Retailing is considered as one of the most nimble industry,where the manager comes in contact with the customers and responds to theirneeds everyday. To be successful in the competitive arena, retailers must beable to convince the shoppers, that they can satisfy their needs better thantheir competitors. Retailers are always looking for ways to replace slow movingcategories with specialty formats. In today's arduous economy, retailers aretrying hard to increase the efficiency of their supply chain in order todecrease their risk and increase their profit margins. Organizations seek newtechnology to enhance their businesses. Businessmen think many times beforetaking new expenditures and only investments with shorter pay back period arechosen.


Right sizing for Excellence:


Retailers require an approach to improve their gross marginreturns per sq. ft, when the sales figures are weak. 'Rightsizing' is a retailprocess which involves trimming the size of the store and purging off the slowmoving products. These products are in turn replaced by specialty formats orshop-in-shop model. Big retailers chose to set up specialty zones under theshop-in-shop models. This approach enables to increase the revenue of theorganization. It facilitates optimum utilization of the available shop space inthe best possible way by reducing the space occupied by products that are slowmoving. This facilitates the consumers to shop according to their preferences. Duringthe period of recession shop-in-shop is the best way to leverage the fieldknowledge of specialty retailers and increase their profits.


Right sizing enables a complete visibility of the productthroughout its life cycle from capacity and raw material reservation, costingnegotiations, tracking, and logistics. Its framework consists of strongcollaboration, and reporting tools. This process helps the management to takeproactive decisions about the life cycle and supply chain activities of theproduct.


The imperative question ringing in the back of every retailersmind is about the necessity to have and invest in a business intelligencesystem. Once a retailer has successfully established himself in a marketposition, he then aims for an accelerated growth in the concerned segment. Heneeds to build a top-line by expanding multiple geographies and maintainoperational profitability. He must fine tune his position by analyzing thebehavior of the shoppers. Once, a retailer attains the maturity stage in hisbusiness, externalities play an integral role in his further growth.


Right sizing helps the retailers to obtain competitiveadvantage, and aid the supply chain to gain greater value through consumercollaboration. When a retailer recognizes his position in the evolutionary lifecycle, needs and priorities, and utilizes them to guide his investments inbusiness intelligence systems, he will be able to make sound decisions as theright time.


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