1. 2.02 Merchandise Buying Plans
Inventory

2. buyers
Responsible for selecting and buying goods for their companies

3. Buyers must: Must know customers’ taste and preferences
What they want, when they want it, what they are willing to pay
Determine quantities and timing for styles, colors, sizes, and prices

4. Department buying
Buying for a specific department such as women’s, men’s, juniors, etc.

5. Classification buying
Method of buying for chain stores. Usually only buy 1 classification. Ex: men’s sweaters, women’s dresses

6. Merchandise cycle
Plan Buy Sell

7. Buying plan
A PLAN that describes the types and quantities of merchandise to buy

8. Assortment breadth (width)
The number of different categories or classifications to sell. Men’s, women’s, children’s, accessories, juniors, etc.

9. Assortment depth
Quantity of each item carried

10. Inventory = stock
Amount of merchandise available

11. Assortment plan
Projects the variety and quantity of stock to meet customer demand

12. Dollar merchandise plan
A 6-month financial plan
$ amount needed
Feb july; aug Jan
$ amount of merchandise each month
Based on the previous year

13. Stock turnover
How quickly an item sells (moves). High turnover means the product is moving, thus, increasing profit

14. Shock shortage (shrinkage)
Difference between the books and actual store inventory. May differ due to:
Employee theft
Shoplifting
Errors
Vendor fraud

15. Stock keeping unit (sku)
A number assigned to each item
Gender
Size
Color
style

16. Stock to sales ratio $ stock value beginning of month
$ projected sales for month
Helps determine if the right amount of merchandise will be available to sell

17. Complementary products
Items used to complement or accessorize. Ex: selling winter coats so the store stocks hats and gloves also

18. Comparison shoppers
People employed by stores to check out the competitors’ prices, assortment, sales, advertising, promotions, displays, services, salespeople, etc.

19. Indirect selling
Nonpersonal promotional selling aimed at large, general audiences

20. Direct selling
Personal interaction with the customer when exchanging merchandise for payment

21. Internal information Information found internally Past sales records
Customer feedback
Want slips
Consumer polls

22. External information External information used Vendors
Trade info (publications, shows, industry stats)
Consulting services
Fashion forecasters

23. Resources when Selecting vendors
Manufacturers
Wholesales
Websites
Catalogs
importers