Merchandise Flashcards
Merchandising in fashion retailing and working as a merchandiser.
Merchandising definition
The term “merchandising” in fashion retailing refers to the total process of stock planning, management and control
Merchandising in fashion retailing and working as a merchandiser:
Merchandising Process
It is the process of planning, developing
and presenting product lines for identical target markets.
It is the process of planning, developing
and presenting product lines for identical target markets:
Merchandiser’s overall responsibility
The overall responsibility of the merchandiser is the maximising of profit of a department,
working within the normally accepted conventions of the business.
It is the process of planning, developing
and presenting product lines for identical target markets:
Merchandising focus
Merchandising focuses on analysis and planning, that leads to forward planning of the
department. Merchandisers must understand customer demands, analyse sales trends and
present saleable products.
Six main responsibilities for the merchandiser.
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To estimate sales and plan stock levels to achieve the planned sales and margin for a specific garment type.
Provide regular analysis and progress reports referring to stock levels, sales performance and stock purchases to senior management.
To work with buyer on range planning to maximise commercial opportunities for products.
To manage intake and commitment to accommodate the stock requirements of the business at any given time and the open to buy requirements of the garment type.
To manage stock distributions to stores optimising customer demand, available selling space and seasonal selling opportunities.
To effectively manage and develop the merchandising/distribution team.
Key merchandising competencies
Personal characteristics awareness Data Awareness Comercial awareness Planning Action
Personal Characteristics
Logical, Rational Multi-tasking / Flexible IT- Orientated Numerate Analytical Detail Conscious (aware of bigger picture) Assertive Retentive Memory
Awareness
Awareness is split into Data Awareness adn Commercial Awareness
Data Awareness
Specific data awareness, reflecting the significance of computer-based information on the job
Commercial Awareness
commercial awareness, highlighting the need to place analysis in a commercial or business context.
Planning
Effective Planning of the garment type finances, sales, stock levels and critical path timing lies at the heart of successful merchandising.
Action
Combines analysis of information with experience in the management of risk.
Adjusts forward stock commitment according to sales performances.
Times new deliveries and repeat orders to optimise sales opportunities and profits.
Negotiates appropriate discounts ( from cost price) in response to late or incorrect deliveries.
The merchandise handling process
This includes all the activities related to the processing of incoming merchandise. These
activities include receiving, checking, marking and stocking merchandise.
Receiving and Checking the merchandise
Stock control starts when the merchandise is received. The merchandise MUST be inspected to ensure that it is the correct order. Only when the receiver of the merchandised goods are satisfied with the received goods must he or she sign for shipment.
Every detail such as address, sizes, colours etc should be inspected against what the supplier has shown on the invoice.
Discrepancies should be reported and acted on immediately.
The retailer can make three checks to ensure that he or she has received the order:
Invoice Check
Quantity Check
Quality Check
Invoice Check
The retailer compares the invoice with the purchase order
Quantity Check
The actual physical content is checked against the purchased order
Quality Check
Involves examine the merchandise for any damages resulting from the shipment and for imperfections and merchandise from poorer quality.
Checkpoints for the delivery of merchandise
date and hour of arrival
name of transport company making the delivery
the quality and quantity of the merchandise
the invoice number
the general condition of the packages
delivery charges
any notes on damages or apparent losses
Marking and stocking the merchandise
All products should be priced before they can go on the shelf to be sold.
Prices should be easily identified as it can frustrate the customer to not know.
The sooner merchandise is moved onto the sales floor, the sooner it can be sold which means that a retailer can immediately start generating money.
In some cases, enough of the new merchandise is sold to cover the cost of the invoice for the specific merchandise before it comes due for payment.
The most common problems with marking merchandise on the sale floor:
Greater frequency of problems. Slower performance. A lack of security. Loss of sales, because personnel were busy marking merchandise. Messy looking sales floors. Interference with customer traffic
Merchandise can be marked in three ways:
Manually, mechanically or electronically.
Manually marking
Hand marking is the least desirable method.
More marking errors
Looks untidy
Price security is also jeopardised
Mechanically Marking
Advantage of fewer errors Speed Greater permanence Improved legibility Higher degree of price security
Electronically
Electronic devices can code prices onto tickets and tags that can be quickly and automatically read and processed by optical scanning equipment.
Optical Scanners
Are normally used at checkout counters, where they read all the information on a ticket or tag and transmit it to the store’s computer system for further processing.
Optical scanners can also be used for inventory control.
Benefits of efficient receiving and checking of merchandise
Claims and shipping errors can be checked quickly
Discounts can be taken regularly: prompt discount offered by many suppliers can reduce purchasing costs and increase savings
Higher inventory turnover is achieved as merchandise reaches the sales floor quickly.
Dead stock is minimised because it is unnecessary to store merchandise in a warehouse
Overpayments are avoided when merchandise is checked properly
