Proper retail management in today’s day and age is crucial. Juggling multiple responsibilities, including managing employees, tracking inventory, and developing customer loyalty, is key to a retail manager’s success.
But do you know how to take your business to the next level with better management?
This guide provides everything you need to know about retail management, including the benefits, best practices, and tools to support your management journey in 2024.
What is retail management?
Retail management involves overseeing all aspects of a retail business, including sales, marketing, accounting, operations, and customer service. It aims to optimize store performance, maximize profits, and provide exceptional customer service experiences.
With retail volume growth expected to increase by 6.7% in 2024 due to a slowdown in inflation, retail businesses today need to be ready to attract customers and deliver consistent experiences so they can stay competitive. Good management is what will help your business stand out in the coming years.
The role of retail management in business success
Implementing strategic retail management practices helps businesses stay ahead of the competition, adapt to changing technologies and consumer preferences, and maintain a strong brand presence.
A thriving retail business puts the consumer front and center. And this is more important than ever since the public’s trust in the retail industry dropped to a record low of 38% in 2023.
Reaping the benefits of retail management
Improving retail management can bring about numerous benefits, including the following:
Increased efficiency: Retail management streamlines inventory management, sales processes, and employee scheduling. Increased efficiency leads to reduced overhead costs and improved business performance.
Efficiency matters to customers, too. In fact, 39% value the shipping and fulfillment experience when choosing a retailer.
Improved inventory management: Effective retail management includes better tracking and control of inventory to avoid stockouts and overstock situations. This leads to increased sales, reduced waste, and improved cash flow.
Enhanced customer experience: From personalized marketing efforts to proactive customer service, retail management focuses on creating exceptional customer experiences.
You’ll enjoy boosted sales and profitability as your customers tend to stick with you. Not only that, but satisfied customers may also share their positive experiences via online reviews or social media.
Boosted brand and business growth: Solid retail management strategies consider improvements such as developing new products, creating displays and layouts, or expanding to new storefronts.
Proper marketing techniques boost growth by promoting and showcasing your product to its advantage.
Now that you know the benefits, let’s look at the top features of solid retail management.
Key characteristics of retail management
Effective retail management encompasses the following:
Inventory control
Retail management ensures that businesses have the right products in the right quantities at the right times.
Tracking inventory levels, managing reordering processes, and analyzing sales data allows you to make informed decisions.
Retail inventory management includes tracking the costs associated with procurement, storage, and fulfillment. Staying informed ensures you’re not spending more on stock than you need to, thus eliminating waste and freeing up resources.
Sales tracking and reporting
Track and analyze sales data to identify trends, monitor performance, and make informed decisions.
For example, with data analysis, you can learn how to increase in-store traffic or identify which promotions bring the most customers back to your website.
Employee management
Retail management involves the hiring, training, scheduling, and managing of retail employees.
A streamlined retail management process ensures your store is adequately staffed so your customers never have a subpar experience.
Employee well-being is important, too. Employees want to feel a sense of connection to the brand and be valued for their contributions to it. Frontline workers who are passionate about the products they sell often pass this passion on to customers.
Customer service
Effective retail management puts the customer experience (CX) front and center. Understanding customer pain points and resolving them helps develop loyalty and ensure satisfaction.
Using a retail CRM helps track and segment your customer base and identify opportunities for improving CX at different touchpoints.
Store processes
Retail management streamlines each process necessary to keep your business humming.
Internal store processes include accounting, human resources, and warehouse operations.
External store processes involve marketing new products and storefronts, improving the business’s products and customer service, and developing strategies to increase profits and reduce losses.
Retail management best practices
It’s not enough to understand retail management. You’ll also need to implement best practices to be successful.
Incorporate the 5S principles
The 5S principles arose from the Japanese methodology of using five words to improve a workplace’s efficiency.
Translated into English, the 5S principles are as follows:
Sort: Look at what you have, identify what you need, and weed out the rest.
Set in Order: Put essential items in their proper places.
Shine: Ensure that products are clean and appealing and that warehouses are regularly inspected and maintained.
Standardize: Put your processes on paper to ensure consistency across users.
Sustain: Maintain your processes and adjust as needed.
The 5S principles can apply to the store itself, the website, the back offices, and the warehouses.
Focus on the daily back-front approach
The daily back-front approach prioritizes your business’s daily organization and function.
Start each day by ensuring the organization, cleanliness, and correct functioning of storage, office, and break areas.
Once the back is inspected, check the front to see how customers will experience the space. For example, ensure that displays are attractive and that customers can access items easily.
Prioritize the customer experience
In 2024, the customer experience matters just as much as each transaction. Customers are increasingly looking for memorable experiences, so think about how you could up the ante.
Brainstorm ways to encourage customers to spend time in your store beyond browsing. For example, if you sell food products, consider hosting a wine-tasting or cooking class.
Streamline your processes with supportive software
Invest in a solid retail management system to improve your processes. Retail management systems simplify everything from tracking inventory to managing task completion.
Choosing the right retail management tools
Selecting the right retail management tools is essential for the success of any retail business. Consider the following tips:
Assess your business needs
Understand your business’s needs and requirements before you explore your options. Consider the size of your business, the type of products, and the required customization.
Estimate your projected growth, including products and store expansions. Remember to factor in accounting, employee management, and warehouse operations, too.
Evaluate each tool’s features and functionalities
Once you understand your business’s needs, review each prospective tool’s features and functionalities.
Look for tools with robust inventory management, sales tracking and reporting, employee management, and customer relationship management capabilities. Decide if your tool will need to integrate with other software, such as accounting or e-commerce solutions.
Compare pricing and support options
Compare the pricing and support options of various retail management tools. Remember that the cheapest solution isn’t always the best one. It’s essential to choose a tool that offers the right balance of features, functionality, and support within your budget.
Lark offers a range of features designed to help retail businesses streamline their operations and improve their overall performance, including inventory, sales tracking and reporting, and employee and customer relationship management capabilities.
Common retail management frustrations
As with any industry, retail management can involve some frustrations.
Here are a few you might encounter:
Vendor issues, such as unreliable communication, unrealistic costs, and poor product quality.
Employee frustrations due to demanding customers, inconsistent schedules, or pressure to meet sales goals.
Management mistakes that result from workplace stress or inefficient systems.
Lark helps you manage everything from backroom planning to frontline operations.
In-store problems, such as missing or low inventory, theft, or angry customers on the sales floor.
Warehouse problems, such as issues with seasonal demands or damaged shipments.
Accounting or other internal situations, such as failing to keep up with the latest in employment and tax laws or dealing with PTO violations among employees.
Making changes vs sticking with established methods that prove to be ineffective. While older models are familiar, they aren’t necessarily the most efficient.
Retail management software can help with all of these issues.
With the right system, you have a single source of truth for all your data, from inventory to staff schedules.
Streamlining processes isn’t just possible, it’s easy. You design your workflows in a way that suits your operations and then update them as things change.
You can also communicate easily with your team in real time, ensuring everyone is on the same page, every day.
Key roles in retail management
As we’ve discussed, retail managers wear several hats. Here’s what you can expect to cover:
Internal coordination
Internal coordination involves bringing different workers and departments together to run the business effectively.
Planning and logistics
Planning and logistics include everything from inventory control to sales tracking and analysis.
Store operations
Store operations comprise everything necessary to get your products from displays into customers’ hands for the ultimate retail experience.
Human resources
Human resources centers on your employees. You’ll need effective hiring, onboarding, training, and support systems.
Helpful read: Retail Recruitment: 7 Tips to Attract and Keep Top Talent
What is the future of retail management?
While we can’t gaze into a looking glass, we can make some predictions.
AI is here to stay
While there are some unknowns with it, AI offers some benefits for retail management.
AI chatbots engage customers online in real time to answer their questions and keep them on the website.
Managers can also leverage AI software to gain insights into buying patterns, identify trends, and even receive tips on how to target customers.
Omnichannel integration is key
Customers are no longer limited to physical stores or websites. Omnichannel integration allows them to purchase from multi-media channels.
Combine your website and store presence with social media, like Instagram or Meta (formerly Facebook), to build your brand presence and increase buyer access.
The e-commerce vs. brick-and-mortar debate is ongoing
While the trend toward e-commerce continues, opening a physical store boosts online sales by 6.9% in the trade area around that store for several weeks after the opening date.
Direct-to-customer retailers offer physical locations for customers to pick up or return orders. They also provide the opportunity to enjoy the in-store experience, allowing people to touch products before buying and engage with store staff.
However, both e-commerce and brick-and-mortar stores can establish solid customer relationships, so having both can help your business thrive in the future.
Retail management is going digital
Efficient systems can’t be handled manually. Lark is at the forefront of retail management digitalization, allowing businesses to streamline their operations and gain actionable insights.
Gartner even recently recognized Lark Technologies for providing collaborative workspaces and meeting solutions.
Unlock Lark’s benefits for improved retail management
As retail businesses strive to attract customers and adapt to change, using modern tools like Lark is critical. Read on to discover the benefits of using Lark for retail management.
Centralized data management
Lark’s templates allow users to manage and track essential information, such as store locations, regional managers, store managers, employee numbers, contact numbers, addresses, and target sales.
Use the Purchase Order Management Template to streamline the purchase process from the client’s initial order to delivery.
With the Merchandise Store Inventory Tracking Template, managers can quickly check stock and inventory purchases in various retail locations around the globe.
Maintain customer satisfaction with the Customer Service Management & Tracking Base Template. You’ll have one handy location to track customer requests and quickly address any abnormalities that pop up.
With all the relevant data centralized, it’s easy for retail managers to access and analyze it.
Improved communication
Lark enables real-time collaboration between team members, ensuring information is shared quickly and easily. This is especially useful for retail chains with multiple branches or franchises coordinating their efforts.
Enhanced decision-making
Lark keeps data centralized and accessible so that retail businesses can make informed and accurate decisions. This improves inventory management, sales tracking, and employee training processes.
Saved time
Lark's templates and features save time by automating various retail management processes.
Best use cases for Lark in retail management
Lark offers several templates and features designed specifically for retail businesses.
The best use cases include the following:
The Store Requests Management template helps retail businesses manage and track store requests efficiently. This can be particularly useful for franchises and organizations with multiple store locations.
The Design Project Management template lets designers track progress and collaborate with team members. It suits design teams, project managers, freelance designers, and consulting companies.
The Retail Store Inspection template allows managers to efficiently manage inspections across locations, track issues, and ensure timely resolution. It’s perfect for retail chains, franchise owners, and independent retailers.
The Order & Inventory Management template helps retail businesses manage inventory, prevent shortages, and improve customer satisfaction. Lark also offers integration with other retail platforms and mobile access to data.
The Store Inventory & Revenue Tracking System template allows store managers, fulfillment center managers, and inventory managers to track product items from the fulfillment center to the store. It also includes a barcode column for easy scanning, two-way links for information connectivity, and a dashboard for tracking revenue trends.
Lark is an invaluable tool for retail management, with features and templates designed to streamline operations, improve communication, and enhance decision-making. By incorporating Lark into your retail business, you can unlock your potential and stay ahead of the competition.
Retail management FAQs
What is retail management software?
Retail management software allows you to handle the different aspects of your retail business through one easy platform.
Lark’s retail management solution keeps communication flowing with your frontline workers, your files organized, and everything from attendance to payroll digitized.
What is retail risk management?
Retail risk management refers to your ability to handle threats to your business, such as theft, data breaches, inventory damage, or on-site customer injuries.
What are the most important topics in retail management?
The most important topics in retail management include managing customer satisfaction and retention, meeting sales goals, managing employees, and planning for product introductions and expansion.
Table of Contents
