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Retail Buying and Merchandising

Abhinav Srivastava
Abhinav Srivastava

The document summarizes key aspects of retail management. It discusses that retail involves the sale of goods to end consumers for personal use. It also discusses different types of retailers from conventional to modern. The rest of the document outlines the retail management process including planning, buying/making, moving, and selling goods. It provides details on roles like merchants and buyers. It also discusses prerequisites and components of merchandising plans like assessing category performance. Finally, it briefly touches on types of buying models and centralized vs decentralized buying approaches.

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Retail Management Workshop 29.12.12
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
Retail Buying and Merchandising
Retail Buying and Merchandising
Conventional Trade / MBO / Mom and Pop stores EBO Catalogue Modern LFR Online Kiosk
Retail Buying and Merchandising
Retail Buying and Merchandising
Retail Buying and Merchandising
Plan Buy/Make Move Sell
Merchant Has a larger role to play . Is responsible for the categorys business Buyer Coordinates with the vendors and merchants
Retail Planner Category Manager
Prerequisites: Define Business Define TG Define Positioning Define Merchandise Hierarchy MIS Promotional Markdown Shrinkage GM% desired Private Label Vs Brands
Plan Sales Projections Last Year data Current Year trend Current merchandise New channels / doors Merchandising Styles Options SKUs Assortment Six Month Plan OTB Marketing Calendar Merchandise Calendar
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
Assessing Category performance UGM Grid Sleepers Winners GM% Underachievers Traffic Builders Qty Sold
Assessing Category performance UST Grid Sleepers Winners Sell Through% Underachievers Traffic Builders Sales Mix
Range Plan Range Architecture MH definition Option Plan Retail Front end perspective
Retail Buying and Merchandising
Forecasts Allocations Assortments Merchandising Plan Season Brands
Types of Merchandise Plans Six Month OTB
Six Month / Season Plan Sales Value ( at full RRP / DMRP ) Sales Qty Sell Thru Cover days Range
In Season / OTB BOM Inv. Projected Sale EOM Inv. OTB Buyer Input
Promotion Plan Sell Through Analysis Range Presentation and Channel wise Buy Merchandise deployment Front end merchandising
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
Retail Buying and Merchandising
Prevalent Buying Models CMT FOB
Core Buying Rolling Budget Auto rep Fashion Buy Seasonal adjustments Quick Response Category Killers
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 whats 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
Occasional Frequent Liaison Liaison
Retail Buying and Merchandising
Retail Buying and Merchandising
abhinav@udyam.in 09611809279

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Retail Buying and Merchandising

  • 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
  • 5. Conventional Trade / MBO / Mom and Pop stores EBO Catalogue Modern LFR Online Kiosk
  • 9. Plan Buy/Make Move Sell
  • 10. Merchant Has a larger role to play . Is responsible for the categorys business Buyer Coordinates with the vendors and merchants
  • 11. Retail Planner Category Manager
  • 12. Prerequisites: Define Business Define TG Define Positioning Define Merchandise Hierarchy MIS Promotional Markdown Shrinkage GM% desired Private Label Vs Brands
  • 13. Plan Sales Projections Last Year data Current Year trend Current merchandise New channels / doors Merchandising Styles Options SKUs Assortment Six Month Plan OTB Marketing Calendar Merchandise Calendar
  • 14. 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
  • 15. Assessing Category performance UGM Grid Sleepers Winners GM% Underachievers Traffic Builders Qty Sold
  • 16. Assessing Category performance UST Grid Sleepers Winners Sell Through% Underachievers Traffic Builders Sales Mix
  • 17. Range Plan Range Architecture MH definition Option Plan Retail Front end perspective
  • 19. Forecasts Allocations Assortments Merchandising Plan Season Brands
  • 20. Types of Merchandise Plans Six Month OTB
  • 21. Six Month / Season Plan Sales Value ( at full RRP / DMRP ) Sales Qty Sell Thru Cover days Range
  • 22. In Season / OTB BOM Inv. Projected Sale EOM Inv. OTB Buyer Input
  • 23. Promotion Plan Sell Through Analysis Range Presentation and Channel wise Buy Merchandise deployment Front end merchandising
  • 24. 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
  • 26. Prevalent Buying Models CMT FOB
  • 27. Core Buying Rolling Budget Auto rep Fashion Buy Seasonal adjustments Quick Response Category Killers
  • 28. 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 whats 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
  • 29. Occasional Frequent Liaison Liaison