WHY OPT SOP FOR RETAIL?

#1 Ensured Business Continuity

#2 Application of Consistent Standards
#3 Establish Routines
#4 Implementation of Quality Control
#5 Better Growth Systems in Place
#6 Better Performance Management
#7 Eliminate Loss of Productivity

IMPROVISATION SOP FOR THE DERBY BRAND

STANDARD OPERATING PROCEDURES AND CHECKLISTS FOR

STORE OPERATIONS

STORE OPENING AND CLOSING

 The Derby Retail store should be opened to the public on time, indicated
with signs or lights as appropriate.
 Employees should begin preparing at a designated time for the store to
close. This typically includes cleaning and other preparation for opening
the next day.
 Derby Retail store should alert customers at a specified time, such as thirty
minutes before and again ten minutes before, that the store will be closing.
Staff may pull gates, change the lighting or perform other steps to alert
customers.
 All cash is counted, reconciled, checked by a manager, and locked.
 CASH MANAGEMENT

 Front-end cash ensure proper handling at the POS and reconcile cash and
credit against sales.
 Back-office cash usually a bigger-picture accounting function, making sure
the store is on track and carrying out its internal controls to prevent loss
and pilferage to catch cashier mistakes or possible fraud.
 Cash refunds to customers should be consistent with store policy.

MERCHANDISE HANDLING

 Product shipments to ensure everything arrives in good condition and in

the proper quantity.
 Route products in an efficient manner to the proper location in the store,
either to the shelves, storage, or holding area.
 Enter products in the inventory system for tracking.
 Tracking of merchandise good improved through computerised software.

DAILY STORE CHECKLISTS

RETAIL STORE CLEANING CHECKLIST

 Clear the parking lot of debris and sweep the sidewalk each morning.
 Don’t leave empty boxes of trash outside as a customer’s first impression.
 Turn on the lights, replace any burned-out ones promptly.
 Clean restrooms as often as needed to keep them tip-top. Nothing will turn
off customers faster than dirty restrooms.
 Don’t leave empty boxes in the aisles any longer than necessary when
restocking.
 Promptly attend to any unpleasant odors.
 Periodically do a bigger cleaning, such as a spring cleaning.
DAILY STORE OPENING CHECKLIST

 Prepare the registers or POS system for the day. Check cash levels.
 Sweep the sidewalk and shake out any mats

DAILY STORE CLOSING CHECKLIST

 Announce to customers that retail store is closing soon. At a particular

time,lock the doors to new customers.
 When the last customers leave, signal that store is closed with appropriate
signage.
 Walk the store and do any necessary straightening, cleaning, or
decluttering.
 Restock shelves at proper time or as needed, but don’t interrupt customers
unnecessarily.
 Make sure all shelves, racks, and displays are properly filled and arranged.
Customers often don’t put things back correctly.
 Empty all trash receptacles and discard boxes and packing materials left in
storage areas.
 Make sure that the cash are deposited to the back account.
INTERNAL CONTROL FUNCTIONS

Retail Stores need to carefully define, implement, and monitor areas of their
operations, which directly impact the bottom line.

HANDLING CASH AND CREDIT:

  Good cash and credit handling system to track everything, quickly discover
discrepancies, and keep the store’s finances and inventory on accurate,
solid footing.
 Point of sale (POS) to handle daily sales and also customer management
and inventory.
 Problems to be analysed depends on the size and complexity of the retail
operation.

SHOPLIFTING AND FRAUD PREVENTION:

 Stores should have significant people and technology to deter shoplifting

and fraud.
 keep it behind the scenes so as not to interrupt the customer experience.
 Store should have security guard at a store entrance.
 Security cameras, monitoring, and product scanners are common. Losses
from shoplifting and fraud can be significant, including by organized rings
and scams, so stores need to be vigilant and find problems quickly.

SAFETY AND SECURITY:

 Stores develop and maintain internal controls, or standard operating

procedures, to prevent problems with cash handling, credit, shoplifting,
and fraud.
 prevent money or inventory theft.
 Retail Stores try to ensure that their employees and customers are safe.
 security guards and security camera monitoring should be monitored.
STORE DESIGN RESPONSIBILITIES

Design and aesthetics are a major part of the shopping experience, product display and
placement are aspects of design that fall under retail operations.

STORE LOCATION:

 Retail Store should ensure Visibility and customer traffic patterns.

 People will travel off the beaten path for something special, but it’s generally harder.

STORE DESIGN AND LAYOUT:

 Retail store’s exterior and interior design sets the tone for the shopping experience.
 Geometric pattern to depict visual interest in Retail store.
 Retail store layout be gridded, almost like streets, looping or curving, or more free
flowing.

CREATING DEPARTMENTS WITHIN A STORE:

 Retail professionals create “stores within stores” and have specialty employees to serve
customers.

VISUAL MERCHANDISING AND DISPLAY:

 Retail outlet Create attractive displays of products to set a tone and an expectation
 A pleasing display of merchandise sends a message to the would-be buyer, and so does
a sloppy, unkempt table.
 Even the height at which items are placed can make a big difference. Some
professionals use a retail planogram, a type of diagram, to detail the placement of items
in a store.

STORE ATMOSPHERE:

 lighting, music, and consistent pleasant atmosphere overall should be maintained by

retail store .
 Retail store should be-aware of Unpleasant factors like clutter, odors, inadequate air
conditioning, or unclean restrooms.
 Retail stores strive to create a pleasant atmosphere.

STORE SPACE MANAGEMENT:

 Avoid clutter and disorganization by managing space well in the store. Make items
easily accessible and use out-of-the-way space for storage.
PRODUCT INVENTORY RESPONSIBILITIES

For a Retail store to succeed, it needs to have the products to satisfy its customers. This
is the fourth area of retail operations: inventory management. Stores do their best to balance
supply and demand for products in a constant cycle of selling and restocking. If a product
doesn’t move well, it is replaced with something that does. If a product does sell well, the store
increase its inventory.

These functions fall under inventory management:

ORDERING MERCHANDISE:

 Retail store stock orders for products according to the demands of customers.
 Store should be efficient and cost-conscious.
 Retail store should automated the system of the inventory needs are forecasted, so stock
replenishment is automated.
 Stores ensure that the customer has a variety of products, sizes, colors, and other
features to choose from, at appropriate price points.

RECEIVING STOCK:

 Stores receive shipments from suppliers and distributors.

 Retail outlet track and record the stock

USING AN INVENTORY SYSTEM:

 The three main types are perpetual inventory, physical inventory, and combined.
 Retail store should implement the computerized POS systems.

PRICING:

 Stores should set the prices and mark the products either physically on the product or
in the computer via the product’s barcode, or both ways.
 Price reductions are based on supply and demand, season, promotions, and other
factors.
RETAIL ADMINISTRATION RESPONSIBILITIES
MANAGING THE PREMISES:

 Maintain the store in good working order.

 Retail store make sure customers aren’t turned off by inadequate facilities or poor
maintenance.
 Store requires consistent care and attention.

TRAINING OF EMPLOYEES:

 Retail outlet ensure that the Employee training are essential.

 Store should provide the training to the Employees in customer service ,cash handling
and internal controls.

MANAGING OF PROMOTIONS AND EVENTS:

 Stores rely on promotions and sales to drive additional business.

DATA MANAGEMENT AND USE OF TECHNOLOGY:

 streamlining store operations with POS systems, barcoding, and customer relationship
management (CRM) platform. With smart use of customer data,
 stores guide targeted customers toward sales and offers, build their loyalty, and
improve customer.

STORE AUDIT

 Sales volume
 Stock levels (shelf and backstock)
 Descriptions of in-store displays and promotional materials
 Competitor activity
 Planogram compliance (shelf location, number of facings present, number of SKUs
present, missing/inaccurate shelf tags)
 Pricing
 In-store location of products and product damage
SOP DOCUMENT TRACKING AND ARCHIVAL

The Retail store should maintain a master list of all SOPs. This file or database should
indicate the SOP number, version number, date of issuance, title, author, status, organizational
division, branch, section, and any historical information regarding past versions. The QA
Manager (or designee) is generally the individual responsible for maintaining a file listing all
current quality-related SOPs used within the organization. If an electronic database is used,
automatic “Review SOP” notices can be sent. Note that this list may be used also when audits
are being considered or when questions are raised as to practices being followed within the
organization.

TIPS

• Establish prior to opening; review at least annually

• Development in the industry/operations language, style and format for the

establishment

• Write sops in clear, concise language so that processes and activities occur as they are
suppose to

• The level of detail in sops should provide adequate information to keep performance
consistent while keeping the procedures from becoming impractical

• Keep written sops on-site used by supervisors and employees

• Drafts should be made and tested before an sop is released for implementation

• The more decision makers, employees and complexity in the business, the more sops
are required.

Retail Standard operating procedure

Retail SOPs -Accounting

SOP-AC-001 : Role of Accounts
SOP-AC-002 : Accounts Organizational Structure
SOP-AC-003 : Accounting Metrics
SOP-AC-004 : Salary Processing
SOP-AC-005 : Various Governing Acts
SOP-AC-006 : Provident Fund
SOP-AC-007 : Employee State Insurance
SOP-AC-008 : Insurance Requirements
SOP-AC-009 : Intellectual Property Rights
SOP-AC-010 : Asset Management
SOP-AC-011 : Cost Reduction Initiatives
SOP-AC-012 : Service Tax Procedures
SOP-AC-013 : TDS procedure
SOP-AC-014 : Professional Tax
SOP-AC-015 : Value Added Tax
SOP-AC-016 : Luxury Tax

Retail SOPs - Cash Management

SOP-CM-001 : Store Back Office Cash Procedure
SOP-CM-002 : Store Front Office Cash Procedure
SOP-CM-003 : Cash Refunds
SOP-CM-004 : Handling double billing / mistakes by cashiers

Retail SOPs - Customer Service

SOP-CS-001 : Stocks return and exchange from customers and policy
SOP-CS-002 : Complaints
SOP-CS-003 : Sales Associate Responsibilities to Customer
SOP-CS-004 : Sales Associate Authority for Complaint Resolution
SOP-CS-005 : Special Product or Service Orders
SOP-CS-006 : Customer Service desk- General Product Knowledge
SOP-CS-007 : Enrolment of customer for Loyalty Programs
SOP-CS-008 : Customer Feedback
SOP-CS-009 : Customer Home Delivery (Delivery Appointment Process)

Retail SOPs - HR Department

SOP-HR-001 : Hiring Process
SOP-HR-002 : Employee Benefits
SOP-HR-003 : Staff Transfer Process
SOP-HR-004 : Staff Resignation Process
SOP-HR-005 : Staff time scheduling
SOP-HR-006 : Staff training requirements
SOP-HR-007 : Employee Performance Appraisal
SOP-HR-008 : Compensation & Bonus Structure

Retail SOPs - Store Administration

SOP-AD-001 : Admin. Task related checklist
SOP-AD-002 : Checklist for Maintenance
SOP-AD-003 : Checklist for housekeeping and cleanliness
SOP-AD-004 : Staff time keeping
SOP-AD-005 : Sale of scrap
SOP-AD-006 : Required Permissions & Licences, renewal and compliance
SOP-AD-007 : Health & Safety Norms
SOP-AD-008 : Insurance – Building & Infrastructure, Inventory & Cash
SOP-AD-009 : Store Opening and Closing Procedures
SOP-AD-010 : Store Readiness

Retail SOPs - Store Audit

SOP-SA-001 : Store Appearance
SOP-SA-002 : Staff
SOP-SA-003 : Stock Audit Policies
SOP-SA-004 : Customer Service
SOP-SA-005 : Storage
SOP-SA-006 : Loss prevention audit policy
SOP-SA-007 : Cleanliness

Retail SOPs - Store Merchandising Handling

SOP-SM-001 : Transfer of stocks from Warehouse
SOP-SM-002 : Receipts of stocks at store
SOP-SM-003 : Loading and unloading
SOP-SM-004 : Delivery from vendors
SOP-SM-005 : Goods return to Vendor
SOP-SM-006 : Goods return to Warehouse (Fresh, Excess & Defective)
SOP-SM-07-007 : Ordering from Stores
SOP-SM-008 : Stock receiving from Vendor
SOP-SM-009 : Consignment Vendor Stocks
SOP-SM-010 : Merchandise write-off procedure
SOP-SM-011 : Merchandise Replenishment & Inventory Re-ordering

Retail SOPs - Store Security

SOP-SE-001 : Security Process Checklist
SOP-SE-002 : Handling legal aspects
SOP-SE-003 : Handling counterfeit notes
SOP-SE-004 : Handling Beep tag