Retail Dogma

Retail Management: Definition, Importance & Key Functions

Retail management is the process of managing the different functions at a retail organization, with the main goal of providing customers a great shopping experience, through curated product assortments and great customer service at the stores.

Why Is Retail Management Important?

Retail management is important, because providing customers with their shopping needs requires many different functions to work together and each one to do its role efficiently. In the absence of effective management of such process, the customer experience at the stores will be directly affected.

For example, if the buying function doesn’t do its role effectively, the assortment at the retail store will not be attractive for the customers, and the entire retail organization will be affected.

Read Also: Importance of The Buying Function

If the buying team does their job perfectly, but the merchandising team does not ensure availability of merchandise at the store on time, and in the right quantities, still the customer experience will also be directly affected and store sales will be down.

So, in order for the retail organization to achieve its end goal, an effective retail management process, that coordinates all functions together, needs to be implemented.

What Are The Different Functions That Fall Under Retail Management?

A retail organization will typically have two types of functions: core functions & support functions.

The support functions are the functions that enable the business, but they are not specific to the type of business being run. These include:

  • Human Resources
  • Marketing
  • Finance & Accounting

Such functions are usually available at any business organization.

retail management definition and core functions
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The core functions are the ones specific to the retail industry, and these include:

  • Buying: sources the products, creates assortments and manages supplier relationships
  • Merchandising: allocates and replenishes products and manages inventory
  • Store Operations: Day to day store operations and talent management
  • Warehouse Operations: ensures products are stored and sent to stores whenever needed.
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