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Seasonal Planning
Long
before the first heat wave signals the start of the Christmas season to
most shoppers, buyers who order seasonal merchandise will be turning
their attention to Back to School, Valentines Day and Easter. And
while most people are anticipating the arrival of spring, retailers who
stock seasonal goods will be pondering Christmas cards and swimsuits.
Seasonal buying is somewhat like working the nightshift; you always
feel a bit out of step with the rest of the world.
If
you take into account that the buying season for holiday merchandise
has gotten so long that Christmas ordering takes place over almost a 9
month period, it becomes clear that it is an ongoing challenge to keep
track of whether there are enough (or too many, which is often worse)
gift bags, tree toppers or jingle bell ornaments on order. Read more
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Buyer Responsibilities
The
buying function plays a critical role in the retail organisation
because it is buyers who determine virtually all of the elements of the
merchandise offer. If the buyer fails to get the 'five rights' (that
is, merchandise, quantity, price, place and timing) right, no amount of
slick presentation or promotion will save the retailer.
The effectiveness of the buying function has a major impact on the retailer's ultimate profitability because:
· Merchandise is the principal generator of revenue
· Merchandise typically represents between 33 and 66 percent of the retailer's total assets. Read more
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Product Deletion
Every good buyer makes an occasional bad buy.
Buyers must use judgment based on experience and be prepared to take
risks. Nevertheless many bad buys result from lack of discipline or
analysis to complement or test that judgment.
Therefore
buyers need to continuously seek information to better assess buying
opportunities and work closely with their selling partners in the
stores.
Read more
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