Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Ch. 1: An Overview of Retail Buying The responsibilities of buyers & merchandise managers Skills & personality traits for success in this field How different types of stores are organized to meet their buying needs The pros and cons of centralized merchandising Opportunities for women in this field
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Steps to Anticipate Customer Demand Study consumers & their purchasing decisions Use research to target customer groups Determine quantity & timing of retail buys Find & study the vendors who can provide what you need Handle the logistics: packaging, shipping, storing, pricing, entry into store database, etc. Work cooperatively on advertising & display Maintain & interpret database Watch the competitors
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved “Are you cut out to be a retail buyer?” Traits and Skills for Success Decision-making skills Drive Creativity Critical, analytical, conceptual skills Financial savvy Organizational skills Communication skills Managerial or “specialist” capabilities Trading acumen
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Planning & Control: Functions of a Merchandise (or Merchandising) Manager Makes long-range plans for stock levels, margins, ad budget Checks sales results against the plans Controls OTB budget Checks & counter- signs large orders Checks and approves any returns to vendors Approves any price changes, checks prices with long- range plans Approves ideas for sales events and promotions
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Store-Level Buying Systems Warehouse Requisition Plan Store carries sufficient stock, “requisitions” more as needed Approved Resource List Stores choose from list of “approved” goods & vendors (also called Price Agreement Plan) Opening Stock Distribution Plan Department manager controls “opening” stock & reorders; retail buyer augments with new items Automatic Open-to-Buy After initial buys, each department has a budget for reorders that (theoretically) cannot be exceeded
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Centralized Merchandising PROS CONS Steady flow of merchandise to stores More reliable forecasting Better “big picture” of what’s selling (& not selling) Centralized records Quality control Cost advantages Better stock control Leaves buying to the buyers, not store or dept. managers Hard to adjust “big picture” orders to local store needs Requires high degrees of cooperation and communication Difficult to maintain an informed, enthusiastic sales organization Requires clear-cut job descriptions about roles & authority