StorIQ

A Guide to Building anEffective Retail Store AuditKey considerations in using the regional manager store auditprocess to drive standards and to deliver brand promise

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Introduction

The growing importance of the store audit

7 Considerations for building an effective storeaudit framework

Setting up the Store Audit Checklist

An open letter to the store manager

Retail Operations Metrics Part 1

Retail Operations Metrics Part 2

10 Top Tips for store audits that deliver brandpromise

More Information?

About StorIQ

Table of Contents

Regional Managers, with oversightfrom head office, have to ensurecompliance in all areas of operationalactivity and they are responsible fordriving sales and profitability throughthe performance and development oftheir store managers.

The key tool in the area manager’sarsenal in achieving the above complextask is the store audit, otherwise knownas the store visit.

But what makes a good store audit?Can it be used as a means to not onlyensure standards but also improve onstore performance? Absolutely!

Key SubjectsConsiderations for a store auditframeworkBuilding the Store Audit ChecklistRetail Operations Metrics

If you find this guide useful please doshare with your colleagues, and yourfeedback is always welcome.

Jonathan PriceHead of Sales and MarketingStorIQjonathan.price@storiq.net

IntroductionThank you for downloadingthis eBook, the purpose ofwhich is to guide youthrough key considerationsyou and your retailoperations team need inorder to develop a winningretail store audit framework.

The role of the store audit in adapting to changeThe store audit has always been a vital component of the retailoperations function. However, and perhaps slightly ironically, as retailersmove towards an integrated omni-channel offering, as e-Commercegrows and click-and-collect comes of age, the role of the physical storeexperience, and hence the field visit that maintains it's consistency, hasbecome more important than ever.

The modern consumer has a multitude of additional touch-points(channels) through which to set expectation before ever arriving at thestore. Whether an existing or prospective customer is browsing on amobile device whilst on the bus or reading a magazine in thehairdresser; or whether they are doing some online research duringlunch or perhaps flicking through social media at work; at eachtouchpoint they are creating expectations of your brand. Expectationsare being set of the holistic shopping experience.

The growing importanceof the store auditIt has long been known that central retail operations and a

well-trained and efficient field team armed with an

effective and consistent store audit process is the best way

to ensure your store teams are able to deliver brand

promise. But, why is the store audit becoming more

important than before?

Frankly the shopper isn’t bothered which channel(s) they’reusing – they’re only interested in having a good experienceoverall that befits your brand promise.

When visiting the store to purchase or increasingly simply to collect anitem, the customer journey needs to flow effortlessly. Each store in theportfolio has to be able to meet the same customer expectation to thesame exacting standard. Time after time after time.

The shift towards experiential shoppingThe customer-experience in store has become the core focus for retailas we move towards so-called experiential shopping. This often requiresa shift in mind-set for the store team and changes in store presentationand customer interaction standards.

Any store level change requires the appropriate follow up in the form ofan ongoing store audit process to ensure successful rollout.

To meet the expectations of the modern shopper and respond tochanges in buying behaviour todays brick-and-mortar retailer needs tohave slick, professional and efficient retail operations in place. This willallow in-store retail execution, from visual merchandising through tocustomer interaction, to be delivered at quicker pace, more accuratelyand with greater consistency.

Optimised retail field operations will also ensure that your storemanagers and their teams have all they need to deliver a superiorcustomer service day-in-day-out.

Performing an audit gives you the ability to put your finger ona store portfolio’s pulse.

Ensuring all of your field team conduct their field visits to a similar highstandard allows you to monitor the entire retail estate.

A store audit can:

identify and remedy inconsistencies in store presentation, visualmerchandising and brand compliance,identify store level problems, such as maintenance and operationalissues,close the loop on task management, ensuring previous tasks andactions have been completed,uncover best practice to share with other areas/stores,highlight potentially bad or “poor” practices to look out for in otherareas/stores,embed new in-store processes and procedures,provide a framework to evaluate financial metrics, KPIs, teamperformance,reinforce and build relationships with your most important asset –your store managers and associates,foster a positive sense of competition amongst stores,identify training needs and much, much more.

When you and your team put your heads together to develop your fieldteam store audit strategy, here are seven important points to consider:

1. Define who will conduct store visits and to whatpurposeThe core store audit is conducted by the regional manager (or district orarea manager depending on your role naming policy) but who else visitsthe stores? What about visual merchandising audits or visits to reviewloss prevention procedures? Do senior directors visit storesoccasionally? Are there health and safety audits? Ideally each type ofvisit would have its own checklist / template to meet the specificobjectives of the visit.

If more than one team is going to be conducting store visits, is there anyoverlap in their purpose? How will tasks be managed?

7 Considerations forbuilding an effective storeaudit frameworkThe store audit is the #1 tool in the retail field team’s

arsenal to effectively manage store performance. To be of

any value field visits must be consistent and scalable - this

requires a store audit framework.

2. Use review templates (otherwise known as storeaudit checklists)As above you can have a selection of store visit templates that you usefor different purposes. Regional Managers could have a “Half-day storevisit” template that is relatively comprehensive for a store audit thatmight occur once a month and then a shorter, less detailed version, suchas an "Impact Visit" for more frequent visits.

You can have checklists that are designed for different requirementsand teams, such as loss prevention, peak season, visual merchandising,health and safety, even training. The key point being that a template orchecklist should be created which is then used consistently by theappropriate field team for each store visit.

3. Perform audits regularly and on scheduleThe best way to monitor the pulse of your retail estate is to do soregularly. When stores know that they can expect a regular visit fromtheir district manager and that there will be scored review for storebenchmarking it helps to set expectations and it forms good habits.Remember that the store audit is not just an opportunity to evaluatepractices on a store level. It is a vital opportunity for the store managerto feedback to head office any operational or market related issues thatthey have been facing.

4. Conduct a store audit, with scoring, on every visitOur best practice view is that an audit/review of some kind isundertaken for every field team visit to a store. This is why werecommend a summarised version of the standard store audit template(for example an “Impact Visit”, or a “Pit Stop Visit”) that can be used bythe district manager for impromptu and shorter visits. The reason is thata record should be maintained for each and every field visit to a store.From a reporting point of view this helps to paint a picture of each areaand it provides insight into what is happening on a store level. It is allabout forming the best possible habits that ultimately translate intoimproved store performance.

5. Visit all stores – not only problem storesNaturally you’ll want to focus on ‘problem’ stores but it is essential thatfield staff take time to conduct store audits at the stores that areperforming at the top end of the spectrum operationally and financially.Why? This is a great way to uncover best practice. The bigger reasonhowever is that a scored visit with strong results provides a motivationalboost to the store team and it fosters positive competition amongststores. This is especially true when all store teams know that their storeaudit scores and notes are available for review centrally.

6. Technical infrastructure and equipmentThe right IT equipment, infrastructure and software can provide amassive boost in productivity and effectiveness in business. This is noless the case in the retail operations function where productivity andefficiency gains cause a positive ripple effect across the store portfoliothat ultimately translates into a better customer experience. The use ofthe right technologies can help to cut costs and support strategicgrowth initiatives like merchandising promotions and adoption of newstyles of trading, for example in delivery of experiential shoppinginitiatives.

When designing your store audit framework consider the underlyinginfrastructure and tools that are available to your central, field andstore teams.

Technical considerations include:

Mobility – is your store audit process mobile? Can store teams accesstasks and reviews on the move? Can the field team truly managetheir store portfolio whilst in the field?Scalability – can you easily add additional stores & users and providethe necessary onboarding and training materials for quick adoption?What if you were to acquire another retailer through a merger oracquisition - would you quickly be able to scale your store auditframeworkConfigurability – how easy will it be to add new store visit templates,manage users, set up VM campaigns?Support – is the store audit framework you're designing causing moresupport burden for your IT team or less support burden?Future development - how 'future-proof' is the framework?

7. Closing the loop on task managementThe purpose of the audit is wider than simply measuring performanceand producing a list of actions. The purpose of the audit is to identifyand more importantly correct any operational deficiencies that mayexist. When designing your store audit framework, make sure you'vecreated and tested a system of follow-up to ensure that reported issuesget corrected in a timely fashion. We call this ‘closing the loop’ on taskmanagement.

Technology can help by automating the process of issuingand scheduling tasks, sending automated emails to storemanagers reminding them of their commitments, andtracking completion.

1. Identify the objective of the checklistStore audit checklists can be used by all teams who visit stores as this isthe most efficient way to gather information consistently. The greatthing about checklists is you can have as many as you need and theycan be refined over time.

Whether a standard checklist used by the regional manager who needsto supervise her region or the visual merchandising audit for peakseason or something seemingly mundane as a health and safety review,each should start with the answers to some simple questions such as;

Who will use this audit?

When / how often will it be used?

What do we want to measure?

What is the desired outcome?

Setting up the Store AuditChecklistGiven the growing importance the store audit plays in

modern retail and its role in driving improvement and

consistency in store presentation standards, customer

experience and sales performance - it is no wonder that

retail professionals give very careful consideration to

building the store audit checklist.

Taking the time to answer the aforementioned can be surprisinglyeffective in helping to frame a checklist.

EXAMPLE:

Let’s take a very brief and high-level example of a ‘typical’ store visitchecklist used by area managers:

Q: Who will use this audit?

All regional managers will use this as their standard/default checklist forscheduled and unscheduled store visits.

Q: When / how often will the checklist be used?

Regional managers will be expected to conduct at least one visit perstore using this checklist every 3 to 4 weeks.

Q: What do we want to measure?

We want to know whether each store is performing to companystandard in the following areas:

- presentation and merchandising- personnel & training- revenue & KPIs- back of house / stock- administration

Q: What is the desired outcome?

A means to track standards listed above across all stores and areas forbenchmarking. The store audit should uncover any potential store levelproblems and put in place trackable measures to solve them.

TIP: Refine and discuss the store audit checklist objectivesand the above questions in detail with the relevant team andmanagement before taking time to build it.

2. Assembling the store audit checklistNow that you have had some time to consider the broad objective ofyour checklist and have given thought to what you would like to knowand measure on each visit you should have a steer as to the mainsections to include.

You can start by drawing up your section headings and then groupingitems beneath these. Brainstorm and jot down anything that comes tomind and then work through prioritising and removing any non-essentialitems.

You can then arrange the flow of the checklist items and sections tocompliment the in-person store visit. For example, starting with storepresentation from exterior, windows, then lead-in, etc. instead ofstarting with administration or back-of-house.

How long should the checklist be?

There are no hard and fast rules as to how many sections or items toinclude and these will vary from retailer to retailer. The scope and size ofa checklist depends on the objective and also the expected visitfrequency. Our view is that ‘less is often more’.

You want to cover the key bases and track metrics on things that reallycount. At the same time, you don’t want to cover so much detail andminutiae that the metrics become meaningless and the store visit turnsinto a laborious and time-consuming task for your field and store team.

Again it will vary greatly depending on circumstances but a generalguideline for a 2 to 4-hour store visit would be to aim for around 5 keysections with 5 to 10 items per section.

Define each item

With the rough skeleton drafted you can now take time to define andrefine the wording for each item that will be checked off. Good practiceis to be descriptive and unambiguous so as to avoid potential confusionor misinterpretation. It is a fine balance because you also want to keepwording for each item relatively short and concise.

What can be really helpful is to have a corresponding “What GoodLooks Like” (WGLL) document or section with the full clear anddescriptive company definitions / guidelines for each section and item.Some store visit software such as StorIQ has WGLL functionality built inso that you can clearly spell out what the standard is and your regionalmanagers can easily access whilst on the fly. You can write a fewparagraphs if needed and even had a picture to fully illustrate what isexpected.

For example:

Instead of having an item that says:Till Point

You could have:Till Point clean, tidy and clutter free

And then WGLL content like:The cash desk area must remain neat, tidy and uncluttered. Cleansurface area, till, telephone, iPad, PDQ and printers. (i.e. remove taperesidue, stickers etc.) Wiring and cables neat and secure and screensclean. Bin area tidy and ensure required items such as till roll, contactlist, stationery and sign-in folder are all neatly stored underneath cashdesk and not visible to the customer where possible.<And a photo of the ideal till point>

3. Store Audit Checklist Weighting and ScoringUsing a store audit checklist not only ensures consistency in store visitstandards, it also allows you to measure performance and benchmarkyour stores. If some items / sections are viewed as business critical youmight give them a higher weighting. Thus, if standards are not met, youwill be able to identify this through low store audit scores.

It is not an exact science as the weight and score assigned to sectionsand items will vary from business to business.

If you are unsure then our advice is to give each section and item, thesame weighting. Such simplified scoring is still a vast improvement overno scoring at all.

So for example if you have 5 sections then each section weighting wouldbe 20% towards the overall score. Each item within each section cancarry a 1 or 0 score. 1 if the item meets expectation and 0 if it doesn’t.

PS. Don't worry, an appropriate retail operations software tool whichincludes the ability to carry out checklist based store visits, can takecare of all of the calculations for you eliminating the need for time-consuming data entry.

4. Test, Review, RefineIt is important to note that once a checklist goes live and has been inuse for some time – it can be difficult to make changes to it. The reasonis simply any changes will potentially invalidate any previous visits – forexample the scoring may change or sections and items will no longermatch.

It is therefore advisable to spend time refining your checklist, ensuringthat it meets your requirements before you put it into use across yourbusiness. If you subsequently need to make changes it may make bettersense to archive the checklist and then release a new version that willresult in fresh and accurate data.

To test and review your checklist your best possible source for feedbackis the team that will be using the form. So if you are developing achecklist for your area managers ensure that you solicit their input andfeedback. Conduct some actual store visits and then review the resultstogether.

At this stage you may also want to time how long it takes to conductthe store audit on average. You may need to refer back to the checklist“objective”. Is your frequency of visit expectations realistic? Does thechecklist need to be shortened / condensed?

The store audit checklist does a lot more than measure yourstore performance – it can identify best practice and instilgood habits. It can help embed new practices and processesand much more. If you invest the time in defining theobjective, building, scoring, testing and calibrating yourchecklist you will arm your field team with a tool that canenable your stores to perform at their very best.

** Want to see some examples of Store Audittemplates in use in a live retail context?**Drop us a line at marketing.team@storiq.net and we'll send you a few.

Dear Store Manager,

Your job is demanding and you are naturally very busy. It follows thatanything that takes your and your team's focus away from the customeris bad for your store and for your revenue. Therefore as a store manageryou have a vested interest in ensuring that when the area managervisits that the audit is an efficient use of their time and yours.

The store manager role in the store audit is to:

1. Remember the bigger picture and understand that whilst complianceand standards are important the purpose of the store audit is not toslap wrists and ‘police’ stores. The purpose is to help stores be their best.It is easy to feel defensive, particularly if trading has been patchy. Keepin mind that the store audit framework is a business process used totranslate retail strategy into reality on the ground. It is used to improveconsistency and in-store execution and it is a vital component ofsuccessful brick-and-mortar retail. Your area manager is part of yourteam and visa versa!

An open letter to thestore managerThe store audit is carried out by the field team, but don't

forget the store manager role in this critical retail

operations process.

2. Be prepared and cooperative:

Have as much ready as possible before hand. For example, if youhave a visit scheduled and you know that sales, financials, stock andstaff rota will be reviewed then prepare these figures in advance asmuch as possibleRead through your previous store visit report againYou probably do this all the time anyway, but if time permits, do aquick walk-through of your store through the eyes of a customer,before your area manager arrives. You can be sure that your AM willbe doing so when they visitKnow what tasks/actions if any are still outstanding from theprevious visit and why they are still outstandingHave a list of maintenance, operational, VM, HR, etc. issues that mayhave arisen or that are in the process of being addressed

3. Communicate up: the area manager is the conduit between storesand head office and the store audit is your opportunity for one-on-onetime with your area manager. If you are well prepared, the checklistbased store audit should go smoothly leaving you with time to raise anddiscuss any other points that you want to. Be brief and concise andwhilst not always possible try to be positive and helpful. Remember thatyou are one of many stores that your AM needs to visit, strive to be thestore that they like to visit.

Once the store audit is complete:

Take time to read and digest the store visit report and any actionsthat are required. What can be improved upon for the next visit?Aim to action any tasks that have been assigned by the deadlinesand close the communication loop by updating your AM whencomplete.

Whilst technology can assist with the store audit process,making it more efficient and effective for you and your areamanager, no amount of software can be a substitute for awell-prepared and proactive store manager!

To ensure that brand consistency is upheld, CEOs and head office needa single, overall view of their retail estate. At present, this is typicallymeasured via financial and footfall metrics, but as retailers look tooptimise, innovate and save money, they need to utilise the untappedwealth of retail operational benchmarking available within their storesand from employees.

This sounds good, but how exactly can operational data transform aretailer’s decision making processes with more meaningful insights?

Retail Operations MetricsPart 1Up to scratch - retail operational benchmarking is key to

success

1. Correlate operational data with financialperformanceReviewing a retail estate’s performance solely via its financial statisticshas its place, but to truly understand what is driving sales in-store, it isnecessary to see the wider picture. In a competitive market the marginson price are incredibly tight, so retailers must look at the details toidentify where operational opportunities are perhaps currently beingoverlooked.

Benchmarking financial performance against area manager store visitreports, task completion metrics, frequency of AM visits, VM complianceand staffing can reveal insightful new learnings. For example, asuccessful store with relatively few staff and a small footprint may notbe highlighted in the overall estate financials, but proportionally it couldbe outperforming larger sites. This could be down to more efficient in-store execution which frees up time to focus on the customer.

Such operational best practice could deliver improvedfinancial results in other stores but it is nigh on impossible tofind such insight without operational benchmarking.

2. Compare operational performance betweenareasThe insight that Area Managers gain managing their store portfolio asthey strive to deliver improved performance is exceptionally valuable.There has to be a means of capturing this business critical information,i.e. the detail and outcome of each store visit, in a way that is consistent,transparent and which allows for the sharing of best practice betweenareas.

More importantly the way in which this data is captured should notbecome an added burden to what is already a very busy and demandingschedule, instead it should lighten the load and help area managers tocarry out their duties more efficiently and effectively.

By implementing a tablet based electronic store visit system, one thatcan cater to the requirements of any field staff role and trading cycle,allows for store visit data to be captured in a way that allowsbenchmarking of retail operational effectiveness. When you combinethis insight with financial metrics you can draw far more insightfulinferences.

3. Ensure visibility across locationsIt is also important to ensure the brand is being delivered consistentlyacross all stores that may span numerous geographical regions,especially in franchise or concession stores and doubly important with aglobal retail portfolio.

Equipping staff with in-store technology that uses a single platform tomanage tasks, share insights and imagery (e.g. digital photos) in realtime allows retailers to vastly improve communication across territories– and job roles.

This ability for instant communication between store staff and headoffice enables real time monitoring of brand consistency, visualmerchandising standards, best practices and compliance, while allowingthe C-Suite to be able to communicate with country managers instantlyto improve overall profitability and prevent any isolated issues fromescalating.

4. Share best practice across the whole businessIdeally all retailers would have retail operations communication systemsthat support management, enable the C-Suite to make well-informeddecisions which indirectly improve the customer’s in store experience.But in reality these systems are ad-hoc at best.

In an effort to manage information across the store network, mostretailers have set up their own systems and processes for managingthis. However, the vast majority of this is done in an inefficient,unstructured way, such as emailing photos as attachments or usingmanual spreadsheets, which can become time consuming when tryingto aggregate data.

At a decision making level, retailers need systems that allow both visualand written instructions to be communicated, and for real timefeedback to be given. Through this, senior management would be betterable to collate and share best practice across the entire store estate andcreate one definition of ‘what good looks like’, to drive ROI.

Only with an effective communication tool can the storeestate be optimised, empowering CEOs to make informeddecisions, as well as gathering and sharing useful metrics todrive up overall standards across all sites.

Gross Margin, Units per Transaction, Average Sales per Transaction,Year-over-year Percentage Change in Sales, Average Sales Per SquareFoot, etc. are all examples of store performance metrics common tobricks-and-mortar retail. They are vital metrics to base your store anddistrict KPIs on BUT keep in mind that these financials are essentially'after-the-fact'. They tell you how your stores are doing but unlike retailoperations metrics, they don't necessarily tell you what you, or moreprecisely your store teams, need to do in order to influence storeperformance.

This is where metrics of non-financial components such as storevisit/audit scores, task rate completion, compliance against VMcampaigns, number of store visits conducted by field teams, and soforth, are valuable to help pinpoint real and more importantlyimmediately actionable steps when there is room for improvement.

Retail Operations MetricsPart 2Retail operations metrics track your store and field team's

day-to-day activity and store standards. When used

correctly retail operations metrics can uncover specific

actions that need to be taken in order to influence store

performance.

Any seasoned retail operations professional will tell you thatincremental improvement in in-store execution, VM & brand complianceand adherence to company-wide quality standards, as reviewed via thearea manager store audit framework, will ultimately result in a bettercustomer experience and thus sales. The requirement for an efficientand effective retail operations function with the correct framework andtools in place, is intuitively understood by retail leadership. Retailoperations software platforms have been developed to not onlystreamline store operations but also to make the related retailoperations metrics easily accessible.

Here are five retail operations metrics you should be seeking to gatherand review for your store portfolio:

1. Store audit scores

What are the scores for each store based on a checklist based areamanager store audit/review process? Are these scores tracked overtime? It is important to note that the store audit checklist itself,depending on the template used, will produce a plethora of additionalstore operations metrics. For the purposes of this blog we are concernedwith the average total score of the store visit review.

* Why is this metric important?*A store audit framework delivered by your field team is the best possiblemeans to keep a finger on the pulse of your store estate. Your areamanagers are the lynchpin between stores and head office who throughtheir store visit activity are able to identify and put in place immediatemeasures that can improve store performance. The average scoremetric from store audit activity can at a glance help uncover potentialissues. These scores are especially useful when compared to financialperformance and can also be used to benchmark stores and to uncoverbest practice.

2. Task completion and response rate

When tasks are set for a store team, whether from head office, the areamanager or the VM team - are stores completing them and at whatrate? How does task completion compare between stores and alsobetween regions?

* Why is this metric important?*It goes without saying that store teams carrying out what is required ofthem in a timely fashion is of vital importance. How else can youmanage a store portfolio and/or deliver your retail strategy? Thechallenge lies in ensuring that the actions your stores are required tocomplete are relevant, clear, quick to access and easy to understand.

Often actions/tasks are hidden among the "white noise" of storecommunication, a high volume of communications that in some caseare sent to the store portfolio from multiple sources and in differentformats. For example, the AM might be texting tasks, or calling at anyrandom point of the day. Head office may include actions insidenewsletters and company memos. VM teams might be emailing tasksand requests for photos etc. This can be confusing and even worse,time-consuming, for the store team who ideally should spend themajority of their time focused on the customers in their store.

A single platform to manage task setting and management for all teamsnot only greatly simplifies life for the store manager it also allows you totrack task completion which is super simple way to gauge operationalperformance. Another unexpected side-effect of reviewing taskcompletion metrics that we've noticed amongst our clients is that thosesetting the tasks often improve and fine-tune the wording of tasking sothat all ambiguity is removed.

3. Response compliance to information requestsfrom head office

Electronic surveys (eForms) are used widely within retail for a variety ofdifferent purposes to gather information and feedback from stores. Youset up the form, define the questions you want your stores to respondto, click send and voilà - as stores complete the form (often convenientlyon a mobile device) the data is compiled for instant review.

* Why is this metric important?*When a survey is sent you want to be able to review the data veryquickly, particularly for example if this is a request for stock or businesscritical trading data. Reporting that tracks which stores have submitteda response and which haven't is useful so that you can follow up withpinpoint accuracy. Stores that don't respond for requests for data in atimely fashion may merit further investigation.

4. Compliance to requests for photos from headoffice

Digital image sharing within a retail portfolio is an obvious fit and it istherefore widely used. For example, if there is a new season launch orpromotion then a request for photos from your store team can be asuper quick way to check on campaign implementation and compliance.Unfortunately, most image sharing we come across within retail is doneusing tools not purpose built for the retail context and therefore it isvery difficult and/or time consuming to monitor which stores havesubmitted photos and which still need to.

In this omni-channel age where consumer expectation needs to bematched online and in-store, the speed of consistent and compliantexecution of VM guidelines is a must have, not a nice to have.

* Why is this metric important?*The rate at which your stores respond to requests for photos is a strongindicator of their speed of in-store execution.

Here is a screenshot of an example of a report that could show at aglance photo upload compliance for a particular campaign to make itvery easy to follow up with stores to request missing photos:

5. Number and frequency of reviews conducted byyour area managers, for each store over a giventime-period

* Why is this metric important?*This should be self-explanatory however we are often surprised by howlittle this metric is tracked and monitored in practice. Knowing whenyour AMs have conducted a store visit and if necessary being able toaccess the outcomes of that visit with the click of a mouse is an obviousbenefit to the retail operations team. Likewise, in terms of reporting,knowing how active your AMs are when it comes to visiting their storeportfolio has obvious benefits when benchmarking areas.

Checklist-based store reviews, communication with store manager andreporting on standards are a key way of identifying potential issuesbefore they become a problem. Another way to look at it is if you have astore that is underperforming financially and then on closer inspectionfind that there has also been a low frequency of area manager storevisits you know that the immediate next action is to schedule a storevisit. Why wait for poor financial performance?

Here is an example of a red, amber, green snapshot of an area over 30days of trading activity. Being able to track the number of store visitsbeing conducted across each of your areas at a glance can be a verypowerful management tool.

Very often senior management will have sight of financialperformance metrics and other ‘indicators of success’ such asfootfall analytics and customer dwell time but these can beabstract and don't fully reflect what is happening on theground at a store level. Our view is that such metrics are onlyreally useful when looked at alongside operational metricswhich are true indicators of the underlying drivers for storeperformance.

Typically an area manager visits anywhere from 4 to 6 stores in a givenweek with considerable down-time spent travelling between stores. Itcan make for a busy schedule and it is easy to appreciate the challengethat AMs face in ensuring store visits are consistently delivered to a highstandard. It is also easy to understand that reducing time spent on low-value-add administration is crucial to give your AMs and thereforestores, the best chance of success.

1. Customer first

Area managers must always remember to see the store, the way it ispresented, its merchandising and cleanliness through the eyes of acustomer. This same applies to store staff from presentation through toattentiveness and attitude. It is the AMs duty to ensure that the storeteam are appropriately representing the company and the brand.

The entire visit, from planning to completion should always be viewedwith the customer in mind. What can be done and said during the storeaudit that will ultimately improve the customer experience?

10 Top Tips for storeaudits that deliver brandpromiseBoots-on-the-ground, in person visits, spending one-on-one

time with store managers and staff is the only real way to

keep stores to the highest possible standards.

2. Well-plannedAs Benjamin Franklin said: “By failing to prepare you are preparing tofail”.

The following should be considered prior to arrival:

What kind of store visit will it be and how much time will be availableat the store?What are the key objectives of the store visit?What previous tasks were assigned and which of these have beencompleted?What was the outcome/score of the previous store visit?Who is going to be on duty?What metrics and relevant store data needs to be reviewed prior toarrival? Think footfall, revenue, average order value and so forthWhat VM campaigns are currently active?What are store’s financial targets? Know your numbers!

3. StructuredAs detailed earlier on in this document, store visits need to beconducted to the same standard across all stores by each areamanager and for this reason most retailers will have structured storevisit review templates with predefined checklists and standardisedscoring.

Regardless of the structure, format or number of store review checklistsavailable, what is important is that by using a template approach ithelps to drive consistency in the store visit. Ideally the template shouldalso include a detailed notes section, sometimes referred to as a “WhatGood Looks Like” section which the AM can refer to on the fly ifrequired, whilst conducting the review.

4. Methodical

Our view is that a checklist based store audit should be conducted everytime an AM visits a store.

5. EfficientAccording to a recent survey of 900 District Managers in the US - thetop challenge faced in driving consistency across stores is “havingenough time with store managers”. It therefore makes obvious sensethat the store visit needs to be efficient.

Common time wasters include:

low-value add administration and data entrytrawling through emails and attachmentsnot having ready access to relevant documents and store metricsan inconsistent and unstructured approach to visits

6. TransparentIt is only possible to drive consistency across a store portfolio if the retailfield operations function is conducted transparently. By this we meanthat retail operations leadership should have access to and oversight ofstore review scores, frequency of visits, the kinds of reviews beingconducted, tasks set and task completion rate and so forth. Ideally thiskind of detail will be neatly digested into quick and easy to reviewreports but if the need arises, it should be easy to drill deeper intospecifics without having to trawl through email chains and dusty filingcabinets.

7. TrackedAll store visits and reviews must be scored using an objectivemethodology that is clearly understood by both the area manager andthe store manager. Common systems include a Yes/No (tick and cross),or Traffic Light (red, amber, green) scoring. The key here is that youstore review template and scoring system should be such that if youtook two different AMs and asked them to conduct the same store visit,their scores and outcome should be the same (or very close to.)

The great thing about tracking store reviews, scores, task setting and soon is that you begin to compile data and metrics than can then be usedto draw real insight into what is required to improve store performance.Ideally tracking should be automated.

8. People developmentA key function of the AMs role is to train, challenge, motivate,encourage, and provide constructive guidance to store managers andthe team related to all areas of effective operations. No store visitshould ever be complete without time for area manager and storemanager to meet and communicate with each other. Time used for low-value add activity such as chasing up tasks and administration couldinstead be used to focus on coaching store employees and onmonitoring and improving the quality of the customer experience. Timeshould also be spent sharing best practice from other stores and the AMshould always remember to give praise where it is due.

9. Followed upA common complaint we hear from area managers is how much timethey spend following up or ‘chasing’ store managers regardingoutstanding tasks. A lot of time is spent trawling through emails andcross-checking spreadsheets. Sometimes just working out which storesneed following up on specific tasks can be a pain.

On the flip side, store staff are busy and ideally need to spend themajority of their time front of house focused on sales and customerexperience. They need to have the toolset and ability to quickly reviewwhat needs doing and then be able to feedback, closing the loop on taskcompletion with very little effort.

10. AccountableIt is a common management principle that accountability drivesimprovement. A consistent and transparent store review process willhold area managers accountable for their effectiveness in managingtheir store portfolio whilst at the same time holding store managers andstaff accountable for the actions they need to take in order to meetexpectations.

IN SUMMARY:

Area managers and retail field operations personnel are theunsung heroes of any successful retail organisation.

They are the conduit between head office, visualmerchandising, marketing and stores through which retailoperational excellence flows. Without effective store visits it isimpossible to ensure consistently exceptional standardsthroughout a store portfolio.

Give your area managers the training, tools & support thatthey require to conduct great store visits and they will rewardyou with loyalty and continued hard work!

Your store managers, customers and finance director willthank you too!

We hope you've found this eBook useful and informative. If you haveany feedback or have suggestions on inclusions or future topics forguides to be developed then drop us a line at info@storiq.net

More Information?

At StorIQ we provide a retail operations platformthat takes retail store audits to the next level. We'd

love to provide you with some more information.

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Based in London, UK, our cloud-basedsoftware-as-a-service helps retailoperations stakeholders (storemanagers, area managers, visualmerchandising, and head office)improve the performance of the retailportfolio through bettercommunication and task management.

Trusted by retailAs a team, we have over 30 yearsexperience in delivering cloud solutions.Since our inception, we have had thevision to sell our product globally,ensuring deployment capability into thecloud and ability for the product to beinternationalised. StorIQ will soon beavailable in 17 languages and will bedeployed in 33 countries.

We'd love to talkWe're not your ordinary softwarevendor. Our approach is personal,consultative and tailored to each of ourclient's requirements. We've built upsignificant experience and expertise inhelping retailers improve their retailoperations. Let's talk!

info@storiq.net+44(0) 203 290 6602www.storiq.net

AboutStorIQWe are razor-focused onhelping our clients achieveretail operational excellence