Store Operations

Section B
1 A retailer pays $180 for a pair of boots that retails for $250. What is the retailer’s

percentage mark-up on cost?

Ans : C – 38.9%

(A) 13.9%

(B) 28.0%

(C) 38.9%

(D) 72.0%

2 When selling a pair of boots, the salesperson recommends the purchase of a

waterproofing product. Which of the following best describes the salesperson’s strategy?

Ans : (A) Add-on sale

(A) Add-on sale

(B) Selling-up technique

(C) Complementary selling

(D) Consultative selling

3 Which of the following would influence the stock level of a CD recorded by a touring

overseas rock band?

Ans : (C) In-store promotion and trend

(A) Seasonality and trend

(B) Seasonality and shelf life

(C) In-store promotion and trend

(D) In-store promotion and shelf life

4 A salesperson recommended a pair of gloves to a customer who stated that the gloves

needed to be suitable for snow skiing. The customer suffered frostbite while wearing the

gloves.

On what grounds could action be taken against the retailer?

Ans: (B) Selling a product contrary to the Sale of Goods Act

(A) Selling a product that failed to satisfy product safety standards

(B) Selling a product contrary to the Sale of Goods Act

(C) Selling a product not fit for the purpose intended

(D) Selling a product not of merchantable quality

5 What is the name given to the total dollar revenue a retailer receives from the sale of

merchandise and services?

Ans : (A) Gross sales

(A) Gross sales

(B) Gross margin

(C) Gross purchases

(D) Gross costs

6 What is the main purpose of electronic scanners used at point-of-sale?

Ans : (B) To read the product code information

(A) To record the ISDN information

(B) To read the product code information

(C) To electronically link retailers with their suppliers

(D) To gather information about customers’ credit history

7 Which of the following is NOT part of the terms and conditions of the Shop Employees

(State) Award?

Ans: B) Study leave entitlements

(A) Sick leave entitlements

(B) Study leave entitlements

(C) Retrenchment entitlements

(D) Superannuation entitlements

8 Which of the following best describes an example of discrimination on the basis of

gender?

Ans : (B) A company practice demoting women who are pregnant

(A) A job advertisement seeking a junior salesperson for a menswear store

(B) A company practice demoting women who are pregnant

(C) A company practice promoting people who are single

(D) A job advertisement specifying a minimum height limit of applicants

9 Which groups negotiate conditions set in the retail industrial award?

Ans : (C) Australian Retailers Association, the Industrial Relations Commission, employer

groups

(A) The Industrial Relations Commission, employer groups, employee groups

(B) Trade unions, the Industrial Relations Commission, employee groups

(C) Australian Retailers Association, the Industrial Relations Commission, employer

groups
(D) The Industrial Relations Commission, Shop Distributive and Allied Employees

Association (SDA), employee groups

10 What is the purpose of cash reconciliation?

Ans : (C) To compare the actual and the recorded transactions at the close of trading

(A) To register the total sales transactions at the commencement of trading

(B) To calculate the non-cash transactions at the close of trading

(C) To compare the actual and the recorded transactions at the close of trading

(D) To determine the total cash in the register at the commencement of trading

11 A salesperson suspects that a customer has concealed merchandise in a bag. Which of the

following actions should the salesperson take?

Ans : (B) Accuse the customer quietly.

(A) Take the customer by the arm to go to the manager’s office.

(B) Accuse the customer quietly.

(C) Offer to assist the customer in making a purchase.

(D) Call the police immediately.

12 Which of the following is an example of good retail housekeeping?

Ans : (D) Following correct procedures for storing equipment

(A) Being polite to the customer

(B) Signing on by the correct time

(C) Promptly phoning your supervisor when you are unable to attend work

(D) Following correct procedures for storing equipment

13 On completion of a stocktake, why would a retailer discount a product?

Ans : (B) To create a cash flow

(A) To increase profit on that product

(B) To create a cash flow

(C) To correct the stock count

(D) To make more room on the shelves

14 A retail outlet located beside a major road installs double-glazed windows to reduce

noise. Which type of hazard will this action reduce?

Ans : (A) Ergonomic

(A) Ergonomic

(B) Psychological

(C) Chemical

(D) Physical

15 The introduction of a manual handling training course for staff contributes to

Ans: (D) ensuring that safe work practices are followed.

(A) reducing risks in the workplace.

(B) eliminating hazards in the workplace.

(C) completing a safety audit.

(D) ensuring that safe work practices are followed.

Section C (2 Marks Each)

Q1) Are retail stores required to have TTYs (TeleTYpewriters)? WHY?

Ans : No. For making calls to or receiving calls from customers with hearing or speech impairments ,
retail stores will be able to rely on the relay systems that telephone companies must establish by
July 26, 1993. Operators employed by relay systems will relay communications between TTY-users
and people using conventional telephones. Only those businesses that allow their customers or
clients to make outgoing calls on more than an incidental convenience basis must provide TTYs.

Retail stores can ensure effective communication by telling staff who answer the telephone to
anticipate incoming calls through the relay services. Handling these calls may take longer because an
operator at the relay system will be receiving typed communications from the caller and will also be
using the relay system equipment to type communications from the retail store staff person to the
caller. Training should be undertaken as soon as possible because at least 40 states already offer
some type of relay service.

Q2) Are retail stores that offer parking required to provide accessible parking spaces for people with
mobility impairments? If such parking is required how many spaces must be provided?Are retail
stores required to remove barriers posed by sidewalk curbs?

Ans : Yes.If a retail store owns and operates the parking lot, it must provide
accessible parking if it is readily achievable to do so. If a retail store is a tenant,
responsibility for providing accessible parking rests with both the landlord and the
tenant. These responsibilities may be allocated between the landlord and tenant in
the lease or other contract.

The spaces must comply with the dimensions specified in the ADAAG if it is readily
achievable to meet those standards. The ADAAG also specifies a formula for
determining the appropriate number of accessible spaces which must be followed if it
is readily achievable to do so. If it is not readily achievable to comply with the
ADAAG standards for the number and dimensions of accessible spaces, a retail
store must provide as many spaces as readily achievable and of readily achievable
dimensions.

If it is not readily achievable to provide any accessible spaces, a retail store could
consider providing valet parking as an alternative method of providing access.

Curb cuts (also known as curb ramps) enable people who use wheelchairs or other
mobility devices to have ready access to retail stores. If the only parking available is
on a city street and the retail store does not own or control the sidewalk, the
municipality, not the retail store, is responsible for providing curb ramps. If a retail
store owns or controls the sidewalk, it must provide curb ramps if readily achievable.
If a retail store is a tenant, responsibility for providing curb ramps rests with both the
landlord and the tenant. These responsibilities may be allocated between the
landlord and tenant in the lease or other contract.

The ADAAG establishes standards for construction of curb ramps that must be
followed if readily achievable.
Q3) Must all entrances to existing retail stores be accessible?How does a retail store know if the
doorway for the accessible entrance is wide enough for customers who use wheelchairs or other
mobility devices?

Ans : No, but one entrance, preferably the main entrance, must be accessible,
making it possible for people with disabilities to “get through the door.” For most
businesses, ramping one step or even several steps will be readily achievable.

Installation of a permanent ramp, rather than a portable one, is required unless such
installation is not readily achievable. If a public accommodation cannot meet the
ADAAG’s technical requirements for ramps because of space or other limitations, it
can deviate slightly from these specifications as long as the ramp is still safe.

If a permanent ramp cannot be installed, a portable ramp must be used if readily

achievable. Portable, i.e., moveable, ramps also must be safe. Most portable ramps
are relatively inexpensive to purchase or construct.

A retail store using a portable ramp should install a doorbell or intercom (with an
appropriate sign) to summon an employee to bring the ramp to the door if readily
achievable. If the accessible entrance is one other than the main entrance, a sign at
the main entrance should indicate where the accessible entrance is located.

If none of these access options is readily achievable, alternative means to provide

service must be considered, such as curbside service at no additional charge.

The ADAAG standard states that a minimum of 32 inches of clear opening

measured between the face of the door and the opposite stop when the door is
opened 90 degrees is required to provide access for customers who use wheelchairs
or other mobility devices. Offset hinges can increase the amount of clear space by
several inches.

Automatic or push button doors are the best for providing access. Whether installing
them is readily achievable or not depends on the circumstances of the individual
retail store.

Another measure that makes doors easier to use, not only for customers who use
mobility devices but also for those who have conditions that limit their manual
dexterity, is to install lever or U-shaped handles. Some retrofit levers cost less than
$10 and can improve access significantly.

Adjusting door closers or springs and oiling hinges are also inexpensive steps that
make it easier to open doors and prevent them from closing too quickly. Widening
doors, installing accessible door handles, and making door adjustments are
examples of modifications that will be readily achievable for most businesses

Q4.) Must retail stores allow service animals, including guide dogs, to accompany customers with
disabilities into retail stores?Can a retail store deny service to a person with a disability because his or
her disability or behavior resulting from the disability may be disturbing to other customers?
Ans :Yes.
No. The ADA specifically prohibits this type of discrimination against people with
disabilities.

Q5.) How do retail stores make their merchandise accessible to customers with various disabilities?

Ans : Customers who use wheelchairs, crutches, or other mobility devices, customers
with limited manual dexterity, and customers who are blind or who have limited
vision tend to experience certain types of access problems in retail establishments.
For example, people who use wheelchairs often cannot move down aisles when
stock or displays are placed in them.

Although widening aisles where merchandise is displayed is an ideal solution for

customers who use wheelchairs, in many retail establishments it will result in a
significant loss of selling space and is, therefore, in those cases not readily
achievable.

Some retail stores, such as department stores, may be able to rearrange display
racks and shelves in a way that does not result in a significant loss of selling space.

Placing lightweight items on higher shelves and heavier items on lower shelves and
offering the use of a device for reaching high items will improve the usability of a
store not only for customers with mobility impairments but also for customers with
manual impairments. Otherwise, sales clerks should offer assistance in reaching
items.

Moving boxes and displays that impede access to aisles or could trip a customer
with a vision impairment is a simple, common sense solution to certain access
problems that also makes access easier for other customers.

For retail businesses housed in cramped facilities, there may be no storage

alternative for boxes placed in the aisles. If readily achievable, the store could
provide service at the door to customers who are unable to move down the aisles.

Q6.) What is required to make retail store elevators accessible? Are retail stores that display
merchandise on more than one floor reached only by stairs required to install an elevator?

Ans : If
readily achievable, stores must install raised letters and Braille on the control
panels and outside the doors for blind customers.

Placing a large, high-contrast sign indicating the floor number outside the elevator.

If elevator controls are mounted out of reach of wheelchair users and it is not readily
achievable to lower them, installing a stick or pointer near the control panel will help
some customers operate the elevator independently. Door timers must also be
adjusted so the doors do not close too quickly.

Although installing an elevator will not be readily achievable for most stores, some
access to floors above or below the ground level may be required. If there are only
several steps to reach the additional levels, a ramp is required if it is readily
achievable to install one. If there are many steps, installation of a wheelchair lift,
which is much less expensive than an elevator, is required if readily achievable.
Other alternatives include using accessible routes such as a freight elevator or rear
entrance.

Retail establishments with limited space and resources and without accessible
alternative routes available must take other creative steps to make the merchandise
available. Courtesy and common sense should dictate what methods are most
suitable. Alternative methods include bringing samples of the merchandise from the
inaccessible level to the accessible level; using photo albums with price lists; and
video taping the merchandise.

Q7.) Do dressing rooms need to be accessible? Are clothing stores required to provide assistance in
dressing rooms to people with disabilities?

Ans : Although installing an elevator will not be readily achievable for most stores,
some access to floors above or below the ground level may be required. If there are
only several steps to reach the additional levels, a ramp is required if it is readily
achievable to install one. If there are many steps, installation of a wheelchair lift,
which is much less expensive than an elevator, is required if readily achievable.
Other alternatives include using accessible routes such as a freight elevator or rear
entrance.

Retail establishments with limited space and resources and without accessible
alternative routes available must take other creative steps to make the merchandise
available. Courtesy and common sense should dictate what methods are most
suitable. Alternative methods include bringing samples of the merchandise from the
inaccessible level to the accessible level; using photo albums with price lists; and
video taping the merchandise.

Department of Justice states that dressing assistance is required in stores where

individualized assistance in selecting and trying on garments is provided. In a
store where such assistance is not offered generally, it is not required because it
is not provided to other customers.

Q8.) What are the best ways to make signs and other written information accessible to people with
vision impairments?
Ans : Store directories must be made accessible if this does not pose an undue
burden. Options include Braille, large print, audio tape, and personal assistance.
Audio cassettes are useful because many people who are blind do not read
Braille. Large print signs and documents are helpful to people with limited vision,
including older shoppers, and to those reading directories from a distance, such
as people who use wheelchairs.

Q9.) Do price tags have to be in Braille for customers who are blind?
Ans: No. A salesperson could offer to assist customers who are blind or who have
limited vision by describing the items and reading prices and labels. This is a low-
or no-cost solution that embodies common sense, courtesy, and good business
practice. For most retail establishments, putting all price tags in Braille could not
be done without significant expense. Furthermore, many blind individuals do not
read Braille.
Q10.) What measures are required in retail establishments for people with cognitive impairments such
a mental retardation?
Ans : No. A salesperson could offer to assist customers who are blind or who have
limited vision by describing the items and reading prices and labels. This is a low-
or no-cost solution that embodies common sense, courtesy, and good business
practice. For most retail establishments, putting all price tags in Braille could not
be done without significant expense. Furthermore, many blind individuals do not
read Braille.

Q11.) If a store is staffed with only a single cashier, is the cashier required to leave the cash register
to assist a customer with a disability?How can a retail establishment communicate with a customer
who is deaf or hard of hearing or who has a speech impairment?
Ans : No. The ADA does not require a cashier to leave the register if doing so
poses a security risk.

Most customers who are deaf or hard of hearing will identify themselves by writing a
note or using hand gestures. When a salesperson has determined that a customer is
deaf or hard of hearing, he or she can communicate by writing notes. Maintaining
face-to-face contact is important for communicating with a customer who reads lips.

The services of a sign language interpreter are not necessary to accomplish most
retail transactions that are short and straightforward with deaf individuals but may be
necessary to communicate effectively in an unusually complex transaction.

Stores that use public address systems to announce special offers or sale days
should consider providing electronic bulletin boards or print announcements near
doors and check-out counters to announce these events as a way to communicate
effectively with customers who are deaf or hard of hearing if they can do so without
incurring significant difficulty or expense.

It is also important for retail businesses to communicate effectively with customers

with speech impairments. Allowing sufficient time for a person with such a disability
to express himself or herself or to spell out a message on his or her word board are
examples of methods to achieve effective communication.

Q12.) Must retail establishments install visual fire and other emergency alarms?

Ans : Where audible alarms are provided, visual alarms must be added if readily
achievable. The ADAAG specifies the types of alarms that meet this requirement.

People who are deaf or hard of hearing depend on visual alarms to alert them to fire
or other emergencies. It is suggested that signs be placed next to alarms indicating
their purpose. Retail store maps or directories should also point out the location of
visual alarms.

Q13.) Is a retail store required to stock special goods for customers with disabilities?
Ans : No. Retail stores are not required to stock special goods. For example, a
book store is not required to stock Braille books. However, if the store routinely
makes special orders for its customers and the special goods can be obtained
from a supplier with whom the store customarily does business, it is required to
make a special order for a customer with a disability.

Q14.) What must retail stores do to make check-out aisles accessible to people who use wheelchairs
or other mobility devices?

Ans : Ifa store already has one or more accessible check-out aisles, customers with
mobility impairments should be provided a level of convenience equivalent to that
provided for other customers. The store must either keep an adequate number of
accessible aisles open or otherwise modify its policies or practices. For example, if
only one aisle is accessible and it is an express aisle limited to customers
purchasing fewer than 10 items, the store must permit a customer who uses a
wheelchair to make his or her purchase at the express lane, regardless of the
number of items.

If the store has no accessible check-out aisles, then at least one accessible check-
out aisle is required in facilities with less than 5,000 square feet of selling space if
readily achievable. In facilities with 5,000 or more square feet of selling space, at
least one accessible aisle of each design being used by the business is required if
readily achievable.

Signs identifying the accessible check-out aisle(s) must also be provided if readily
achievable. If it is not readily achievable to provide any accessible check-out aisles,
stores must provide readily achievable alternative methods for customers to pay for
merchandise, such as assistance at the check-out counter or manager’s desk.

Adjustments needed to provide access to check-out aisles must comply with the
ADAAG if readily achievable.

Q15). Must retail stores provide accessible rest rooms? How can rest rooms be made accessible?
Must retail stores have accessible drinking fountains?

Ans : If rest room facilities are provided for public use, at least one accessible rest
room must be available when readily achievable. Certain relatively simple steps can
increase access and usability. Widening entry and stall doors; moving obstacles
such as vending machines; rearranging toilet partitions to increase maneuverability
for customers using wheelchairs; installing a raised toilet seat; installing grab bars
near the toilet; repositioning paper towel dispensers; installing lever handles on at
least one sink; and installing insulation material around exposed lavatory pipes to
prevent wheelchair users from burning their legs while sitting at the sink are
examples of readily achievable measures for most businesses. If a retail store
provides more than one rest room and not all are accessible, a sign should indicate
where the accessible rest room(s) is (are) located.

Simple symbols indicating which facilities are for men or women are easier for some
people with cognitive impairments (such as mental retardation) to understand than
words or other images. Raised letters and Braille differentiating men’s and women’s
rest rooms are important for people who are blind, and large, high-contrast signs
help people with limited vision. Retail stores must take all of these measures if
readily achievable.

If stores have drinking fountains, they must make them accessible if it is readily
achievable to do so. To make fountains accessible, mount them low enough to be
easily reached from a sitting position or install a paper cup dispenser within easy
reach.

This Guide provides general information to promote voluntary compliance with the
Americans with Disabilities Act of 1990 (ADA). It was prepared under a grant from
the U.S. Department of Justice. While the Office on the Americans with Disabilities
Act has reviewed its contents, any opinions or interpretations in this document are
those of The Council of Better Business Bureaus’ Foundation and the Disability
Rights Education and Defense Fund and do not necessarily reflect the views of the
Department of Justice. The ADA itself and the Department’s ADA regulations should
be consulted for further, more specific guidance.

Section D

Question 1 (5 marks)

(a) Define the following terms:

(i) Franchise

Ans : A franchise is an authority that is given by an organization to someone, allowing them to sell its
goods or services or to take part in an activity which the organization controls.

(ii) Hypermarket

Ans : A hypermarket is a retail store that combines a department store and a grocery supermarket.
Often a very large establishment, hypermarkets offer a wide variety of products such as appliances,
clothing, and groceries.

(iii) Consumer cooperative

Ans : A consumers' co-operative is an enterprise owned by consumers and managed democratically

which aims at fulfilling the needs and aspirations of their members.They operate within the market
system, independently of the state, as a form of mutual aid, oriented toward service rather than
pecuniary profit. Consumers' cooperatives often take the form of retail outlets owned and operated by
their consumers, such as food co-ops. However, there are many types of consumers' cooperatives,
operating in areas such as health care, insurance, housing, utilities and personal finance (including
credit unions).

(b) Explain the relationship between a manufacturer, wholesaler and retailer in the

distribution process.
Question 2(5 marks)

(a) Distinguish between a mark-up and a markdown.

Ans : Mark –up is the price that is added to the cost price of the product is called mark –up but the
price reduced from the selling price of the product is called markdown

(b) Use ONE example to explain why retailers mark up prices.

Ans: Ravi is selling a t shirt for 200 Rs. which cost him 50 Rs. So in this case Ravi is charging 150 rs
mark up on the costing of the t shirt to earn profit.

(c) What are the impacts on profit when a retailer applies a markdown to a price?

Ans : Profits will be reduced when a retailer applies a markdown to a price.

(D) Emma was leaving her local supermarket through the checkout when she was asked

to present her handbag for inspection.

Explain the rights of the customer and the retailer in this situation.

Ans: Customer rights is her privacy because it is her personal belongings. The retailer rights is to do
the inspection due to loss and prevention policy of the organisation and norms as per security check
and shrinkage policy.

Question 3 (5 marks)

(a) Discuss employees’ entitlements as provided under Workers Compensation

legislation.

Ans : Different entitlements as provided under workers compensation law require prescribed
benefits be paid to the injured employee. Benefit limits and duration vary by jurisdiction but each
state provides essentially the same three “classes” of benefits:

 Medical benefits;
 Disability/Indemnity benefits; and
 Death benefits.

(b) While performing routine housekeeping duties in a retail environment Ernest

falls and breaks his arm. Describe the process that Ernest should follow to apply

for workers compensation.

Ans : Ernest should approach the HR department and apply for medical benefits for all the expenses
incurred by him for his treatment.

Using a retail example, describe the role housekeeping plays in minimising theft.

Ans:

Question 5 (5 marks)

Analyse how a range of changes in society have impacted on the retail industry.

Ans : Please find below how a range of changes in society have impacted on the retail industry:

 From Amazon to Zalando: Online business is putting pressure on retail stores

 Cross-channel trade: Order online, exchange in-store
 Consumers visit local stores for advice and for a unique shopping experience
 Smartphones, tablets & co.: Mobile devices in-store
 IT budgets on the rise
 Analytics: Staying on top of customers with Big Data

Question 6 (5 marks)

Customer complaints fall into a number of categories.

Analyse how a retailer would respond to different types of complaints in order to improve customer
satisfaction.

Ans : The different categories of customer complaints and how a retailer would respond to different
complaints in order to improve customer satisfaction are :

1. The Meek Customer

The Meek Customer will avoid submitting a complaint because he or she doesn't want to be a pain
or believes you don't care.

How to Respond: Start a conversation - perhaps during a check-in call or by sending a Net Promoter
Score (NPS) survey - to gauge customer satisfaction, start a dialog, and actively resolve any
complaints.
The Risk: The customer will leave quietly without giving you any indication as to what went
wrong. 91% of unhappy customers who are non-complainers simply leave. Do not view absence of
feedback as a sign of satisfaction.

2. The Aggressive Customer

The exact opposite of the Meek Customer, the Aggressive Customer will loudly voice any complaints
and will not accept excuses.

How to Respond: Thank the customer for sharing their concern and listen. Be polite, agree on the
definition of the problem, and explain what's being done to resolve the situation and when.

The Risk: In heated customer situations, it's easy to become confrontational. Mirroring the
customer's aggressive behavior will only make the situation worse. Thanking the customers for
sharing their concerns lets them know you are sincerely interested in hearing what they have to say
and reaching a mutually-beneficial resolution.

3. The High Roller Customer

Perhaps your enterprise customers, these individuals pay well, and expect premium support. A High
Roller Customer is likely to complain in a reasonable manner, unless he or she is an Aggressive
Customer hybrid.

How to Respond: This customer wants the best. Listen respectfully, acknowledge that a problem
exists, understand the details of the situation, and work to resolve the issue as quickly as possible.

The Risk: Like The Aggressive Customer, the High Roller Customer doesn't want to hear excuses.
They want the problem resolved in a timely manner.

4. The Rip-Off Customer

Instead of looking for an answer or satisfactory support experience, the Rip-Off Customer is looking
for a handout.

How to Respond: Maintain composure and respond objectively. If the customer constantly and
repetitively says your solution isn't good enough, use accurate quantified data to backup your
response.

The Risk: If not handled correctly, this customer may take advantage of your company and end up
with something he or she doesn't deserve.

5. The Chronic Complainer Customer

The Chronic Complainer Customer is never happy and continuously reports issues.

How to Respond: Although it may be frustrating, it's still your responsibility to provide excellent
support to the Chronic Complainer. He or she wants an apology. Listen respectfully, provide a
sympathetic ear, and put forth an honest effort to correct the situation.
The Risk: It's very likely that the Chronic Complainer will contact support again. However, unlike the
Rip-Off Customer, this customer will accept and appreciate your efforts to fix the situation. Despite
their constant complaints, Chronic Complainers are often repeat customers and will tell others about
positive support experiences.

Question 7 (5 marks)

Professional salespeople recognise that customers have both rational and emotional buying

motives.

Analyse how professional salespeople can use their understanding of these motives in

the selling process.

Ans :