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Unit 1: Introduction: An Overview of Retail Operations

Notes

Task Visit different store organizations and study their structures on the basis of types of
classifications mentioned earlier.
Planners: Traditionally, buyers or category managers were also responsible for determining
the assortment stocked in each store, allocating merchandise to the stores, monitoring sales, and
placing reorders. Giving this responsibility to buyers meant that the merchandise strategy
within a store might not be coordinated. For example, some buyers might allocate more expensive
merchandise to a store in high-income areas, but others wouldn’t make this adjustment.
To address these problems, most retail chains created merchandise planners, with a senior VP of
planning and distribution, who are at the same level as the merchandise managers in the buying
organization. Each merchandising planner is responsible for allocating merchandise and tailoring
the assortment in several categories for specific stores in a geographic area. For example, the
planner at The Limited would alter the basic assortment of sweaters for the different climates in
country.
Stores Division: The stores division is responsible for the group of activities undertaken in
stores. Each vice president is in charge of a set of stores. A store manager, often called a general
manager, is responsible for activities performed in each store.

Figure 1.4: Store Organizations: Richs

Source: Everonn_ Retail Management_Exhibit 6.4: Store Organizations: Richs

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