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
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