Retail

Merchandise
Planning
Merchandise planning
 Merchandise strategy
 Merchandise planning
 Product, Price, Range, Assortment , Space
 Sourcing
 Make or Buy
 Vendor identification and negotiation

 Allocation to the stores

 Monitoring and evaluation
Implications
 Finance
 Payment to supplier
 Profitability measurement
 Marketing
 New product lines
 Developing advertising and sales promotion
 Warehousing
 Detail purchase order
 Details of allocations
 Store Operations
 Details of new product and features
 Space palnning
Process
 I – Developing the sales forecast
 Review past sales.
 Analyzing the change in economic condition.
 Analyzing the change in sales potential.
 Analyzing the change in marketing strategies of retail
organization and competition.
 Creating the sales forecast.
 II – Determining the merchandise requirement
 Creation of merchandise budget.
 The assortment plan.
 Variety and types of merchandise.
 Deciding on merchandise hierarchy.
 III – Merchandise Control
 Limits over-buying and under-buying.
 Prevent loss of sales due to unavailability of the
required stock.
 Maintain purchases with the budgeted limits.
 Reduce markdowns which may arise due to excess
buying.
 IV – Assortment planning
 Determination of quantity.
 Type of stock matters.
 The model stock plan.
 The range plan.
Budget
 Projected sales.
 Inventory plan.
 Beginning of the month.
 Percentage variation method.
 Av. Stock * ½ * ( 1 + Planned Sales / Av. Sales )
 Week’s supply method.
 B.O.M = Av. Weekly Sales * no. of weeks to be stocked
 Basic stock method.
 Estimated reduction.
 Estimated purchases.
Buying for the different stores
 For single independent store.
 Variety products, decision regarding returns.
 Customer contact and selling.
 For a chain.
 Central buying plans
 Central merchandising plans
 For a non-store retailer.
 To have a clear understanding of the product that a
consumer might buy on net..
 Uniqueness of product.
 Differentiating price
Merchandising sourcing

 Identifying the sources of supply.

 Contacting and evaluating the sources of
supply.
 Negotiating with the sources of supply.
 Establishing vendor relations.
 Analyzing vendor performance.