Page 185 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes as a potential threat to her de-partment, especially because the numbers of tennis “buffs”
were growing steadily and showing no signs of abating.
Accordingly, Janice sought Jessica Cun-ningham, the ready-to-wear merchandise manager,
and discussed the full impact of Kate’s purchase of the so-called tennis sportswear. Jessica
listened carefully, and af-ter Janice finished, she promised to check into the matter at once.

Jessica then called Kate into her office and listened to her side of the story, which included
her reasons for buying the dress and the necessity of the display and T-stand.
Jessica is relatively new to Castle’s, hav-ing come from New York City, where she had
been the dress buyer for a large chain department store. Generally, she is regarded as an
astute merchandiser, and she has not been known to play favorites among the buyers
under her supervision.
Question:
If you were in Jessica Cunningham’s place, what would you do in regard to the sports-
wear buyer’s purchase of the tennis “dresses” and the dress buyer’s objections?
Source: http://www.fairchildbooks.com/ext/resources/instructor-resources/PDF-previews/6000-Sample.pdf

10.7 Summary

 Merchandising and manufacturing companies keep an inventory of goods held for sale.
 Management is responsible for determining and maintaining the proper level of goods in
inventory.

 Access to inventory should be limited until the physical inventory is completed.
 Consigned merchandise is merchandise sold on behalf of another company or individual,
who retains title to it.

 Goods in transit must be included in either the seller’s or the buyer’s inventory.
 Most companies use software-based control systems to automate those 68 functions,
wherever possible.

 An effective system includes reviewing inventory for obsolete stock.
 The allocation engine has multiple allocation algorithms with respect to various allocation
strategies.

 The purchase order management module generates orders for merchandise to be shipped
to the warehouse.
 Rapid turnover enables the retailer to reduce certain expenses.

 ABC analysis rank orders merchandise by some performance measure to determine which
items should never be out of stock.
 Private labelling is the interesting story of a how a segment of products, originally
introduced as low-price alternatives to high-priced brands.
 A still emerging trend in private labels is the rapid adoption of these brands by firms
involved in Internet commerce.

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