Merchandise planning
Unit assortment planning
Merchandise planning process
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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
Considerations in unit
planning
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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
Factors affecting Unit planning
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Type of retail institution
Past sales records
Determination of consumer wants
Type of goods offered
Elimination of merchandise
Type of Retail Institution
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Consistency
Availability of capital resources
Particular trading area served by the store
Nature of goods carried
Competition in the trading area
Past Sales Records
Considerations:
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weather
economic trends
labor strikes
supply conditions
market opportunities
anything that affected sales activity in a period
Determination of
consumer wants
Types of Goods Offered
Fashion goods
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Seasonal goods
Convenience goods
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Soft goods
Hard goods
Staple
Impulse
Shopping goods
Specialty goods
Elimination of merchandise lines
Avoiding Mistakes
Knowing when to eliminate products
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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?
Planning a basic stock list
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Planning a basic stock list
Homogeneous and heterogeneous staples
Seasonal and non-seasonal staples
Planning a Model Stock Plan
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Classification
Price
Size
Materials
Color
Quantity to Purchase
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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.
Period for which the
purchasing is done
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Open-to-buy
Hand-to-mouth buying
Speculative buying
Quantity discount
Desired merchandise at the
end of the period
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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?