1. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Chapter 11: Planning and Executing the Purchase

2. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Buyer Duties and Responsibilities Purchasing Pricing In-store visual presentation Selecting merchandise for advertising and promotions Managing a department Interacting with other mid-management personnel

3. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Pricing Merchandise Correct pricing imperative for profit Keystone markup may be used Influenced by  Competition  Inventory protection  Turnover rate  Perishability  The buyer’s judgment

4. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Planning the Purchases Internal preparation External assistance Model stock development Elements of fashion buying

5. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved External Sources of Assistance Resident Buying Offices Fashion Forecasters Reporting Services Trade Publications Trade Associations Consumer Periodicals

6. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Resident Buying Offices Locate new resources Preview collections Follow up on orders Communicate with retail buyers Purchasing Market week preparations Arrange adjustments Analyze market conditions Plan promotions Pool orders Manage inventory

7. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Two Types of Buyers Retail buyers: purchase for a retail organization Resident buyers: assist retail buyers in their job; may purchase products for retail buyers

8. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Model Stock Development An inventory that includes the appropriate assortment of merchandise in terms of prices, styles, size ranges, colors, and fabrics. Constantly changing due to the nature of fashion items.

9. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Elements of Fashion Buying Qualitative Considerations Quantitative Considerations  Open-to-buy Resource Selections  Fashion perishability  Maintained markup  Stock turnover

10. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved OTB Calculation Merchandise Needed Merchandise Available Open-to-buy

11. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Merchandise Needed Formula Planned EOM Inventory + Planned Sales + Planned Markdowns Merchandise Needed

12. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Merchandise Available Formula Merchandise on hand +Merchandise on order Merchandise available

13. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Trends in Purchase Planning Studying international publication Becoming familiar with global trade expositions Planning for greater proportion of private label merchandise