Merchandise planning

1
Merchandise planning

• Unit assortment planning

2
Merchandise planning process

• Formulation of objectives
• Establishment of policies
• Implementation of policies to carry out
  department or store objectives
• Dollar planning budgets
• Unit planning basic stock list and model stock
  plan

3
Considerations in unit planning

• Merchandise quality.
• Price range
• Choice of national brands or private brands
• Good taste
• Proper timing/product life cycle
• Variety of product lines (product mix)
• Assortment strategy

4
Factors affecting Unit planning

• Type of retail institution
• Past sales records
• Determination of consumer wants
• Type of goods offered
• Elimination of merchandise

5
Type of Retail Institution

• Consistency
• Availability of capital resources
• Particular trading area served by the store
• Nature of goods carried
• Competition in the trading area

6
Past Sales Records

• Considerations
• weather
• economic trends
• labor strikes
• supply conditions
• market opportunities
• anything that affected sales activity in a period

7
Determination of consumer wants

8
Types of Goods Offered

• Fashion goods
• Soft goods
• Hard goods
• Seasonal goods
• Convenience goods
• Staple
• Impulse
• Shopping goods
• Specialty goods
• Elimination of merchandise lines

9
Avoiding Mistakes Knowing when to eliminate
products

• Pay attention to stock turnover and rate of sales
  for each item
• Does a substitute that offer better merchandising
  opportunities?
• Have merchandising efforts have failed to improve
  the sale of goods?
• Does it contributes to the sales of other
  products?

10
Planning a basic stock list

• Planning a basic stock list
• Homogeneous and heterogeneous staples
• Seasonal and non-seasonal staples

11
Planning a Model Stock Plan

• Classification
• Price
• Size
• Materials
• Color

12
Quantity to Purchase

• Period for which purchasing is done
• Estimated sales for the period
• Merchandise on-hand and on-order
• Desired merchandise at the end of the period.

13
Period for which the purchasing is done

• Open-to-buy
• Hand-to-mouth buying
• Speculative buying
• Quantity discount

14
Desired merchandise at the end of the period

• Sales trends
• Popularity of fashion
• Stage in the product life cycle
• Price fluctuations in the marketplace
• Availability of supplies and materials
• Types of goods remaining in stock
• Type of retail institution
• Supply conditions
• Discounts
• Is it a new item?