| What is a "Star Performer"? A "Star
| |
| | needed.11. Purchase Order
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| Performer" is a STORE that significantly
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| | Managementa. Purchase orders written on
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| surpasses the generally recognized median
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| | vendor's form. Copies are not provided
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| performance measurements within the
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| | to receiving department on timely basis,
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| industry. A "Star Performer" is also an
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| | perpetual outstanding order position is
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| OWNER or MANAGER of a business who has
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| | not maintained by
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| higher than average expectations and
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| | classification.b. Purchase orders written
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| demands not only for the business but for
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| | on your store's own Purchase Order form
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| the invested capital.We consistently find
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| | and a copy or facsimile is given to the
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| that the "Star Performers" we come in
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| | receiving department so they can use it
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| contact with have certain similarities:
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| | to check in merchandise. Perpetual
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| they manage to do the right things most
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| | on-order status is maintained by
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| of the time and they accept profit as a
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| | classification. Purchase orders are
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| worthwhile goal.To find out how you and
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| | deducted immediately from the
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| your store rate, take the following quiz.
| |
| | Open-To-Buy.12. Receiving &
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| Each question has two possible answers.
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| | Markinga. Treat the receiving and marking
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| Circle the answer that more closely fits
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| | function as a necessary evil, permitting
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| your store's current situation.FINANCIAL
| |
| | everyone to help out in the receiving,
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| SYSTEMS AND CONTROLS1. Financial
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| | tagging, etc.b. Assign the receiving and
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| Statementsa. Prepared once a year or
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| | marking function to one person as their
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| quarterly. Or, if prepared monthly,
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| | primary responsibility and have written
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| chronically late, many times several
| |
| | procedures for handling receipts, returns
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| months late.b. Prepared monthly, using
| |
| | and transfers.13. Achieve Sales
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| the standard industry format. Ready for
| |
| | Increasesa. Compare this year's sales to
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| management review by the 10th of the
| |
| | last year's sales and are satisfied with
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| following month.2. Expense
| |
| | any increase.b. Develop monthly sales
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| Budgetinga. No expense budgeting
| |
| | plans for each store, classification, and
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| done.b. Formal budget prepared for year,
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| | salesperson and thoroughly develop and
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| by month. This budget is compared to
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| | execute a plan to achieve sales increases
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| actual figures each month and corrective
| |
| | that consistently exceed the inflation
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| measures taken immediately when expenses
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| | rate.PEOPLE MANAGEMENT AND SALES
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| get out of hand.3. Payrolla. Reported on
| |
| | DEVELOPMENT14. Sales Traininga. It is up
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| Financial Statement as a single total.b.
| |
| | to the salespeople to educate
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| Reported on Financial Statement by
| |
| | themselves.b. Regularly scheduled
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| function (i.e. Selling, Office,
| |
| | (weekly) selling staff meetings to review
|
| Management, etc.).4. Payroll Budgeting
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| | new merchandise and provide sales
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| and Schedulinga. Everyone comes to work
| |
| | training.15. Marketinga. Direct all
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| when the store opens and leaves when it
| |
| | advertising expenditures to newspaper,
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| closes. Payroll expense hopefully is not
| |
| | radio and other printed media, usually
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| too high.b. Payroll expense for each
| |
| | with little thought or planning.b.
|
| responsibility area is budgeted monthly a
| |
| | Maintain a high level of direct
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| year in advance and weekly at least three
| |
| | marketing activities with your customers
|
| months in advance; each month the actual
| |
| | and target market by use of direct mail
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| vs. budgeted is analyzed; weekly
| |
| | advertising and telephone contact.16.
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| schedules are posted well in advance;
| |
| | Personnel Managementa. Tell each employee
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| split shifts are used when
| |
| | when he is doing something
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| needed.5. Shrinkage Controla. Take a
| |
| | wrong.b. During the hiring interview the
|
| physical inventory once a year and make
| |
| | job description was thoroughly reviewed.
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| little or no effort to reconcile to
| |
| | Each employee is given a written job
|
| perpetual inventory records.b. Take
| |
| | description when hired defining the
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| cyclical inventories and thoroughly
| |
| | requirements of their job and what is
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| investigate discrepancies to detect
| |
| | expected of them. All employees are
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| instances of faulty record keeping,
| |
| | given a formal performance review at
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| external or internal theft.6. Management
| |
| | least semiannually in the first two years
|
| Information Systema. Either do not have
| |
| | of employment and yearly thereafter.17.
|
| one, or have only a very rudimentary one
| |
| | Organization Structure
|
| that gives a minimum amount of
| |
| | Managementa. Informal organization with
|
| information, or have one that is not
| |
| | family members and other managers doing
|
| used.b. Have a Management Information
| |
| | what they want and stepping on each
|
| System based on the Retail Inventory
| |
| | others' toes.b. Well-defined
|
| Method that gives very detailed monthly
| |
| | organizational structure with a written
|
| information for each merchandise
| |
| | job description for everyone, including
|
| classification (Sales, Inventory, Order
| |
| | family members and
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| Status, IMU%, MD%, Shrink, GP%, STR) and
| |
| | management.18. Policies and
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| each salesperson (sales per hour, average
| |
| | Proceduresa. No written policies or
|
| transaction, number of items per
| |
| | procedures or have an outdated and
|
| transaction) and is used regularly to
| |
| | un-used version. Whenever a problem
|
| monitor vital signs of the business.SALES
| |
| | arises; you make a decision and handle it
|
| AND MERCHANDISE INVENTORY
| |
| | based upon early individual
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| PERFORMANCE7. Marketa. Spend 45-60 days
| |
| | situations.b. Carefully thought out and
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| per year at market, without advance
| |
| | written policies and procedures that
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| preparation, taking with you the top 2-3
| |
| | include built-in internal controls are
|
| salespeople.b. Carefully plan your market
| |
| | provided to all employees and used as
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| trips. Get buying office/buying group
| |
| | reference materials.Now, give yourself 1
|
| help. If salespeople go with you, let
| |
| | point for each "a" answer and 4 points
|
| them meet you at market for just 1-2 days
| |
| | for each "b" answer and see how you
|
| and never let top 2 go to market at the
| |
| | rate.61-72 points: You are making money
|
| same time.8. Buyinga. Go to market and
| |
| | and having fun.
|
| buy based upon quantities bought last
| |
| | 37-60 points: You are surviving, but
|
| year.b. Use Open-To-Buy by merchandise
| |
| | need to make improvements.
|
| classification to plan merchandise
| |
| | 18-36 points: You are sinking, and you
|
| purchases.9. Merchandise
| |
| | know it. You should get out of the
|
| Classificationsa. Have a minimum number
| |
| | business.If you did not score at least 61
|
| of classifications to avoid record
| |
| | points, there is room for improvement.
|
| keeping and employee confusion.b. Class
| |
| | Go back and review all the questions for
|
| structure is well defined to allow for
| |
| | which you gave an "a" answer as these are
|
| better merchandising
| |
| | the areas you should consider working on.
|
| decisions.10. Markdownsa. When
| |
| | You may find that some of these areas
|
| merchandise is sold below the original
| |
| | will be relatively easy for you to
|
| price, simply record the sale at the
| |
| | correct; for others you may need outside
|
| actual selling price permitting markdowns
| |
| | assistance. The important thing to
|
| and shrinkage to become co-mingled in the
| |
| | remember is that these improvements can
|
| computation of gross margin.b. Include
| |
| | have a positive impact on your store's
|
| planned markdowns in the Open-To-Buy
| |
| | success.This article was written by Linda
|
| process, carefully record them when
| |
| | Carter, President of The Retail
|
| recognized and compare actual vs. planned
| |
| | Management Advisors, a retail consulting
|
| at the end of every season taking
| |
| | firm whose mission is to help independent
|
| corrective action where
| |
| | retailers survive and thrive.
|
