1. Merchandise Assortment

2. Decisions, Decisions Good planning is critical Target market analysis
Merchandise decisions
Pricing decisions

3. Merchandise Plan
Basic budgeting tool that assists the retailer or buyer in meeting department or classification goals
Uses figures from past year to predict plan for current year
Planned sales
Planned stock
Planned reductions
Planned purchases

4. Merchandise Planning
Method used by retailers to make intelligent decisions prior to purchasing merchandise for store
Prevents over-and under-buying
Can be for entire store or specific departments
Merchandise classification: group of similar items

5. Components of Merchandise Plan
Planned sales: expressed in $$$ figures and reflect sales goals for the month
Planned stock: $$$ amount of merchandise a store needs in order to meet the sales
Planned reductions: $$$ amount of any markdowns, adjustments, and loss
Planned purchases: $$$ amounts of needed merchandise to meet sales goals

6. Merchandise Life Cycle
Introduction
Growth
Acceptance
Decline

7. Assortment Planning Tools
Categorizing merchandise:
Staple merchandise: sells well over a long period of time
Fashion merchandise: sells well for several seasons
Seasonal merchandise: sells well at certain times or seasons during the year
Convenience merchandise: merchandise customers buys with little planning

8. Assortment Planning Tools
Stock Lists:
Basic stock list: used for items that a store should always keep in stock, same items with a minimum amount to always be kept in stock
Model stock list: used for fashion merchandise, since a shorter life span, list is shorter and without specific stock numbers
Never-out stock list: most popular merchandise in the store with items being added or dropped based upon popularity