Buying and Merchandising – II

Explore the comprehensive world of retail buying and merchandising. Learn practical strategies for product selection, pricing, inventory control, and visual presentation, plus essential financial analysis to boost profitability and succeed in the dynamic retail industry.

Buying and Merchandising – II

1 The Process of Retail Merchandising

  1. Concept of Merchandising
  2. Key Elements of Merchandising
  3. Process of Merchandising
  4. Role of Merchandiser in Historical Times
  5. Role of Merchandiser in an Export Business
  6. Role of Merchandiser in a Retail Business
  7. Merchandising Philosophy
  8. Merchandise Types
  9. Merchandise Classification/Hierarchy

2 The Process of Buying

  1. Objectives of Buying Process
  2. Role of Buying Function
  3. Organizational Buying
  4. Buying Behaviour of Retailers
  5. Buying Behaviour Model
  6. Responsibilities of a Buyer
  7. Characteristics of a Buyer

3 Margins and Profitability

  1. Relationship Among Basic Factors
  2. Gross Margin
  3. Operating Profit
  4. Basic Profit Factors

4 Mark-Ups- A Merchandising Tool

  1. Importance of Mark-Ups
  2. Calculating Mark-Up and Percentages
  3. Method of Calculating Mark-Up Percent Based on Retail Price
  4. Method of Calculating Mark-Up on Cost Price
  5. Comparison of Mark-Up on Retail Price with Mark Up on Cost Price
  6. Calculating the Unknown Factor When the Other Two Factors are Known
  7. Planned Mark-Up Goals
  8. Calculation of Mark-Ups
  9. Calculating Mark-Up Percent on Balance Quantities to be Bought for Achieving Targeted Mark-Up Percent
  10. To Achieve the Average Cost Value When Retail and Mark-Up Percent are Known
  11. To Find the Average Retail Price When Cost Amount and Mark-Up Percent are Known
  12. Initial Mark-Up
  13. Maintained Mark-Up
  14. Cumulative Mark-Up

5 Retail Pricing and Markdowns

  1. Importance of Pricing in Retail
  2. Factors Affecting Retail Pricing
  3. Importance of Markdowns
  4. Calculation of Markdown Value and Percentages
  5. Determination of Net Markdowns
  6. Calculation of Discounts and Reductions

6 Stock Management

  1. Calculation of Book Inventory
  2. Calculation of Shortages
  3. Retail Method of Inventory Valuation (RMI)
  4. Cost Method of Inventory Valuation
  5. RMI Issues
  6. Merits and De-Merits of RMI
  7. Determining the Inventory at the Front Level
  8. Stock to be Maintained at the Back-End

7 Preparing a Merchandise Plan

  1. Format for the Merchandise Plan
  2. Planning Sales for the Current Period
  3. Planning Stocks on the Floor
  4. Stock Turnover or Sales to Stock Ratio
  5. Basic Stock Method
  6. Week’s Supply Method
  7. Stock to Sales Ratio
  8. Planning Reductions
  9. Finalisation of the Merchandise Plan

8 Open to Buy and Unit Planning

  1. Figuring Open to Buy
  2. Unit Planning
  3. Reorder Quantities
  4. Format for Replenishments and Placing Orders
  5. Format to Capture the Sales and Stock Feedback
  6. System of Replenishment
  7. Online Inventory

9 Range Planning and Product Development

  1. Identification of Range Needs
  2. Range Board
  3. Study of Competitors
  4. Market Information
  5. Core and Fashion Ranges
  6. Product Development versus Product Sourcing
  7. Product Development

10 Presenting the Product

  1. Visual Merchandising from a Buyer’s Perspective
  2. Communicating Ideal Presentation Standards
  3. Methods of Presentation
  4. Space Efficiency
  5. Lay-out and Adjacencies

11 Merchandising Performance Parameters

  1. Understanding Various Parameters at the Store Level
  2. Sales Percentages – Comparative Analysis
  3. Productivity Measures – SPF
  4. SPF as a Planning Measure
  5. Sales per Transaction
  6. Sales per Employee

12 Performance Reports

  1. Gross Margin Return on Inventory
  2. Use of Sales Curves
  3. Calculation of Brand and Store Potential Index

13 Application of Buying and Merchandising in a Grocery Retail Store

  1. Retail Scenario in India
  2. Food and Grocery Scenario in the International Market
  3. Big Bazaar – The Hyper Market Chain
  4. Case Study: Savla Store

14 Application of Buying and Merchandising to Apparel Retail Operation

  1. Retail Industry – Organized versus Traditional Sectors
  2. Shopper’s Stop
  3. Case Study: Cutie – The Kids Wear Brand