Retail Audit as a Test Of The Quality Of The Representation
The retail audit is a regular study of certain outlets conducted at fixed time intervals for the receipt and subsequent analysis of information on prices, assortment, distribution, merchandising, commodity stocks and sales of specific groups of goods or own goods.
The information obtained in the course of the retail audit is grouped according to various criteria, such as the price group, the presence of surcharges, packing, etc. Retail audit companies in India thus provides a detailed and reasonably complete picture of how the product or commodity group is positioned and offers the opportunity to assess the dynamics of retail sales.
Audit of retail trade is valuable because the data obtained during the research of individual retail outlets can be projected onto the entire market, which is necessary for the process of determining the market volume and its shares, conducting a comparative analysis of participants in such a market, and searching for empty niches. Retail audit helps identify the main characteristics of the market and predict trends in its further development, monitor market prices and analyze them, form databases, and even influence the development of new products.
The methods used during the retail audit are called store checking and retail audit. The stop-check method involves the collection of information through personal interviews, telephone surveys, questionnaires at points of sale, and observation.
The regular retail audit, which examines the same retail outlets, allows you to evaluate the current changes in the logistics and marketing tactics of the company and their impact on the competitive positions of goods. In the course of the audit of retail trade, a way of displaying the products of interest, prices for such goods, assortment number, number of visitors and other parameters are fixed.
As a result of the audit, clients receive:
- the pre-order matrix, the size grid for specific silhouettes, the optimum structure of the order for the seasons and its budget, based on the required stock, the remains of previous seasons and the capacity of presentation and storage equipment;
- Action plan for the efficiency of working with current stock balances, getting rid of illiquid, improving the selling ability of the collection;
- Recommendations on pricing, especially during periods of peak sales and sales;
- Analysis by category, KPI, and placement of goods in the store with suggestions for optimizing product categories, presentation sites, cross-merchandising;
- The strategic plan of work with suppliers, which allows most efficiently to build long-term relations with the most interesting trading conditions;
- A system of reporting and operational control in all areas of the store or network, allowing in an accessible and understandable form to work with arrays of data. Also, a system of fines and incentives is being developed to support the operation of the system;
- Conclusions on staff with a description of personal qualities, competence, skills. Drawing up career development plans for employees;
- Recommendations for the promotion and direct advertising of outlets.
The purpose of retail audit companies are :
- To increase the net profit of the retail part of the business
- To increase revenues in comparison with the previous year
- To build an internal reporting system, to develop a system of motivation and certification of sellers
- To change the appearance of stores to an intuitive
- To make re-planning of commercial equipment.