– The objective of the merchandising management team is to get the correct balance between the expectations of the customer and the objectives of the company’s financial strategy.
A merchandising role involves the following processes:
– Analysing past sales figures/trends to anticipate future product needs.
– Devising a merchandise plan using the above techniques.
– Relaying the merchandise plan to the buyer who, in turn, can decide on what products, styles, colours etc to purchase and from which suppliers, at what price.
– Devising a contract for the suppliers including quality control, accuracy and flexibility. This is done throughout the season.
– Allocating certain amounts of stock, to each outlet, throughout the season. Retailers are now trying to minimise stock holdings and commitment to allow for maximum flexibility.
– Once the products are all distributed and put on sale, the Merchandiser can monitor stock movement, consider markdowns, inter branch transfers, promotions or clear outs etc.
