Merchandise Assortment

Decisions, Decisions

□Good planning is critical

□Target market analysis □Merchandise decisions□Pricing decisions

Merchandise Plan

□Basic budgeting tool that assists the retailer or buyer in meeting department or classification goals□Uses figures from past year to predict

plan for current year□Planned sales□Planned stock□Planned reductions□Planned purchases

Merchandise Planning

□Method used by retailers to make intelligent decisions prior to purchasing merchandise for store

□Prevents over-and under-buying□Can be for entire store or specific

departments□Merchandise classification: group of

similar items

Components of Merchandise Plan

□Planned sales: expressed in $$$ figures and reflect sales goals for the month

□Planned stock: $$$ amount of merchandise a store needs in order to meet the sales

□Planned reductions: $$$ amount of any markdowns, adjustments, and loss

□Planned purchases: $$$ amounts of needed merchandise to meet sales goals

Merchandise Life Cycle

□Introduction□Growth□Acceptance□Decline

Assortment Planning Tools

□Categorizing merchandise:□Staple merchandise: sells well over a

long period of time□Seasonal merchandise: sells well at

certain times or seasons during the year□Convenience merchandise:

merchandise customers buys with little planning

Assortment Planning Tools

□Stock Lists:□Basic stock list: used for items that a store

should always keep in stock, same items with a minimum amount to always be kept in stock

□Model stock list: used for fashion merchandise, since a shorter life span, list is shorter and without specific stock numbers

□Never-out stock list: most popular merchandise in the store with items being added or dropped based upon popularity