What is merchandise assortment planning?

What is merchandise assortment planning?

Assortment planning in retail is the process of selecting the products that a retailer wants to sell during a particular period to maximize profitability. In other words, it means that retailers decide what merchandise they should buy and market to their customers.

How do you develop an assortment plan?

Actions To Consider For Assortment Planning

1. Identify Consumer Decision Trees And Customer Segments.
2. Develop A Store Clustering Strategy.
3. Shopper demand variation among categories.
4. The store format.
5. Align Internally Around Category Roles.
6. Locate Cross Merchandising Opportunities To Increase Sales.

What is merchandise financial planning?

Merchandise Financial Planning is a high-level approach to setting an organization’s sales, margin and inventory targets. During this step in the retail planning process, merchandise planning teams can plan their business without getting caught up in the lower-level details of the product hierarchy.

What are the 2 types of merchandise assortment plans?

– Purchases are planned in dollars and units. – The dollar merchandise budget provides plans for sales and inventory requirements.

What is merchandise planning process?

Merchandise planning process refers to selecting, managing, and displaying products in a manner that they bring maximum turnover on a brand name. The activity seeks to meet consumer demand by making the right merchandise available to customers at the right time, place, price and quantity.

What is the first step in developing an assortment plan?

What is the first step in developing an assortment plan? Determine the amount of planned open-to-buy. Identify the selection factors that are most important to the customer. Calculate actual sales for last year.

What is a merchandise plan?

Merchandise planning is a systematic approach to planning, buying, and selling merchandise to maximize your return on investment (ROI) while simultaneously making merchandise available at the places, times, prices and quantities that the market demands.

What is considered while assortment planning?

Assortment Planning is the development of chain, store cluster and store level product attributes, styles, colors and SKUs that provide a basis for addressing localized customer preference, customer demand, store space as well as store characteristics.