Page 39 - DMGT554_RETAIL_BUYING

Retail Buying

Notes  Chains are most often classified as specialty chains, discounters, off-pricers, supermarkets,
drugstores, and variety stores. Their tables of organization parallel that of department
stores, but in most cases they feature additional divisions.
 Many small stores, known as single-unit independents, are in operation all across the
country. They usually specialize in one type of merchandise.

2.5 Keywords

Chain: A chain is a group of stores of essentially the same type, centrally owned, and with some
degree of centralization.
Comparison Shopper: The comparison shopper scouts the competitors’ advertisements and
inventories to determine if there are any price conflicts between the companies.
Divisional Merchandise Manager: Divisional Merchandise Manager acts as the liaison between
the GMM and the numerous buyers within their division.
Fashion director: Fashion director covers the wholesale markets long before the buyer gets
there.
General Merchandise Manager: The general merchandise manager serves as a policy maker and
operating officer along with the others in the company who head their divisions.

Model stock: A model stock is the assortment of merchandise that satisfies the needs of the
customer.
Proprietor: The proprietor is most often a multitalented individual who performs numerous
tasks.
Publicity Division: The publicity division employs specialists who perform a variety of functions
ranging from the preparation of advertisements to the installation of visual presentations in
windows and on the selling floor.

2.6 Review Questions

1. Describe the traditional classification of retail stores, and give examples.
2. How does the traditional chain organization differ from those that belong to the category
that employs the store is the brand retail strategy?
3. Make distinction between full-line department stores and those that are specialized.
4. In a department store that utilizes the five-division structure, which divisions are generally
included? Discuss.
5. Discuss the responsibility of the divisional merchandise manager in terms of merchandise
budgeting.
6. If a major retailer employs a comparison shopper, what is the position and what
responsibilities does it carry? Discuss.
7. If the buyer is provided with a wealth of computerized reports for merchandise assessment,
why are visits to branch stores necessary?

8. Why might a department store’s branch stock a merchandise assortment that is different
from that of the flagship?
9. Elucidate the operation of the warehousing division of a chain organization.

10. Describe the role played by the owner of a single-unit independent store.

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