Merchandise management and principles of merchandise management.

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Merchandise management and principles of merchandise management.

Organising Merchandise within the Departments: A number of criteria may be used to arrange merchandise, including brand, category, size, and price. New or heavily advertised products often are distinguished, as are items with particular service specifications. Retailers give their best selling merchandise the best selling area of the stores. The most favorable locations for merchandise are feature floor displays, end-aisle units, and eye-level positions on gondolas and wall fixtures, and point-of-sale counter areas. Consider these suggestions for positioning departments:

Merchandise Management Principles

High margin / High profitmerchandise management principles

The merchandise that is highly profitable for the store sales can afford the “high rent” district in the store.

Demand Merchandise

This is the merchandise, the customers make a point of coming to the store to get and will hunt for it. This should be put in a less valuable space and make them walk buy the more impulse related items.

Impulse Items

These are the unplanned purchases customers make on a shopping trip. Items with high impulse success get great locations in the store.

Related merchandise

Put merchandise even though it may be in separate departments, near each other if they are coordinating or complementary items. This will make them visible to the customer and make shopping easier.

Seasonal stock

Some stores designate an area of the floor for merchandise that is on hand on only a short-term basis. This makes for efficient changeover of that area when a new season arrives.

Plano-gram Process

Plano gram is a computer –based technique for designating a precise placement for every item stocked in a department. It illustrates exactly where every SKU should be placed. These are used by chain stores to display merchandise in the best way and to achieve standardization across company locations. A Plano gram is nothing more than a picture of how various fixtures, shelves and walls will be presented with merchandise. But while it is a relatively simple concept, it is a very powerful one too. The Plano gram will force the retailer to consider very carefully what products go where, why and how many. It will also take into consideration what is known about the psychology of consumer buying habits.
The Plano gram is a detailed plan that gives store guidelines for:
• Storefront, window display or department setup.
• The quantities of merchandise to be used and how they are to be displayed.
• The type of fixture to use and its placement
• Price and description of the merchandise.
• Signs are to be used.
Using this type of planning system provides continuity from the storefront to the display and fixture positioning in the store; the customer will recognize the store by its uniform merchandise presentations and visual displays.

Merchandise Presentation:

With labor costs continually increasing, the retailer must take advantage of every opportunity to sell merchandise. Appropriate presentation tools placed correctly on selling floors and dressed properly are a successful silent sales force. A primary goal of the fashion retailer is to create and maintain a quality fashion image. Merchandise presented interestingly to the public can contribute greatly to both a store’s and a department’s image. To achieve this goal, a retailer needs to remember how the customer sees the store and the merchandise displayed in it. Each item of merchandise, properly arranged, is part of the image development process.