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Retail Buying

Notes The buyer for the retail store must determine at the time the merchandise is purchased when the
item should be introduced, when it should be reordered, when it should be marked down, and
when it should be removed from stock. This procedure can be compared to the tides – low and
high. In merchandising terms it is referred to as the ebb and flow of merchandise. The old must
go and the new must take its place.
9.3.6 Unit Control Plan

To maintain an in-stock position of wanted items and to dispose of unwanted items, it is necessary
to establish an adequate form of control over the merchandise on order and the merchandise in
stock. For the small retailer, there are many simple, inexpensive forms of unit control. They are:
 Visual or eyeball control enabling the retailer to examine the inventory visually to
determine if additional inventory is required;

 Tickler control enables the retailer to physically count a small portion of the inventory
each day so that each segment of the inventory is counted every so many days on a regular
basis;
 Stub control enables the retailer to retain a portion of the price ticket when the item is
sold. The retailer can then use the stub to record the items that were sold; and
 Click sheet control enables the retailer to record the item sold (at the cash register) on a
sheet of paper, such information is then used for reorder purposes.

For the large retailer, more technical and sophisticated forms of unit control are used. They
include:

 Point-of-sale terminals which relay to the computer the information of the item sold. The
buyer receives information printouts at regular intervals for review and action;
 Off-line point-of-sale terminals relay information directly to the supplier’s computer
which uses the information to ship additional merchandise automatically to the retailer;
and
 A manufacturer’s representative visits the large retailer on a scheduled basis and takes the
stock count and writes the reorder. Unwanted merchandise is removed from stock and
returned to the manufacturer through the procedure of an authorized level.

A sound unit control must include control over open orders so that delivery dates are adhered
to and to ensure that stores do no receive goods they did not order.

9.3.7 Conclusion

Finally, retail purchasing requires the buyer to be an aware person; Aware of the changing
tones, the changing consumer and the changing products. To remain current with these changes,
an aware buyer:
1. Reads trade journals and newspapers, consumer and business publications;

2. Talks to customers, salespeople, and vendors;
3. Sees all manufacturers, salespersons and their merchandise lines;
4. Visits museums, art shows, lively arts performances and sporting events; and

5. Visits offbeat fashion areas.
In short, the buyer for a retail store keeps an alert ear to new consumer rumblings and a sharp
eye to lookout for new merchandising horizons and selling opportunities.

126 LOVELY PROFESSIONAL UNIVERSITY