A retail audit is conducted on a sample of retail outlets to measure the effectiveness, sales trends, and sales volume of a brand or product. Technology is used to obtain real-time product and performance data without paperwork. Regular audits provide information about a product's sales, distribution, and competition. The audits identify action steps for store management to improve revenue and reduce costs.
A retail audit is conducted on a sample of retail outlets to measure the effectiveness, sales trends, and sales volume of a brand or product. Technology is used to obtain real-time product and performance data without paperwork. Regular audits provide information about a product's sales, distribution, and competition. The audits identify action steps for store management to improve revenue and reduce costs.
A retail audit is conducted on a sample of retail outlets to measure the effectiveness, sales trends, and sales volume of a brand or product. Technology is used to obtain real-time product and performance data without paperwork. Regular audits provide information about a product's sales, distribution, and competition. The audits identify action steps for store management to improve revenue and reduce costs.
• A Retail Audit is a permanent sample of shops chosen to represent the pre-defined total retail trade.
Data collected from this panel on regular basis gives us
information about a product's sales and distribution.
Classified - Internal use
• Study of selected sample of retail outlets • A retail audit is carried out on a certain number of retail outlets to measure the effectiveness, sales trends, sales volume etc. of a brand or product in the retail outlet. • technology is one of the key tools being used by companies to carry out a retail audit. • The technology can be used to obtain product information (its features, sales, brand value etc.), evaluate the competition, getting real time data and improving performance trends. importance • Gain Product Information • Easily collect information about the newest products on the market. • Eliminate data re entry and overall response time by getting real time results with no errors and no paperwork. Retail store audit • Every two months a team of auditors from a research firm visits a sample of stores to count the inventory on hand and record deliveries to the store since the last visit Nielsen Retail Index • Biggest research company in the world • Their auditing services cover four groups – Grocery products – Drugs – Mass merchandisers – Alcoholic beverages advantages
• Identifies action steps for store management to
drive revenue and reduce costs • Fosters a culture of accountability and integrity • Identifies leading practices and potential enhancements to store policies / procedures and controls • Step 1: Schedule the audit • Using the audit tool built-in calendar or your enterprise calendar, schedule the audit. Some audits are announced to the store’s management. • Step 2: Prepare for the audit • Look up the current ownership and management. • Look, compare and analyze past audits, put the information in perspective. • step 3: Conduct the audit • Most audits are conducted from the outside in. • the exterior (the parking lot if applicable, the window in a mall location) and work your way in, around the aisles and into the back of the store. • Step 4: Use the device that works best, switch if necessary. • Some users like to conduct the entire audit on their smartphone. • Others prefer the tablet. • Still others like to make a first pass on a smartphone or tablet then power up their laptop and augment the audit with additional notes. Ethical and legal issues • Legal restrictions are imposed on practices concerning pricing, product, promotion, distribution, trademarks and HR policies. Laws that a retailer needs to consider • People perspective: • 1. employees state insurance Act 1948: social insurance scheme, sickness, maternity, permanent disablement etc. • 2. Payment of Bonus Act: out of the profits. • 3. provident Fund: providing for after retirement. • 4. minimum wages Act: live their living. • 5. trade Union: to put forward their ideas and grievances. • 6. maternity benefit: • 7. equal remuneration • Operations perspective: • 1. shops and establishment licence: local municipal bodies/ corporations. • 2. prevention of food adulteration licence: for sale of staples, milk and milk products, baked items, frozen foods, beverages, eggs. • Issued by health officer. • Labelling : name tarde name, discription of food • Natural flavors • Gelatine – animal origin • Full/ part of animal - a symbol • Vegetarian • When permitted natural colors and flavors added – declaration. • 3. industrial dispute act: peaceful resolution of disputes, harmoniuos relation. • 4. consumer protection act 1986: • Better protection of interest of the consumers. • Speedy and unexpensive remedy to consumers. • Loss, damage, defect, excess price, hazardious to life, any deficincy in service. • 5. essential commodities act, 1955: • Regulates the production and sale of fruits and vegetable products. • A. fruit product:Jams, jellies, pickles, procesed vegetables, vinegar(fruit product order,1955) • B. meat (meat food product order, 1973) • C. solvent extrated oil/ edible flour( 1967) • Vegetable oil products 1998. • 6. standard of weight and measurement act,1976: • Name and address of packer/ manufacturer • Name of the commodity • Quantity (net) • Month/ year of packing/ manufacturing • Sale price of item • Contact for consumer complaint • 1.Ethical practice towards consumers: • The retailers should charge fair price for the products offered to them. • The consumers have the right to get correct and precise knowledge about the products sold to them in respect of warranty, guaranty, price, usage, ingredients etc. • 2.Ethical practice towards investors/shareholders: • The shareholders are the owners of the business. Shareholders must be given fair returns on their investment at regular intervals. • The share holders should be disclosed with correct information about the financial status of the business organisation. • The business organisation must act in the interest of the shareholders • 3.Ethical practices towards employees: • The retail industry employs large volume of retail staff. • Therefore proper policies and procedures must be framed for the employees regarding recruitment, selection, training, promotion, welfare etc. • Negative issues relating employment relations in the work place can lead to loss of reputation and customers, it leads to poor staff morale, low productivity, and high labour turnover. • Ethical and legal issues: • 1. Consumer Fraud: The defrauding of a consumer of various products and services which do not perform as advertised, or overcharging or levying hidden charges through deceptive • business practices. Agencies for Protection of Consumer Fraud - Indian Association Of Consumers (IAC) • Consumer Forum (CF) • Consumer Education Society (CES), • Karnataka Consumer Services Society (KCSS) • 2.Legally prohibited action by an employer or TRADE union. • Where both parties should not refuse to bargain in good faith. • 3. Retail Theft: • It is also called as Shop Lifting Shoplifting (also known as boosting, five finger discount, or shrinkage within the retail industry) is theft of goods from a retail establishment. • There are people and groups who make their living from shoplifting, who tend to be more skilled. • 4. Slotting Allowances: A fee paid by a manufacturer to a retailer to provide shelf space or a slot for a new product. • Is a fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves. • The fee varies greatly depending on the product, manufacturer, and market conditions • 5. Use of Customer Information: The consumer information contained here is intended, in part, to alert the reader to pertinent issues regarding this site. The information contained herein is not intended as a substitute for professional consultation. GREEN RETAILING
• Retailers are keen to show that they are green,
recycling-friendly, fair-trading, waste-conscious, Socially-responsible and energy-conserving. consumerism • Definition- the "social movement seeking to augment the rights and power of buyers in relation to sellers," (Kotler, 1972) • Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts. • Ethical consumerism (alternatively called ethical consumption, ethical purchasing, moral purchasing, ethical sourcing, ethical shopping or green consumerism) • fair trade: bought from suppliers who respect basic rules of human welfare in the workplace; • environmental sustainability: for example minimal packaging; • community development: supporting local enterprise and local produce, especially from community businesses; • personal health: natural wholefoods, free from artificial additives, preservatives, colourings and flavourings; • animal welfare: reduced animal exploitation, with products that meet rigorous standards. • Consumerism in India: • India is a developing economy. • Not all Indian consumers are well educated. • Consumers are often exploited, misled by deceptive advertisements, packaging poor after sales service, adulteration, and so on. • Liberalization and competition • Survival of the fittest Social responsibility • is an ethical framework which suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. • Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems.