SMU MBA ASSIGNMENTS

A retail merchandiser determines what products will end up on the shelves of which store. She may work at a high-end fashion boutique, in a toy store or in any other retail outlet, picking which items to display in the store and determining how much of an item the store should have on hand to meet demand.

Choosing the Right Products

In many cases, a retail merchandiser or merchandising manager will work with the buyer of a store to pick out the type of products ordered. The merchandiser decides how much of each product to order and at what cost. She also determines how much of each product to carry in each store if she works for a retail outlet with more than one location. Merchandisers need to have an idea of the demand for products at the store so that there is not too few of an item or too much.

Setting the Right Price

A merchandiser sets the price for items sold in a retail setting. He will know at what price items, such as pants or jackets, sell best and will strive to assign that price to the items. In most cases, being able to set the right price means that the buyer needs to negotiate the right cost from the manufacturer. The price for merchandise should not only encourage customers to purchase, but should also obtain the greatest profit for the company.

Displaying Products

Perhaps the primary objective in merchandising is displaying products so that customers will be enticed to buy them. A merchandiser chooses the basic layout of a store to encourage the most sales and determines what will be displayed where. For example, she may set up a display of the most popular toy in the window of a toy store during the holiday season. If a sale is coming up, the merchandiser needs to display the sale products clearly so that customers know what is and what is not on sale.

Effective Communication

A retail merchandiser may serve as the contact person for a store, its buyers and its manufacturers. He needs to communicate with the staff at the retail store, such as the sales associates and managers, about the store displays and demonstrate to them how to display products effectively and keep the store neat and orderly. He also needs to communicate with buyers about the cost of items as well as the quantity.

 

Q2. Discuss the role of retail buyer.

A retail buyer is responsible for planning and selecting a range of products to sell in retail outlets. The buyer must consider the following factors when making purchasing decisions:

• customer demand (e.g. price, quality and availability);
• market trends;
• store policy;
• financial budgets.

Buyers source new merchandise and review existing ones to ensure products remain competitive. By fully understanding customer needs, they are able to maximise profits and provide a commercially viable range of merchandise at competitive prices. Keeping up to date with market trends and reacting to changes in demand are key elements of the role.

Retail buyers have a considerable amount of responsibility and autonomy in what is often a pressured environment.

Typical work activities

Typical work activities can vary according to the season. This is particularly true for those working in fashion. For example, out of season, the majority of time will be spent in the workplace (in the office and on the shop floor), and during the buying season, a significant amount of time will be spent away from the workplace in order to assemble a new collection of merchandise.

Throughout the year, tasks typically involve:

• analysing consumer buying patterns and predicting future trends;
• regularly reviewing performance indicators, e.g. sales and discount levels;
• managing plans for stock levels;
• reacting to changes in demand;
• reacting to changes in logistics;
• meeting suppliers and negotiating terms of contract;
• maintaining relationships with existing suppliers and sourcing new suppliers for future products;
• liaising with other departments within the organisation to ensure projects are completed;
• attending trade fairs, in the UK and overseas, to select and assemble a new collection of products;
• participating in promotional activities;
• writing reports and forecasting sales levels;
• presenting new ranges to senior retail managers;
• liaising with shop personnel to ensure product/collection supply meets demand;
• seeking merchandise feedback from customers;
• training and mentoring junior staff.

 

The role of a Buyer is of critical importance.  They are accountable for the influence of trends and how

this affects the overall image and positioning of a business.
Retail Buyer Accountabilities

Financials	Setting + planning of Open to Buy budgets
Achieving set budgets	Sales Gross Margin Markdowns Stock levels
Product Development	Sourcing product local/overseas
Positioning in the market	Image + profile
Advertising	Type of events + timing of events Product submissions Achieving budgeted return on investment
Developing long and short term business plans
To provide a competitive product range	Range offered Price
Ensure customer satisfaction	Price Quality Product Availability