Merchandise Budget Plans

Question 1

Merchandising budget plans

Answer 1

These are necessary to determine how much the retailer should invest in merchandise during any specific period.
A merchandising budget is a financial plan for managing merchandise inventory investments.
In developing these budgets a retailer judges how changes in the external and internal factors are likely to affect future sales.

Question 2

The merchandising budget plan consists of the following 5 steps

Answer 2

Planning sales
Stock levels
Reductions
Purchases
Profit margins