299

William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Buying & Merchandising 2
Dr Neil Towers
The TASk Development Partnership is part funded by the
European Social Fund under the Equal Community Initiative Programme

Learning Objectives
 To understand Fashion Retail Buying
and Merchandising
 To evaluate a Weekly Sales, Stock and
Intake schedule

Definition of a range
 Scope
 Width of choice
 Depth of styles, colours, sizes and price
points
 Price Points
 Architecture
 Link to strategy and communication

Fashion changes
 Residual stock gives flexibility to
respond
 Captures new trends
 Value Fashion retailers
 Higher volumes and greater cash
commitment
 Slow moving stock management

Internal Planning
 Financial planning
 Stock model planning
 List and De-Listing from range

Range Planning for own label
 Collating qualitative and quantitative
appraisal
 Planning for an own label range
 Proposal for future ranges

Buying Branded Fashion
merchandise
 Smaller quantities
 Selection from a catalogue
 Influence of season trading
 Outlets
 Store or Non store

Seasonal contribution
 Weighting
 Merging grey seasons
 Capacity and Response

Support from others
 Involve agents or Fashion show
promotions
 Manufacturers have identified and
marketed brand
 New Product Introduction supported by
manufacturer’s contribution

Intake
“A term relating to the amount of stock
delivered or planned to be delivered into
a fashion business”
(Jackson and Shaw, 2001, p189)

Demand profiles
 Seasonal sales variations
 E.g Fashion women’s wear sales
 Ranges from 12% in December to 6% in
February
 Departmental stores with seasonal
sales
 Managed by category
 Swimwear in Spring and Tee Shirts in Summer

Demand profiles
 Typical cross sales ratios
 Top garments to bottom garments as 2:1
 Women’s wear Lingerie
 Menswear Ties to shirts

Commitment
“The value of stock (usually at selling
price) that has been ordered by the
buyer, but not delivered or paid for.”

Time scale commitment
 Long term Forecast
 Based on comparative analysis; LFL Sales
 Monthly Schedule
 Respond to emerging trends
 Weekly Plan
 Committed requirements

Open to Buy
 “the amount of buying money available
at any one time”
 OTB = Opening stock – Closing stock
sales

Typical delivery dates
 China - Product can be made in all parts of the country and
there is an indeterminate time to get to the port. But FOB
Chinese port it's 6-8 weeks, route dependant.
 Indonesia - 6 weeks.
 Morocco - 8-10 days. this depends on how much of the route is
by sea, and how much by lorry. The quickest being by sea to
Spain then on by land.
 Romania - 6 - 8 days.

Weekly Sales, Stock and Intake
(WSSI) plan
 Sales phased by week
 Intake by schedule and forecast
 Fixed, Firm and Tentative
 Forward Plan for opening and closing stock

Delivery schedule
 Use WSSI to plan forward stock
 30% - 40% OTB at beginning of the
season
 Respond to Fashion Phasing within
season
 Incentives to stimulate demand

WSSI plan exercise
 To demonstrate constructing the
merchandise plan

OTB and Intake
0
500
1000
1500
2000
2500
3000
1
3
5
7
9
11
13
15
17
Week Number
Cum Intake
OTB

299

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