Page 78 - DMGT554_RETAIL_BUYING

Unit 5: Buying for Off-site Retail Operations

staff for both in-store and catalog use and is basically the same for both divisions. That is, Notes
the most promising merchandise headed for the stores is earmarked for the catalog.

While the business has been generally profitable for all the company’s years as a specialty
retailer, management has decided it might be appropriate to expand the catalog division
to make it even more profitable. After extensive brainstorming, the company’s management
team has narrowed down the expansion ideas to a few. They are as follows:
 Instead of merely sending the store’s catalogs to its regular customers in the trading
area, as it has in the past, the operation should be expanded to serve markets from
coast to coast.

 The merchandise assortment should include classifications other than those featured
in the stores and could include men’s and children’s clothing.

 A separate buying team should be put in place for catalog purchases, with the
present buying team relegated to in-store purchases.
Questions
1. Could such changes prove to be a danger to the store’s profit picture?

2. How should the team evaluate each of the suggested new approaches for catalog
sales?
3. Which changes, if any, would you suggest be made?

Source: http://wps.pearsoncustom.com/wps/media/objects/5808/5947551/MCH150_Ch05.pdf

5.5 Summary

 Off-site operations such as catalogs, home purchasing networks, and e-tailing are becoming
more competitive with brick-and-mortar retailers than ever before.
 Department stores, who once published only a few catalogs a year at peak selling times,
are now producing an abundance of them throughout the year.

 Some major retailers such as Macy’s have opened separate divisions to handle the enormous
volume of sales generated by their catalogs.
 Catalogs are often unique and sell much more than just the typical merchandise found in
stores. Neiman Marcus, for example, features unique, high-priced merchandise that appeals
only to the country’s most affluent consumers.

 Some retailers are catalog-only operations. They use only the direct-marketing approach
to reach the consumer.
 The home purchasing networks have increased their sales revenues by employing
celebrities to sell goods.
 With its global market, e-tailing has the capacity to reach a larger number of consumers
than any of the other retail operations.
 While the duties and responsibilities are the same for all professional purchasers, those
involved in off-site buying face additional challenges.

LOVELY PROFESSIONAL UNIVERSITY 73