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Retail Buying and Merchandising

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Retail Buying and Merchandising Module at a workshop conducted by Udyam Consulting

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  • Difference between Options and SKUs?
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Retail Buying and Merchandising

  1. 1. Retail Management Workshop 29.12.12
  2. 2.  Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesaler, and then sells smaller quantities to the consumer for a profit. All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use
  3. 3.  Conventional ◦ Trade / MBO / “Mom and Pop” stores ◦ EBO ◦ Catalogue Modern ◦ LFR ◦ Online ◦ Kiosk
  4. 4.  Plan Buy/Make Move Sell
  5. 5.  Merchant ◦ Has a larger role to play . ◦ Is responsible for the category’s business Buyer ◦ Coordinates with the vendors and merchants
  6. 6.  Retail Planner Category Manager
  7. 7.  Prerequisites: ◦ Define Business ◦ Define TG ◦ Define Positioning ◦ Define Merchandise Hierarchy ◦ MIS ◦ Promotional Markdown ◦ Shrinkage ◦ GM% desired ◦ Private Label Vs Brands
  8. 8.  Plan ◦ Sales Projections  Last Year data  Current Year trend  Current merchandise  New channels / doors ◦ Merchandising  Styles  Options  SKU’s  Assortment  Six Month Plan  OTB ◦ Marketing Calendar ◦ Merchandise Calendar
  9. 9.  Key terms ◦ Assortment – Width and Depth  The number and type of products displayed by retailers for purchase by consumers. The two major components of an assortment strategy are the depth of products offered (how many variations of a particular product a store carries), and the width of the product variety (how many different types of products a store carries). ◦ Styles ◦ Options ◦ SKU ◦ Sell Through ◦ Sales Mix ◦ Stock Turn
  10. 10.  Assessing Category performance ◦ UGM Grid Sleepers Winners GM% Underachievers Traffic Builders Qty Sold
  11. 11.  Assessing Category performance ◦ UST Grid Sleepers WinnersSellThrough% Underachievers Traffic Builders Sales Mix
  12. 12.  Range Plan ◦ Range Architecture  MH definition  Option Plan – Retail Front end perspective
  13. 13. ForecastsAllocations Assortments Merchandising Plan Season Brands
  14. 14.  Types of Merchandise Plans ◦ Six Month ◦ OTB
  15. 15.  Six Month / Season Plan ◦ Sales Value ( at full RRP / DMRP ) ◦ Sales Qty ◦ Sell Thru ◦ Cover days ◦ Range
  16. 16.  In Season / OTB ◦ BOM Inv. ◦ Projected Sale ◦ EOM Inv. ◦ OTB ◦ Buyer Input
  17. 17.  Promotion Plan Sell Through Analysis Range Presentation and Channel wise Buy Merchandise deployment Front end merchandising
  18. 18.  Key factors to take cognizance of ◦ The SKU battle ◦ Fashion | Fad | Core ◦ Trims & fabric have different process and timeframe of order processing ◦ Brand and Retailers work on different scale
  19. 19.  Prevalent Buying Models ◦ CMT ◦ FOB
  20. 20.  Core Buying ◦ Rolling Budget ◦ Auto rep Fashion Buy ◦ Seasonal adjustments ◦ Quick Response Category Killers
  21. 21.  Centralized buying PROS  CONS  Steady flow of merchandise to  Hard to adjust “big picture” stores orders to local store needs  More reliable forecasting  Requires high degrees of  Better “big picture” of what’s cooperation and communication selling (& not selling)  Difficult to maintain an  Centralized records informed, enthusiastic sales organization  Quality control  Cost advantages  Requires clear-cut job descriptions about roles &  Better stock control authority  Leaves buying to the buyers, not store or dept. managers
  22. 22. Occasional Frequent Liaison Liaison
  23. 23. abhinav@udyam.in09611809279

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