Retail Business Hierarchy

A retail business hierarchy can be defined as the list of departments and the professionals, prevalent in the retail business organizations. There are various factors, which affect the hierarchical structure of a retail business.

The organizational structure may vary depending upon the size and type of the business. The larger retail businesses have more levels of hierarchy. The structure is also dependent on the sales of the organization. With the increase in sales, more professionals are required to handle the business and therefore more levels may be added in the existing hierarchy.

In this particular article, we will discuss about the generalized structure of a retail business that consists of different departments, with the chief executive officer or the president overseeing the operations of all the departments.

Retail Business Hierarchy

Retail Business Hierarchy

Store Operations

The ‘Store Operations’ department is handled by the store managers. The major responsibility of this department is to streamline various retail operations by integrating the business processes. The department is comprised of task managers for task management and workforce manager for preparing sales forecasts and taking corporate initiatives. The department helps the retail business in the following ways:

  • It ensures the effective utilization of resources within the retail organization.
  • It gives priority to customer satisfaction by optimizing the business processes.


The ‘Marketing’ department is being handled by the marketing manager. The sole purpose of this department is to develop and implement various retail sales and incentive programs, in order to attain the organizational goals and increase the productivity. The essential functions of a marketing manager are:

  • Developing and monitoring various business and marketing plans.
  • Developing various projects in order to foster the retail growth.
  • Recommending sources for the growth of retail channels.


The ‘Merchandising’ department is one of the important levels of the retail business hierarchy. The sole purpose of this department is to increase the sale of the products to the end customers and generate revenues for the retail store. The department is handled by the merchandising coordinator, who works in coordination with the store operation professionals, sales and marketing professionals and associates, in order to increase the profitability.

The major responsibilities of a merchandising coordinator or retail coordinator are:

  • Improving the visual standards of the products, as per the merchandising guidelines of the retail business.
  • Developing various programs from time to time, for the impressive presentations of the products.

Human Relations

The ‘Human Relations’ department plays a vital role in shaping the future of a retail business. The job roles conducted by the department are:

  • Developing a healthy working culture and environment, in which the employees genuinely focus on the customers.
  • Providing training in good business communication, to the employees.


The ‘Finance’ department accounts for the following roles and responsibilities:

  • Creating records of purchase and sales.
  • Preparing balance sheets.
  • Preparing profit and loss accounts.
  • Calculating the salaries of the employees.

Information Technology

The ‘Information Technology’ department is another vital part of the retail business hierarchy. The job roles of the department are as follows:

  • Managing the computerized payment systems.
  • Managing the online customer service systems.
  • Attending to all the technology issues arising within the retail business.