Term
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Definition
Process by which a retailer offers the correct quantity of the right merchandise in the right place at the right time and meets the company’s financial goals.
-Sense market trends
-Analyze sales data
-Make appropriate adjustments in prices and inventory levels |
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Term
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Definition
| The process of managing a retail business with the objective of maximizing the sales and profits of a category |
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Term
| The objective of category management |
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Definition
| maximize the sales and profits of the entire category, not just a particular brand |
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Term
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Definition
| is a selected vendor responsible for managing a category |
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Term
| Merchandise Managers have control over |
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Definition
The merchandise they buy
The price at which the merchandise is sold
The cost of the merchandise |
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Term
| Merchandise managers do not have control over |
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Definition
Operating expenses
Human resources
Real estate
Supply chain management
Information systems |
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Term
| Merchandise managers are evaluated by: |
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Definition
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Term
| Advantages of Rapid Turnover: |
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Definition
Increased sales volume
Less risk of obsolescence and markdowns
Improved salesperson morale
More resources to take advantage of new buying opportunities (flexibility) |
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Term
| Approaches for Improving Inventory Turnover |
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Definition
Reduce number of categories
Reduce number of SKUs within a category
Reduce number of items in a SKU
BUT if a customer can’t find their size, color or brand, patronage and sales decrease! Buyer must use expertise to make this trade-off. |
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Term
| Merchandise Management Process |
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Definition
1. Forecasting sales
2. Developing an assortment plan
3. Determining the appropriate inventory level |
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Term
| Types of Merchandise Management Planning Processes |
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Definition
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Term
| Staple (Basic) Merchandise Category |
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Definition
Continuous demand over an extended time period
Limited number of new product introductions
Easy to forecast demand
Continuous replenishment |
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Term
| Fashion Merchandise Categories |
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Definition
-In demand for a relatively short period of time
-Continuous introductions of new products, making existing products obsolete
-More difficult to forecast demand
-Athletic shoes, laptop computers, women’s apparel |
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Term
| The category product lifecycle |
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Definition
| Introduction-growth-maturity-decline |
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Term
| Developing a sales forecast |
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Definition
Understanding the nature of the product life cycle
Collecting data on sales of product and comparable products
Using statistical techniques to project sales |
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Term
| Forecasting Staple Merchandise |
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Definition
Based on extrapolating historical sales
Yearly sales and trend are generally stable |
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Term
| Forecasting Fashion Merchandise |
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Definition
Previous sales data
Personal awareness
Fashion and trend services
Vendors
Traditional market research |
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Term
| How do fashion buyers know the trends |
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Definition
Internet chat rooms
Look in closets
Go to the movies
Go to rock concerts
Go to nightclubs |
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Term
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Definition
-Shop the retail stores, Web sites and catalogs of competitors as a customer would
-Converse with consumers, sales clerks, and neighbors
-Act like your customer
-Notice |
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Term
| Buyers subscribe to forecasting services and fashion publications |
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Definition
Trendzine (www.FashionInformation.com)
Doneger Creative Services (www. Doneger.com/web )
Fashion Snoops (www. fashionsnoops.com)
Earnshaw’s
Women’s Wear Daily (WWD)
DNR
Home Furnishings News (HFN) |
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Term
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Definition
| is a list of the SKUs that a retailer will offer in a merchandise category and reflects the variety and assortment that the retailer plans to offer in a merchandise category |
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Term
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Definition
| is the number of different merchandising categories within a store or department |
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Term
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Definition
| is the number of SKUs within a category. |
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Term
| Importance of Backup (Buffer) Stock |
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Definition
-If the backup stock is too low = lose sales and customers
-If the backup stock is too high = scarce financial resources will be wasted on needless inventory that could be more profitably invested in more variety or assortment |
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