Page 77 - DMGT554_RETAIL_BUYING

Retail Buying

Notes Depending on the product classification, the selling periods vary.

Example: Books have comparatively long life cycles, whereas fashion items tend to have
relatively shorter ones.
Inventory replenishment is another concern. For staple goods, this is not generally a problem.
Items of this nature are always available from the vendors on short notice. Fashion items such
as apparel and accessories are another matter. Manufacturers who produce this merchandise are
often cautious and play a “wait and see” game before going into full-scale production. If a hot
item surfaces, and it is not available for quick delivery, sales will be lost. During the negotiation
for such goods, the buyer must get the producers’ assurances that reorders will be filled in a
timely manner. Even if this is risky business for the vendors, they must understand that without
a guaranteed steady flow of goods, the buyers will seek other merchandise resources.
Another consideration is the graphics used in the item’s presentation. Would an actual photograph
of the product better serve the company’s needs or would a sketch be more favorable? The buyer
often advises those who prepare the Web sites as to which format would better present the
merchandise.

Since, purchasing merchandise for resale on the Web is a relatively new situation, professional
buyers must always be ready to redefine their buying methods. Once a satisfactory formula has
been achieved that brings profitable results to the company, the buyer’s task will become more
routine.

Task Make distinction between brick-and-mortar catalog operations and those that are
catalog-only businesses.

Self Assessment

Fill in the blanks:
12. .................... are readily distributed anyplace on the globe that has inhabitants who might
have a need to buy the company’s goods.

13. Numerous catalogs use the phrase .................... to get shoppers’ attention.
14. Buyers who purchase for .................... operations as well as Internet Web sites must have
both divisions in mind when they go to the wholesale markets.

15. Depending on the .................... classification, the selling periods vary.

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Case Study Merchandise Assortment

allop & Litt has been a successful specialty store merchant in Ohio, Missouri, and
Kansasfor more than thirty-five years. Today, it operates forty-eight stores in the
Gthree states. The merchandise assortment focuses on understated sportswear for
the middle-income woman.
As is the case with other chain organizations, G & L, as the firm is usually referred to by its
customers, operates a catalog division. The merchandise is acquired by the same buying

Contd...

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