Chapter 1 Flashcards
What is Retailing?
Retailing is an important part of any economy and ultimately links consumers with manufacturers.
- Consumer needs are changing
- Competitors are entering the market arena
- Technology is introducing new retailing methods, for example the internet, to the industry.
Retailers need to know how to keep abreast of these changes to attract new customers and keep them.
According to Cant (2010) retailing is also becoming more customer-focused.
Environmental elements such as _consumer behaviou_r and competition are changing rapidly and have a huge impact on retailing.
A Succesful Retail Business is when:
A successful retail business strikes a balance between the customer’s merchandising needs and the retailer’s performance standards (Cant, 2010).
Many keys to the future success of retailers relate to:
- a strong customer focus
- focused product development
- database marketing where customers can be identified more easily and quickly.
What is Merchandising Needs?
Merchandising needs are the specific goods and services a customer is looking for, while performance standards are the specific goals the retailer wishes to achieve, for example, a specific amount of sales and a profit margin to maintain.
The seven Rights of Retailing:
The very basics of retailing consist of the following seven “rights” of retailing:
- the right product
- the right quantity
- the right quality
- the right place
- the right time
- the right price
- the right service
Who is the consumer and why is he so important to the retailer?
Consumers can be identified as people who:
- identify a need or desire
- make a purchase
- then dispose of the product during the consumption process
This explains why consumers with their particular needs, buying power and behaviour are the chief components of the market environment.
Knowledge of consumer needs and wants is therefore important and pivotal to the success of the retail market offering.
A primary objective that retailers share:
A primary objective that retailers share is the desire to satisfy the needs and wants of customers.
The retailers who serve their customers best and most efficiently will succeed. The successful store centres all activities around the customer.
Customer demands: The five questions
who, where, when, what and how?
– Provide the framework for understanding customers.
Clarity about these questions becomes the foundation for defining and understanding the customer.
The role of retail merchandise managers:
Merchandising is about understanding the way customers shop and by using this knowledge, you can position your merchandise in the store to increase sales.
You need to create an environment that attracts the customer, is comfortable to shop in and encourages the customer to return.
Merchandise managers are responsible for ensuring that products appear in the right store at the right time and in the right quantities. This involves working closely with the buying teams to accurately:
- forecast trends
- plan stock levels
- monitor performance
Merchandisers help set the prices to maximise profits and manage the performance of the ranges, planning promotions and markdowns as necessary.
They also oversee the delivery and distribution of stock and deal with the problems with suppliers as they arise.
What makes Fashion Merchandising different from Business Merchandising?
Fashion merchandising is not like merchandising in any business because the fashion world is a high-stakes, fast-paced industry.
List typical work activities for a retail merchandiser/ merchandise manager are the following:
- planning the product range with the buyers
- liaising with buyers, analysts, stores, suppliers and distributors
- forecasting profits and sales using computer programs (for example Excel)
- planning budgets and presenting sales forecasts and figures to senior managers
- controlling stock levels based on forecasts for the season
- analysing every aspect of the best and the worst sellers; ensuring that best sellers are fully potentialised; and keeping an eye on slow sellers, taking action to reduce prices or set promotions as necessary
- meeting with suppliers and managing the distribution of stock
- managing, training and supervising staff
Typical work activities for a merchandise manager, also called clothing and home depart- mental managers, are the following:
1. Provide exceptional customer service to internal and external customers
- understand and demonstrate customer care
- communicate appropriately with customer
- obtain knowledge of products and demonstrate selling skills
2. Recruit, select, manage and develop people to meet competence requirements
- ensure the development and training of people
- assist with selection and recruitment
- manage subordinates
- schedule staff within budget
- empower staff and conduct training
3. Participate in team to ensure achievement of department or store goals
- give support to team members when required
- share knowledge to the benefit of team members
4. Manage implementation and integration of new initiatives to achieve project goals
5. Participate in general store operational duties
- assist in providing customer service on sales floor during trade
- assist in locking up duties
- attend and contribute at management meetings
- monitor and reinforce all company policies and procedures
