Definition: Stores Management deals with undertaking the right type of materials in sufficient quantity, in a prompt manner whenever needed, to keep it safe against any sort of damage, pilferage, or theft. It is a part of material management. It involves actual material handling which is received held and issued.
Based on the store size the store manager, general manager, or store director is appointed to administer the stores. It is the responsibility of the store manager to improve the productivity of the store and investment of the company in its employees. It ensures that:
- The necessary material is always in stock.
- No material is available in more than the required quantity.
- The purchase of materials is based on the principle of economic order quantity.
- Protection of stores against any deterioration.
What are Stores?
A store is a place where the material is kept in such a manner that it can be accounted for and safely maintained and it can be used when required.
Functions of Store Management
There are three main functions in which operations at the store level are classified:
This includes the subfunctions that follow:
- Maintaining store facilities
- Planning work schedules
- Recruitment and Training of workforce to work in stores.
- Performance evaluation of store staff
- Locating and displaying the merchandise.
- Preventing shrinkage of inventory.
- Physical stock taking
- Assisting customers in the selection
- Handling customer complaints
- Providing services like packaging and home delivery.
- Ensuring accurate inventory.
Who is Store Manager?
A store manager is an individual who is charged with the day-to-day operations or management of the retail store. He/She has a multifaceted role to play. The entire store staff reports to the store manager.
His primary duty is to reach sales target, which is predetermined by the company’s management. Reaching sales targets is also important for the effective operation of the stores and they are commonly set in motion as financial targets on the basis of the store’s turnover or profitability ratio. As the store size increases, so does the responsibilities of the store manager. Depending on the size of the store, complexities regarding the number of floor staff, range of products also varies.
Duties and Responsibilities of Store Manager
- Management of Employees: Management of employees is one of the most important functions performed by the store manager. It ensures the management of the store’s employees, who work at different levels like sales staff, store staff, cleaning staff, and clerical staff.
- Maintenance of sales environment: It encompasses store layout plan implementation, display of merchandise, store replenishment, sales record maintenance, etc.
- Minimization of cost: It takes into account the controlling expenses which are necessary for running a store. So as to apply cost-effective policies, expenses can be minimized leading to increased profitability. This is possible by waste elimination, errors, and accidents. Cost reduction is essential when the operation of the store is done at a low price policy.
- Recruitment, Training, and Development: The primary duty of the retail store manager is to handle the job of recruitment of the right persons for the right job. Thereafter proper training is provided to them to adjust them as per the policies of the store and working environment. New entrants can make or break the whole business. Hence, they should be hired after verifying their minimum qualification and experience.
- Budgeting and Forecasting: The store manager can aptly predict the future of the store, estimating the expenses that may occur in the future and establishing budgets. Then the store manager explains the targets and availability of funds to the head of the departments.
- Implementation of marketing plans: With an aim of pursuing the store’s strategic marketing objectives, marketing policies devised in this regard are implemented.
- Team Leadership: The store manager is also given the task of encouraging the staff and also minimizing any resistance to change in the methods of work that are needed at the time of defining new strategic directions
A word from Business Jargons
Store Management is all about efficient material management. It ensures that different activities related to storekeeping are undertaken effectively and economically.