Page 10 - DMGT554_RETAIL_BUYING

Unit 1: The Buyer's Role

small independent operation with just one unit has very little dollar volume to consider. The Notes
scopes of their activities will thus be quite different from each other.
Because of the enormous volume generated, the buyer for the major department store, chain
organization, and catalog operation or other off-site ventures is unlikely to have responsibilities
other than purchasing. Travel to various parts of the globe to make purchases and product
development are just about all they are expected to handle. Other management chores are left to
different employees. On the other hand, small company purchasers generally have other
obligations. They might be called on to manage their sales associates, change merchandise
displays, and handle advertising.

Merchandise Classification

Although all buyers have a number of responsibilities in common, the nature of the merchandise
they purchase often dictates different functions.

Example: Fashion buyers, by the very nature of the perishability of the goods and the
quick changes in fashions, must always be in contact with specialists and in-store personnel to
educate them in terms of what shoppers are likely to be looking for. They might be called on to
assist with fashion shows, trunk shows, and other fashion-oriented promotions as part of their
regular routines. Buyers of food items, on the other hand, do not have to perform such activities.

Staff Personnel

Large retail operations such as chain organizations and department stores are structured as line
and staff operations. This arrangement allows for two specific groups of employees. The line
people are those who have the decision-making powers and perform tasks that provide revenue
for the company. The staff people are the ones who assist or advise the line personnel with
information that will hopefully make the operation run smoothly.

Many of those with staff positions are part of the merchandising division. In the major retail
operations with fashion orientations, they might include a fashion director and a comparison
shopper. The former is a specialist whose role is to cover the primary markets, such as the textile
mills, where they learn about new fabrications, color trends, and so on. They then scout the
secondary markets to assess the products that the designers and manufacturers are planning to
offer for sale. They also meet with fashion forecasters to determine which styles should be
stressed in their company’s merchandise assortment. With this information in hand, the fashion
director then meets with the retailer’s buyers and merchandisers to help them plan their fashion
purchases.
The latter, the comparison shoppers, although not as frequently used by retailers as are fashion
directors, provide information about the prices of the company’s competitors. They regularly
visit the stores that offer the most competition to determine what products they are emphasizing,
where the merchandise is being featured on the selling floor, and what prices are being charged.
In an era when price-cutting is dominant, it is essential to know at what price the competition is
retailing comparable items.

In-store comparisons are not the only means used to “shop” the competition. Daily examinations
of newspapers also reveal what the opposition is featuring and what prices are being charged.
Catalogs are also carefully scrutinized to determine how competitive the merchandise offerings
of the other stores are by comparison. Off-site outlets such as the Internet and home shopping
cable programs are also closely examined.

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