Buying Merchandise What you’ll learn to do: Outline the considerations taken by retailers when buying merchandise In an earlier section, we discussed in general terms how buyers help create their seasonal plans and make their purchase commitments. In this section, we will go into a bit more detail about the thought process that buyers use to make purchase decisions: vendor and brand selection, sourcing, negotiation and building strong partnerships. LEARNING OUTCOMES… Read More »Outline the considerations taken by retailers when buying merchandise

Ethical and Social Responsibilities Ethical and Social responsibility is the idea that businesses should balance profit-making activities with activities that benefit society. It involves developing businesses with a positive relationship to the society in which they operate. Social responsibility takes on different meanings within industries and companies. For example, Starbucks Corporation and Ben & Jerry’s Homemade Holdings Inc. have blended social responsibility into the core of their operations. Both companies… Read More »Ethical and Social Responsibilities

Building Partner Relationships Individuals and businesses alike need strong partner relationships to be successful. We have all learned of the benefits of individual connections and networking: information, advice, introductions, referrals and more. This is true in business in general and the retail industry in particular, especially between retailers and suppliers. First, strong partner relationships between retailers and suppliers are the foundation of an effective supply chain. This topic was covered… Read More »Building Partner Relationships

Negotiations Let’s begin this discussion with a definition of the term negotiation: A negotiation is a formal discussion between two or more parties to reach an agreement.[1] As with many of the other topics we have discussed in this section, the principles of negotiation are the same for the retailer as they are for any business in general. Two obvious applications for negotiation are conflict management and procurement. These two examples illustrate the breadth… Read More »Negotiations

Sourcing Decisions Sourcing is simply the process of finding goods or services, but it is not a simple matter.  Retailers share the same issues and considerations as most other businesses with the procurement function. What are some of the key issues involved when making sourcing decisions? Company. First, retailers review the potential companies with which to source their goods or services. Does the company have a strong track record of… Read More »Sourcing Decisions : retailers when buying merchandise

Buying Merchandise What you’ll learn to do: Outline the considerations taken by retailers when buying merchandise In an earlier section, we discussed in general terms how buyers help create their seasonal plans and make their purchase commitments. In this section, we will go into a bit more detail about the thought process that buyers use to make purchase decisions: vendor and brand selection, sourcing, negotiation and building strong partnerships. LEARNING OUTCOMES… Read More »Buying Merchandise

Merchandising Decisions Like all businesses, retailers must evaluate their performance on a regular basis in order to continue success, improve results, or turn-around sub-par situations. Based on the condition of the retail industry today, one might say that it  is more crucial than ever to get it right. Given the different kinds of retailers it is difficult to make general statements regarding the methods used to evaluate merchandise decisions. Dick’s… Read More »Merchandising Decisions

Merchandise Allocations Merchandise allocation is the process of determining how to distribute merchandise to individual store units for maximum sales and minimal markdowns. Depending on the size and sophistication of the retail operation, this can be a simple process, or an extremely complex algorithmic exercise. Some retailers plan their season’s purchases from the ground up based on ideal store allocation, or others use the allocation process to break down merchandise… Read More »Merchandise Allocations

Merchandise Flow The most important goal of any buyer is to achieve their sales plan. The second most important priority is to keep inventory levels on plan. If you exceed or fall short of your sales plan, the only adjustment you can make to keep your inventory in line is to adjust the flow of incoming merchandise. If you exceed your sales plan, you must accelerate your flow of goods.… Read More »Merchandise Flow

Inventory Levels As we start this section on inventory planning here is a brief video on Inventory Planning in Apparel. In this video Will Weidman, SVP of Apparel Retail will discuss why proper inventory planning is challenging as well as some approaches to take on inventory levels in specific stores. Let’s discuss some important characteristics of how retailers determine appropriate inventory levels. Meet Customer Demand If you don’t effectively plan… Read More »Inventory Levels : inventory planning