Retail Store
Content
Introduction
The retail industry provides an exciting way of life for the more than 15 million people who earn their livelihood in this sector of the Indian economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labor. Retailing is one of the fastest-growing segments of the economy. As one of the nation's second largest employers, the retail industry provides excellent business opportunities for you. . Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of our economy accounts for about 23 percent of our gross national product--more than $200 billion.
Environment
Introduction about Haryana Haryana is a state in India. Historically, it has been a part of the Kuru region in North India. It is bordered by Punjab and Himachal Pradesh to the north, and by Rajasthan to the west and south. The river Yamuna defines its eastern border with Uttarakhand and Uttar Pradesh. Haryana also surrounds Delhi on three sides, forming the northern, western and southern borders of Delhi. The capital of the state is Chandigarh which is administered as a union territory and is also the capital of Punjab. Haryana is now a leading contributor to the country's production of foodgrain and milk. Agriculture is the leading occupation for the residents of the state. Haryana is one of the wealthiest states of India and has the third highest per capita income in the country at Rs. 67,891. Haryana is also one of the most economically developed regions in South Asia and its agricultural and manufacturing industry has experienced sustained growth since 1970s. Haryana is India's largest manufacturer of passenger cars, two-wheelers, and tractors. Hindus are majority in Haryana and are about 90% of the population, Sikhs 6.2%, Muslims 4.05% and Christians 0.10%. Geography and climate
Haryana is a landlocked state in northern India. The climate of Haryana is similar to other states of India lying in the northern plains. It is very hot in summer (up to a high of 50 deg Celsius) and cold in winters (down to a low of 1 deg Celsius). The hottest months are May and June and the coldest being December and January. Rainfall is varied, with the Shivalik Hills region being the wettest and the Aravali Hills region being the driest. About 80% of the rainfall occurs in the monsoon season (July–September) and sometimes causes local flooding. Demographics The population of Haryana, according to the 2001 census, is 21,144,000, with 11,364,000 males and 9,781,000 females. The population density is 477 people/km. Hindus are majority in Haryana and are about 90% of the population, Sikhs 6.2%, Muslims 4.05% (mainly Meos) and Christians 0.10%.[18] Hindus make up about 18,655,925 of the population, Sikhs 1,170,662, Muslims 1,222,196, Jains 57,167, Christians 27,185, and Buddhists 7,140. Economy The economy of Haryana relies on manufacturing, business process outsourcing, agriculture and retail. In 2006-07 Haryana received a foreign direct investment projects of over Rs 11,000 crore in the state and corporate sector and had a fiscal deficit of 0.6 per cent in financial year 2006-07. The contribution of primary, secondary and tertiary sectors for the Gross State Domestic Product (GSDP) in 2007-08 is Rs. 21,265.92 crore, Rs. 30,919.95 crore and Rs.49,133.55 crore respectively.
Reason for Choosing Karnal city
Karnal is a big city of Haryana. The population of this city is huge so we can attract more customers from this city. Per capita income of the people is good in Karnal, so they have good expending capacity. The city is the largest contributor to the state’s gross domestic product, state tax and excise revenues. This show more industrialization and income of people is there.
Business plan for new store:
As usual every business starts and grows with SMART business plan. The business plan is the roadmap of your business, where you will define your business, and outline the steps that can lead you to succeed. The benefits of a business plan are that it forces you to really think hard about your business, helps you identify early on the challenges that you might meet, and enable you to craft strategies that may help you overcome the challenges and bring your business to the next level. My new business will include the following: Name of The Retail Store Slogan Apna Bazaar (A department store) Good quality at cheap price
Location
Location is a very important factor for retail store for 3 reasons they are- First location is typically the prime consideration in a customer’s store choice decision. When customer want to purchase something, mostly they choose the store that is close to them. Second location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. If a retailer has the best location, that is, the location that is most attractive to its customers, competitors cannot easily copy this advantage and are relegated to occupying the second best location. Third, location decisions are risky. Typically, when retailers select a location, they invest a huge money. This is the factor which cannot not be change easily and without losses. Reasons of selection location for our store are: 1. The area is very close to the main city of Pune. 2. The area has road accessibility. 3. The size of the area is sufficient. The space which we need for storage, display, office, and the parking area is suiting the needs of the store. 4. Visibility of the area. 5. Population close to the area is very huge. 6. The people living close by area are having good per capita income. i.e the people living there are mostly average or above average class.
7. No footwear store in this area. 8. Less competition. 9. Satisfactory laocal conditions like no flooding chances, theft,fire,and others which are needed like water,light,drainage, electreicty and telephone services. 10. And also we can expand our space in future if the need arises. Legal considerations about location: • • • The area is not public property. The area is not part of the graveyard The area is free from govt restrictions.
Therefore because of these factors we choose this location for our store.
LAYOUT
Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. “ Store layout needs to guide the customer silently about where he/she wants to go and for exposing him/her to the entire store offering” . ( The store itself it’s the most meaningful communication between the retailer and the customer) Some factor are very essential while choosing the layout of a store and these are as given below or we can say that we have to analysis these factors before defining the layout of our store. 1. Effective Use of Space - Space needs to be used effectively, with all the areas planned properly to break up the store into logical and functional areas such as POS, Back Office, Chaging Rooms, Pantry, Toilets, etc. 2. Inviting Customers - Layout is desinged to attaract the targeted audience. It should speak on its own and guide customers to all the areas of merchandise. 3. Interiors - Interior arrangements - appearance, walls, sections, areas should be planned and positioned well. Lighting and Music arrangement needs to be taken into consideration
while planning a layout. It should be placed to suit the kind of shopper. These arrangements can be changed during different hours in a store. One method of encouraging customer exploration is to present them with a layout that facilitates a specific traffic pattern. Customers can be enticed to follow what amounts to a yellow brick road. Another method of helping customers move through the store is to provide interesting design elements. There are many layouts that are used to fulfill the needs of retailers. To understand the advantages and disadvantages are necessary before select a accurate layout for our store. Types of Layout • Grid • Free Flow • Loop/Boutique Grid Layouts
A linear design for a selling floor where fixtures are arranged to form vertical and horizontal aisles throughout the store. Supermarkets, discounters, grocery, drug store and other convenience – oriented retailers, typically use it. This layout is done for more of the store’s convenience and the need to get a lot of product out on display. Advantages
• It is efficient in terms of space use • Allows orderly stocking • Helps shoppers see a great number of items easily • Is simple and predictable to navigate • Efficient to maintain. Disadvantages • The psychological effect on customers is one of feeling constrained and rushed, which reduces the time they spend browsing. • Not aesthetically pleasing. • Contains long gondolas of merchandise and aisles in a repetitive pattern, which creates a monotonous effect that makes the customers feel bored after a certain time.
Free Flow Layout
Loop or Boutique or Racetrack
It exposes shoppers to a great deal of merchandise as they follow a perimeter traffic aisle with departments on the right and left of the circular, square, rectangular or oval racetrack. This layout divides the selling floor into shops within the store. This layout is employed in a discount or a department store. Advantages • This layout exposes shoppers to a great deal of merchandise • It forces the customer to visit multiple departments as they pass through • This loop effect facilitates impulse buying • The newest merchandise is prominently displayed on these main Disadvantage It has not so much advantages as other layouts have and its disadvantages can be ignored due to less effects. We are going to follow the pattern of Racetrack Layout or Loop Layout and there are many reasons behind this. Loop Layout is a type of store layout in which a major customer aisle begins at the entrance, loops through the store – usually in the shape of a circle, square, or rectangle – and then returns the customer to the front of the store.
MATERIAL HANDLING
Material handling constitutes one of the main activities in the store and, therefore, considerable attention needs to be given to this subject in order to ensure that handling methods and handling equipment contribute to efficiency and economy. Material Handling Equipment:Material handling equipment is all equipment that relates to the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. Material handling equipment is the mechanical equipment involved in the complete system. Ways in which material handling equipment can improve efficiency Material handling equipment is used to increase throughput, control costs, and maximize productivity. There are several ways to determine if the material handling equipment is achieving peak efficiency. These include capturing all relevant data related to the warehouse’s operation (such as SKUs), measuring how many times an item is “touched” from the time it is ordered until it leaves the building, making sure you are using the proper picking technology, and keeping system downtime to a minimum. For these purposes we are going to use the following material handling equipments-
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Heavy Duty Storage Racks
We are going to use storage racks and heavy duty storage racks which are fabricated using steel as raw material. These heavy duty storage racks are used in stores where heavy products are kept and for their qualitative features such as optimum strength, durability and easy to assemble.
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Warehouse Racks
We will use install high rise ware house racking, industrial storage racking, cold storage racking together with flat Pallets of metal & plastic, box pallets of steel plates & wire mesh, collapsible pallets, stacking frames, storage crates of metal plate/ wire mesh & reinforced plastic and warehouse trolleys.
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Material Handling Systems
We will use highly durable material handling systems. These are processes by using good quality raw material to ensure their high standard durability and sturdiness .Our range of material handling system is available in various sizes.
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Cosmetic Racks
We will use Cosmetic Rack commercial design, but one of the most important difference in our store Cosmetic Display Racks is Latest Design using high Quality Raw Material and Glass Shelves which Makes them Elegant in Look as well as long life. The Retail stores beauty counter Cosmetic Rack should be: eye-catching, organized, well lit, and above all, the Cosmetic product is displayed where it is accessible for the customers to see it.
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Wire Mesh Racks-
We will use a range of stainless steel wire mesh racks. These wire mesh racks are provided in various sizes and materials.
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Rack
We are going to use this type of racks that will be much beneficial material handling as they are strong and easy to move from here to there.
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Gift items/ Show Piece Racks
These racks will be used for gift iteams and show piece items that will be kept in our store.
Storage systems
The term Storage refers to the physical act of storing the materials in a store, on pallets shelves, racks boxes, almirahs etc. with the objective of retrieving them later for issue or dispatch to the user or customer. The purpose of any store is to provide to users or customers the right materials,in the right quantity, at the right time and at the lowest possible cost. Importance of Efficient storage • There should be maximum economy exercised in relation to the volume of
space occupied. The flow of goods through stores m ay seriously be affected and mechanical handling may not be possible. • Every material requires a specific method of string to obtain the maximum
efficiency with respect to ease of handling,shelf life and prevention of deterioration, Suitability of storage equipment is, therefore, a major factor, it is also quite likely that new lines of production involving new material may be introduced. • Apart from waste, spillage of materials may also occur due to improper
storage. Dampness is one major problem in all stores because it leads to corrosion of metals, solidified powders, discolouration of paper, ect.
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Another aspect of storage is prevention of losses due to evaporation, pilferage,
etc. Theft is common where there is no control on the people coming into the store. The store should be out of bounds for every outsider. • The bin must be of the right size. If it is small, the item will stick out and
cannot be placed correctly and untidy stacking will result. • Storage must also enable adequate ease in counting, checking and issue.
Storage Methods The methods of storage that will take place our store are as following1.
Binned Storage:- A bin is a receptacle in which materials are kept. This is by
far the most popular method in most stores and we are going to follow this pattern.
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Block Stocking:- The materials, usually in containers (boxes , sacks, cartons,
etc.) will be stacked one on top of another to a maximum safe height.
3. 4.
Shelving:- Materials will be stored on shelves(steel, wood, fibre-board, etc.) Racking:- This is often used to store palletized goods. One pallet is soted on
the stacking side of the rack. It can e made to any size and erected or dismantled very rapidly. If forklifts are used, racks can to up to 30 feet.
Merchandise Mix
The breadth and depth of the products carried by retailers is known as merchandise mix. Merchandise that will be used in our store are as belowZeppelin : Kitaan Studio : Blues & Khakis : Paranoia : Chlorine : Fume : Mens Shirts & Trousers Mens Shirts & Trousers Mens Trousers Mens Shirts & T-Shirts Mens Shirts Mens Shirts, T-Shirts, UnderGarments. Fizzy Babe : Jasmine : Zero Degree : Soil : Massa Bay : Ladies & Kids Girls Ladies & Kids Girls Kids Boys Mens Shirts Mens Trousers & Bermudas
HOUSE HOLD
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Cleaning Aids Plastic Aids
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Gifts & Novelties
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Thermo Ware
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Appliances and Kitchen Aids
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Opticals
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Perfume-Deo STATIONERY
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School stationery Office stationery Books Bag Men's Accessories
Inventory Planning & Control
The retail industry can be extremely competitive and one of the biggest challenges is managing a store’s retail inventory. Businesses need to have space to store a wide number of products along with a wide variety. If a retail store does not carry enough of a product, then they are losing potential customers who will shop elsewhere. Retail inventory is different from other forms of inventory because of the quantities needed. Retail chains need warehouses to keep all of their stock and the means to transport it to their stores. Keeping up with such large quantities can be difficult for anyone, even with the help of an automated system. To track a company’s products, a retail inventory management system needs to be successfully implemented.
What Is Retail Inventory Management? Retail inventory management is the process and methods used to keep track of the stock in a retail business. These methods control everything from ordering, shipping, receiving, tracking inventory, retail turn-over, and storage. Retail inventory management can help keep a business’ profits at a steady margin as well as reducing theft and loss of inventory. Many retail businesses lose money every year because they do not have a successful inventory management system in place. Retail Inventory Management should provide the following functions for a retail business: • • • • • • Track and manage all of the inventory for the business Keep up with store markdowns Evaluate how well some groups of products do in sales Provides analysis for comparison shopping with competitors Collect data on the sales and inventory of individual stores using SKU Allows you to accurately review your inventory
How To Manage Inventory Most businesses use some form of computer software to manage their inventory. Unless the retail business is very small, doing it manually would be very impractical, especially for large companies that deal in thousands of individual products. A business that has a successful system for retail management will allow the business to keep a sufficient amount of stock to meet customer demand. If a business does not have enough inventory, then it can slow down cash flow. Too much inventory can cost a business money and take up more room. When dealing with retail inventory management, companies will utilize one of these systems:
• Point-of-sale terminals – These are check-out points that automatically update a
company’s inventory levels.
• Job costing and inventory systems – Another automatic system that updates
computerized levels of inventory.
• Barcodes and readers – Every product these days contains a barcode with the items
information. Barcodes makes it easy and quick track stock.
• Electronic Supplier Product catalogs – This system can update inventory levels
automatically through either the internet or media disk. Managing retail inventory involves several characteristics and steps. One of the most important steps is to make sure that you always remove products from the system as soon as they are sold. The same is true for receiving shipments of new stock. Make sure you record it as quickly as possible. Physical inspections should be regularly performed to make sure the computerized system is accurate with what is actually in stock. A physical inspection involves manually looking over the stock to see that they numbers match. Review sales reports weekly. You want to do this to see what is selling and what is not. Products that spend more time on the shelf should be re-evaluated or discounted to get rid of them. Another step is to research to find the right products to sell. Businesses should come up with a target market and try to carry the right type of inventory to meet that target. To make sure that you have the right product in your stores, you need to know what type of products to order and how much, when to order, and when the products should arrive. Keeping up with retail inventory management should be delegated to several individuals or a department.
Prevention of Inventory Theft and Loss
One of the biggest problems to plague retail inventory is theft and loss of retail products. Every time this happens, it costs a business money. Preventing inventory theft can be difficult. But with the right system, we can definitely reduce it. Here are some tips: • We will not share or hand out the same password for every cashier. Having
separate passwords and log-ins tells who was manning the register at certain times. • We will always check out any transactions that were voided or canceled. This is a
common way for inventory to disappear from a store. • We will Set up a password-protected security on all computers and systems. Only
when employees absolutely must have access should it be granted. • We will go over inventory reports every day to make sure sales figures match with
the current quantities. • We will make sure the back door has a security alarm system that is activated
every time the door is opened without authorization. If employees know the door should not be opened without permission, they shouldn’t open it. • We will inspect the garbage every night before it goes out. Use clear plastic bags
so that you can easily see inside the bag and make sure there is no inventory hidden inside. • We will set up security cameras not only in the store but in the back storage as
well. This allows you to keep an eye on items out on the racks as well as in stock. INVERNTORY MANAGEMENT Retail inventory management is probably one of the most complex of all inventory management departments. In retail management, you’ll have a greater variety of products to store and a great deal more of each product. In fact, your warehouse may never be big enough to hold all the merchandise that you need to keep in stock, and it can be difficult to maintain the right number of any particular item at any given time. How can you solve the problem, or at least address it, before it becomes too much to handle? Retail inventory management should never be the job of a single individual but should be divided into departments and classified accordingly.
Delegation of Responsibility Depending on the size of your store, your retail inventory management could be divided into the two main categories and delegated to two individuals who would be responsible for the management of your entire inventory, or you could break it down further, having an employee in charge of each smaller division. This would allow the individual to gain an intimate knowledge of how quickly each product sold and how often it needed to be reordered. This would easily allow you to account for excess stock in some areas while others remained fairly empty. The important thing to remember in retail inventory management is that you most likely have a little storage space for an enormous array of products and have to determine what will and won’t be important to maintain in quantity. Being efficient in carefully stocking the storage areas, as well as knowing what your best sellers are, can help you keep your retail inventory management process strong and in balance.
Safety
The term Safety encompasses the safety of the material I the store, facilities used, including materials handling equipment and the safety of the personnel working in a store. Personal Safety in Retail Stores Retailers have the dual responsibility of protecting both their workers and their customers. Major retailers are open relatively long hours during the week and even on weekends. Inevitably, something can go wrong. Certain systems must be in place to create optimal personal safety in retail stores. Significance 1. We are going to use some safety patterns for the beneficial for our stores and employees as grocery stores will keep boxes near shelves when stocking to prevent customers from tripping over them. 2. Retail workers who stock or lift objects during the day should wear safety belts to protect their back. Moreover, retail employees are often required to wear comfortable, non-slip shoes to prevent slipping.
3. Ergonomic injuries can be a potential hazard for retail employees, which can be caused by repetitive motion or stress. Retailers should encourage employees to stop and rest every 20 or 30 minutes to prevent injuries. 4. Retail stores usually install security cameras and keep parking lots and buildings illuminated at night. This helps protect store employees and shoppers from theft and potential violence. Personal safety in retail stores also includes instructions for fires and the handling of money. 5. Retail stores should always train their employees on personal safety issues such as lifting, transporting goods and using equipment. Health & Safety Every workplace has its hazards, but no one ever expects accidents to happen to them at work. In fact, new and young workers are injured on the job every day. In the retail industry, the leading causes of injury are: • Handling bags, boxes and other objects • Using tools and equipment (e.g., from box cutters to pallet jacks) • Slips and falls Many other causes of injury are less frequent but still common. Tips for working safely There are some tips related to safety in the stores and these tips will be given our employees. Handling & lifting Improper handling and lifting of heavy or bulky objects is a major source of strains, sprains, neck and back injuries, cuts, bruises, broken bones and hernias. Any one of these injuries can affect you for the rest of your life. Signs and symptoms of sprains and strains It is important to recognize the early signs and symptoms of sprains and strains. The sooner treatment starts, the better. Signs and symptoms include: • Swelling
• Redness • Difficulty moving a particular body part • Numbness • Tingling, and • Pain If you notice any early signs or symptoms of sprains and strains, report them to your supervisor, manager or employer (or first aid attendant, health and safety committee, safety representative, supervisor). Sprains and strains (known as musculoskeletal injuries, or “MSIs”) are the most common type of work-related injury. These can arise from repetitive movement or from overexertion, which is associated with lifting. Most MSIs result from overexertion, and many of these are associated with lifting. When lifting, you need to think about the force required to lift the load and about your posture. Muscles and tendons can be overloaded, especially when your body is in an awkward posture. However, a bit of prevention can go a long way toward ensuring injury-free muscles and joints.
Security
Security is becoming more and more prevalent in today’s world, and has become a priority to businesses worldwide. With years of experience and technically advanced antishoplifting equipment in retail sector, we will utilize it in our store. We will provide products and services that will address our stores loss prevention needs. For this purpose we will use different types of equipments and these are as below— • We will use Electronic Article Surveillance(EAS) that has been designed to protect retail stores form shoplifting. • Radio Frequency Identification Device(RFDI)
• Closed Circuit Television as dixed and domed cameras, public display monitors and digital video recorders that are always on watch and document store activity.
Legal Aspects
Health and Safety Every business owner has to ensure the health and safety of their employees at the workplace. This is one of the major concerns of business owners of all businesses, whether big or small. Such responsibilities are both ethical and legal. If your business has a physical location, then you will need to register your business with OSHA (Occupational Safety Health Administration. This goes double if your employees face on the job hazards, such as building things or handling hazardous materials. Not following the law when it comes to health and safety is a sure-fire way to get into legal trouble. Employment and Age It is necessary for every business owner to ensure compliance of age and employment-related laws along with the health and safety laws applicable to their particular business. In a case where a business is sold to another owner, the new owner needs to follow and maintain the correct policies and procedures together with appropriate practices that accompany the purchase of the business. It would be advisable to seek information from the EEOC (Equal Employment Opportunity Commission) to ensure legal compliance and help you stay within the age limitations imposed by the law. Buildings and Property As a small business owner, we need to know the building codes in the district where our business will be operating. This will ensure that there are no building code violations and that there are no structural issues or other problems that may invite fines. Fair Trading Practices Fair trading practices help to avoid deceptive conduct and prevent economic injury to consumers and other businesses. Fair Trade includes unfair competition, false advertising, copyright infringement, etc. As a small business owner, you should make sure to acquaint yourself with Better Business Bureau guidelines and register our business with them. Registering with the BBB shows that our business has an open-door policy and will be fair and equitable when dealing with complaints or other issues. In general, when selling products,
either wholesale or retail, all sales should be on equal terms and prices must be nondiscriminatory. Licensing and Insurance It is important that all relevant and necessary licenses pertinent to the business be obtained. The proper way to proceed in applying for any licenses you need is through your state’s Business License division. Your business should also be insured (in fact, this is often required), preferably with a reputable insurance company. To get more information on government regulations related to licenses, permits, registrations etc. for a specific line of business, check with related trade associations, business colleagues and experienced consultants. It is best to hire an attorney to go through all documentation, plans and papers related to the legal aspects of your business. This will help you to comply with any legal requirements and ensure that your business is protected from lawsuits and other legal complications.
Stores Records
Why Keep Records? There are many reasons to keep records. In addition to tax purposes, you may need to keep records for insurance purposes or for getting a loan. Good records will help you:
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Identify sources of income. You may receive money or property from a variety
of sources. Your records can identify the sources of your income. You need this information to separate business from nonbusiness income and taxable from nontaxable income. • Keep track of expenses. You may forget an expense unless you record it when
it occurs. You can use your records to identify expenses for which you can claim a deduction. This will help you determine if you can itemize deductions on your tax return. • Keep track of the basis of property. You need to keep records that show the
basis of your property. This includes the original cost or other basis of the property and any improvements you made.
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Prepare tax returns. You need records to prepare your tax return. Good records
help you to file quickly and accurately. • Support items reported on tax returns. You must keep records in case the IRS
has a question about an item on your return. If the IRS examines your tax return, you may be asked to explain the items reported. Good records will help you explain any item and arrive at the correct tax with a minimum of effort. If you do not have records, you may have to spend time getting statements and receipts from various sources. If you cannot produce the correct documents, you may have to pay additional tax and be subject to penalties. Computerized records. Many retail stores sell computer software packages that you can use for recordkeeping. These packages are relatively easy to use and require little knowledge of bookkeeping and accounting. If you use a computerized system, you must be able to produce legible records of the information needed to determine your correct tax liability. In addition to your computerized records, you must keep proof of payment, receipts, and other documents to prove the amounts shown on your tax return. There are some factors that will be kept in record and these are as income tax returns income tax payment checks investment trade confirmations important correspondence legal records retirement and pension records CPA audit reports annual financial statements and books of account corporate documents (incorporation, charter, by-laws, etc.) stock records
retirement and pension records licenses, patents, and trademarks and registration packets investment trade confirmations documents substantiating fixed asset additions
I will keep all these above mention records to successfully manage my department store.
The retail industry provides an exciting way of life for the more than 15 million people who earn their livelihood in this sector of the Indian economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labor. Retailing is one of the fastest-growing segments of the economy. As one of the nation's second largest employers, the retail industry provides excellent business opportunities for you. . Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of our economy accounts for about 23 percent of our gross national product--more than $200 billion.
Environment
Introduction about Haryana Haryana is a state in India. Historically, it has been a part of the Kuru region in North India. It is bordered by Punjab and Himachal Pradesh to the north, and by Rajasthan to the west and south. The river Yamuna defines its eastern border with Uttarakhand and Uttar Pradesh. Haryana also surrounds Delhi on three sides, forming the northern, western and southern borders of Delhi. The capital of the state is Chandigarh which is administered as a union territory and is also the capital of Punjab. Haryana is now a leading contributor to the country's production of foodgrain and milk. Agriculture is the leading occupation for the residents of the state. Haryana is one of the wealthiest states of India and has the third highest per capita income in the country at Rs. 67,891. Haryana is also one of the most economically developed regions in South Asia and its agricultural and manufacturing industry has experienced sustained growth since 1970s. Haryana is India's largest manufacturer of passenger cars, two-wheelers, and tractors. Hindus are majority in Haryana and are about 90% of the population, Sikhs 6.2%, Muslims 4.05% and Christians 0.10%. Geography and climate
Haryana is a landlocked state in northern India. The climate of Haryana is similar to other states of India lying in the northern plains. It is very hot in summer (up to a high of 50 deg Celsius) and cold in winters (down to a low of 1 deg Celsius). The hottest months are May and June and the coldest being December and January. Rainfall is varied, with the Shivalik Hills region being the wettest and the Aravali Hills region being the driest. About 80% of the rainfall occurs in the monsoon season (July–September) and sometimes causes local flooding. Demographics The population of Haryana, according to the 2001 census, is 21,144,000, with 11,364,000 males and 9,781,000 females. The population density is 477 people/km. Hindus are majority in Haryana and are about 90% of the population, Sikhs 6.2%, Muslims 4.05% (mainly Meos) and Christians 0.10%.[18] Hindus make up about 18,655,925 of the population, Sikhs 1,170,662, Muslims 1,222,196, Jains 57,167, Christians 27,185, and Buddhists 7,140. Economy The economy of Haryana relies on manufacturing, business process outsourcing, agriculture and retail. In 2006-07 Haryana received a foreign direct investment projects of over Rs 11,000 crore in the state and corporate sector and had a fiscal deficit of 0.6 per cent in financial year 2006-07. The contribution of primary, secondary and tertiary sectors for the Gross State Domestic Product (GSDP) in 2007-08 is Rs. 21,265.92 crore, Rs. 30,919.95 crore and Rs.49,133.55 crore respectively.
Reason for Choosing Karnal city
Karnal is a big city of Haryana. The population of this city is huge so we can attract more customers from this city. Per capita income of the people is good in Karnal, so they have good expending capacity. The city is the largest contributor to the state’s gross domestic product, state tax and excise revenues. This show more industrialization and income of people is there.
Business plan for new store:
As usual every business starts and grows with SMART business plan. The business plan is the roadmap of your business, where you will define your business, and outline the steps that can lead you to succeed. The benefits of a business plan are that it forces you to really think hard about your business, helps you identify early on the challenges that you might meet, and enable you to craft strategies that may help you overcome the challenges and bring your business to the next level. My new business will include the following: Name of The Retail Store Slogan Apna Bazaar (A department store) Good quality at cheap price
Location
Location is a very important factor for retail store for 3 reasons they are- First location is typically the prime consideration in a customer’s store choice decision. When customer want to purchase something, mostly they choose the store that is close to them. Second location decisions have strategic importance because they can be used to develop a sustainable competitive advantage. If a retailer has the best location, that is, the location that is most attractive to its customers, competitors cannot easily copy this advantage and are relegated to occupying the second best location. Third, location decisions are risky. Typically, when retailers select a location, they invest a huge money. This is the factor which cannot not be change easily and without losses. Reasons of selection location for our store are: 1. The area is very close to the main city of Pune. 2. The area has road accessibility. 3. The size of the area is sufficient. The space which we need for storage, display, office, and the parking area is suiting the needs of the store. 4. Visibility of the area. 5. Population close to the area is very huge. 6. The people living close by area are having good per capita income. i.e the people living there are mostly average or above average class.
7. No footwear store in this area. 8. Less competition. 9. Satisfactory laocal conditions like no flooding chances, theft,fire,and others which are needed like water,light,drainage, electreicty and telephone services. 10. And also we can expand our space in future if the need arises. Legal considerations about location: • • • The area is not public property. The area is not part of the graveyard The area is free from govt restrictions.
Therefore because of these factors we choose this location for our store.
LAYOUT
Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. “ Store layout needs to guide the customer silently about where he/she wants to go and for exposing him/her to the entire store offering” . ( The store itself it’s the most meaningful communication between the retailer and the customer) Some factor are very essential while choosing the layout of a store and these are as given below or we can say that we have to analysis these factors before defining the layout of our store. 1. Effective Use of Space - Space needs to be used effectively, with all the areas planned properly to break up the store into logical and functional areas such as POS, Back Office, Chaging Rooms, Pantry, Toilets, etc. 2. Inviting Customers - Layout is desinged to attaract the targeted audience. It should speak on its own and guide customers to all the areas of merchandise. 3. Interiors - Interior arrangements - appearance, walls, sections, areas should be planned and positioned well. Lighting and Music arrangement needs to be taken into consideration
while planning a layout. It should be placed to suit the kind of shopper. These arrangements can be changed during different hours in a store. One method of encouraging customer exploration is to present them with a layout that facilitates a specific traffic pattern. Customers can be enticed to follow what amounts to a yellow brick road. Another method of helping customers move through the store is to provide interesting design elements. There are many layouts that are used to fulfill the needs of retailers. To understand the advantages and disadvantages are necessary before select a accurate layout for our store. Types of Layout • Grid • Free Flow • Loop/Boutique Grid Layouts
A linear design for a selling floor where fixtures are arranged to form vertical and horizontal aisles throughout the store. Supermarkets, discounters, grocery, drug store and other convenience – oriented retailers, typically use it. This layout is done for more of the store’s convenience and the need to get a lot of product out on display. Advantages
• It is efficient in terms of space use • Allows orderly stocking • Helps shoppers see a great number of items easily • Is simple and predictable to navigate • Efficient to maintain. Disadvantages • The psychological effect on customers is one of feeling constrained and rushed, which reduces the time they spend browsing. • Not aesthetically pleasing. • Contains long gondolas of merchandise and aisles in a repetitive pattern, which creates a monotonous effect that makes the customers feel bored after a certain time.
Free Flow Layout
Loop or Boutique or Racetrack
It exposes shoppers to a great deal of merchandise as they follow a perimeter traffic aisle with departments on the right and left of the circular, square, rectangular or oval racetrack. This layout divides the selling floor into shops within the store. This layout is employed in a discount or a department store. Advantages • This layout exposes shoppers to a great deal of merchandise • It forces the customer to visit multiple departments as they pass through • This loop effect facilitates impulse buying • The newest merchandise is prominently displayed on these main Disadvantage It has not so much advantages as other layouts have and its disadvantages can be ignored due to less effects. We are going to follow the pattern of Racetrack Layout or Loop Layout and there are many reasons behind this. Loop Layout is a type of store layout in which a major customer aisle begins at the entrance, loops through the store – usually in the shape of a circle, square, or rectangle – and then returns the customer to the front of the store.
MATERIAL HANDLING
Material handling constitutes one of the main activities in the store and, therefore, considerable attention needs to be given to this subject in order to ensure that handling methods and handling equipment contribute to efficiency and economy. Material Handling Equipment:Material handling equipment is all equipment that relates to the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. Material handling equipment is the mechanical equipment involved in the complete system. Ways in which material handling equipment can improve efficiency Material handling equipment is used to increase throughput, control costs, and maximize productivity. There are several ways to determine if the material handling equipment is achieving peak efficiency. These include capturing all relevant data related to the warehouse’s operation (such as SKUs), measuring how many times an item is “touched” from the time it is ordered until it leaves the building, making sure you are using the proper picking technology, and keeping system downtime to a minimum. For these purposes we are going to use the following material handling equipments-
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Heavy Duty Storage Racks
We are going to use storage racks and heavy duty storage racks which are fabricated using steel as raw material. These heavy duty storage racks are used in stores where heavy products are kept and for their qualitative features such as optimum strength, durability and easy to assemble.
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Warehouse Racks
We will use install high rise ware house racking, industrial storage racking, cold storage racking together with flat Pallets of metal & plastic, box pallets of steel plates & wire mesh, collapsible pallets, stacking frames, storage crates of metal plate/ wire mesh & reinforced plastic and warehouse trolleys.
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Material Handling Systems
We will use highly durable material handling systems. These are processes by using good quality raw material to ensure their high standard durability and sturdiness .Our range of material handling system is available in various sizes.
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Cosmetic Racks
We will use Cosmetic Rack commercial design, but one of the most important difference in our store Cosmetic Display Racks is Latest Design using high Quality Raw Material and Glass Shelves which Makes them Elegant in Look as well as long life. The Retail stores beauty counter Cosmetic Rack should be: eye-catching, organized, well lit, and above all, the Cosmetic product is displayed where it is accessible for the customers to see it.
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Wire Mesh Racks-
We will use a range of stainless steel wire mesh racks. These wire mesh racks are provided in various sizes and materials.
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Rack
We are going to use this type of racks that will be much beneficial material handling as they are strong and easy to move from here to there.
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Gift items/ Show Piece Racks
These racks will be used for gift iteams and show piece items that will be kept in our store.
Storage systems
The term Storage refers to the physical act of storing the materials in a store, on pallets shelves, racks boxes, almirahs etc. with the objective of retrieving them later for issue or dispatch to the user or customer. The purpose of any store is to provide to users or customers the right materials,in the right quantity, at the right time and at the lowest possible cost. Importance of Efficient storage • There should be maximum economy exercised in relation to the volume of
space occupied. The flow of goods through stores m ay seriously be affected and mechanical handling may not be possible. • Every material requires a specific method of string to obtain the maximum
efficiency with respect to ease of handling,shelf life and prevention of deterioration, Suitability of storage equipment is, therefore, a major factor, it is also quite likely that new lines of production involving new material may be introduced. • Apart from waste, spillage of materials may also occur due to improper
storage. Dampness is one major problem in all stores because it leads to corrosion of metals, solidified powders, discolouration of paper, ect.
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Another aspect of storage is prevention of losses due to evaporation, pilferage,
etc. Theft is common where there is no control on the people coming into the store. The store should be out of bounds for every outsider. • The bin must be of the right size. If it is small, the item will stick out and
cannot be placed correctly and untidy stacking will result. • Storage must also enable adequate ease in counting, checking and issue.
Storage Methods The methods of storage that will take place our store are as following1.
Binned Storage:- A bin is a receptacle in which materials are kept. This is by
far the most popular method in most stores and we are going to follow this pattern.
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Block Stocking:- The materials, usually in containers (boxes , sacks, cartons,
etc.) will be stacked one on top of another to a maximum safe height.
3. 4.
Shelving:- Materials will be stored on shelves(steel, wood, fibre-board, etc.) Racking:- This is often used to store palletized goods. One pallet is soted on
the stacking side of the rack. It can e made to any size and erected or dismantled very rapidly. If forklifts are used, racks can to up to 30 feet.
Merchandise Mix
The breadth and depth of the products carried by retailers is known as merchandise mix. Merchandise that will be used in our store are as belowZeppelin : Kitaan Studio : Blues & Khakis : Paranoia : Chlorine : Fume : Mens Shirts & Trousers Mens Shirts & Trousers Mens Trousers Mens Shirts & T-Shirts Mens Shirts Mens Shirts, T-Shirts, UnderGarments. Fizzy Babe : Jasmine : Zero Degree : Soil : Massa Bay : Ladies & Kids Girls Ladies & Kids Girls Kids Boys Mens Shirts Mens Trousers & Bermudas
HOUSE HOLD
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Cleaning Aids Plastic Aids
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Gifts & Novelties
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Thermo Ware
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Appliances and Kitchen Aids
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Opticals
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Perfume-Deo STATIONERY
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School stationery Office stationery Books Bag Men's Accessories
Inventory Planning & Control
The retail industry can be extremely competitive and one of the biggest challenges is managing a store’s retail inventory. Businesses need to have space to store a wide number of products along with a wide variety. If a retail store does not carry enough of a product, then they are losing potential customers who will shop elsewhere. Retail inventory is different from other forms of inventory because of the quantities needed. Retail chains need warehouses to keep all of their stock and the means to transport it to their stores. Keeping up with such large quantities can be difficult for anyone, even with the help of an automated system. To track a company’s products, a retail inventory management system needs to be successfully implemented.
What Is Retail Inventory Management? Retail inventory management is the process and methods used to keep track of the stock in a retail business. These methods control everything from ordering, shipping, receiving, tracking inventory, retail turn-over, and storage. Retail inventory management can help keep a business’ profits at a steady margin as well as reducing theft and loss of inventory. Many retail businesses lose money every year because they do not have a successful inventory management system in place. Retail Inventory Management should provide the following functions for a retail business: • • • • • • Track and manage all of the inventory for the business Keep up with store markdowns Evaluate how well some groups of products do in sales Provides analysis for comparison shopping with competitors Collect data on the sales and inventory of individual stores using SKU Allows you to accurately review your inventory
How To Manage Inventory Most businesses use some form of computer software to manage their inventory. Unless the retail business is very small, doing it manually would be very impractical, especially for large companies that deal in thousands of individual products. A business that has a successful system for retail management will allow the business to keep a sufficient amount of stock to meet customer demand. If a business does not have enough inventory, then it can slow down cash flow. Too much inventory can cost a business money and take up more room. When dealing with retail inventory management, companies will utilize one of these systems:
• Point-of-sale terminals – These are check-out points that automatically update a
company’s inventory levels.
• Job costing and inventory systems – Another automatic system that updates
computerized levels of inventory.
• Barcodes and readers – Every product these days contains a barcode with the items
information. Barcodes makes it easy and quick track stock.
• Electronic Supplier Product catalogs – This system can update inventory levels
automatically through either the internet or media disk. Managing retail inventory involves several characteristics and steps. One of the most important steps is to make sure that you always remove products from the system as soon as they are sold. The same is true for receiving shipments of new stock. Make sure you record it as quickly as possible. Physical inspections should be regularly performed to make sure the computerized system is accurate with what is actually in stock. A physical inspection involves manually looking over the stock to see that they numbers match. Review sales reports weekly. You want to do this to see what is selling and what is not. Products that spend more time on the shelf should be re-evaluated or discounted to get rid of them. Another step is to research to find the right products to sell. Businesses should come up with a target market and try to carry the right type of inventory to meet that target. To make sure that you have the right product in your stores, you need to know what type of products to order and how much, when to order, and when the products should arrive. Keeping up with retail inventory management should be delegated to several individuals or a department.
Prevention of Inventory Theft and Loss
One of the biggest problems to plague retail inventory is theft and loss of retail products. Every time this happens, it costs a business money. Preventing inventory theft can be difficult. But with the right system, we can definitely reduce it. Here are some tips: • We will not share or hand out the same password for every cashier. Having
separate passwords and log-ins tells who was manning the register at certain times. • We will always check out any transactions that were voided or canceled. This is a
common way for inventory to disappear from a store. • We will Set up a password-protected security on all computers and systems. Only
when employees absolutely must have access should it be granted. • We will go over inventory reports every day to make sure sales figures match with
the current quantities. • We will make sure the back door has a security alarm system that is activated
every time the door is opened without authorization. If employees know the door should not be opened without permission, they shouldn’t open it. • We will inspect the garbage every night before it goes out. Use clear plastic bags
so that you can easily see inside the bag and make sure there is no inventory hidden inside. • We will set up security cameras not only in the store but in the back storage as
well. This allows you to keep an eye on items out on the racks as well as in stock. INVERNTORY MANAGEMENT Retail inventory management is probably one of the most complex of all inventory management departments. In retail management, you’ll have a greater variety of products to store and a great deal more of each product. In fact, your warehouse may never be big enough to hold all the merchandise that you need to keep in stock, and it can be difficult to maintain the right number of any particular item at any given time. How can you solve the problem, or at least address it, before it becomes too much to handle? Retail inventory management should never be the job of a single individual but should be divided into departments and classified accordingly.
Delegation of Responsibility Depending on the size of your store, your retail inventory management could be divided into the two main categories and delegated to two individuals who would be responsible for the management of your entire inventory, or you could break it down further, having an employee in charge of each smaller division. This would allow the individual to gain an intimate knowledge of how quickly each product sold and how often it needed to be reordered. This would easily allow you to account for excess stock in some areas while others remained fairly empty. The important thing to remember in retail inventory management is that you most likely have a little storage space for an enormous array of products and have to determine what will and won’t be important to maintain in quantity. Being efficient in carefully stocking the storage areas, as well as knowing what your best sellers are, can help you keep your retail inventory management process strong and in balance.
Safety
The term Safety encompasses the safety of the material I the store, facilities used, including materials handling equipment and the safety of the personnel working in a store. Personal Safety in Retail Stores Retailers have the dual responsibility of protecting both their workers and their customers. Major retailers are open relatively long hours during the week and even on weekends. Inevitably, something can go wrong. Certain systems must be in place to create optimal personal safety in retail stores. Significance 1. We are going to use some safety patterns for the beneficial for our stores and employees as grocery stores will keep boxes near shelves when stocking to prevent customers from tripping over them. 2. Retail workers who stock or lift objects during the day should wear safety belts to protect their back. Moreover, retail employees are often required to wear comfortable, non-slip shoes to prevent slipping.
3. Ergonomic injuries can be a potential hazard for retail employees, which can be caused by repetitive motion or stress. Retailers should encourage employees to stop and rest every 20 or 30 minutes to prevent injuries. 4. Retail stores usually install security cameras and keep parking lots and buildings illuminated at night. This helps protect store employees and shoppers from theft and potential violence. Personal safety in retail stores also includes instructions for fires and the handling of money. 5. Retail stores should always train their employees on personal safety issues such as lifting, transporting goods and using equipment. Health & Safety Every workplace has its hazards, but no one ever expects accidents to happen to them at work. In fact, new and young workers are injured on the job every day. In the retail industry, the leading causes of injury are: • Handling bags, boxes and other objects • Using tools and equipment (e.g., from box cutters to pallet jacks) • Slips and falls Many other causes of injury are less frequent but still common. Tips for working safely There are some tips related to safety in the stores and these tips will be given our employees. Handling & lifting Improper handling and lifting of heavy or bulky objects is a major source of strains, sprains, neck and back injuries, cuts, bruises, broken bones and hernias. Any one of these injuries can affect you for the rest of your life. Signs and symptoms of sprains and strains It is important to recognize the early signs and symptoms of sprains and strains. The sooner treatment starts, the better. Signs and symptoms include: • Swelling
• Redness • Difficulty moving a particular body part • Numbness • Tingling, and • Pain If you notice any early signs or symptoms of sprains and strains, report them to your supervisor, manager or employer (or first aid attendant, health and safety committee, safety representative, supervisor). Sprains and strains (known as musculoskeletal injuries, or “MSIs”) are the most common type of work-related injury. These can arise from repetitive movement or from overexertion, which is associated with lifting. Most MSIs result from overexertion, and many of these are associated with lifting. When lifting, you need to think about the force required to lift the load and about your posture. Muscles and tendons can be overloaded, especially when your body is in an awkward posture. However, a bit of prevention can go a long way toward ensuring injury-free muscles and joints.
Security
Security is becoming more and more prevalent in today’s world, and has become a priority to businesses worldwide. With years of experience and technically advanced antishoplifting equipment in retail sector, we will utilize it in our store. We will provide products and services that will address our stores loss prevention needs. For this purpose we will use different types of equipments and these are as below— • We will use Electronic Article Surveillance(EAS) that has been designed to protect retail stores form shoplifting. • Radio Frequency Identification Device(RFDI)
• Closed Circuit Television as dixed and domed cameras, public display monitors and digital video recorders that are always on watch and document store activity.
Legal Aspects
Health and Safety Every business owner has to ensure the health and safety of their employees at the workplace. This is one of the major concerns of business owners of all businesses, whether big or small. Such responsibilities are both ethical and legal. If your business has a physical location, then you will need to register your business with OSHA (Occupational Safety Health Administration. This goes double if your employees face on the job hazards, such as building things or handling hazardous materials. Not following the law when it comes to health and safety is a sure-fire way to get into legal trouble. Employment and Age It is necessary for every business owner to ensure compliance of age and employment-related laws along with the health and safety laws applicable to their particular business. In a case where a business is sold to another owner, the new owner needs to follow and maintain the correct policies and procedures together with appropriate practices that accompany the purchase of the business. It would be advisable to seek information from the EEOC (Equal Employment Opportunity Commission) to ensure legal compliance and help you stay within the age limitations imposed by the law. Buildings and Property As a small business owner, we need to know the building codes in the district where our business will be operating. This will ensure that there are no building code violations and that there are no structural issues or other problems that may invite fines. Fair Trading Practices Fair trading practices help to avoid deceptive conduct and prevent economic injury to consumers and other businesses. Fair Trade includes unfair competition, false advertising, copyright infringement, etc. As a small business owner, you should make sure to acquaint yourself with Better Business Bureau guidelines and register our business with them. Registering with the BBB shows that our business has an open-door policy and will be fair and equitable when dealing with complaints or other issues. In general, when selling products,
either wholesale or retail, all sales should be on equal terms and prices must be nondiscriminatory. Licensing and Insurance It is important that all relevant and necessary licenses pertinent to the business be obtained. The proper way to proceed in applying for any licenses you need is through your state’s Business License division. Your business should also be insured (in fact, this is often required), preferably with a reputable insurance company. To get more information on government regulations related to licenses, permits, registrations etc. for a specific line of business, check with related trade associations, business colleagues and experienced consultants. It is best to hire an attorney to go through all documentation, plans and papers related to the legal aspects of your business. This will help you to comply with any legal requirements and ensure that your business is protected from lawsuits and other legal complications.
Stores Records
Why Keep Records? There are many reasons to keep records. In addition to tax purposes, you may need to keep records for insurance purposes or for getting a loan. Good records will help you:
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Identify sources of income. You may receive money or property from a variety
of sources. Your records can identify the sources of your income. You need this information to separate business from nonbusiness income and taxable from nontaxable income. • Keep track of expenses. You may forget an expense unless you record it when
it occurs. You can use your records to identify expenses for which you can claim a deduction. This will help you determine if you can itemize deductions on your tax return. • Keep track of the basis of property. You need to keep records that show the
basis of your property. This includes the original cost or other basis of the property and any improvements you made.
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Prepare tax returns. You need records to prepare your tax return. Good records
help you to file quickly and accurately. • Support items reported on tax returns. You must keep records in case the IRS
has a question about an item on your return. If the IRS examines your tax return, you may be asked to explain the items reported. Good records will help you explain any item and arrive at the correct tax with a minimum of effort. If you do not have records, you may have to spend time getting statements and receipts from various sources. If you cannot produce the correct documents, you may have to pay additional tax and be subject to penalties. Computerized records. Many retail stores sell computer software packages that you can use for recordkeeping. These packages are relatively easy to use and require little knowledge of bookkeeping and accounting. If you use a computerized system, you must be able to produce legible records of the information needed to determine your correct tax liability. In addition to your computerized records, you must keep proof of payment, receipts, and other documents to prove the amounts shown on your tax return. There are some factors that will be kept in record and these are as income tax returns income tax payment checks investment trade confirmations important correspondence legal records retirement and pension records CPA audit reports annual financial statements and books of account corporate documents (incorporation, charter, by-laws, etc.) stock records
retirement and pension records licenses, patents, and trademarks and registration packets investment trade confirmations documents substantiating fixed asset additions
I will keep all these above mention records to successfully manage my department store.
