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Unit 2: Buying for Traditional Retail Organizations

Human Resources Notes

The recruitment and training of store employees is the role of the human resources
division. The buyer’s role is limited in terms of working with this division, except in
cases where new assistant buyers are needed in the store. In that situation, the buyer alerts
human resources to his or her need for an assistant and helps with job descriptions to use in
recruitment procedures.
Once human resources has recommended candidates for the open positions, it is the buyer who
makes the final decision of who is hired.

Control

The division that makes the accounting and credit decisions is called the control division. The
buyer’s involvement is often with accounts payable to make certain that the purchased items are
properly charged, along with answering questions concerning discounts, delivery charges, and
so forth. Unless there are discrepancies with vendors, these chores are generally routine.

2.1.2 Branch-store Organization

The running of the department store is overseen by those in the upper strata of the store’s
management team. Headed by a CEO and the managers of the various divisions and input from
the board of directors, decision making generally takes place at the company’s flagship store,
with the home office as an alternative choice. Although, the flagship is key to the success of the
company, a vast amount of business is realized at the numerous branches. Since the 1950s, the
expansion of branches has been a steady factor in retailing. As the suburban markets grew,
retailers opened these units to accommodate the needs of the consumers in those areas. Although
the branches are managed by a team headed by a store manager and other managerial staff
members and the rules of operation are established by the company’s management team, there
must be continuous interaction between these two management groups. The most significant
involvement comes from the merchandising division, with the buyers playing the major roles.
Of paramount importance are the buyers’ visits to the branches to evaluate their merchandise
needs. Since, there might be variations in the branches in terms of specific merchandise needs
such as assortments, price points, and other factors, these visits are necessary to maximize the
success of these units. Although a wealth of computerized reports are generated for buyer
evaluation and guidance, in-person visits to the branches can address issues that these reports
cannot provide.
Some of the variations found in the branches that differ from the flagship include different
populations, different merchandise needs, and different price emphasis.

Population Differences

When a retailer establishes its merchandising policies, it looks at its potential trading market
and determines its merchandising needs. One of the factors deals with its potential customers’
careers and lifestyles.

Example: If the flagship is based in a downtown, central shopping district, as is Macy’s
East in New York City, the population served is more often a sophisticated clientele that is
unmarried, married without children, or perhaps married with a small family.

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