Sunday, May 11, 2014

Process of Setting up a Retail Organization | Retail Management Notes

Process of setting up a retail organization

Process of setting up a retail organization is outlined below:

1. Identify the specific task to be performed in retail distribution channel - The tasks in a distribution channel should be identified and provided for the adopted strategy mix i.e. Buying merchandise, shipping merchandise, receiving and checking merchandise etc.

2. Dividing the task among channel members: However the task mentioned above does not needed to be performed by the retailer. It can be divided among the retailer manufacturer or whole seller etc. The task should be carried out only if desired by the target market and should be done by the member of distribution with best competence.

3. Grouping the retailer task into jobs: The jobs are grouped after determining the task to be performed. It is important that the jobs must be clearly structured. For an example displaying merchandising and customer handling could be the job of sales personnel.

4. Classifying the jobs - Here jobs are broadly classified into functional, product, geographic or combination.

5. Developing an organizational chart - It is important to design the format of retail organization in an integrated, coordinated way. Taking the following into consideration a retailer devises organization chart, which graphically displays its hierarchical relationship.

Read also: 
1. Organization design and structure in retail
2. Major Types of Retail Stores
3. Introduction of Strategic Retail Planning
4. Planning and Forecasting in Retailing 


  1. Please send me the answer of 'challenging issues in retailing '