Page 35 - DMGT554_RETAIL_BUYING

Retail Buying

Notes
Example: Walmart is constantly opening new units in other countries.

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Caution Before new locations may become a reality, a considerable amount of research
must go into the planning.
The real estate and construction division must research population trends, income, family size,
competition, and other factors that would help evaluate the new site under consideration.
In addition to new locations, there is always the need to update the existing units. Renovations
are often the order of the day to make certain that the stores have a fresh look that will appeal to
customers. At this time, the Limited Group is updating many in the new millennium. This
construction may be one that entirely alters the unit or merely makes the changes necessary to
give it a fresh face.

Warehousing

Merchandise purchases are most often sent directly to a central location for redistribution to the
individual stores. In the larger chains, there may be regional warehouses so that the merchandise
may reach the stores within that geographical location in a more timely manner. The receiving
and movement of the goods is a major concern for the company. It involves checking incoming
goods, marking them according to the buyer’s instructions, entering the merchandise descriptions
and quantities into the computer, and anything else that guarantees accurate record keeping.

Supplies and Equipment

The various supplies and equipment that are needed to keep the units in good working order
such as light bulbs, wrapping materials, cleaning compounds, office supplies, and so forth are
controlled by this division. When you think of the size of an organization as large as the Gap, the
numbers of merchandise hangers that must be purchased and distributed indicates the complexity
of this division.

Self Assessment

Fill in the blanks:
8. A ..................... is defined as a group of stores of essentially the same type, centrally owned,
and with some degree of centralization.
9. The organizational structure of most chain organizations is parallel to that of the
..................... store.
10. The nature of the chain organization is ......................
11. The ..................... division must research population trends, income, family size,
competition, and other factors that would help evaluate the new site under consideration.
12. ..................... purchases are most often sent directly to a central location for redistribution
to the individual stores.

13. Before new locations may become a reality, a considerable amount of research must go
into the .....................

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