Merchandise 135 Test 2
Terms
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- Branded Merchandise
- identified by a name and/or symbol associated by certain product characteristics
- National Brand
- a product that is available nationally but is not associated with a specific retailer
- The types of brands sold at a prestige or boutique store
- Designer Lines
- Brands sold at a specialty store
- Bridge/Diffusion lines
- Brands sold at a department store
- Better and moderate lines
- Brands sold at a discount store
- Budget/mass-market lines
- Brand Extension
- involves adding related products to an existing line of branded products or developing a new product with the same brand identity
- Private Label (i.e. Gap, Abercrombie)
- a name used exclusively by the retailer
- Exclusive line
- created exclusively for a retailer with a brand or designer label that is not considered to be a private label
- Store brand products
- exclusive merchandise of private labels, manufactured by the retailer i.e. Gap, Old Navy
- Planning and Forecasting
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Planning- involves establishing goals and strategies to achieve them
Forecasting- attempt to predict trends or outcomes - Long and Short-range plans
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Long- covers a 3-5 year period, is more strategic in nature
Short- covers a period of less than a year, is more day-to-day in nature - Sources of Planning Information (CTTFRC)
- Consumer Publications, Trade Publications, Trade Associations, Forecasting Services, Reporting Services, COnsultants.
- Top-down and bottom-up plans
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Top-down- starts at the upper levels of a business where objectives are defined, then other division plans follow.
Bottom-up- PLans start at department level and work their way up - 4-5-4 Calendar
- an accounting calendar that structures a fiscal year. Each month has 4 weeks (28 days) or 5 weeks (35 days. Makes comparisons of retail sales more consistent.
- Six month plan
- 2 seasons: Fall (August-January) and Spring (February-July). More sales in Fall.
- Components of the six month plan
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1- Planned Sales
2- Planned Stock
3- Markdowns
4- Planned Purchases - External and internal influences of planned sales
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External- Season, Economy, Weather, Fashion trends
Internal- past sales, promotional events expansion or closure of branches - Divisions (i.e. menswear, intimate apparel, juniors)
- Highest level of merchandising- coordinates groups of similar products
- Departments (i.e. men's tailored)
- merchandise is more narrowly focused, buyer is the administrative head
- Classifications (i.e. men's shirts, trousers)
- merchandise with similar characteristics
- Subclasses (i.e. long sleeve, knit, pullovers)
- Merchandise is even more narrowly focused
- Assortment Planning
- the prices, styles, brands, sizes, fabrics, and colors that make up the merchandise created to mee customer demand
- Planning stock
- always planned for the beginning of the month, BOM, which is also last month's EOM
- Productivity
- a measure of the number of units of output produced produces per unit of input
- Turnover/stockturn
- the number of times that an average inventory is sold within a time period
- Average inventory/stock
- the average amount of stock on hand within a time period
- High turnover
- High- is generally more desirable retailers want to generate more sales on less inventory
- Stock to Sales ratio
- the proportionate relationship between sales and BOM stock
- Micromerchandising
- the concept of managing individual brands or categories of merchandise as units of the business
- Cost
- paid to the supplier (wholesale cost or price)
- Markup (markon)
- amount added to the cost to est. retail price
- Initial Markup
- first price an item has been sold at
- Cumulative Markup
- markup for a group of varied price goods
- Maintained markup
- difference between the cost of the merchandise and the actual retail selling price