10 things you should know about retail audits

Retail audits are an important part of the retail industry, but many people may not be aware of exactly what they are or how they work. Here are 10 things you may not have known about retail audits:

1. Retail audits are used to assess the performance of a store or group of stores. They can be conducted by an external company or by an internal team within the organization, more often than not, even by the store managers and workers themselves.

2. Retail audits typically involve a detailed examination of the store, including its layout, merchandise selection, pricing, and customer service depending on what you are auditing. They may also include analysis of sales data and other financial information as well as safety and security aspects of the store.

3. Retail audits are often used to identify areas for improvement within a store or group of stores. This can include identifying issues with inventory management, pricing, or customer service, as well as identifying opportunities for growth or expansion. What matters is what gets done after the audit, a audit report is only as good as the execution of the follow-up actions.

4. Retail audits may be conducted on a regular basis, such as annually or quarterly, or they may be conducted on an as-needed basis, such as in response to a specific issue or concern. Many retailers use them as a strategy implementation tool.

5. Retail audits may be used to assess compliance with company policies, industry regulations, and legal requirements. This can include evaluating the store's adherence to health and safety regulations, employee practices, and environmental policies. A simple health, safety and security audit can keep store workers and managers aware of risks and threats.

6. Retail audits may involve the use of specialized software and tools to collect and analyze data. This can include point-of-sale data, inventory management systems, and customer feedback platforms. Great auditor can also see past and between the numbers to see if there are patterns or anomalies. Focus should be put on actionable improvements.

7. Retail audits may involve the use of mystery shoppers, who are individuals hired to visit a store and assess various aspects of the shopping experience, including customer service, product availability, and store appearance. The benefit of mystery shoppers comes back stores not being aware of being audited which reduces the biases.

8. The results of a retail audit are typically presented in a report, which may include recommendations for improvements and a plan for implementing those improvements. Good retail audit platforms have open line of communication to keep track of the followup actions and improvements.

9. Retail audits can be costly, as they involve a significant investment in time and resources. However, they can also provide valuable insights and help to drive performance improvements within an organization. Biggest cost is involved in setting up a retail audit system in the first place. Once store workers have learned to being audited, it’s easier to involve them with self-assessments and more types of retail audits.

10. Retail audits are just one of many tools used by retailers to assess the performance of their stores. Other tools and techniques that may be used include customer surveys, focus groups, market research, PoS systems and visitor tracking systems.

Summary

In summary, retail audits are a critical component of the retail industry, used to assess the performance of stores and identify areas for improvement. They involve a detailed examination of a store's operations and can be conducted by an external company or an internal team. Retail audits may be used to assess compliance with company policies and legal requirements, and they may involve the use of specialized software and tools to collect and analyze data. The results of a retail audit are typically presented in a report, and they can be costly but provide valuable insights for retailer.

If you're looking to implement a mobile tool for your retail audits, we've got you covered. Falcony | Audit is easy-to-use, fast to set up, has customisable workflows, vast integration possibilities and more. Contact us for more information.

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