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Retail Buying

Notes  Visiting the wholesale markets: While the buyer is charged with the responsibility for
merchandise procurement, the GMM makes regular market visits during peak
purchasing periods. Meetings with market specialists, attendance at trade ex-positions,
and showroom visits with the appropriate DMM and buyer will help make certain
that the merchandise needs of the store will be met for the coming season. When
sizable orders are being considered, this is an extremely important market visit for
the GMM.
 Divisional Merchandise Manager: Next in command in the merchandising division are
the divisional merchandise managers. Their numbers vary according to the size of the
operation and the breadth of its offerings. They act as the liaison between the GMM and
the numerous buyers within their division. Specifically, they participate in a variety of
duties and responsibilities that include many of the following:
 Assisting and advising the general merchandise manager: Although, the GMM has the full
responsibility for overseeing the store’s merchandising division and formulating
the necessary plans to maximize profits for the company, the DMMs play a role in
this planning. They provide the GMM with trends that might affect sales for their
respective divisions; offer advice on how certain departments might be expanded;
and examine the potential for new private labels that might bolster sales in a
particular area, competition from area retailers that could hamper sales, and sales
projections that would have an impact on the distribution of the budget.
 Distributing the division’s budget to the buyers: Given the merchandise budget for the
coming season from the GMM, the DMM has the responsibility of distributing it to
the various buyers in his or her departments. This is not a uniform distribution, but
one that is based on past sales of each department and estimates of future sales.

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Caution The divisional manager must carefully assess economic conditions, potential
changes in styles, and any other factors that could improve or impede future sales for a
department.
With all of these conditions carefully considered, the budgeted figures are then expended
to the different buyers.
 Coordinating the efforts of the buyers: Each retail organization has a merchandising
philosophy that it wishes to project to the general public so that it might motivate
the consumer to shop there. By disseminating this concept to the buyers, it will be
likely that an overall merchandising image will be guaranteed in each of the DMM’s
departments.
 Advising buyers on merchandise acquisition: Since divisional merchandise managers
came up from the ranks of buyers, they have firsthand knowledge of the buying
scene. With this invaluable information, they are able to assist the buyers in terms
of planning for future purchases, product assessment, resource selection, purchasing
negotiations with vendors, and forecasting and planning future sales.

 Buyers: Immediately below the divisional merchandise managers are the buyers. Since
they are the focus, their roles will be examined throughout.
 Assistant Buyers: The duties and responsibilities of the buyer are exhaustive. To relieve
the buyer of some of these tasks, and to have some input from others who are familiar
with a department’s merchandising needs, assistant buyers are employed. They perform
a host of activities in addition to advising the buyers, as discussed in the following text.

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