Retail Audit - Definition & Meaning
What is Retail Audit?
A retail audit is carried out on a certain number of retail outlets to measure the effectiveness, sales trends, sales volume etc. of a brand or product in the retail outlet. Technology is one of the key tools being used by companies to carry out a retail audit. The technology can be used to obtain product information (its features, sales, brand value etc.), evaluate the competition, getting real time data and improving performance trends.
A retail audit should be carried out at real time because it gives an accurate picture of the events at a retail shop and helps to carry out corrective or improving measures at that time. In-store merchandising constitutes an important part of retail audit. As it is through the placement of products at a particular place we can increase the effectiveness of its lucrativeness, thereby increasing the sales of the particular merchandise.
How to carry an effective retail audit? For this we must first select a sample which is representative of the real world sample. Then we need to set goals and then carry out retail audits keeping those goals in mind, so that we can achieve what we want to. The survey which is formed should be simple and terse, so that it is easy answering those and we can easily collate the data. The devices which can be used to assist the retail audit may vary depending on the goals we have set to carry it out.
For carrying out a survey a simple tablet or a phone can be used. There can be new data types which can be involved while carrying out a survey. These need to be collected and documented properly. Then after all this data is collected, they must be collated and processed to achieve the desired results.
Hence, this concludes the definition of Retail Audit along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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