Retail audits, also called Store Visits or Store Inspections, drive higher compliance with store program and brand standards. They are part of the retail execution workflow and designed to increase sales and profit margins, boost customer satisfaction and cut business risks.
Maybe you are starting a retail audit program from scratch. Maybe you have an existing program and are looking to improve or automate your process.
Regardless of the circumstances, we have prepared a list of best-practices, intentionally high-level, to help retailers and hospitality brands with this task.
What is a retail audit checklist?
So let’s dive in on how to build one!
Step 1: Think about the checklist’s “metadata”
Metadata is data about the store visit. Customers who use Excel-based forms typically expect user-entered fields such as store number, completed by, date, etc…
Metadata is largely automated/pre-populated with retail audit software. With retail audit software, the auditor’s information is derived from the login, the store pick-list is built specifically for each user and based on the user’s current GPS location and the date selected.
Step 2: Group items into sections. order sections according to the “natural flow” of the visit.
Whenever possible, sections should be laid out to match the natural flow of a visit (a district/area manager physically walking the store).
Start with the exterior (the parking lot if applicable, the window in a mall location) and work your way in, around the aisles and into the back of the store.
While you can jump around between sections during or after the visit, setting up your retail audit checklist according to the natural flow of a visit saves time and is more intuitive.
Step 3: Think about “non-applicable” items and sections
Certain sections or items on your retail audit checklist may not be applicable to all locations. For example, the “Washrooms” section is probably not applicable to a store located in a shopping center. Likewise, the “Drive-thru” section won’t be applicable to a restaurant that does not have one.
Doing this saves time and is more intuitive. Retail audit software allows you to disable entire sections and items at certain stores according to the store type.
Step 4: Make sure your checklist has adequate coverage
While individual situations vary, you should address some or all of the following areas, each represented as a section:
- Store exterior (view exterior area checklist)
- Presentation and Merchandising (view sample merchandising checklist)
- Products and Preparation (view food safety checklist)
- Staff and Speed of Service
- Personnel and Training
- Equipment (view sample commercial kitchen equipment checklist)
- Security, Cash Handling and Loss Prevention (view sample loss prevention checklist)
- Drive-thru (view sample drive-thru checklist)
- Promotions (view sample merchandising checklist)
- Back of the Store and Inventory
- Washrooms (view sample commercial restroom cleaning checklist)
- Safety (view sample fire protection checklist)
- Policy (view sample sexual harassment checklist)
Step 5: Avoid large sections
Instead of creating a small number of large sections, consider creating a larger number of small sections. This helps with data-entry, especially on smartphones, and also renders the reporting more granular and meaningful.
Step 6: Assign points to items according to their relative importance
Assign points according to the relative importance of each criterion. While it is easy to think of everything as important (and if a criterion is not important, it should not be on your retail audit checklist), some items are more important than others, sometimes critical to business continuity. Health and safety issues come to mind.
Assign points and make use of the “Critical” flag accordingly. A critical item sets the value of the entire section to zero, regardless of other items, if found non-compliant during the visit.
Step 7: Be specific, descriptive and visual
Standards should be clear and unequivocal. Don’t use vague words like “recent” or “good”. For example, instead of saying, “Recent staff meeting held”, consider using, “Staff meeting held less than 5 calendar days ago”. If referring to temperatures or lapsed times, give actual numbers. Clearly spell out what the standard is.
If it takes one paragraph to define the standard, use one paragraph. If you have one, attach a best practice photo to an item to illustrate the standard; a picture is often worth 1,000 words and more likely to make an impression than words alone.
Retail audit software often allows you to attach pictures and supporting documents to any form item and section as well as tasks.
Step 8: Think about visit frequency
The frequency of district manager visits (at least visits involving the retail audit checklist) can vary greatly from one organization to the next.
On one end of the spectrum, some organizations (including large organizations in the food service and hospitality business) tend to conduct as many as one visit every other week. Other organizations may only conduct one visit per quarter. Some organizations use a hybrid model. They use a standard form to capture their core standards (say twice a year) and create a number of smaller forms for visits throughout the year, sometimes tying these visits to seasonal programs.
Retail audit software allows an organization to create any number of forms, each with its own start and end date. Retail audit software also supports self-audits which can be used as a stop-gap measure until a district manager visit can be performed.
Step 9: Calibrate the checklist with your field team
Discuss the checklist with your district managers, franchisees and managers. Solicit their input and feedback. We call this phase “calibration“.
A retail audit checklist is as much an inspection tool as it is a training vehicle. Define the standard, communicate and measure it. Meet the standard, and achieve your goals.
Step 10: Are you building your own or using a ready-made app?
The factors that need to drive your decision are your costs, your return on investment, your time-to-market and the value and benefits that you will derive from the software you choose. Read more on buy vs build: Retail Audit Software: Buy vs Build
Whatever we do, we do not recommend using Excel and email for this. Excel is not a workflow engine and lacks essential features needed for audits. It won’t help your business, it will hold it back.
RETAIL AUDIT CHECKLISTS
If you are looking for checklists to manage your operations and brand standards, you have two options.
- Register for a free trial of Bindy and get access to a library of professionally vetted public forms you can use to audit your locations in seconds.
- Refer to our checklists category of more than 33 checklists to manage every aspect of your operations.
OTHER RETAIL AUDIT AND INSPECTION RESOURCES
Refer to the Retail Audits and Inspections category for how-tos and best practices for retail audits and inspections.
THE DEFINITIVE GUIDE TO RETAIL AUDITS
Do you want to take this to the next level? Our Retail Audits – The Definitive Guide is our most comprehensive collection of information about retail audits including why, who, when and how to conduct retail audits. Built by retail professionals for retail professionals.