Retail Buying and Merchandising Module at a workshop conducted by Udyam Consulting

1. Retail Management Workshop
29.12.12

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 category’s 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
 SKU’s
 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 what’s 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

32. abhinav@udyam.in
09611809279