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Unit 8: Merchandise in Retailing

Notes
information for interested consumers. The firm also works with Canadian and international
retailers, global and national retail industry associations and the Canadian federal
government on common ethical sourcing issues. HBC participates in Fair Factories
Clearinghouse (FFC), a joint industry effort to improve factory workplace conditions by
sharing factory information, and liaises regularly with the Maquila Solidarity Network’s
Ethical Trading Action Group (ETAG) on ethical sourcing issues and opportunities.
Questions
1. Analyze the case and interpret it.
2. Write down the case facts.

Source: http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/rs00168.html

8.7 Summary

 Merchandise or range plans articulate 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.
 Range planning, from setting the concept, purpose and direction through to selecting the
products and finalizing the price, distribution and sales forecast, is a truly iterative process
that typically involves buying and merchandising working hand in hand, often with
somewhat opposing objectives.
 Competition from discount stores and specialty stores has put pressure on department
stores.

 Offering more and more first run items, it is difficult for manufacturers to make enough
“seconds” to fill these stores.
 Buying items for a household is far different from buying inventory for a retail store.

 If the supplier fails in its job, the retailer can find another one but it would have to suffer
being unable to provide what its client needs at the moment.
 The process of merchandise planning takes the buyer through to the stage of determining
the products that he needs to have in the store and the quantities that he needs of the same.
 Sourcing means finding or seeking out products from different places, manufacturers or
suppliers and is a key element of cost.
 Once the buying plan has been finalized, taking into account both the qualitative and
quantitative considerations, and the decision as to which resources should be contacted
for purchasing, the timing for purchase is the next issue to be addressed.
 In Retail commerce, visual display merchandising means merchandise sales using product
design, selection, packaging, pricing, and display that stimulate consumers to spend more.

8.8 Keywords

Inventory: It constitutes the raw materials, work-in-process goods and completely finished
goods that are considered to be the portion of a business’s assets that are ready or will be ready
for sale.
Merchandise Plan: It refers to retailers’ systematic approach to forecasting merchandise inventory
requirements and negotiating the best deals with suppliers.

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