Retail Merchandising is the process of developing, securing, pricing, supporting and communicating the retailer’s merchandise offering. It means offering the right product at the right time at the right price with the right appeal!!
Steps in the Retail Merchandising Process
1. Develop the merchandise mix and establish the merchandising budget.
2. Build the logistic system for procuring the merchandise mix.
3. Price the merchandise offering.
4. Organise the customer support service and manage the personal selling effort.
5. Create the retailer’s advertising, sales incentive and publicity programs.
Retail merchandising requires management of the merchandise mix including:
1. Planning Merchandise Variety
2. Controlling Merchandise Variety
3. Planning Merchandise Assortment/Support
4. Controlling Merchandise Assortment/Support
5. Merchandise Mix Strategies
Developing the merchandise mix allows the retailer to segment the market and appeal to a select group of consumers.
Retail merchandising requires management of the merchandising budget including:
1. Planning And Controlling Retail Sales
2. Planning And Controlling Inventory Levels
3. Planning And Controlling Retail Reductions
4. Planning And Controlling Purchases
5. Planning And Controlling Profit Margins
The Components of the Merchandise Mix
• Merchandise Variety
(# of product lines)
• Merchandise Assortment (# of product items)
• Merchandise Support
(# of product units)
Planning Merchandise Variety Involves Planning and Controlling Product Lines Retailers use MANY factors to evaluate product lines.