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The Most Important Facts About Retail Store Audits
Retail

The Most Important Facts About Retail Store Audits

Retail store audits are analogous to taking your car in for a tune-up for many stores.

NethraRamani
November 17, 2022

Retail store audits are analogous to taking your car in for a tune-up for many stores. The technician employs a digital interface to detect operating difficulties with your vehicle's systems and gives tailored solutions. Retail shop audits are conducted similarly but with distinct diagnostic instruments and measurement criteria.

These audits, which analyze a store's performance in a certain operational area, are typically requested by a store's district manager or sales manager. The management may conduct the audit themselves or subcontract the duty to a third-party organization and manage all this using a retail software. Some establishments are given advance notice of audits, while others are completely unannounced. The data collected can be retail store task management software to get reports of these audits. However, retailers unfamiliar with this process can find it intimidating and difficult. To understand it better, let us discuss some facts about retail store audits.

What Exactly Is a Retail Audit?

Retail audits are investigations of selected retail outlets that are conducted by brand representatives or retail store employees to gather data on the health of the products of the brand. Here, a retail task management platform can help with gathering data about the store digitally. Brand representatives collect the following types of information:

  • Activity of competitors
  • Gross sales volume
  • In-store display and promotional material descriptions
  • Inventory levels (shelf and backstock)
  • Planogram compliance (shelf position, number of facings, number of SKUs, missing/incorrect shelf tags)
  • Pricing
  • Product deterioration
  • Product placement in-store

Types of Audits

You must also select the audit type. Some of the most prevalent audits are:

Customer Service Audits

A customer service audit assesses a retail store's customer service methods. Task management software for retailers can keep track of this collected information, which helps in keeping customer service in check.

This audit is frequently performed at predefined times. On the other hand, an unannounced (or anonymous) audit will provide an extremely accurate picture of employees' performance.

Merchandising Audits

Merchandising audits are rather common. In these cases, the retail auditor reviews the store's merchandising initiatives to see if they are enough. Are the products appropriately displayed? Was the shop's planogram followed? Is the signage directing you correctly? A merchandising audit would provide answers to some of these queries.

Merchandising audits might be scheduled in advance or linked to seasonal product releases or in-store programs.

Loss prevention audit

Audits for loss prevention are designed to reduce waste, risk, theft, and vandalism. These audits are typically performed at specific periods of the year and assist in emphasizing the corporation's commitment to reducing this costly income drain.Examine whether a present loss prevention program is effective. Which products are the most commonly stolen? Where can I find similar items? What techniques are effective, and which are not?

The frequency of such audits will vary depending on the aims and type of retail audit. For example, you might perform a spot check on any given day or a full audit every month.

Why are store audits necessary?

When properly done, retail audits may enhance sales, gain market share, ensure retailers comply with your merchandising criteria and optimize the consumer experience in-store.

Increase your sales and market share.

Based on consumer input, real-time retail audit data enables businesses to make quick changes to planograms, merchandising, and shelf location. Furthermore, competitive intelligence obtained through retail audits enables teams to make necessary decisions according to predictive behavior and competition trends. As a result of skillful market movement, these retail audit help to optimize sell-through and enhance market share.

Maintain Retail Compliance

Marketing and sales teams work tirelessly on planograms, merchandising, signage, and other aspects, but noncompliance with planograms alone costs US retailers between $1 and $30 million in sales.

Retail audits look at how retailers adhere to placement, price, and promotional agreements. Compliance ensures that your company can successfully measure the success or failure of specific campaigns, SKU configurations, marketing signage, and other initiatives.

Improve the Customer Experience

Retail audits assist brands in measuring and monitoring retail success by examining shopper interactions with your products in-store. A retail audit can assist your brand in determining the time it takes to find your products on the shelf, the helpfulness of store staff, the scarcity or availability of stock, and other factors.

As the store is a sales outlet, a collecting point, a warehouse, a returns point, and a distribution point, the tasks are diverse. It is also the main focus of your client's brand experience. Thus you must provide excellent service. An online task management software is necessary to finish tasks of the store quickly by arranging and prioritizing related responsibilities.

To summarize, conducting shop audits on a regular basis is a smart approach to tracking the state of your business over time. So, at the very least, perform a quarterly or yearly retail audit.

Conclusion

A retail audit can assist you in determining the efficacy of your overall retail execution approach. You can get the best task management software for your store to ensure an efficient workflow and manage the data from audits. A retail audit software allows you to take images and videos of the audits and store them in one location, making it easier to manage. The retail audit software will provide managers with real-time data and feedback features. When an audit is finished, managers can check to see if the suggestions were followed, and the data is directly uploaded to the server. This saves a significant amount of time and money.

Using a software such as Pazo can assist you in managing your work more efficiently and getting more done in less time!

ABOUT THE AUTHOR
NethraRamani

Operations Excellence enthusiast | Building a digital ecosystem for enterprise workflow. Pazo helps with retail task execution, retail in-store operations, mall operations, facility management and much more.. We cater to ALL THINGS OPERATIONS!

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