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Systematically examining and evaluating a firms total retailing effort or specific aspect of it.
is a evaluation tool, which systematically examines and evaluates the firms total retailing
effort or a specific aspect of it.
Why ??
Its vitally important to know whats happening inside the retail environment.
Have Point of Sale displays reached the store?
Is the retailer presenting your products properly?
Is the pricing correct?
Purpose
To Study
What retailer is presently doing?
Appraise Performance
Make Recommendations for the future
Regular audits
In-depth analysis
Systematic analysis of data
Unbiased perspective
Willingness to uncover weakness
Strengths that can be exploited
Areas to be Audited
- Customer Satisfaction
- Retail Strategy Mix
- Customer Service
- Merchandise Assortments
Undertaking an audit
Have you profiled your customers by age, income, education, occupation, etc.?
Are you aware of the reasons why customers shop with you?
Do you ask your customers for suggestions on ways to improve your operation?
Do you know that goods and services your customers most prefer?
Do your financial records give you the information to make sound decisions?
Can sales be broken down by department?
Do you understand the pros and cons of the retail method of accounting?
Have you taken steps to minimize shoplifting and internal theft?
Buying
1.
2.
3.
4.
Do you have a merchandise budget (planned purchases) for each season that is broken down
by the department and merchandise classification?
Does it take into consideration planned sales, planned gross margin, planned inventory
turnover, and planned markdowns?
Do you plan exclusive or private brand programs?
Do you take advantage of cash discounts and allowances offered by your vendor/supplier?
Pricing
1. Have you determined whether to price below, at, or above the market?
2. Do you set specific markups for each product category?
3. Do you know which products are slow-movers and which are fast?
4. Have you developed a markdown policy?
Promotion
1.
2.
3.
4.
Are you familiar with the strengths and weaknesses of various promotional methods?
Do you participate in cooperative advertising?
Do you ask customers to refer your business to friends and relatives?
Do you make use of the community projects or publicity?
Audit of Environmental
Issues
Responding to an Audit
Costly
Quite time-consuming
Employees may feel threatened & may not co operate
Incorrect data/Insufficient data
Management not responsive to the findings