Merchandise Assortment
Receiving Goods and Inventory
2
Chapter Objectives
Explain merchandise plans.
Describe the components of a merchandise
plan.
Define merchandise life cycles.
Explain the receiving process.
Explain the concept of inventory control.
Describe inventory systems.
Explain stock turnover.
3
Merchandising Decisions
One of the most challenging tasks for a retailer is
providing the right merchandise at the right
prices—and at the right time.
4
Merchandising Decisions
Before a retailer buys any merchandise for a store,
he or she must make decisions and plans to make
the buying process more efficient.
A retailer must make decisions about what
merchandise to carry and what prices to set.
5
The Merchandise Plan
Retailers use a
merchandise plan to make
intelligent decisions before
they purchase merchandise
for their stores.
merchandise plan a
basic budgeting tool that
assists the retailer or
buyer in meeting
departmental or
classification goals
6
Merchandise Life Cycles
The four stages of the
merchandise life cycle are:
Introduction
merchandise life cycle
customer-acceptance
levels and buying levels
of an item of
merchandise
Growth
Acceptance
Decline
7
Merchandise Assortment
Planning Tools
Categorizing types of merchandise is one tool
retailers use to make certain they have the
merchandise to satisfy their customers’ needs.
Retailers also use stock lists to help plan their
purchases.
8
Merchandise Assortment
Planning Tools
Types of merchandise are:
Staple merchandise
staple merchandise
merchandise that sells well
over a long period of time
Fashion merchandise
fashion merchandise
merchandise that sells well for
several seasons but not as
long as staple merchandise
Seasonal
merchandise
seasonal merchandise
merchandise that sells well at
certain times of the year
Convenience
merchandise
convenience merchandise
merchandise that is purchased
by customers without much
planning or thought
9
Merchandise Assortment
Planning Tools
Types of stock lists are:
Basic stock list
Model stock list
Never-out list
basic stock list list used
for items a store should
always have in stock
model stock list list used
for fashion merchandise
never-out list list used for
the most popular
merchandise that should
always be in stock
10
Cyber Fit
Offering merchandise that customers
Operating an e-tail business
on an electronic
channel—the
crave is important
for clothing
retailers.
Web—can be costly,Customers
due to design,
may delivery,
come to returns,
a store and
operating expenses.
looking for a certain dress or style.
theycompanies
find what they’re
looking
Though Many largerOnce
dot-com
crashed
in the
for,
they head
the fitting
room. Cyclery
Wait—where
doNewton,
you
1990’s,
smallfor
stores
like Harris
of West
change
clothes in an
e-store?
To overcome
the lack
of storeMassachusetts,
actually
increase
sales using
a basic
Web
site. Today,
a third retailers
of Harris’s
bicycle
business
in on
based
fitting rooms,
such
as Lands’
Endrides
use My
the Web
to ®get
parts and
personal
Virtual
Model
, anhard-to-find
online simulation
model
for all service.
body types,
measurements, and sizes.
Describe an e-business’s home page to your class after
For
more information
retailing,
viewing
one throughon
marketingseries.glencoe.com.
go to marketingseries.glencoe.com.
11
1.
What are the four components of a
merchandise plan?
2.
Identify the four stages of the merchandise
life cycle.
3.
Name the three types of stock lists.
12
Receiving Merchandise
Inventory must be received, checked in, marked,
and handled properly.
13
Receiving Merchandise
Receiving
Area
merchandise
Check In
Mark With
Selling Price
merchandise
merchandise
Move to
Selling Area
merchandise
14
Receiving Merchandise
When retailers purchase
merchandise, the purchase
is recorded on a purchase
order.
purchase order order
form that lists the style
numbers of the
merchandise being
purchased, the amount,
the delivery date, and
terms of purchase
The vendor sends an
invoice to the retailer who
has ordered the
merchandise.
invoice a bill for
merchandise
15
Receiving Merchandise
Types of checking in merchandise are:
Quantity check
Indirect check
Quality check
16
Receiving Merchandise
Merchandise must be marked with the selling price.
Many retailers use
Universal Product Codes (UPC).
The last step in the receiving process is to move
merchandise to the store’s selling area.
17
Inventory
Inventory includes
merchandise in the selling
area; merchandise that has
been purchased and is
stored for future selling; and
merchandise waiting to be
returned to the vendor.
inventory merchandise
retailers have for sale
18
Inventory Control Systems
Retailers can use various
methods of inventory
control.
inventory control
managing inventory levels
to ensure enough
merchandise to meet
sales goals without
having too much
inventory on hand
19
Inventory Control Systems
Inventory control systems
include:
Physical inventory
system
stock turnover the
number of times the
average inventory is sold
during a time period,
usually a year
Perpetual inventory
system
Stock turnover
20
Using Inventory Methods
Receiving and controlling merchandise properly
ensures that the right merchandise and quantities
are in stock.
Retailers can reach sales goals by using tools like
inventory control systems and merchandise
handling.
21
1.
What are the four steps in the merchandise
receiving process?
2.
What are the two types of inventory control
methods?
3.
Why is stock turnover important?
22
Checking Concepts
1. Define merchandise
plan.
2. Explain the merchandise
life cycle.
3. Name the four types of
merchandise.
4. Compare the three
types of stock lists.
continued
Merchandise
1. staple,
2.
3.
4.
A
The
basic
merchandise
fashion,
stocklife
list is
cycle
to the
plan isrefers
seasonal,
used
fora items
basic
that
customer
budgeting
convenience
a
store should
tool that
acceptance
and
assists the
always
have
retailer
in
buying
of an
or buyer
stock.
Alevels
model
in meeting
item
oflist is used
departmental
stock
or for
merchandise.
There
classification goals.
fashion
are
four stages—
merchandise.
A
introduction,
never-out listgrowth,
is
general acceptance,
used for the most
and decline.
popular
merchandise.
23
Checking Concepts
5. Explain the
merchandise receiving
process.
6. Define inventory control.
7. Describe the two types
of inventory control
systems.
continued
Most
retailinventory
businesses
5. It
6.
7.
Physical
is managing
have
a place
set aside
inventory
systems
physically
levels
to
to
receive
and check
assure
count
the
enough
in new merchandise.
merchandise
to the
in
This includes
meet
inventory.
sales
comparing
thegoals
without
Perpetual
inventory
purchasehaving
order
totoo
the
much
means
keeping on
invoice.inventory
The
merchandise
hand.track ofis then
daily
marked
with its that
selling
merchandise
is
price
and moved
received
and to
the area of the store
merchandise that
where it will be sold.
is sold.
24
Checking Concepts
Critical Thinking
8. Explain why retailers
want a high stockturnover rate that is not
too high.
8. A high stock-turnover
rate means that the
stock is selling quickly.
However, an
excessively high stockturnover rate can mean
that there is not enough
merchandise available
to meet the planned
sales goals or that
certain items of
merchandise are out of
stock and that back
orders of merchandise
will result.
25
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