Unit of competency Outline

Date retreived
22/07/2026 7:48 AM AWST

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Review retail business fundamentals

Review retail business fundamentals

Unit of competency
National Code
SIRXIND006
State Code
BBB59
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
16/08/2017
View on TGA
State Implementation and Classification
Approved Date
14/12/2017
Field of Education
080301 - Business Management
Original Release Date
14/12/2017
Nominal Hours
45
Description
This unit describes the performance outcomes, skills and knowledge required to access organisational information and conduct research to understand the fundamentals of retail financials and operations. This unit applies to individuals working in a diverse range of retail sectors and business contexts. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Determine the commercial structure of a retail business.
  • 1.1. Access and review a retail business strategy to determine organisational direction and priorities.
  • 1.2. Access and review a retail organisational structure and determine the roles and responsibilities of key retail functions.
  • 1.3. Identify internal and external factors impacting retail performance.
  • 1.4. Access and interpret a retail profit and loss statement to identify key financial metrics and budgeting considerations.
  • 1.5. Review key internal and external factors impacting on retail performance.
2. Research retail leasing arrangements.
  • 2.1. Research the rental costs and terms of a retail lease.
  • 2.2. Identify costs, initial and ongoing, of establishing a retail space.
  • 2.3. Calculate the profit required to cover the cost of establishing a retail space.
  • 2.4. Calculate the breakeven point in terms of the lease duration.
  • 2.5. Identify value of stock held within a store and calculate the sales turnover per square metre to determine store productivity.
3. Review retail inventory processes and structures.
  • 3.1. Access and review a retail merchandise strategy to determine organisational merchandise objectives.
  • 3.2. Identify key financial metrics considered in merchandise management.
  • 3.3. Review organisational structure of categories, sub-categories and product ranges.
  • 3.4. Review organisational processes for inventory purchasing and management.
  • 3.5. Identify internal and external factors impacting product performance.
  • 3.6. Perform basic retail calculations to determine the difference between product cost and retail price to calculate a margin.
4. Research the retail customer.
  • 4.1. Review organisational target market and target market profit.
  • 4.2. Identify strategies to engage the target market and opportunities to enhance customer experience.
  • 4.3. Identify the role and value of customer service teams in engaging the retail customer.
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