Retail Industry

The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market

The India Retail Industry is gradually inching its way towards becoming the next boom industry.

Retail Industry is that part of the section where retailers sell products and services to their consumers. It is meant to meet the specific demands of consumers.

It covers

Exclusive Branded Stores
FMCG Store
F&B Stores
Specialty Retailers
Department Stores
Supermarkets and Hypermarkets
Clothing Stores
Auto Retailers
Home Furnishing Retailers
Drug Stores
Multi-Channel Stores

Most Common Challenges Faced In The Retail Sector

Among all the industries today, the retail industry is one of the fastest-growing industries. Retail business has become increasingly popular because of its high revenue ratio and hence more business operators are stepping into this field. However, the retail industry can be challenging to navigate and comes with many conundrums. It is often difficult for retailers to improve both profit margins and market relevance simultaneously. Alternatively, shopaholics or compulsive buyers spend a lot of their time and energy surveying their purchases on the Internet, making them very knowledgeable about their acquisitions. As a result, retailers find themselves in an edgy position as they struggle to survive in the market. Unfortunately, the difficulties don’t end there.

The following lists give an overview of the challenges retailers face in this industry.

Outdated Technology

India’s retail outlets frequently struggle with adoption, viability, and accessibility. In the recent past, the use of technology is becoming more and more prevalent in day-to-day operations,such as billing, e-payments,auditing, tracking inventories, supply chain management,

and many others. In addition to it, there are many other software tools like RFID Tagging (for better understanding customers’ preferences), CRM (for customer relationship management), and ERP (for enterprise resource planning). Hence, retail industries find it difficult to get their hands of advanced devices and technologies making them lose their potential customers.

Infrastructural and logistical shortcomings

Incompetent processes result from a lack of infrastructure and logistics. Having an unproductive or underperforming distribution channel is one of the major obstacles in the retail industry,as it is very difficult to deal with and causes considerable losses.

Lack of Trained Resources

It is estimated that retail companies spend more than 7% of their gross revenues on training their employees. Accordingly, industries reported attrition rates of around 50%,which is relatively high when compared

to other industries. Moreover, retailers need to allocate a significant amount to retaining those trained staff. Currently, there are only a few programs that provide specialization in this area. Therefore, retailers have no choice but to hire, train, and employ graduates and postgraduates from various fields of study

Pilferage

A retailer’s shrinkage is the difference between book keeping values and actual stock in a store on any given day. The difficulty of managing and enforcing administrative and supervisory fraud is what finds

it difficult to cope with, such as vendor frauds, pilferage, and imprecision in administration and supervision. In addition, when you increase the size of the industry, there is an increased possibility of swindlers becoming more successful, which leads to significant losses

Shortage of Business Logistics Management

Transporting the required products at the right time and place plays a crucial role in any industry. However, in India, there is a shortage of efficient and effective business logistics management or supply chain management.

Complexity in understanding Taxation

India’s tax system is challenging, especially for people who aren’t familiar with it. Each state has its own tax regulations, and it will take a good amount of time and taxation knowledge to get all the appropriate documents. VAT, which was introduced in 2005, has put retailers in a bind because it requires them to collect several octrois creating a hard-time to retailers.

Why Pro-TEAM Solutions?

Pro-TEAM Solutions have been in this sector for a decade. Thus, our expertise in this field has proven to be invaluable for retailers, and our experts are always prepared to offer customized solutions meeting retailers’ requirements.

Our offering include

Showroom Stock Audits
Showroom Compliance Audit
Warehouse Inventory Audit
Showroom Fixed Assets Verification
Return Stock Audit
Manpower Support Service
Hygiene Audit
GST Input Reconciliation
Dispatch Audit

Showroom Stock Audit

We are committed to ensuring that our auditors strictly adhere to the Companies Act 2013 while performing the audit. They stringently investigate and compare the physical stock with the actual stocks, maintaining accuracy. Our team ensures a comprehensive assessment of all back door stocks, preventing financial losses because of overstocking or under-stocking.

Showroom Compliance Audit

We know as a retailer you face many complex compliance obstacles which are hard to comprehend. In such cases, Pro-TEAM Solutions comes into the picture, alleviating your worries. Our experts will initially get into the root of business as compliance audit demands a proper study of branding and marketing principles as per the regulatory concern. Once this procedure is conducted, our team will come up with better solutions that complement your industry standards.

Warehouse Inventory Audit

Inventory audits in warehouses or larger storage areas are based on an inspection of stock in those areas. During this process, we evaluate its productivity and functionality with the help of experienced warehouse leaders. Following safety guidelines meticulously, accurately recording inventory figures, and running the business efficiently.

Showroom Fixed Assets Verification

We come in assistance when the firms seeks to track their fixed assets with the objective of financial recording, preventing maintenance and pilferage.

We comes in aid for:

Capitalization
Bar-code / RFID Tagging
Asset Verification & Reconciliation
Fixed Asset Help Desk
Fixed Asset Process Automation

Return Stock Audit

In-house store teams often gets confused and struggle to keep track of stocks returned to the warehouse, resulting in poor bookkeeping.

Alternatively, warehouse teams often fail to acknowledge returned goods, resulting in missed or inaccurate stock evaluations.

To avoid such discrepancies, our warehouse specialists keep track of all the inventories by maintaining a proper record and stamping it with our company seals before dispatching it from store to warehouse. This method will eradicate the chances of stocks being pilferage or overlooked.

Manpower Support Service

No matter what type of employee you want, we have a database of all kinds of personnel, be it white-collar or blue-collar. Furthermore, our recruitment team determines the job requirements of an enterprise and then finds a candidate who corresponds to those requirements. We offer both temporary (contractual) and permanent employment options for warehouse manpower support.

Hygiene Audit

A complete, thorough inspection is performed to determine whether a food production facility meets food safety and hygiene standards, as well as company regulations. Our F&B (Food & Beverages) audit department conducts Hygiene audits for restaurants, hotels, eateries, etc. We conduct audits either unannounced or with prior notice,