Page 111 - DMGT554_RETAIL_BUYING

Retail Buying

Notes
 the right quality and value – ensuring the brand and product propositions fit your
business
 great on shelf availability (with minimal stock investment) – ensuring you maximise
your sales potential off the lowest possible cost base

And all whilst delivering:
 a flexible, responsive, agile supply base – to ensure you can follow consumer trends
quickly

 a better return per square foot than the last range – to mitigate the ever increasing
cost of property

 a better shopping experience for the customer – to secure their loyalty, repeat business
and increased basket size.
So it is understandably a lengthy and involved process.

Source: http://retailacumen.wordpress.com/2010/10/06/retail-range-planning-merchandise-planning-
and-assortment-planning/

Self Assessment

State whether the following statements are true or false:
1. The ultimate aim of Range Planning is for the final range selected to meet and exceed the
customers’ expectations.
2. Merchandise or range plans articulates the financial targets in terms of how the range
should be built up, what proportion of the total business mix a range should take associated
store and DC space allocations, etc.

8.2 Types of Merchandise Offering

Merchandise mix, breadth (variety); depth (selection in product)

 Limited-line stores. For example, Sporting Goods Stores etc.
 Single-line stores-Specialty Retailers Foot Locker, Radio Shack
 Category Killers-Borders Books, Toys R Us etc.

 General merchandise stores
 Department stores-Macy, Strawbridge & Clothier etc.
Competition from discount stores and specialty stores has put pressure on department
stores. Some department stores are cutting services, offering basement discounts (competing
with discount stores), others are remodeling and opening designer departments and
boutiques (competing with specialty stores). Others increased services, IE restaurants.
Leased departments, leased to entrepreneurs.
 Supermarkets-Superfresh etc.
Supermarkets are adding high turnover non-food items to offset low margins of food
items. Added delis and hot pizza etc, in response to societal pressure (fast food). Also
competition from convenience stores, 7-11 etc.

 Hypermarkets...success in Europe, not in US 40% food, 60% general merchandise Walmart
(222,000 Square feet, $2.5m per week) moving more toward supercentres.

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