What do you think factors of production for a retail clothing store would be?This is Introduction to business 100.

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johnnydoodle | College Teacher | eNotes Newbie

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I assume that you are asking about work activities in a retail clothing store, because no real "production" actually takes place in a retail environment. However, "productivity" in a retail store is very important to measure and monitor. (More on retail store productivity later.)

Work activities in a retail clothing store include Receiving, Stocking, Replenishment, Sales, Customer Service, and Management. Price Marking may also be a function performed in the store. Each of these is briefly defined below.

Receiving is the process of getting the retail merchandise into the store. Included in this activity is movement of the retail merchandise from the delivery truck into the store, recording the items (by Stock Keeping Number, or SKU) and quantity of each style/type/color received. Often  a check is made to be certain that the merchandise received is actually what was ordered. A check is also made to determine that the merchandise is not defective and has not been damaged in shipment. If the received merchandise has not already been "marked" with a price, the Receiving function is also charged with that task before it is moved to the sales floor or stockroom.

Stocking is the movement of the merchandise from the receiving area to storage, usually in the stockroom of the retail store. When merchandise can be immediately placed on the sales floor, it is moved directly from the receiving area to the sales floor without the intermittent Stocking step.

Replenishment includes the physical movement of merchandise from the stockroom to the sales floor and positioning it for sale. Presentation guidelines often exist to assist in positioning merchandise in a way that is expected to appeal to the retail customer. Replenishment may also include documenting/ordring the quantity of merchandise (by SKU) that is needed to bring the merchandise inventory up to the desired level.

Sales is the function of assisting customers in selecting and purchasing merchandise. Sales also usually includes the actual sales transaction, including ringing the register and collecting payment for the merchandise being purchased by a customer.

Customer Service is a function that may or may not be a separate function in a retail clothing store, depending on the size of the store and the desired level of customer service that is intended. When it is not a separate function, customer service activities are usually handled by a salesperson of Manager. These activities include processing/approving merchandise returns, answering customer inquiries/complaints, and other special services (such as gift wrap, layaways, special orders, etc.).

Management in a retail clothing store is responsible for the overall operation of the store. Some of the tasks of Management include hiring, employee training, money management, oversight of store maintenance and cleaning, financial reporting, and staffing.

In each of the functions described above, performance indicators can be established to set expectations and monitor productivity of the activities. Examples of productivity measures include: items received or stocked per hour; items price marked per hour; items replenished per hour; sales $$ per hour; customers per hour; sales per square foot; and many others.

The above functions and indicators of productivity within those functions can correspond to budgeted sales and employee costs for running the store.

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