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Evidence Guide: SIRXIND006 - Review retail business fundamentals

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

SIRXIND006 - Review retail business fundamentals

What evidence can you provide to prove your understanding of each of the following citeria?

Determine the commercial structure of a retail business.

  1. Access and review a retail business strategy to determine organisational direction and priorities.
  2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.
  3. Identify internal and external factors impacting retail performance.
  4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.
  5. Review key internal and external factors impacting on retail performance.
Access and review a retail business strategy to determine organisational direction and priorities.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify internal and external factors impacting retail performance.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review key internal and external factors impacting on retail performance.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research retail leasing arrangements.

  1. Research the rental costs and terms of a retail lease.
  2. Identify costs, initial and ongoing, of establishing a retail space.
  3. Calculate the profit required to cover the cost of establishing a retail space.
  4. Calculate the breakeven point in terms of the lease duration.
  5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.
Research the rental costs and terms of a retail lease.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify costs, initial and ongoing, of establishing a retail space.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate the profit required to cover the cost of establishing a retail space.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate the breakeven point in terms of the lease duration.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review retail inventory processes and structures.

  1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.
  2. Identify key financial metrics considered in merchandise management.
  3. Review organisational structure of categories, sub-categories and product ranges.
  4. Review organisational processes for inventory purchasing and management.
  5. Identify internal and external factors impacting product performance.
  6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.
Access and review a retail merchandise strategy to determine organisational merchandise objectives.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify key financial metrics considered in merchandise management.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review organisational structure of categories, sub-categories and product ranges.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review organisational processes for inventory purchasing and management.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify internal and external factors impacting product performance.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research the retail customer.

  1. Review organisational target market and target market profit.
  2. Identify strategies to engage the target market and opportunities to enhance customer experience.
  3. Identify the role and value of customer service teams in engaging the retail customer.
Review organisational target market and target market profit.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify strategies to engage the target market and opportunities to enhance customer experience.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the role and value of customer service teams in engaging the retail customer.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENTS

PERFORMANCECRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine the commercial structure of a retail business.

1.1. Access and review a retail business strategy to determine organisational direction and priorities.

1.2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.

1.3. Identify internal and external factors impacting retail performance.

1.4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.

1.5. Review key internal and external factors impacting on retail performance.

2. Research retail leasing arrangements.

2.1. Research the rental costs and terms of a retail lease.

2.2. Identify costs, initial and ongoing, of establishing a retail space.

2.3. Calculate the profit required to cover the cost of establishing a retail space.

2.4. Calculate the breakeven point in terms of the lease duration.

2.5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.

3. Review retail inventory processes and structures.

3.1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.

3.2. Identify key financial metrics considered in merchandise management.

3.3. Review organisational structure of categories, sub-categories and product ranges.

3.4. Review organisational processes for inventory purchasing and management.

3.5. Identify internal and external factors impacting product performance.

3.6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.

4. Research the retail customer.

4.1. Review organisational target market and target market profit.

4.2. Identify strategies to engage the target market and opportunities to enhance customer experience.

4.3. Identify the role and value of customer service teams in engaging the retail customer.

Required Skills and Knowledge

ELEMENTS

PERFORMANCECRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine the commercial structure of a retail business.

1.1. Access and review a retail business strategy to determine organisational direction and priorities.

1.2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.

1.3. Identify internal and external factors impacting retail performance.

1.4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.

1.5. Review key internal and external factors impacting on retail performance.

2. Research retail leasing arrangements.

2.1. Research the rental costs and terms of a retail lease.

2.2. Identify costs, initial and ongoing, of establishing a retail space.

2.3. Calculate the profit required to cover the cost of establishing a retail space.

2.4. Calculate the breakeven point in terms of the lease duration.

2.5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.

3. Review retail inventory processes and structures.

3.1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.

3.2. Identify key financial metrics considered in merchandise management.

3.3. Review organisational structure of categories, sub-categories and product ranges.

3.4. Review organisational processes for inventory purchasing and management.

3.5. Identify internal and external factors impacting product performance.

3.6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.

4. Research the retail customer.

4.1. Review organisational target market and target market profit.

4.2. Identify strategies to engage the target market and opportunities to enhance customer experience.

4.3. Identify the role and value of customer service teams in engaging the retail customer.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

review a retail business's strategy, structure and profitability to determine:

business objectives

breakeven point and profitability

internal and external factors impacting on performance

identify costs of establishing a new retail store, including:

store design

fitout

stock

legal and accounting

security

point of sale equipment

bank guarantee

recruitment and training

marketing

review the following retail merchandise performance and document a report on merchandise performance:

profit margins

sell-through rates

inventory stock holding

sales per square metre

research the target market of a retail organisation and document strategies to engage the target customer.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

role of a retail strategy and common retail objectives

role of a merchandise strategy and common merchandise objectives

retail profit and loss statements:

role

key metrics:

sales

gross profit

net profit

cost of goods sold

expenses:

fixed

variable

key commercial elements of a retail business strategy:

sales turnover

profit

investment in inventory

investment in retail space

common retail organisational structures and roles and responsibilities of key functions:

operations

marketing

warehousing

stores

buying

planning

visual merchandising

common costs and considerations associated with establishment of a retail space:

leasing costs

bank guarantee

design costs

fit-out costs

utilities

stock

equipment

recruitment

staff training

marketing

legal

leasing agreements and terms

key internal and external factors impacting retail productivity and performance

value of retail product at cost and retail

organisational merchandise structure:

categories

sub-categories

ranges

key retail financial metrics considered in merchandise management:

sales

gross profit

sell-through

rate of sale

average sale price

unit sales

markdown percentage

sales plan

principles of inventory management and performance

key considerations in managing physical retail environments:

sales targets

store presentation standards

service standards

stock holding

promotion strategies

team structure.