2.02-Understand the preparation of fashion merchandise buying plans.
Role of Retail buyers in the fashion industry
 Responsible for selecting and purchasing goods for their companies.
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Must make a profit for the company when the goods are sold.
Estimate future demand for merchandise for the target clientele of their stores, catalogs, websites, etc.
Determine the quantities and timing for various styles, colors, sizes, prices, and fashion emphasis.
Follow company policy as to breadth and depth of stock while trying to make the highest possible profit.
Notice changes in people’s living patterns, preferences, and tastes. Correctly “reading” customers’ tastes involves skill
and practice.
Recognize what people want, when they will want it, and what they will be willing to pay for it.
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Difference between internal and external information used for merchandise planning
 Internal information can be found within a retail company.
o Internal examples:
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 Want slips
 Company merchandising bureaus
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External information can be found outside the retail company
o External examples:
 Vendors
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 Comparison shoppers
 Fashion Forecasters
Financial and merchandise assortment influence fashion buying plans
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A fashion assortment lists each item by SKU number,
An assortment plan for a store with branches indicates what specific items are allotted to each branch store.
The goal is a balanced assortment (an ideal stock situation) which has sufficient items to meet demand with breadth and
depth to satisfy all customers.
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Merchandise assortment plans
o Basic stock plan
 Proposed purchase list composed of commodity goods, such as blue jeans, underwear, and men’s dress shirts.
 These are basic items with consistent demand, dependable, and quite predictable.
o Model stock plan
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Includes items that have strong customer appeal for a limited time.
Always changing as fashion rise and then fall out of favor.
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More likely the goods will have to be lowered in price to clear the inventory
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Financial assortment plans
o Dollar merchandise plan
 Estimated dollar amount for planned, stock, sales, and profit for the department for a six month period
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Stock –to-Sales ratio
 Shows dollar sales volume in relation to the dollar value of average inventory
 Determines stock needed at the beginning of each month based on past sales figures of how fast the
particular items of a department or category sell.
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 Indicates an average figure for a certain time span.
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 Guides to help estimate the amount of stock required in relation to sales.
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Open to buy
 Dollar or merchandise unit amount buyers are permitted to order for their stores or departments for a
specified time period.
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Available OTB is what can be spent or number of items that can be purchased at the current time.
Present inventory and goods on order are deducted from the original allocation of planned purchases to
arrive at the amount.
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Types of merchandise resource used in selecting vendors
o Manufacturers
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o Websites
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o Importers
Selecting Merchandise Resources
 Wholesalers purchase large quantities of goods from manufacturers, store the goods, and sell small quantities to
retailers
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Websites and catalogs are used to source goods, usually basic items
o Sales catalogs contain item photos or drawings and sometimes fabric swatches
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Importers
o Importers’ merchandise is produced overseas, usually in countries with low wage rates
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o Foreign producers sometimes have agents in this country that take orders
o Mass merchandise retailers buy a great amount of foreign goods from overseas manufacturers
Evaluating Vendor Attributes
 A vendor’s merchandise must be suited to the retailer’s customer group, price, quality, fit, and fashion level
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Vendor services might include training of salespeople and promotional assistance
 To maximize vendor services, the concept of floor-ready merchandise (FRM) is often specified
Vendor Services
 FRM means that items shipped to the store are ready to go directly onto the selling floor without additional
preparation
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o Buyers keep files on vendors used through the years with contact information and notes on performance
Selecting Specific Resources
 Buyers should establish a well-selected group of vendors while being alert for new sources
o Key resources or preferred vendor lists are developed for each category of goods
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 A company must consider the number of resources needed to achieve its goals
 Buyers should regularly determine if their vendors are keeping pace with ever-changing customer buying patterns
 A new, efficient method is “e-sourcing” through global online networks to which vendors and retail buyers subscribe
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A day in the life of a retail buyer
Take notes and list job duties:
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A day in the life for a London Buyer
Take notes and list job duties:
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A interview with a buyer from the UK
Take notes and list job duties:
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Compare the different jobs with your table partners:
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