Retail

Retail and Retalix

In this lesson:
 Basic Terminology
 Store and POS
 Retail Segments
 Pricing
 Terminology
 Promotions
 Barcodes
 Inventory
 Supply Chain
Basic Terminology
Basic Terminology

 Consumer
 Retail organization – Head quarters and Stores
 Warehouse (organizational)
 Supplier
 Wholesaler
 Distributor
 Depot (Fuel)
Store Concept

 A place that a Consumer purchases products

 The store activities are comprised of :
 Operational processes
 Management activities
 Operational processes:
 Selling products at the POS
 Site monetary management
 Shelf design
 Replenishment
 Management activities:
 Stock values
 Profitability
 Employee management
Point of Sale - Basics

 Point of Sale (ECR / PC based) is the only mandatory entity in

store management
 Revenue tracking
 TAX control
 Enable working at:
 Monetary level
 Department level
 Item level – mainly on PC based Point of Sale

ITEMS = PAYMENT
 Accurate balance between item retail price, tax and method of
payment
 Ticket totals should be identical when displayed, printed and
recorded in DB
Retail Segments

 Discounters
 Supermarket
 Hypermarket
 Department Store
 Warehouse Club
 Convenience Store
 Food Service
Discounters

 Mini Supermarket
 Located in the City Center
 Limited grocery offerings
 Retail price is higher than usual
 Trendy and well branded
(“exciting”)
Supermarket

 Mostly a large market that specializes in selling Groceries and All-

Sales products:
 Prepackaged Food Items (Dry, Cold, Frozen)
 Fruits and Vegetables
 Meat / Fish
 Pastry Products
 Soft Drinks
 Hygiene and Cleaning
 Household Products
 Other Non- Food Products
 Mostly self- service
 Large variety of products
 Competitive prices
 High margins of profit
Hypermarket
 Combines Department Store elements and
a Supermarket
 A large catalog of items including:
 Groceries
 Non Food
 Fashion
 Electricity
 Jewelry
 Toys
 Much more….
 Trading area : 10000-20000 sq
 Designated parking space
 Common to find:
 Promotions
 Discounts
 Loyalty Club
 Fuel
Department Store

 A large trading area (usually a few

floors)
 Item Catalog which consists of:
 Fashion
 Perfumery
 Health and Beauty
 Jewelry
 Accessories
 Restaurant
 Much more…
 No groceries are for sale
 High retail price, usually premium
 Selected Promotions
(mostly TCR – initiated by the
suppliers)
Warehouse Club

 Sell to retailers and not to private

customers - Wholesaling
 Warehouse “Look & Feel”
 Large Boxes and palettes
 Industrial sense
 No “wow”
 Usually located in the city outskirts
Convenience Store

 Accessible and convenient location

with strong flow of shoppers:
 Petrol Stations
 Train Stations
 City Center
 Low and limited variety of items:
 Cigarettes
 Liquor
 Snacks
 Fast Food
 Elementary Products
 Newspapers and Magazines
 Small trading area space
 Small operational staff
 High retail price
 Food Service

 Concepts:
 QSR – Quick Service Restaurant
 Table Service
 Bars and cafeteria
 Item modification using Modifiers
 Product Tree / recipe management
 Multi concept sites comprised of
C-store, QSR, Table service etc.
Fuel and Groceries - ?
 Fuel chain launches C- stores (Usually
branded)
 GP is randomly higher on dry goods than
fuel
 Sideways trading business:
 Travel Centers
 Truck Stops

 Supermarkets added forecourts and other

concepts as an In-house offering:
 Low priced fuel attracts shoppers
 One Stop Shop
 Parking lot is an additional source of incomes
 Fast food areas like coffee shops and
restaurants
Pricing
Terminology

 CP - Cost Price $
 GM - Gross Margins (%)
 SRP - Suggested Retail Price $
 RP – Retail Price $
 GP – Gross Profit (%) in net prices
 (Retail – Cost)/Retail*100
 (Cost – Retail)/Cost*100
 Profit (Net Revenue – Net Cost) $
 Revenue - $
 UOM – Unit of Measure

CP GM amount RP / SRP
Promotions
 TPR
 TCR
 BOGO/F
 Coupon
 Isle Display
 “Cherry Pickers” (Markdown)
Barcodes

7 2 9 0 0 6 7 8 9 01 2 8 >

729 0067 89012 8

Country Supplier ID Item ID Check Digit

 Every item consists of a different barcode number

 Different countries have different barcodes for the
same item
 Used also for: weighed items ,private lables, boxes
and palettes
 GS1 organizations allocate the barcodes to the
manufacturers
Inventory Management
 Stock Movement

Influential Store Activities

Sales
Deliveries

Waste
Customer
Refunds

Transfer
Out
Transfer In

Store
Stock Count
Returns
What transaction types affect the stock?

 Point of Sale transactions

 Regular sale
 Customer returns
 Back of the house transactions
 Ordering from warehouse / supplier – do not affect the stock
 Goods receiving from warehouse/supplier – added to stock
 Goods receiving using Delivery note
 Goods receiving using Invoice document
 Return to warehouse/supplier – deduct from stock
 Goods return using Delivery note
 Goods return using Credit document
 Waste transaction (store spoilage) – deduct from stock
 Transfer in/out – goods transfer between stores
 Move in/out – goods movement between stock locations in the store
 Stock counts – count current stock in the store
Inventory terms

 Perpetual inventory is the process that calculates the Balance ‘On

Hand’ upon every item movement
 Theoretical Stock levels
The expected stock levels of an item as calculated by the system, based on deliveries, Post Sales and waste
information. The Theoretical Stock level is referred to as the Item Balance before you begin a Stock Count. This
balance will be over-ridden by the Actual Stock Count once a Stock Count Document is approved

 Actual stock
The Actual Stock Level is the stock balance of an item, determined by the stock count. This level is
adjusted each time a new Store Count Document is approved
 Stock value
Financial value of the current stock in the store in terms of Cost or Retail or both.
Additional parameters to evaluate the stock are FIFO (First In First Out) and Weighted average cost
 CAO – computer assisted ordering
System demand forecasting to optimize amounts to order from suppliers
Supply Chain Concept
What is Supply Chain?

Demand

Consumer Manufacturer

Supply
What is Supply Chain?

Supply Chain

Consumer Retailer Distributor Wholesaler Manufacturer

Merchandise

Monetary

Data
Supply Chain Processes

Warehouse
WarehouseDelivery
Delivery
““Out
OutOfOf
Stock!” Order Invoice Supplier
Stock!” Order Invoice
Warehouse Management
Management
Invoice
Invoice
Purchasing
Purchasing
Reconciliation
Reconciliation
Store
StoreDelivery
Delivery
Head Office

Orders
Orders

Stores
Order Management

 Centralized Store Ordering

 Warehouse ordering issues
 Supply Forecasting and Planning
 Store Billing Order
Order
Management
 Returns and Waste management Warehouse Management

Head Office

Orders
Orders

Stores
Marketing & Purchases

 Item Catalog management

 Trading contracts management
 Supplier Promotions
 Forecasting organizational demand
 Issuing PO (Purchasing Orders) to supplier
 EDI (Electronic Data Interface) connection to Suppliers
Supplier

Purchasing
Purchasing

Head Office

Orders
Orders

Stores
Invoice Reconciliation

 Costs and Quantities adjustments:

 Supplier Ordering- Purchase Order
 Shipment Note
 Invoice issuing
 Invoice reconciliation

Warehouse
Warehouse
Delivery
Delivery
Supplier
Invoice
Invoice
Warehouse

Invoice
Invoice
Reconciliation
Reconciliation

Head Office
Warehouse
Warehouse Management

Delivery from
Supplier Reserve
Receiving Quality Put away
Control

Cross-Docking

Delivery to
Store Loading Picking
Supply Chain – Head Office

Trading
TradingContract
Contract

Supplier
Head Office

Price
PriceBook
Book
Sales
Sales
Deliveries Orders
Orders&&Shipment
Shipment
Deliveries

Store
Retalix Solutions
Retailing Supply Chain

POS Store Headquarters Transportation Warehouse

 Thank You
Thank You