Merchandise Management

In: Business and Management

Submitted By annika0427
Words 1464
Pages 6
BUS4003 Retail and Channel Management
Merchandising Management in Retailing:
Vendors, retailers, customers
Dr. Kenneth K. Kwong
Department of Marketing and Management
Week 9

Merchandise Management
• Merchandise management is a process by which a retailer attempts to
– offer the right quantity of the right merchandise
– in the right place at the right time and
– meet the company’s financial goals or profit objectives

• Retailers need to be in touch with and anticipate what customers want to buy (sensitive to changes in the market trend) but are also able to analyze sales data continually and make appropriate adjustments in prices and the inventory level
Develop an assortment plan

Determine appropriate inventory level
& product availability

Buy merchandise

Monitor & evaluate performance & make adjustment

Forecast category sales

Allocate merchandise for stores

Develop a plan for managing inventory

Have to balance the interests of both vendors, retailers, customers

Merchandise Management
• A merchandise category is an assortment of items that customers see as substitutes for one another (the depth of merchandise)
– different favors, tastes & brand names of the same product (beverages)
– vendors & retailers may define their own categories different in functions or product attributes and consumer behaviors
– shampoos vs. conditioners (personal care products), paper towels (paper products) vs. detergents (cleaning aids) (manufacturers vs. retailers)
– supermarkets tend to manage category by brands; a buyer for each brand
(good for stocking, distribution & promotion but less efficiencies & may result a wastage due to overlook the interdependencies between SKUs)
– department stores manage merchandise by categories; a buyer oversees all merchandising activities for one single category
– category management…...

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