Canada Retail CH9 加拿大零售第九章.ppt

Chapter 9 Merchandise Management Merchandise Management Merchandise planning includes all the activities needed to balance inventory and sales. Retailers should plan merchandise according to the changes in customer needs. Merchandise management is the management of the product element of the retailing mix. It involves planning and controlling activities. Private vs. National Brands Private brands are brands owned by the retailer National brands are owned by a manufacturer and can are sold through different retailers. NOTE: Not owned by the national government. Private vs. National Brands National Brands Backed by advertising Often considered superior by consumers Private brands Offer higher margins Cheaper for the customer Stock keeping Units最小库存单位 Stock-keeping units, or SKUs, represent a single item of a particular size, color or style. Example: A clothing store sells 2 brands of mens shirts. Merchandise Planning A merchandise line is a group of products that are closely related because they (1) are intended for the same final use, (2) are used together, or (3) are sold to the same customer group. Line Breadth – number of lines (variety) Line Depth – number of items in a line (assortment) Assortment can be defined as the number of stock-keeping units (SKUs) in a line. Inventory turnover is the number of times a single SKU is sold in a given period of time (usually 1 year.) Can be calculated in dollars or items. Merchandise Assortment Planning The Merchandise Budget Step 1: Sales Planning Example Monthly Sales Plan Step 2: Stock Planning Stock planning involves planning how much inventory is needed to support monthly sales. The stock-to-sales ratio method is used to plan highly seasonal merchandise inventories. Reductions Reductions are anything other than sales that reduce inventory dollar amount. Employee Discounts Shortages (theft, pricing error, etc.) Markdowns Reductions should be planned for so that the retailer has enough BOM inventory to support monthly