A successful retail outlet is one that has the right products in the right
place at the right time. They should also be the products that your customers want to
buy – not ones that sit on the shelf gathering dust. The product range that sold in
retail outlets is an assortment of items that you offer to your customers – ideally the
maximum choice with the minimum of stock holding.
Knowing your customer
Customers can be categorised in many ways and a successful retail outlet knows who are
the likely candidates to walk through the door.
Gender
Male
Female
Age Group
??????
Lifestyle
Income Children How time spent
Need for item?
Regular
Passing trade visitor
Impulse Buy?
Sourcing Products
Once you feel you know who your typical customers are you need to think about the
range of stock that will keep them visiting and spending in your retail outlet. The stock
will be made up of the following:
Core Stock
This consists of items that are sold throughout the year/ over two
or three seasons; will tend to be the less fashionable
Seasonal stock
This will be the stock that generally lasts for two seasons
Promotional stock This is stock that will be on special offer
Where to buy
Independent fashion retail outlets will often buy directly from a wholesaler/
wholesalers. These will be companies that they have built up a working relationship with.
They may also have links with local designers who make garments up for them.
Why is it important to build up good links with your wholesalers?
BTEC First in Retail - Unit 7 – Fashion Retailing – 7.4.10
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Sales Forecasting
Once you have found good sources of stock you will need to forecast how many of each
item you will sell! You will also need to think about the shelving and display space you
will allocate.
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Size of space
Fixtures & Fittings
Profit Zones
Diversity of Range
Image
Practicality
All the above factors will help you arrive at decisions regarding the forecasting of
sales. However there are other factors you need to consider as well. Look at this list
below. Explain why these factors might affect your well thought out sales forecast.
Weather
Seasonal events
Current trends
Product Ranges
Retail outlets need to think about the range of clothing they will offer e.g there are
many different types of menswear – you would need a very large store if you wanted to
stock every style and type of garment. A retail outlet needs to consider the customers
who use the shop and the type of clothes they want or might want. Finally they need to
think about the numbers of each item they might sell.
Deep and Wide Ranges
A deep range gives plenty of choice e.g many different colour choices of T shirts. A
wide range means a wide choice of different items. Can you think of any more examples
of retail outlets that offer a wide range and retail outlets that offer a deep range?
(some examples have been out on the diagram to start you off )
BTEC First in Retail - Unit 7 – Fashion Retailing – 7.4.10
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Product Ranges
Deep
Wide
Narrow
Shallow
Monitoring Sales
Once the stock has been ordered and is on the shelves then the rate at which it sells is
something the shop needs to be aware of. If a particular item is selling well you need to
think about reordering stock. It is also worth remembering that other stores may also
be wanting more of the hot selling items so you need to make sure you get that order
into the wholesaler before others do !You will also need to consider any items that are
not selling as well as these could be taking up valuable space !!. Keeping an eye on stock
turnover is vital. If your competitor has items for sale when you have sold out you may
lose customers.
Discussion points
Have you heard any of the following comments in retail outlets?
“I am not sure when the next delivery is due”
“We are not getting any more in now”
BTEC First in Retail - Unit 7 – Fashion Retailing – 7.4.10
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Have you ever gone to buy anything and found the store has sold out of your size or
the colour you want?
How does it make you feel?
What do you do?
Make notes on any situations you have been in where you have not been able to buy an
item you have wanted.
It can be very frustrating to discover that you are too late and there will be no more
summer clothes coming to the store in the middle of August as the Autumn / Winter
clothes are coming in ……even though there is a heat wave !!!
Underestimating sales means you can’t maximise your income.
BTEC First in Retail - Unit 7 – Fashion Retailing – 7.4.10
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