merchandise assortment receiving goods and inventory 2
TRANSCRIPT
Merchandise AssortmentMerchandise Assortment
Receiving Goods and InventoryReceiving Goods and Inventory
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Chapter Objectives
Explain merchandise plans.
Describe the components of a merchandise plan.
Define merchandise life cycles.
Explain the receiving process.
Explain the concept of inventory control.
Describe inventory systems.
Explain stock turnover.
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Merchandising Decisions
One of the most challenging tasks for a retailer is providing the right merchandise at the right prices—and at the right time.
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Merchandising Decisions
Before a retailer buys any merchandise for a store, he or she must make decisions and plans to make the buying process more efficient.
A retailer must make decisions about what merchandise to carry and what prices to set.
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The Merchandise Plan
Retailers use a merchandise planmerchandise plan to make intelligent decisions before they purchase merchandise for their stores.
merchandise plan a basic budgeting tool that assists the retailer or buyer in meeting departmental or classification goals
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Merchandise Life Cycles
The four stages of the merchandise life cyclemerchandise life cycle are:
merchandise life cycle customer-acceptance levels and buying levels of an item of merchandise
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Introduction
Growth
Acceptance
Decline
Merchandise Assortment Planning Tools
Categorizing types of merchandise is one tool retailers use to make certain they have the merchandise to satisfy their customers’ needs.
Retailers also use stock lists to help plan their purchases.
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Merchandise Assortment Planning Tools
Types of merchandise are: staple merchandise merchandise that sells well over a long period of time
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Staple merchandiseStaple merchandise
Fashion merchandiseFashion merchandise
Seasonal merchandiseSeasonal merchandise
Convenience Convenience merchandisemerchandise
fashion merchandise merchandise that sells well for several seasons but not as long as staple merchandise
seasonal merchandise merchandise that sells well at certain times of the year
convenience merchandise merchandise that is purchased by customers without much planning or thought
Merchandise Assortment Planning Tools
Types of stock lists are: basic stock list list used for items a store should always have in stock
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Basic stock listBasic stock list
Model stock listModel stock list
Never-out listNever-out list
model stock list list used for fashion merchandise
never-out list list used for the most popular merchandise that should always be in stock
Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.
Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.
Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
Offering merchandise that customers crave is important for clothing retailers. Customers may come to a store looking for a certain dress or style. Once they find what they’re looking
Cyber Fit
for, they head for the fitting room. Wait—where do you change clothes in an e-store? To overcome the lack of store-based fitting rooms, retailers such as Lands’ End use My Virtual Model®, an online simulation model for all body types, measurements, and sizes.
For more information on retailing, go to marketingseries.glencoe.com.
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What are the four components of a merchandise plan?
Identify the four stages of the merchandise life cycle.
Name the three types of stock lists.
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2.
3.
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Receiving Merchandise
Inventory must be received, checked in, marked, and handled properly.
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Receiving Merchandise
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merchandise
ReceivingArea
merchandise
Move toSelling Area
merchandise
Check In
merchandise
Mark WithSelling Price
Receiving Merchandise
When retailers purchase merchandise, the purchase is recorded on a purchase purchase orderorder.
purchase order order form that lists the style numbers of the merchandise being purchased, the amount, the delivery date, and terms of purchase
invoice a bill for merchandise
The vendor sends an invoiceinvoice to the retailer who has ordered the merchandise.
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Receiving Merchandise
Types of checking in merchandise are:
Quantity check
Indirect check
Quality check
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Receiving Merchandise
Merchandise must be marked with the selling price.
Many retailers use Universal Product Codes (UPC).
The last step in the receiving process is to move merchandise to the store’s selling area.
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Inventory
InventoryInventory includes merchandise in the selling area; merchandise that has been purchased and is stored for future selling; and merchandise waiting to be returned to the vendor.
inventory merchandise retailers have for sale
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Inventory Control Systems
Retailers can use various methods of inventory inventory controlcontrol.
inventory control managing inventory levels to ensure enough merchandise to meet sales goals without having too much inventory on hand
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Inventory Control Systems
Inventory control systems include:
stock turnover the number of times the average inventory is sold during a time period, usually a year
Physical inventory system
Perpetual inventory system
Stock turnoverStock turnover
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Using Inventory Methods
Receiving and controlling merchandise properly ensures that the right merchandise and quantities are in stock.
Retailers can reach sales goals by using tools like inventory control systems and merchandise handling.
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What are the four steps in the merchandise receiving process?
What are the two types of inventory control methods?
Why is stock turnover important?
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2.
3.
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Define merchandise plan.
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Explain the merchandise life cycle.
Name the four types of merchandise.
Compare the three types of stock lists.
The merchandise plan is a basic budgeting tool that assists the retailer or buyer in meeting departmental or classification goals.
1. Merchandise life cycle refers to the customer acceptance and buying levels of an item of merchandise. There are four stages—introduction, growth, general acceptance, and decline.
2. staple, fashion, seasonal, convenience
3. A basic stock list is used for items that a store should always have in stock. A model stock list is used for fashion merchandise. A never-out list is used for the most popular merchandise.
4.
Checking Concepts
continued
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2.
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4.
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Explain the merchandise receiving process.
Define inventory control.
Describe the two types of inventory control systems.
Most retail businesses have a place set aside to receive and check in new merchandise. This includes comparing the purchase order to the invoice. The merchandise is then marked with its selling price and moved to the area of the store where it will be sold.
5. It is managing inventory levels to assure enough merchandise to meet sales goals without having too much inventory on hand.
6. Physical inventory systems physically count the merchandise in the inventory. Perpetual inventory means keeping daily track of merchandise that is received and merchandise that is sold.
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Checking Concepts
continued
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Critical Thinking
Explain why retailers want a high stock-turnover rate that is not too high.
A high stock-turnover rate means that the stock is selling quickly. However, an excessively high stock- turnover rate can mean that there is not enough merchandise available to meet the planned sales goals or that certain items of merchandise are out of stock and that back orders of merchandise will result.
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Checking Concepts
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