A Report On

STORE OPERATION
OF ITC (LRBD)
Prepared by: Alok ranjan
Behura

Under the guidance of

Prof: V.T. Thomas

Institute of Management
and Information Science,
Bhubaneswar
 INTRODUCTION
ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence
through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, offers a tempting
choice of Designer wear, Relax Wear, Evening Wear, Work Wear, Accessories and exclusive
range of fine fragrances and bath &body care product for men and women.

The ITC group provides various businesses like hotels, cigarettes, paperboards and specialty
papers, agri-business, information technology, greeting cards, safety matches and other FMCG
products.

Wills Lifestyle was named Super brand 2009 by the Super brands Council of India recently.
Wills Lifestyle has been twice declared 'The Most Admired Exclusive Brand Retail Chain of the
year at the Images Fashion Awards in 2001 & 2003 as well as 'Most Admired Fashion Brand of
the year - Fashion Forward' in 2009. Wills Lifestyle has partnered with several leading designers
including Manish Arora, Rohit Bal, Shantanu & Nikhil, Rohit Gandhi & Rahul Khanna whose
new edition of Designer wear is now available at Wills Lifestyle stores.
STORE OPERATION
(Store) Operations are about efficiency and attractiveness off the store for consumers and
employees. And it is about maximizing sales by using traditional and new electronic channels.

1. Consumer Experience
ITC (lrbd) creates positive customer experience through four basic parameter like

1. Store Ambience

2. Merchandise Mix.

3. Customer Engagement

4. after sale contact

1.1 Preparation For The Day

1. Designated staffs /Housekeeping & Security staff to report at the store an hour prior to
the store opening for customer entry.

2. Daily briefing to be conducted by the store manager- DPS review of last day, target for
the day, customer requirement, club will enrollment

3. Mettining conducted on weekly basis, team building, skill enhancement exercise,

competition analysis, inventory feedback and knows your big customer.

4. Store’s notice board and productivity board needs to be checked and updated.

1.2 Consumer Engagement

To provide all the facilities like entry into store and shopping experience from customer side
should be comfortable.

1.2.1Customer Entry Process

The guard at the gate has to acknowledge and directs for parking (in case of any vehicle)
The guard at the entrance directs the customer to belonging counter for deposit extra things with
his /her (except ladies handbags, money bags, cameras and laptops) and open the door for
customer and greet.

1.2.2 Customer Buying Process

From the time, the customer enters the store till the time he exits the premises

Objective
To ensure customer experience is comfortable and feel himself “It’s My Store”

Process
CA has to acknowledge the customer with a smile and verbal greeting and helping then find the
merchandise that he is looking for.

If merchandise is not available then CA note down that and call up the customer within 24 hours,
on the order status.

It is mandatory to ensure that no merchandise on the floor is without price tag.

CA also has to constantly replace the floor with the merchandise that has been sold, from the
back stock for that section.

1.2.3 Cashiering Process

An efficient cashier is one who knows how to manage customer lines, so that no one
customer is waiting too long in line to pay for their items.

Process
1. Once the customer is in front of the cashier, the cashier to make eye contact with the
customer and greet him.

2. He scans the price tag of products, if the tag does not get scanned; he would manually
enter the SKU no.

3. Payment can be either by cash /credit /debit card /GV /discount coupons /credit notes.

4. Once the payment has confirmed, then cashier should hand over the cash memo /credit
card /club will card /balance cash in customer hand.

1.2.4: Exchange
Objective: To make exchange process a convenient and experience for the customers.

Process:

Customer wants to Identify the reason for return

exchange the product

Floor CCA takes the alteration

measurement and fills up the slip.

Send the defective product to the RDC

packed separately.

Then customer goes for exchange one

with respect defective one.

CCA asks the customer for the cash

memo & verify the purchase.

The customer pick up the new

purchase, then CCA matches the
product amount with previous
purchase slip.
 If the new purchase is more amount,
then CCA demand extra amount, if
less then return the rest amount.

CCA hand over the new

product to customer
At last all defective merchandise needs to be send back to the RDC from the store on monthly
basis, the RDC will send them to HO packed at store level, in the condition it is received back
from the store.

2. Inventory Management at the store

2.1Stock Management
Objective-
It’s all about customer satisfaction; the store must ensure that the customer sees what they
want to buy at the store.

2.1.1Responsibility of the manager

Analyze trends at the store and fix base label for all stocks on a seasonal basis .Track
availability of stock and fulfill of order raised by the store. Stock control are carried out
efficiently and economically by those employed in the Store.

2.1.2 Responsibility of customer Associates

To assist in planning orders, setting stock levels allocating storage space. Ordering of
merchandise (customer requirement). After receipting of inventory proper documentation done
on the basis of receipt and return (defect).
2.1.3Stock Supply
Stock supply to a store depend on SQB/Base stock define for the store. Moves
automatically generate DOP’S (Distribution Order Proposal) for the item sold out from the base
stock on MRP on daily basis.

-Retail space to stock inventory in required mix.

-Backroom Area in store and transit time from warehouse to store.

2.1.3.2: Ordering and replenishment of stock

Replenishment from the back room- If replenishment is required, CF to make all list in a
replacement sheet that must be replenished.

It is to ensure that each garment has the product tag and the RFID tag attached to it .If either is
missing, make sure that it is attached before being put on the shelf again.

Automation Replenishment System (ARS)-

Ones style wise stock is fixed in Moves ARS system of replenishment takes over with on
daily basis during MRP run. If additional quantity is require then store manager prepare manual
Do (dom) in the system once he receives an approval from the Regional Manager.

Replenishment of stock from warehouse

Based on the order generated in the system in the store and as per stock availability the
warehouse will dispatch stock to the store.

2.1.3.3 Procedure for receiving the stocks at the store

The stocks are come to the store in sealed cartons, along with a DO/DN document which
has been dispatched by the warehouse.
-In case of matches of stocks in sealed carton with DO/DN send by the warehouse,
then the “subject to physical certification “given to transporter.
-In case of carton tamper, any discrepancies/shortages must be mention on the
courier note, obtaining the signature of transporter/couriers on the document. The store shall
forward the discrepancy report to the Warehouse Manager /RM /Finance Manager Retail Ops
within 24 hours of verification of the shipment.

i) Precautions to be observed the time of receiving the stock

The security tag should be present on goods and it will be in a saleable condition. The
goods should only be dispatched from the warehouse. If the goods are defective, the goods
should be put in the defective section.

ii) Receiving Merchandise at Store (GRN)

At the time of receiving the merchandise at the store, following procedure be followed:
 Barcode of incoming material shall be scanned.
Store level inventory can stored in salable, repair and defective / discard location.

iii) Mismatch /Discrepancies Resolutions-Expectations

Mismatch and discrepancies can occur on account of the following issues
a) A mismatch will occur when the total quantities received at the store are the same but the
items are different than given in the DO/DN.
b) A mismatch occurs when the actual numbers of the items received at the store are excess
or short as compared to the DO/DN.

2.1.4 Stock Returns

Procedure of stock return-

-If product is defective then the customer feedback form should also be send to the RM.

-Stocks have received that have the wrong identification or which are without
identification tags-in these cases a stock return note must be send with the stocks to the
warehouse manager.

2.1.5 Stock trancerfeers back to the RDC

a) Movement of Reject /processing good from Store to Mandoli: Customer return or store
spoil at the store needs to sent to Mandoli as rejected material.

b) After EOSS: Garment left over after EOSS needs to be sending to the Mandoli.

c) Unidentified, untagged items need to be sending to Mandoli on a monthly basis in s

grid statement as prescribed.

2.1.6 Stock checks

Store team will be able to ensure that all stocks leaving the store have been billed for. As
a control measure, a physical verification of inventory lying at the store counted on a
monthly basis.

Half yearly stock audit shall be carried out at store by external audit team.
3. Store Operations
3.1.1 Store Ops and VM Audit:

SM conducts this activity for his own store on a monthly basis.RM to audit the store
during the store visit and mail the same to NSM and SM. Once in a quarter a regional score card
to be mailed by the RM to all stores. Also refer to the VIP Visit Checklist in the store facilities in
place during VIP visit to the store.

3.2 Security Tag Handling

Objective

To ensure that the security tags attached to merchandise is collected from cash point and
recycle.
Process:

At the time of billing the cashier remove the security tags attached to the merchandise (Soft tags
with scissor /Hard tags with the help of a de-tagger) being put in the bin. The tags are handed to
the security and the security sends the collected tags backs to the DC thrice a week on Tuesday,
Thursday and Friday.

3.3 End of Season Sale

Merchandise
3.3.1 Identification of merchandise

Unsold merchandise is looked for only those styles that are no longer part of the core
staple due to change of style or either fabric.

3.3.2 Deployment of merchandise

Identified merchandise is to be deployed to RDC’s as per quantities finalized by the RM/MPE.

Store wise segregation of quantity on the basis of RMs allocation.

3.3.3 Display of Merchandise

Merchandise is to be displayed in the store in areas allocated; the shelf talkers and poster would
be strategically placed so as to clearly define the EOSS area.

3.3.4 Man Power

Increase of Security and Housekeeping personnel to cater to the additional traffic at the store.
The house keeping and security can help in merchandise handling.

3.3.5 Billing/Delivery Counters

1. Additional POS Machines:

Additional POS machines may be hired locally and configured by MIS executive of the region
in case of existing POS is not sufficient.
2. Delivery Counter:
A delivery Counter is to be set up which will be manned by the security staff for delivering billed
garments.
3. Billing /Invoice Procedures
4. Billing Stationary

The computer and manual billing stationary will remain the same; however, the footer
message on the invoice would be changed/modified to incorporate EOSS specific terms &
condition.

5. Process for checkout:

The process to be followed would be as listed below:

i. A customer’s selected garments billed as the cashier prepare an invoice through Retail Pro in
Triplicate.
ii. First copy of the invoice would be handed over to the customer; the second copy will be
attached to the carry bag, while the third is kept with the Cashier as a reference copy. The
customer copy will be stamped as paid.
6. Material Required:

WLS provides carry bags and security tag require that’s why SM needs to tie up with RM to get
his estimated requirement.

7. Facilitation Levels:

The person try to facilitate all facility to consumer even if communicate discounts to consumer
and help should be extended to provide them the right merchandise. The service standard should
be maintained and situations of confrontation and discomfort to consumer should be avoided.
8. Store Layout- The store should be divided in 2 departments i.e. Men & Women. Each
department will be divided in 3 areas each for one discount slab (20%,40% and 50%).The slab of
the back of the store to reduce clutter near the cash counter.
.

3.4 Business Planning

3.4.1 Measurement of KPI’s
3.4.1.1 Footfalls

Exclude of kid under the age of 12 yrs, Housekeeping staff/store CA /Tailor, all other
person who enter the store should be counted as eligible footfall.
Data to be captured on gender basis/group basis.

3.4.1.2 Conversion
Number of fresh invoice / total footfall for the day (Fresh invoice = Total invoice –Return
of exchange invoice)

3.4.1.3 ATV
Net sale for the day / Number of fresh invoice (Net sale = Total sales – Return or
exchange sales)

4. Cross functional processes

A manager’s role is to efficiently train his team member in becoming champions in handling
responsibility of the Marketing, HR,IT, Finance, Logistics etc area within the store on a rotation
basis and such team member can be groomed on fast track basis as future store manager.

4.1 Marketing
4.1.1 Visual Merchandising

Some of basic guidelines pertaining to VM are listed below

a) The store should have an appropriate balance of hang vs. stack (old store 50:50, fresh store
80:20)-VM in charge to provide the same.
b) A store should portraying either the color /style /mood/co-ordinate of the season
c) All merchandise should be stacked /hung size wise in ascending order.
d) Window display should have a cluster of mannequins and the theme blending with the
marketing campaign of the season.
Lifestyle Benefits

ITC Hotel Welcome Awards Gold membership

Room Upgrade at ITC Welcome Group Hotels
Airport Lounge access
Travel House Offer
Invites to Fashion events

Store Processes for Club wills:

a. Customer eligible for silver /gold /platinum card will receive the same within 21 days of
registration
b. Redemption is only possible if the customer is carrying the permanent card.
c. The store to take the request for lost /damaged card from the customer and inform it to
customer care immediately.
Collaterals for Store: Minimum reorder level

Temp Card Docket Gold: 10

Temp Card Silver: 25
Privilege Card Docket: 200

Customer Request Book: 5

Redemption Form: 20
“Take One “Stand: 1
Visitor Book: 1

4.1.2. Voice of Consumer (VOC)

VOC is used to capture consumer feedback on the parameter like range, price, customer service,
quality etc. Store to send a minimum of 20% of invoices billed over any given period of time.
VOCs should be sending to the customer care.

4.1.3 Micro Marketing

Objective-Channeling quality foot –fall/ consumer traffic in a catchment area in store. It is
mutually rewarding partnership with local establishment.

Cross Promotional activity should rewarding both partner.

Footfall quality & Customer profile must share between two outlets.
.
High social sensitivity must be avoided to ensure that no controversial associations are ever
made. For e.g. Religious / communal bodies, gender biased activists etc.

4.2 Finance
4.2.1 Cash Deposit
As a store manager you are required to deposit cash sales every day without fail and no
exceptions on the same.
DO’s
1. Check identification of cash pick of personal.
2. Cash tally to be done by the cashier only.
3. Cash to be tallied at the interval of the day by the cashier: 1.00p.m, 5.00p.m, 8.00p.m,
end of the day.
4. Remark to be written on cash closing sheet for any difference, excess in credit card, cash
of the day.
DON’T’s
1. Taking out cash from daily cash sales.
2. Postponing cash deposit to the nest day.
3. Handing over cash to cash pick up agent without checking his identification.
4.2.2 Gift Vouchers
Gift voucher are procured by LRBD HO Marketing Services and dispatched as per
requirement given by store.
The gift voucher procured by LRBD fall in two categories:
1. Normal gift voucher- These are approved denomination and sold through store/ HO .e.g.
Occasion, Welcome Award, Sodexho etc.
2. Promotional gift voucher-Which are either scheme linked (EOSS) or other sale promotion
scheme during launch /festival /other.

Other sale promotion activities .e.g. DM gift voucher, MM GV, Fashion Reward GV, Essenza
GV’s etc.
Store manager shall ensure that necessary approval are obtained for sale
1. Scheme GV’s are issued strictly as per scheme announced and have fixed validity period.
Stores are required to follow the terms and condition of the scheme for issue and also
maintain record of GV issued and redeemed.
2. On expiry of sale promotion scheme- remaining GV’s are required to destroy with
intimation to the retail/ RO.
3. Any sale beyond Rs.20000 for individual customer shall be through Credit /Debit Card.
No personal cheques shall be accepted from individual customers.

4.2.3 Petty Cash Management

1. All bills and statement to be signed by the SM, he is responsible for the impress given
to the store for day to day operation.
2. Any expense above 5000 needs to be authorized by the RM and purchase order to be
raised through three quotations.
3. All bills for expenses incurred are to be attached with the expense statement.
4.2.4 Manual Invoices
1. Store to make manual invoice only in case of emergency like system break down.
2. All manuals to be also available in a soft copy with all detail of manual invoice with EAN
nos.,
3. In case of manual invoice is cancelled or not used for whatever reason, both original and
duplicate copies of the manual invoice marked “CANCELLED” and retained in the manual
invoice book.
4. While issuing a manual invoice to a customer, the staff shall ensure that following detail
clearly and correctly recorded:
Customer name and ID
Signature of the cashier
5. No multiple manual invoice books to be used simultaneously at any point of time.
5. Roles and Responsibilities

5.1Role of a Store Manager

5.1.2 Principal Accountabilities:

1. Develop and implement the Sales & Service plan for the store to meet business
objectives.
2. Target fixation & forecasting at SKU level and ensure that VM is of required quality.
3. Provide accurate and timely information pertaining to sales, industry and competition in
the area for periodic review.
5.2 Role of a Customer Associate

5.2.1Principal Accountabilities:

1. Present product in the desired manner for excellent visual merchandising, recording and
replenishment of stocks in the assigned area.
2. Provide information on product/fashion consultancy to help the consumer make the right
choice and facilitate sale.
3. Delivering pleasant shopping experience to consumer like solve problems and answer
queries effectively.
4. Collect and give consumer feedback.
 CONCLUSION

Finally it can be concluded that during preparation of this report

I have acquired good knowledge about retail and its function
regarding store operation.ITC believes in creating value and
appreciates creativity and passion, it gave me a complete picture
of the branded show room. I would really thankful to Prof. V.T.
Thomas for his guidance to preparing this report.