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Keywords
Retailing, Problem solving, Operations management, Cause and effect analysis
Abstract
Reviews the academic and practitioner literature on retail operations and identifies five core elements of retail operations. Proposes a method by which managers can examine ways of improving their operations by the use of a modified cause-effect technique. Provides worked examples of the technique.
Introduction
Retailing is bedevilled by aphorisms such as "retailing is a simple business", "retail is detail" and "the three most important factors for success in retailing are location, location, location". If retailing can be reduced to such simplicity then successful retailers would abound. While some factors are clearly outside the control or remit of a store manager, it is suggested here that some retail problems stem from poor operational practices, and with that in mind this paper introduces one means of tackling operational issues.
In order to do this, the paper considers the literature relating to retail operations and improvement. It then aims to unpack some of the perceived wisdom as to what constitutes a successful retail operation, the reason for this focus being that, as Harris and Walters (1992, p. xii) claim: "The effective management of operations is crucial to the success of retailing companies". This is a point that resonates with that made by Slack et al. (2001, p. vii) who have argued that operations managers, and by default operations per se, hold the key to either satisfying or disappointing customers on whom the whole organisation depends. Even for smaller retailers the importance of operations cannot be over-stressed, as Andersen (1997, p. 117) states:
... [o]ptimizing store operational performance is critical to retailing success.'
Given the pressures from competing channels of distribution, it is constructive to examine what makes for a successful operation in store format retailing and to identify and create some form of easily applicable framework in order to inform retailers' problem-solving processes at the level of the shopfloor.
Store format retailing is still an important channel of distribution and while the full impact and potential of the Internet has yet to be unleashed it is quite apparent that customers will still frequent a physical store. Given that premise, it is important for retailers to ensure that their stores "work" and fulfil...