Retail audits make it easier for merchandisers to gather critical data that contribute to operational efficiency. Management teams can glean insights from the data to make informed decisions about the future of the business.
What is a retail audit?
A retail audit provides a systematic way to check standards and deficiencies. You can rely on a smart checklist that comes with supporting files, action plan recommendations, and other critical items. Managers can use the checklist to track the status of the listed issues.
As a result, it becomes easier for management to enforce specific operational standards. Outlets are held accountable for implementing organisational programs and policies.
Some of the data collected during audits focused on retail activity, sales, and observational data. Activity data covers steps taken by individual outlets to improve execution. For this reason, you should measure and track specific actions to identify any issues affecting sales volumes.
Observational data focuses on in-store conditions as observed by the representatives. The data incorporates key items like competitive activity, stock levels, and the total number of facings.
On the other hand, sales data pertains to product pricing over a pre-determined period at particular outlets. This data creates an overview of retail outlets’ operation status when combined with observational and activity data.
Why conduct retail audits/the benefits?
The main reason to conduct retail audits is to verify that outlets completed specific tasks. You can implement the audits to achieve process improvement since data makes it easier to gauge effectiveness. Comparing historical and current data helps you gain critical insights.
The best part is that you can compile reports using paper or software checklists. In some cases, you need to reevaluate current lists to determine whether there are any auditing tasks that you could add or remove. Doing so can help improve the quality of data available at your fingertips.
The reports can allow you to identify various operational aspects. These include:
- Performance on specific initiatives or tasks
- Identify the worst-performing initiatives
- Store and department performance comparisons
- Identify the best performing stores over time
- Discover any promotion opportunities at various stores
- Check store records for missed audits
The above-mentioned details enable your management team to make well-informed decisions about areas that require urgent attention. Software checklists provide a more convenient way to compile reports. These programs can work as a complete store audit tool.
Who benefits from retail audits?
The benefits of conducting regular store audits have a direct bearing on various aspects of the organisation. As a result, everyone derives some benefit, including customers, suppliers, employees, management, investors, and partners.
The management team and investors can reduce the overall cost of ownership. Data sourced from various outlets provides critical insights that may be unavailable in spreadsheets. Any savings generated from the process can reach customers as the business offers more incentives through discounts and promotions.
Company directors can also track and measure specific store metrics in real-time. Thus, eliminating over-reliance on insights from monthly, quarterly, or annual reports. Management can monitor employees to check whether they perform specific tasks to improve customer satisfaction and maximise profits.
Meanwhile, it becomes easier for retail managers to take advantage of the reports to boost in-store merchandising without increasing the expenditure. The audit enables your organisation to maximise sales through merchandising and seasonal programs. Your company’s managers can also identify and rectify any safety issues.
When it comes to customers, retail audits help improve customer satisfaction. The improvements brought about by the data from the reports can enhance the in-store experience. The changes will boost customer loyalty and encourage people to share their positive experiences with family and friends.
How to conduct a retail audit
To implement retail audits more effectively, you need to follow specific steps. You should articulate your goals, design the audit criteria, schedule appointments, gather data, evaluate results, implement changes, and repeat the process.
In the early stages, you have to outline the objectives of the audit. This allows you to focus on the critical aspects of your operations. An audit can concentrate on monitoring competitor activity or inventory changes.
Clearly outline the metrics you want to track and measure. Proceed to assign qualitative or numeric values to the objectives to determine the success of your initiatives. The audit should gather photos to show in-store conditions.
When designing the audit criteria, list the questions and answers applicable to various components of the audit. The questions should help achieve process improvement in all outlets.
Once the audit process is complete, you need to compile reports from the data in an easily digestible format. Use graphics to show numerical values.
To maximise the benefits of retail audits, aim for consistency in your choice of representatives that handle the audits. Knowledgeable reps help improve the effectiveness of the process.
Once you have the compiled data, identify areas that need improvements, and implement the changes. Over time, you can make any necessary adjustments to the entire process as needed. In the end, conducting regular audits improves your company’s agility and competitiveness.