Merchandise Management
What is the merchandise Category? Provide examples
A merchandise category is a group of products that are similar in nature and intended to serve a specific customer need. Examples are;
1. Apparel
2. Electronics
3. Beauty products
4. Home goods
5. Sporting goods
Market segment towards which the retailer plans to focus its resources and retail mix.
Target market
A store that provides a limited variety and assortment of merchandise at a convenient location with speedy checkout.
Convenience store.
How are merchandise management processes different for staple and fashion merchandise?
Merchandise management processes differ for staple and fashion merchandise because staple merchandise is composed of items that are consistently in demand and do not experience significant shifts in popularity over time, while fashion merchandise is composed of items that are subject to changes in style and trend. As a result, the inventory management, pricing, and promotion strategies for these two types of merchandise will differ.
Equipment used to display merchandise.
Fixture.
How do retailers forcast sales for merchandise categories?
Retailers use a variety of techniques to forecast sales for merchandise categories, including historical data analysis, market research, and trend analysis. They may also consider external factors such as seasonality, economic conditions, and competitor behavior.
Enclosed, climate-controlled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway. Parking is usually provided around the perimeter.
Shopping mall.
A store that concentrates on a limited number of complementary merchandise categories and provide a high level of service, offer deep but narrow assortments to appeal to very specific market segments (apple, urban, sephora)
Specialty store
How do retailers plan their assortments and determine the appropriate inventory levels?
Retailers plan their assortments and determine inventory levels by analyzing sales data and considering factors such as seasonality, product availability, and customer demand. They may also use tools such as merchandise planning software to help optimize their inventory management processes.
Name at least 3 types of fixtures used for visual merchandising in stores.
Straight rack, Rounder, Four-way fixture, Gondola , Table , Wall-fixture
What trade-offs do buyers consider in developing merchandise assortments?
Buyers must consider a number of trade-offs in developing merchandise assortments, such as balancing the desire to offer a broad range of products with the need to manage inventory levels and control costs. They must also balance the desire to offer the latest trends with the need to ensure that products will have a reasonable shelf life and be profitable for the retailer.
A major retailer within a shopping centre, such as Macy's, Walmart (Macro, Home Market) that attract a significant number of consumers and consequently make the centre more appealing for other retailers.
Anchor store.
They offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturers’ suggested retail price (MSRP). America’s largest chains includes T.J.Maxx and Marshalls, Winners, HomeGoods, TKMaxx, AJWright, and HomeSense, Ross Stores, Burlington Coat Factory, and Big Lots.
Off-price retailers, also known as closeout retailers.
Discuss Assortment Plan and SKU. Examples
An assortment plan is a strategy for selecting and presenting a range of products to customers. An SKU, or stock keeping unit, is a unique identifier that allows retailers to track inventory levels and sales performance for individual products. For example, an apparel retailer may use an assortment plan to select a range of products for their spring season, and each product in that assortment may be assigned a unique SKU to help track sales and inventory levels.
Name at least 4 presentation techniques.
Item and size presentation, colour presentation, price lining, vertical merchandising, tonnage merchandising, frontal presentation