STORE OPERATIONS

On Job Training

HIMANSHU SAXENA

ROLL NO. 17RM925

PGDM RETAIL MANAGEMENT

BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY(BIMTECH)

2017-2019

Industry Mentor: Mr. Pradeep Sharma( store manager)

Academic Mentor: Prof. Pankaj Priya

1
 Acknowledgement
Firstly I would like to thank God and my parents to encourage me to do everything which I want
to do in my life. I give special thanks to my mentor Prof. Pankaj Priya for guiding me at every
step of my training. I am also very much thankful to Prof. Veenu Sharma, Prof. Pooja Mishra
and Prof. Manoj Pant to design wonderful concept of "On Job Training". I give special thanks to
director and centre of retail management to stand with us and guide us to learn the skills require
to survive in the industry.

I would like to thank my industry mentor Mr. Pradeep Sharma, a store manager at adidas and
adisports team to give knowledge of each crucial task require to run a store. I give special thanks
to Mr. Sudhir Sehera , M.D.of adisports, Mr. Mukesh Bhatia, A.V.P. of adisports and Ms. Neha
Thakur, HR manager to provide this wonderful opportunity which enhance my knowledge of
store operation.

2
 Table of contents
Introduction
Objective
Company Profile
History
Background
Mission/Vision
Other Business/Sector
Organizational structure
Area of Assignment
Shop location
Shop lay-out
Weekly Report
Insight gain during training in terms of
Skills
Knowledge
Values
Summary of Job Accomplishments
Problems met during training
Comments and Recommendation

3
 Introduction & Objective

I am doing my ojt with Adisports which is master franchise of adidas. Adisports has 36 stores in
delhi and 135 stores all over india. The adidas Group is a global leader within the sporting goods
industry with brands built on passion for sports and a sporting lifestyle. With brands such as
adidas, Reebok and Originals in its portfolio, the adidas Group offers a broad range of products
and is represented in major markets all over the world.

During my ojt I have to focus on store operation. My task is to observe each operation which
involves selling of merchandise, finding out primary merchandise which contribute very high in
meeting store target. To know about the products and their technology which differentiate the
adidas products from their competitors. Different KPI's use to measure the performance of store.

The guiding principle of adidas Sport Performance is to equip all athletes to achieve their
"impossible". adidas Sport Performance brings its passion for great products to athletes in all
sports and mainly focuses on four key categories globally: football, running, training and
basketball.

adidas Sport Style is a future-oriented umbrella within the adidas universe: its about taking the
adidas style (Sportswear) and projecting that style into the Future. It offers the Future of
Sportswear to forward-looking, modern and/or contemporary individuals.

Y-3 is the progressive label of Sport Style and the sport-inspired high-fashion label for the
outwardly confident, forward-looking individual. It is a collaboration with one of the most
innovative and highly regarded Japanese designer, Yohji Yamamoto, combines fashion and
sports.

SLVR is the pure fashion label for the modern nomad.SLVR was launched as an alternative
global, sports-inspired fashion sportswear brand to Y-3.

4
Originals,defined as authentic sportswear. Originals is the lifestyle brand that celebrates
Originality which is about authenticity, creativity and individuality.

NEO LABEL appeals to the fashionable teen who is fully engaged in life, be it through social
networking, family, friends, outdoor and sporting activities. The latest addition in this category is
Neo and it is more affordable than the other Sport Style concepts.

5
 History

It all began in 1920. Adolf (Adi) Dassler started to produce his own sports shoes in his mother's
wash room in Herzogenaurach, near Nuernberg in Germany. The shoes (made from canvas) were
training shoes for runners.
In 1924, his brother Rudolf (Rudi) Dassler joined the business which became
GebruederDasslerSchuhfabrik (Dassler Brothers Shoe Factory). Adi followed three guiding
principles in his development work: produce the best shoes for the requirements of the sport,
protect the athlete from injury, and make the product durable. These principles guided him right
up until his death in 1978.
A passionate athlete himself, from the very beginning AdiDassler was in close contact with
athletes and players and was always present in person at important sports events.
1927- Adi moved his house to his first factory (GebruderDasslerSchuhfabrik)
1949- On August 18th 1949, adidas was registered as a company, named after its founder: ADI
referring to his nickname and DAS referring to his last name DASSLER.
Facing the seemingly unbeatable Hungarians in the final of the 1954 Football World Cup, a
victory seemed out of reach for the underdog, Germany. As a close friend of team coach Sepp
Herberger, Adi provided the German players with a whole new boot made out of thinner, lighter
leather and screw-in studs. While the Hungarians struggled during the rainy final wearing heavy
rain-soaked boots with studs too short to find grip on the muddy field, the German team went on
to score the game-deciding goal with more grip and a better feel for the ball. Still referred to as
"The Miracle of Berne", Germany's win of the World Cup and the innovative football boots
brought international recognition for adidas and a market leadership in the football business
since.

You see pairs of handmade shoes. AdiDassaler making each of it with great precision.

6
 Background

In 1920, at the age of 20, soccer player Adolph (Adi) Dassler invented spiked shoes for track
and field. Four years later Adi and his brother Rudolph (Rudi) founded the German sports shoe
company Gebrder Dasslerlater known as Adidas (pronounced AH-dee-DAHS, not ah-DEE-
duhs). The brothers' father was a cobbler in Herzogenaurach, Germany, where they were born.

By 1925 the Dasslers were making leather football shoe with nailed studs and track shoes with
hand-forged spikes. Beginning with the 1928 Olympics in Amsterdam, Adi's uniquely designed
shoes began to gain a worldwide reputation. Jesse Owens was wearing a pair of Dassler's track
shoes when he won four gold medals for the US at the 1936 Berlin Olympics. By the time of his
death in 1959, Dassler held over 700 patents related to sports shoes and other athletic equipment.
In 1978, he was inducted into the American Sporting Goods Industry Hall of Fame as one of the
founders of the modern sporting goods industry.

In the 1970s, Adidas was the top athletic shoe brand sold in the US. Muhammad Aliand and Joe
Frazier were both wearing Adidas boxing shoes in their "Fight of the Century" in 1971. Adidas
was named the official supplier for the 1972 Munich Olympic Games. Although still a strong,
well-known brand today, Adidas' share of the world sports shoe market dropped over the years

In 2004 Adidas bought Valley Apparel Company, a U.S. company that held licenses for
outfitting more than 140 U.S. college athletic teams. In August 2005 Adidas announced that it
was purchasing the American shoemaker Reebok. Currently, Adidas ranks number two in
worldwide sales, after first-place Nike and third-ranked Reebok. But the Adidas world
headquarters are still located in Adi Dassler's hometown of Herzogenaurach. They also own
about 9% of the world-renowned German soccer club.

7
 Mission and Vision

Belief
- starts with defining who we are .
- and why we do what we do.
- this is our higher calling.
- our why
- A calling to challenge ourselves.

This is something that the adidas group strongly believes in Through Sport We Have The Power
To Change Lives

Mission

Passion and excellence is the key to be the best.

BEST - means that we design and build and sell the best sports products in the world, with the
best service and experience.
Best is what our consumers, athletes, teams, partners and media will say about us. Once people
are saying that we are the best market share, leadership and profitability will follow.

Vision

AdiDassler was inspired by a single vision during his entire career. This vision was to provide
every athlete with the best products for their respective discipline.

8
Innovative
AdiDassler was always thoughtful, a craftsman who enjoyed permanently improving athletes
shoes. Over 700 patents and other industrial property rights worldwide are proof of his never
ending quest for innovation.

Inspirational
Strive for perfection. Theres always something you can improve. Adis words still inspire
adidas product creation teams today. It was Adis quest for perfection which led to the Miracle
of Berne in 1954, when the German football team won the World Cup finals with lightweight
innovative boots featuring more grip on a deep, wet football pitch.

Passionate
Adis passion for all kinds of sports and individual athletes needs is what inspired his quest
towards perfection. Adi was known for always working directly with the athletes he equipped in
order to make sure his designs could be optimal solutions to their needs.

Authentic
Adi was an avid athlete himself. Throughout his life, he practiced several sports and used his
experience to design the best possible products. As a result, all his products had a personal touch
which was unmatched by competitors.
Committed
Never stand still, and always be willing to learn. At the age of 32, Adi realized his skills as a
shoe maker were somewhat limited, as he initially made an apprenticeship to become a baker.
But Adi did not feel too old at all when he decided to attend a shoe college in 1932 to perfect his

9
shoe making skills! He proved his commitment with countless innovative products which helped
improve athletes performance.

Honest
It was Adis honesty and fair dealing which attracted so many athletes to the Brand and its
products. Many famous athletes such as Jesse Owens, Muhammad Ali, Max Schmeling and
Franz Beckenbauer counted themselves among the friends of the Dassler Family.

10
 Other Business

Reebok, inspired by its roots in sport and womens fitness, the brand was started in 1958 by
J.W.Foster and Sons. Headquartered in Canton, USA
Reebok-CCM
Comprises of two worlds most recognized hockey brand names: Reebok Hockey and CCM Hockey.
One of the worlds largest designers, manufacturers and marketers of hockey equipment and apparel

Reebok and Reebok-CCM Hockey are a subsidiaries companies of adidas.

Organizational Structure Of Adisports In Descending Order

Managing Director(M.D.)

A.V.P(Assistant Vice President)

Regional Manager

Area Sales Manager

Store Manager

Assistant Store Manager

Floor Manager

Retail Associates

Stock Boy

Area of Assignment

Store Operations

Shop Location

Adidas Store , C.P. Delhi.

11
 Shop layout

I observed that our store layout is homecourt which is inspired by a football ground. In homecourt
design they arrange the merchandise like shoes are arranged in some racks then some apparel are put
so that it create attraction over different merchandise available in the store. Whole store is divided
into three broad categories Men, Women and Kids.

Then they further divided into sub categories according to the sports.

Running

Tennis

Basketball

Football

Outdoor

Training

Our store size is 1250 sqft. And the stock room is on 1st floor. Stock boy is responsible for
maintenance of stock room. There is a staff of 10 which includes 2 pantry staff .

Apart from shoes and apparel adidas also focus on other sport related merchandise such as exclusive
caps, bottles, gloves etc.

12
 Weekly Report

Date:27/10/17 Task:
Time In:11 am To know on what principles store work.(CEI)
Time Out:7:30 pm And see the application of core principle when
Hours Spent:8.5 hrs retail associates are selling the merchandise.

Date:28/10/17 Task:
Time In:11 am Learn about the Operating Rhythm of store
Time Out:7:30 pm And observe each day according the operating
Hours Spent:8.5 hrs rhythm.
Date:29/10/17 Task:
Time In:1 pm W hat things done on opening and closing of store
Time Out:9 pm Learn about different Reports which have to be
Hours Spent:8 hrs made and which software they are using.
Date:30/10/17 Task:
Time In:11 am Different Technologies use in adidas shoes
Time Out:7:30 pm And some special terminologies related to adidas
Hours Spent:8.5 hrs shoes.
Date:31/10/17 Task:
Time In:11:30 am Learn about the different types of customer and
Time Out: 8 pm try to categories every customer according to the
Hours Spent:8.5 hrs classification.
Date:31/10/17 Task:
Time In:11:30 am Learn about the different Key Performance
Time Out:8 pm Indicators.
Hours Spent:8.5 hrs
Date:1/11/17 Task:
Time In:11:30 am Learn about the incentive policy of retail

13
Time Out:8 pm associates
Hours Spent: 8.5 hrs

Date:2/11/17 Task:
Time In:11:30 am Learn about the exchange and refund policy at
Time Out:8 pm adidas store.
Hours Spent:8.5 hrs
Date:3/11/17 Task:
Time In:11:30 am Different types technologies use in apparel
Time Out:8 pm
Hours Spent:8.5 hrs
Date:4/11/17 Task:
Time In:11:30 am How they train their new retail associate
Time Out:8 pm
Hours Spent:8.5 hrs
Date:5/11/17 Task:
Time In:11:30 am How to manage inventory?
Time Out:7 pm
Hours Spent:7.5 hrs

14
 Skills and Knowledge

C.E.I is the main principle on which the adidas store works.

C.E.I stands for Connect, Engage and Inspire.

Connect which gives direction to sale associate

The when- mean at what time you have to connect with customer. for example you can say good
morning in 5-30 seconds. Connect teaches us that always give space to customer to settle down while
entering in the store if try to connect with customer in less than 5 seconds then he can feel as targeted
and leave negative expression on him.

The what-it means you can change your way to connect according the type of customer and by
observing his mood.

The how- try to match the customer attitude with your attitude.

Engage:

Understanding customer true passion.

Finding Primary needs.

Knowledge about the sport in which customer interested.

We can find true passion of customer by observing following points:

What are they wearing?

Who are they with?

At which product they are looking?

How long they are looking at the product?

What they are carrying with them?

15
Engaging also helps in giving suggestion for other products and it helps in increasing the unit sales
per transaction.

Inspire:

Try to find on the inspiration of customer .

Try to encourage customer to purchase by asking that anything else, try introduce new arrivals and
offers.

Operating Rhythm of store

Operating Rhythm includes some primary task which must be done according to company policy.

For 7 days particular type of task is defined which must be done with daily routine operations.

Monday

Store Manger prepares weekly action plan and visual merchandising power point presentation is also
prepared.

Weekly action plans

Compare the store performance with previous year week and last week .

Decide target of UPT(Unit Per Transaction).

Focus on retail associates performance.

Focus on promos.

Tuesday

They call it Probing Tuesday. It means they try to figure top 20 (best selling) and bottom 20 (lowest
selling) merchandise. And also try to find of the reasons why the particular merchandise is in top 20
or bottom 20 and take action according to the results

16
Wednesday

This day is known for Global count it means that article series and numbers are matched with the
system information and the stock boy claims. If any decrease and increase of article is found then
immediately try to figure how the information in the system is not matching with the physical
information given by stock boy. This also helps in finding that there is any stealing is done or not.

Thursday

People Thursday is when footwear specialist train the RA's about the different products so that RA
can encourage customer to buy the merchandise with his knowledge.

Friday, Saturday,Sunday

These are sales day for the store.

Key Performance Indicators

a) Unit per transaction = total units/no. of bills

standard value is 2

Maintaining upt is very important to reach target.

b) Average selling price = total value / quantity

standard value is Rs 3500

c) MTD(Month till date) It is total value till that month.

d) ATV( Average Transaction Value ) = Total Value/ total no. of bills

standard value is Rs 6000

It shows how large value bill we are making.

APT(Apparel Per Transaction)= Total apparel value/number of bills

standard value is 1.

17
c) HPT(Hardware Per Transaction)= total accessories/number of bills

standard value is 0.30

d) FPT(Footwear Per Transaction)= total footwear/ no. of bills

standard value is 0.50

e) Conversion = (Bills/walking)*100

standard average value is 15%

f) SFR( Socks footwear ratio)= total socks sold/total footwear sold

standard value is 0.50

g) Sale Equation = Walk in*Conversion*UPT*ASP = Bill*ATV

Opening and Closing of store

Our store is opened by two retail associates and then first task they do is cleaning of the store and
arranging the merchandise. They also check the opening checklist and fill it which define some
standard condition for working of the store. Then each RA has to fill RA logbook where he writes the
target achieved yesterday, conversion rate ,sales in value and some other KPI's. Retail associates also
fill Profit hurdle sheet individually .

Then after that one senior RA or store manger will fill these report in the system for each retail
associate . Then store manager analyze the previous year target and conversion and compare with this
year and then forecast target of the day for each RA. Store manager also direct them to increase the
conversion rate and unit per transaction so that the store monthly target can be achieved.

At last store manager fills the store closing report which includes footfalls ,total sale and all the KPI's
but now this report is made for whole store . eshop8 is the main software which connects each store
to other.

18
Day Sales
Friday 100000
Saturday 150000
Sunday 200000
Monday 90000
Tuesday 80000
Wednesday 85000
Thursday 100000
Friday 120000
Saturday 175000
Sunday 190000

sales
250000

200000

150000

100000
sales

50000

19
Day Footfalls
Friday 84
Saturday 143
Sunday 160
Monday 100
Tuesday 80
Wednesday 90
Thursday 120
Friday 150
Saturday 175
Sunday 190

footfalls
200
180
160
140
120
100
80
60 footfalls
40
20
0

20
 Adidas Shoe Technologies

a) Midsole technology

. Cloudfoam : step in comfort, light weight, gives feel of walking on cloud. Price range is from 5600
to 7000 rupees.

Bounce: Made from natural elastic cell, two- layers of midsole helps runner to move faster with
lesser effort.

. Boost: Best technology, made from ETPU( expanded thermo polyurethane),long lasting, suitable in
all types of climate.

b) Upper Technologies

Air mesh: provides air in the shoes which dry the sweat.

Circular knit : It is made from single piece without stitching.

Prime knit: generally used with boost.

Synthetic leatherlite : waterproof material.

c) Outsole technology

Continental: High durable, best grip on all surfaces.

Stretch web: takes shapes of the foot while running which provides more gripping.

Gum sole: used for wooden floors

Hard carbon rubber: low price material.

21
 Types of customers

Dolphin: People oriented, generous, confuse.

Peacock: Colorful and dramatic, full of energy, communicative and likes appreciation

Panther: Fast moving, aggressive, can make tense, talk very little.

Owl: Objective oriented, fact finder, detail oriented.

Adidas Apparel Technologies

Climacool: Provides simple ventilation to maintain body temperature.

Climalite: Sweat can easily dry out.

Climachill: Aluminum dots inside apparel provides chilling sensation.

Climaheat: Used in winter , helps in maintaining body temperature in cold weather. It is inspire from
the polar bear fur .The main feature is that it provides heat without sweat.

Incentive Policy

Each retail associate has two parts of salary one is fixed and other is based on the ability to achieve
target. Minimum 90% to 120% target should be achieved to become eligible for 0.9% of actual sale
value. If the target achieve is more than 120% then 1% of total sales value incentive is given to RA.

They have average sale target per month in the whole year is 1 lakh and standard average conversion
rate is 15%.

Exchange and Refund policy

You exchange your merchandise in 1 month but there is no refund. Exchange can be done from any
store irrespective from where you buy. They have 3 months warranty for any manufacturing defect
and the process is known as Adicom.

In Adicom customer can go to the store from where he buy because no other store can do the adicom
process. After that store send mail to adidas care and give detail of customer and defects in

22
merchandise, after that adidas care respond to adicom request and then customer is invited to
exchange the merchandise but if customer doesn't like other merchandise then he has to compromise
with his choice otherwise request to adidas care to transfer adicom to other store which takes some
time.

Inventory management

They are using eshop8 software which connects all the adidas store as well as head office so when
any merchandise is out of stock the information is directly send to head office so they plan their
buying according to the information provided by different store and send the finished merchandise
directly to the store with help of logistics provider like for shoes they have soleEx logistic provider.

When any merchandise come on store they have two copies of bill if the merchandise in bill is not
matching with the actual quantity then whole lot is back. Internal audits to count inventory is done in
which the whole value of items is given then they match with actual quantity and what eshop8 is
showing. And store manager also weekly checks the inventory by taking any category and count per
sku.

Values

I learn that for the success of store everybody has to work in team and with great coordination so that
conversion rate become high. I also understand the to become perfect in store operation experience
and continuous efforts are the two keys which can give huge growth in the future.

Summary

I have wonderful experience at adidas store and try to explore different types of merchandise at the
store. I learn about different policies and technologies on which adidas is working. I learn about
different types of customer and how to deal with them to convert them into sales. I also try to observe
the sales and footfall pattern.

23
 Problems met during training

I observe that to convince customer to purchase high value items is challenging task . In my store
there is no dedicated VM , experience retail associate is playing the role of VM so to experiment with
the VM is not possible as some expert is required. There is no other major encouraging factor other
than incentives. Sale in women section is less because the store layout is such that women section is
at the last of the store.

Suggestion

To increase sales give more attention to women section. If possible try to came with new offers
because the pricing factor is very important. Warranty should be of more than 3 months so that
customer become assure that they are providing best quality. Other than incentives retail associate
must be encouraged to increase sales. Try to increase staff on Sunday to handle customer.

24
25