Lecture Four

Question 1

What should be included in a formal summary at the beginning of the planning process

Answer 1

A good strategic summary of the direction of the business including budget, future products and concepts and finance.

Reviews at single points of data

Question 2

How can you see if the collection is relevant to market segment

Answer 2

Competitor trends - malls vs high street
Economic trends - retail growth. GDP
product trends - what is being most bought the most
Price and value - either increase the volume or price

Question 3

What is sales turnover and the link to buying and merchandising

Answer 3

This is the generated by the product

Cash and sales presumption is by the b&m team

Question 4

What is cost of goods sold?

Answer 4

This is the costs in creating the product

Buyers will negotiate with suppliers

Question 5

What is gross trading profit

Answer 5

Profit generated by the product after the cost of good sold is deducted

Buyer will set up business over heads and net profits and dividends

Question 6

What is stock?

Answer 6

This is the cost of ownership

Stock is perched in advance and is an asset to the business

Question 7

What will the buyer review in reference to performance?

Answer 7

Better budget
Worse budget
Financial trends emerging
What products where lasting longer on the product life cycle

Question 8

What is relative to the customer?

Answer 8

The budgets are - as winning and loosing style and trends in order to gain customers attention

Trends - in order to analyse is there are successful and that customers are willing to buy and look into trends

Question 9

Rate of sales is what?

Answer 9

Measures unit turnover and helps understand sales and turnover budget plans

Question 10

What is the sell through rate percentage?

Answer 10

Measures unit sales and helps understand markdown budget analysis

Question 11

Weeks cover is?

Answer 11

Is the relationship between stock and sales and helps us understand stock budget analysis

Question 12

How is research relative to business Strategy

Answer 12

Helps interpretate financial and product performance
In order to the buyer and merchandiser to develop a good product Strega for next season

Buyer can research strengths and weaknesses

Question 13

Research and analysis is better when SMART is added to the agenda

Answer 13

S- specific - priority and actions
M- measurable qualitative shaped info
A- assignable - specific on how does the research
R-realistic - reflects rather than a guess
T- time related - time and using it wisely I order to achieve objective

Question 14

Employee discount?

Answer 14

A % reduction of the retail price as a fringe benefit to the employee

Question 15

Markdown?

Answer 15

A reduction in the original price or previous price of items

Question 16

Markdown cancellation?

Answer 16

An increase in the retail price that off sets all or a promotion of pervious markdowns

Question 17

Net markdown?

Answer 17

The difference between total markdown and the markdown cancellation

Question 18

Shortages?

Answer 18

(Retail value)

Book inventory - physical inventory

Question 19

Retail reductions

Answer 19

Any factor that reduces the value of inventory

Including- markdown,shortages, damage to goods and employee discount

Question 20

What and why are markdowns used?

Answer 20

Can be a staple of temporary markdown

Retailers use it for - to attract customers, to help sell items, to mark or meet competitors and to make profit

Question 21

How do you make markdowns more efficient

Answer 21

Reductions must be made before the merchandiser movement has begun to slow sufficiency

Question 22

What is a markdown?

Answer 22

discussed as a % of net sales for ease of comparison

Question 23

Effective research requires analysis through the fashion season why is this?

Answer 23

In order to highlight performance of the business so in future the lesson are learnt. It also helps track trends that emerge