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Lecture Retailing management (6/e): Chapter 12 - Levy Weitz

Lecture Retailing management (6/e): Chapter 12 - Managing merchandise assortments. The following will be discussed in this chapter: Merchandise management, merchandise management and investment portfolio management,. | Chapter 12 Managing Merchandise Assortments Merchandise Management Buying Systems Planning Merchandise Assortments Buying Merchandise Pricing Retail Communication Mix 12- Merchandise Management Process by which a retailer offers the right quantity of the right merchandise in the right place at the right time and meets the company’s financial goals. Sense market trends Analyze sales data Make appropriate adjustments c) image100/PunchStock 12- Merchandise Management and Investment Portfolio Management Dollars to invest in inventory Invest in “hot” merchandise Save a little for opportunities (open to buy) Monitor portfolio Sell losers (markdowns) 12- Standard Merchandise Classification Scheme and Organizational Chart 12- Merchandise Management Issues 12- The Category A merchandise category is an assortment of items that customers see as substitutes for each other. Vendors might assign products to different categories based on differences in product attributes Retailers might assign two products to same category based on common consumers and buying behavior 12- Category Management Category management is the process of managing a retail business with the objective of maximizing the sales and profits of a category. Department stores manage at category level, but grocery stores manage merchandise around brands and vendors Objective is to maximize the sales and profits of the entire category, not just a particular brand. The McGraw-Hill Companies, Inc./Andrew Resek, photographer 12- Category Captain Selected vendor responsible for managing a category Vendors frequently have more information and analytical skills about the category in which they compete than retailers Helps retailer understand consumer behavior Creates assortments that satisfy the customer Improves profitability of category Problems Vendor category captain may have different goals than retailer 12- Antitrust Consideration The vendor category captain could collude with . | Chapter 12 Managing Merchandise Assortments Merchandise Management Buying Systems Planning Merchandise Assortments Buying Merchandise Pricing Retail Communication Mix 12- Merchandise Management Process by which a retailer offers the right quantity of the right merchandise in the right place at the right time and meets the company’s financial goals. Sense market trends Analyze sales data Make appropriate adjustments c) image100/PunchStock 12- Merchandise Management and Investment Portfolio Management Dollars to invest in inventory Invest in “hot” merchandise Save a little for opportunities (open to buy) Monitor portfolio Sell losers (markdowns) 12- Standard Merchandise Classification Scheme and Organizational Chart 12- Merchandise Management Issues 12- The Category A merchandise category is an assortment of items that customers see as substitutes for each other. Vendors might assign products to different categories based on differences in product attributes .