Retail Localization, Digital, Profitability

5 Store Management Factors Vital to Retail Profitability

Successful retail campaign execution in a mobile age

According to most job descriptions for retail general managers, their chief responsibilities center on hiring, training and supporting store employees, merchandise management at the store level rarely enters the discussion. Yet, according to a recent RSR report, retail localization is paramount to a store’s overall profitability.

The respondents say that merchandise management, employee selection and customer service combined lead to an increase in store profitability. “Basically our respondents are saying that improved customer satisfaction is supported by operational excellence at the store level.”

Retail Localization and Profitability

The top five factors for retail company success:

  1. Store profitability – 80%
  2. Customer satisfaction management – 75%
  3. Merchandise/Inventory management – 70%
  4. Management development – 68%
  5. Employee selection & retention – 66%

*based on the percentage of respondents who voted them “very important.”

Retail Localization, Digital, Profitability

RSR examined a number of retail companies and broke them down into “winners” and “losers” based on their ability to effectively combine employee management, retail localization and customer satisfaction. The “winners” were left with one remaining challenge; executing campaigns by getting faster and more accurate information to the store managers faster.

“Winners are much more invested in technologies that schedule task management and the labor mix, and are also much more aggressive in their adoption of sending key performance indicators and alerts to store managers via mobile devices.”

Companies that understand the interrelation between all three areas key to improved profitability are looking to mobile devices to streamline and expedite the relay of information.