coding systems which speed up processing and recording. The software will print
and read bar codes from your computer.
 Radio Frequency Identification (RFID) which enables individual products or
components to be tracked throughout the supply chain. See the page in this guide on
using RFID for inventory control, stock security and quality management.
The system will only be as good as the data put into it. Run a
thorough inventory before it goes "live" to ensure accurate figures. It's a good idea to
run the previous system alongside the new one for a while, giving you a back-up and
enabling you to check the new system and sort out any problems.
Choose a system
There are many software systems available. Talk to others in your line of business
about the software they use, or contact your trade association for advice.
Make a checklist of your requirements. For example, your needs might include:
 multiple prices for items

 prices in different currencies
 automatic updating, selecting groups of items to update, single-item updating
 using more than one warehouse
 ability to adapt to your changing needs
 quality control and batch tracking
 integration with other packages
 multiple users at the same time
Avoid choosing software that's too complicated for your needs as it will be a waste of
time and money.

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USING RFID FOR INVENTORY CONTROL, STOCK SECURITY AND QUALITY
MANAGEMENT
Radio Frequency Identification (RFID) allows a business to identify individual products
and components, and to track them throughout the supply chain from production to
point-of-sale.
An RFID tag is a tiny microchip, plus a small aerial, which can contain a range of digital
information about the particular item. Tags are encapsulated in plastic, paper or similar
material, and fixed to the product or its packaging, to a pallet or container, or even to
a van or delivery truck.
The tag is interrogated by an RFID reader which transmits and receives radio signals
to and from the tag. Readers can range in size from a hand-held device to a "portal"
through which several tagged devices can be passed at once, e.g. on a pallet. The
information that the reader collects is collated and processed using special computer
software. Readers can be placed at different positions within a factory or warehouse
to show when goods are moved, providing continuous inventory control.
Using RFID tagging for stock control offers several advantages over other methods
such as barcodes:
 tags can be read remotely, often at a distance of several metres

 several tags can be read at once, enabling an entire pallet-load of products to be
checked simultaneously
 tags can be given unique identification codes, so that individual products can be
tracked
 certain types of tag can be overwritten, enabling information about items to be
updated, e.g. when they are moved from one part of a factory to another
RFID tagging can be used:
 to prevent over-stocking or under-stocking a product or component

 for stock security, by positioning tag-readers at points of high risk, such as exits, and
causing them to trigger alarms
 for quality control, particularly if you make or stock items with a limited shelf life
The costs associated with RFID tagging have fallen over recent years, and continue
to do so, to bring the process within the reach of more and more businesses. The
benefits of more efficient stock control and improved security make it particularly
attractive to retailers, wholesalers or distributors who stock a wide range of items, and
to manufacturers who produce volume runs of products for different customers.

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SELF-CHECK 1.5-3

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ANSWER KEY 1.5-3

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Setting New Displays
Creating an attractive product display can draw the customer in, promote a slow-
moving item, announce a sale, or highlight new arrivals. If your store front is
fortunate enough to feature one or more windows, then you have one of the most
proven (and least expensive) forms of advertising at your disposal.
Some stores located in a mall or other structure may lack windows, but don't despair.
There are many places throughout the store to build beautiful displays.
First, stand at the threshold of your store. This si the doorway. Typically, you walk
right into your store and don't pay attention. Stand where you strummer stands and
see what your customer sees. What do you see? What draws you attention? It might
be a good thing drawing it (beautiful display) or a bad thing (trash or empty shelves.)
Take a look at the flow of traffic in your store. Are there any areas that are a focal
point for customers?
Your town may have individuals or visual merchandising companies you can hire to
dress your windows, but if you're concerned with saving money, the following tips will
help you create an attractive display.
VISUAL DISPLAY TOOL BOX
Before designing a product display, put together a visual display tool box to keep on
hand. By having all of these items in one location it will save time in actually
preparing the display.
 Scissors, Stapler, Two-Sided Tape, Pins
 Hot glue sticks and glue gun

 Monofilament Fishing Line
 Tape Measure
 Razor Blade/Utility Knife
 Toolkit with Hammer, Nails, Screwdriver, Screws
 Notepad, Pencil, Marker
 Signage, Sign Holders
 Glass Cleaner/Paper Towels
 Props (Non-merchandise Items)
Take time to plan the display. Consider what you want to accomplish, develop a
budget and determine a central theme.
You may even want to sketch your display on paper. Gather your visual display tool
box, the merchandise, and any props. Make sure all materials and location (tables,
windows, racks) are clean. Choose a slow time of the day or build the display after
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hours. In my experience, doing the displays during open hours created energy in the
store.
ELEMENTS OF EFFECTIVE VISUAL MERCHANDISING
 Balance: Asymmetrical rather than symmetrical balance with the display.

 Size of Objects: Place the largest object into display first.
 Color: Helps set mood and feelings.
 Focal Point: Where product and props/signage and background come
together.
 Lighting: Should accent focal point, if possible.
 Signage: The one element I often see missed is signage. It can make or
break the display.
 Simplicity: Less is more so know when to stop and don't add too many
items.
Once the display is finished, add appropriate signage. Take photos of the display
and keep record of the product sales during the display's existence. Save your
information in a file folder for easy reference. By documenting its success, you can
re-create the display next year or if it flops, you can make sure you don't repeat the
same mistakes.
Involve your employees.
They have some great ideas. Connect your displays to your marketing and
advertising. By this, I mean do a display that coordinates with the current ad. Use
props to set the mood. For example, in my shoe stores, we used to put sand and
shells on the table with the flip flops. Or in the Fall, we put a basket of leaves and
apples with the hiking boots. By using these props, we were connecting to multiple
senses of the customer, not just the eyes. The sand and the apples made the
customers picture themselves at the beach or on a hike. These added touches
definitely increased our sales. And they were cheap and easy.
Like any other aspect of retailing, creating an attractive display takes a little skill and
lots of trial and error. As your store changes, so will your opportunities for visual
displays.
Keep working at designing eye-catching and innovative ways to make your retail
store profitable through visual merchandising. The bottom line - a display is the
cheapest employee on the planet. It can sell merchandise for you if you do it right.
And it doesn't require a paycheck or benefits and never calls in sick. Well, as long as
it's kept up that is.

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SELF-CHECK 1.5-4

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ANSWER KEY 1.5-4

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Proper Handling, Storage and Display Techniques
STOCK SECURITY
Keeping stock secure depends on knowing what you have, where it is located and how
much it is worth - so good records are essential. Stock that is portable, does not feature
the business' logo, or is easy to sell on, is at particular risk.
Thieves and shoplifters
A thief coming in from outside is an obvious threat. Check the security around your
premises to keep the risk to a minimum. In a store, thieves may steal in groups - some
providing a distraction while others take goods. Teach your staff to be alert and to
recognise behaviour like this. Set up a clear policy and make sure staff are trained in
dealing with thieves.
Offering to help a customer if you are suspicious will often prevent a theft. Avoid using
confrontational words like "steal" if you do have to approach a suspected thief, and
avoid getting into a dangerous situation.
Protect your stock
 Identify and mark expensive portable equipment (such as computers). If possible, fit
valuable stock with security tags - such as Radio Frequency Identification tags - which
will sound an alarm if they are moved.
 Don't leave equipment hanging around after delivery. Put it away in a secure place,
record it and clear up packaging. It is a good idea to dispose of packaging securely -
leaving boxes in view could be an advertisement to thieves.
 Take regular inventories.
 Put CCTV in parking lots and other key locations.
Theft by staff
Theft by employees can sometimes be a problem. To prevent this:
 Train staff about your security systems and your disciplinary policies and procedures.
Training about the cost of stock theft will help, as many people aren't aware of the
implications for company turnover and job security.
 Set up procedures to prevent theft. Staff with financial responsibilities should not be in
charge of stock records.
 Restrict access to warehouses, stockrooms and stationery cupboards.
 Regularly change staff controlling stock to avoid collusion or bad practice.
CONTROL THE QUALITY OF YOUR STOCK
Quality control is a vital aspect of stock control - especially as it may affect the safety
of customers or the quality of the finished product.

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Efficient stock control should incorporate stock tracking and batch tracking. This
means being able to trace a particular item backwards or forwards from source to
finished product, and identifying the other items in the batch.
Goods should be checked systematically for quality, faults identified and the affected
batch weeded out. This will allow you to raise any problems with your supplier and at
the same time demonstrate the safety and quality of your product.
With a good computerised stock control system, this kind of tracking is relatively
straightforward. Manual stock control methods can also use codes to systematise
tracking and make it easier to trace particular batches.
Radio Frequency Identification (RFID) can be used to store information about a
product or component's manufacturing date, to ensure that it is sold or processed in
time. The system can also be used to trace faulty products quickly and efficiently. See
the page in this guide on using RFID for inventory control, stock security and quality
management.
STOCK CONTROL ADMINISTRATION

There are many administrative tasks associated with stock control. Depending on the
size and complexity of your business, they may be done as part of an administrator's
duties, or by a dedicated stock controller.
For security reasons, its good practice to have different staff responsible for finance
and stock.
Typical paperwork to be processed includes:
 delivery and supplier notes for incoming goods

 purchase orders, receipts and credit notes
 returns notes
 requisitions and issue notes for outgoing goods
Stock can tie up a large slice of your business capital, so accurate information about
stock levels and values is essential for your company's accounting.
Figures should be checked systematically, either through a regular audit of stock -

stocktaking - or an ongoing program of checking stock - rolling inventory.
If the figures don't add up, you need to investigate as there could be stock security
problems or a failure in the system.
Health and safety
Health and safety aspects of stock control are related to the nature of the stock itself.
Issues such as where and how items are stored, how they are moved and who moves
them might be significant - depending on what they are.
You might have hazardous materials on your premises, goods that deteriorate with
time or items that are very heavy or awkward to move.

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SELF-CHECK 1.5-5

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ANSWER KEY 1.5-5

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REFERENCES
http://www.jsw.org.au/elearning/retail/certII/illtakethattoo/toolbox12_06/training_centr
e/merchandising/04_sub/02maintain_learn.htm
https://www.thebalance.com/good-retail-pricing-practices-2890344
http://www.infoentrepreneurs.org/en/guides/stock-control-and-inventory/
Amores, Corazon, Handbook of English Grammar. National Bookstore.Reprinted

2009.
Emerson, Paul. Email English.MacMillan Publishing India Ltd. 2010
Talavera-Gonzales Carolina. English for Business: A Guide to Effective Business

Communication. Lorimar Publishing Inc. 2010
http://www.englishclub.com

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Sector: Wholesale and Retail Trading

SAN PEDRO TECHNOLOGICAL INSTITUTE

C S N C I I - PREPARING PRODUCTS FOR DISPLAY Page i

Welcome to the Module “Preparing Products for Display”. This module

The unit of competency “Prepare Products for Display” contains knowledge,

You are required to go through a series of learning activities in order to complete

Recognition of Prior Learning (RPL)

been working for some time

CBLMs on Customer Services Date Developed: Document No.

Preparing Products for

CBLMs on Customer Services Date Developed: Document No.

HOW TO USE THIS COMPETENCY-BASED LEARNING MATERIAL ………….. ii

LIST OF COMPETENCIES………………………………………………………….. iii

TABLE OF CONTENTS ………………………………………………………….. 4

LEARNING OUTCOME #1 Demonstrate appropriate usage and understanding of words 7

LEARNING EXPERIENCES ………………………………………………………….. 4

Information Sheet 1.1-1: The Communication Process 9

Information Sheet 1.1-2 Improving your vocabulary 18

CBLMs on Customer Services Date Developed: Document No.

QUALIFICATION CUSTOMER SERVICES NC II

CBLMs on Customer Services Date Developed: Document No.

 References on principles of display

CBLMs on Customer Services Date Developed: Document No.

CBLMs on Customer Services Date Developed: Document No.

3. Read Information Sheet 1.1-2 on Elements

CBLMs on Customer Services Date Developed: Document No.

Visual – relating to the sense of sight

What is Visual Merchandising?

Principles of Visual Merchandising

Errors to Avoid in Visual Merchandising

CBLMs on Customer Services Date Developed: Document No.

CBLMs on Customer Services Date Developed: Document No.

1. What is Visual Merchandising?

CBLMs on Customer Services Date Developed: Document No.

CBLMs on Customer Services Date Developed: Document No.

Elements and Principles of Display

After reading this information sheet you should be able to:

Objectives of a Good Store Design

CBLMs on Customer Services Date Developed: Document No.

In this, Informal balance is achieved

SELF- CHECK 1.1-2

1. What are the elements of a

CBLMs on Customer Services Date Developed: Document No.

 be consistent with image and strategy

CBLMs on Customer Services Date Developed: Document No.

After reading this Information Sheet you should be able to:

1. Identify what are the latest trends in retail designing

CBLMs on Customer Services Date Developed: Document No.

o Marquee-The sign that is used to display the store name

 It is important to create a relaxing, comfortable place for customers to shop

DIAGONAL FLOOR LAYOUT

ANGULAR FLOOR LAYOUT (Curve/Loop/Racetrack

GEOMETRIC FLOOR LAYOUT (Spine Design)

MIXED FLOOR LAYOUT( Free Flow Design)

CBLMs on Customer Services Date Developed: Document No.

CBLMs on Customer Services Date Developed: Document No.

CBLMs on Customer Services Date Developed: Document No.

Essay: What is the importance of interior display?

CBLMs on Customer Services Date Developed: Document No.

 Show the customer what’s new

CBLMs on Customer Services Date Developed: Document No.

After reading this Information Sheet you should be able to:

1. Apply the concepts of design according to store policies and procedures

Monitoring stock levels

REASON FOR VARIATION EXPLANATION

Displays should be regularly monitored and items should be replenished to the