Retail Merchandising

45 %
55 %
Information about Retail Merchandising
Education

Published on October 20, 2008

Author: shrirangan1986

Source: authorstream.com

Retail Merchandising 1 : Retail Merchandising 1 Shri rangan Objectives : Objectives To demonstrate the importance of a sound merchandising philosophy To outline the considerations in devising merchandise plans: forecasts, innovativeness, assortment, brands, timing, and allocation To discuss category management To study various buying organization formats and the processes they use Retail Merchandising : Retail Merchandising Definition & the Concept of Retail Merchandising Role & Responsibilities of a Merchandiser Fashion Merchandising Merchandise Characteristics Merchandise Management- Merchandise Mix & Merchandise Budget Basics of Merchandise Accounting RM - DEFINITION : RM - DEFINITION Retail selling effort that is the principal task of in-store sales personnel through the use of promotions designed by a manufacturer, such as unique displays, giveaways, or discount and premium offers. In this case, merchandising is the act of managing and arranging the merchandise on display in a store so as to promote its sale. Role & Responsibility of Merchandiser : Role & Responsibility of Merchandiser Planning Directing Co-ordinating Controlling Merchandising Versus Store Management Career Tracks : Merchandising Versus Store Management Career Tracks Functions of Merchandisers at Shopper’s stop : Functions of Merchandisers at Shopper’s stop Inventory-turn Management Achieving Sales & Margins Plans Merchandise Availability Management, as per range plan Merchandising strategy & planning Processing of purchase orders Analysis of Data & Sales Budgeting Profitability Targets & Expense Control Vendor/Supplier relations for both, in-house products as well as for brands. ARRANGING -MERCHANDISE : ARRANGING -MERCHANDISE Merchandising arrangement : Merchandising arrangement MERCHANDISING ARRANGMENT……… Why making effective use of your space is so important. How to position your departments and products. How to improve store lighting. The importance of atmosphere and cleanliness in your store. How to create great displays and signage. WHAT WE WILL ACHIEVE AS A BUSINESS………. The consistently best Display standards against Competition in India A great environment that will attract & satisfy Customers Showcase to best advantage our product offer Dramatically enhance Customer Service Managing the Merchandise : Managing the Merchandise Developing a sales forecast Determining the merchandise requirements Merchandise control Assortment planning Developing Sales forecast : Developing Sales forecast Reviewing Past sales Analyzing the changes in Economic Conditions Analyzing the changes in the sales potential Analyzing the changes in the marketing strategies of the retail organization and the competition Creating the sales forecast Forecasts : Forecasts These are projections of expected retail sales for given periods Components: Overall company projections Product category projections Item-by-item projections Store-by-store projections (if a chain) Determining the merchandise requirements : Determining the merchandise requirements Merchandise Mix Retail communication Mix Basics of Merchandise Accounting : Basics of Merchandise Accounting Merchandising Accounting : Merchandising Accounting Cash Flow The Balance sheet Financial Ratios Income statements Gross- Margin-Return on Investment Cash Flow : Cash Flow Cash In Cash Out Negative Cash flow = Cash In < Cash Out Positive Cash flow = Cash out > Cash In Cash Flow Curve : Cash Flow Curve Oct Nov Dec Jan Feb Mar Cash In Cash out The Balance Sheet : The Balance Sheet The Balance Sheet is a statement of an organization's Assets, Liabilities and Owners’ Equity at a Particular Point in time. Assets Liabilities Owner's Equity Assets : Assets Assets – Owned by an organization a. Short term (or) Current Assets b. Long term Liability : Liability Liability: Debts owed by an organization Payment on Short term Ex: Payment to supplier Payment on Long term Ex: Mortgage on Land & Building Investment on Extension, Expansion & renovation Owner’s Equity : Owner’s Equity Owner’s Equity : Difference between asset and Liability. Relationship: Assets = Liabilities + Owner’s Equity Income statement : Income statement Income statement : Income statement Profit performance for a specific period of time Income statement is otherwise called Statement of earnings or Profit & loss statement Income statement: Revenue – Expenses = Net Income Profit = Expenses < Revenue = positive Net Income Loss = Expenses > Revenue = Negative Net Income Income statement contd… : Income statement contd… Income statement can be computed for an entire organization Individual Store A Group of Store Department Profit and loss is based on the revenue & expenses directly associated with each unit of business. Income statement contd… : Income statement contd… Components : 5 major components Revenue Cost of goods sold Gross margin Expenses Net Profit Relationship among the components Net revenue – Cost of goods sold - Expenses Gross margin Net Profit Income statement contd… : Income statement contd… Relationship among the components Net revenue – Cost of goods sold - Expenses Gross margin Net Profit Net revenue : composed of sales, Leasing or renting property or interest on accounts Net sales = Gross sales – Customer return Gross sales are used to determine the customer return rates Customer return rate = Customer returns x100 Gross sales Income statement contd… : Income statement contd… High customer return rate is often indicates of issue related a. Customer service b. Quality c. Fit of merchandise High sales attest to the ability of an organization buyer to select assortments of goods that are appealing to the store’s target customers. Income statement contd… : Income statement contd… Cost of goods sold (or) Cost of Merchandise sold (or) cost of sales Cost of goods sold = Billed cost of Merchandise + work room costs +shipping cost – cash Discount - Returns to vendors Income statement contd… : Income statement contd… Shipping cost : Delivery cost for transporting goods from supplier Workroom costs: activities that prepare merchandise for sale ( steaming & pressing apparel) Return to vendors : defective or slow selling goods returned to suppliers for credit Cash discounts : Invoice concessions from suppliers for prompt payment Income statement contd… : Income statement contd… Expenses: Payroll, rent, Utilities, advertising and interest on debt. Direct Expense: attributable to a specific unit ( store rent ) Indirect Expense: is not attributable to a specific unit. ( news paper advertisement ) Income statement contd… : Income statement contd… Gross margin : Difference between sales and cost of goods sold. Net Income : Gross Margin – Expenses Income can be increased by Increasing sales Increasing Gross Margin Decreasing cost of goods sold Any combination of above Component Percentage : Cost of goods sold = cost of goods X 100 Net sales Gross Margin = Gross Margin X 100 Net Sales Expenses = Expenses X 100 Net Sales GMROI : GMROI GMROI : GMROI Gross Margin Return on Investment Integrates two performance Gross Margin Turn Over To create a single measure of performance GMROI = Gross Margin X Net sales Net Sales Average Inventory GMROI = Gross Margin / average Inventory GMROI for 3 Merchandise Categories : GMROI for 3 Merchandise Categories Key terms : Key terms

Add a comment

Related presentations

Related pages

What is Retail Merchandising? (with pictures)

Retail merchandising is the process used to conduct retail sales. The main tenets of successful retail merchandising include...
Read more

Retail merchandiser: job description | TARGETjobs

Retail merchandiser: job description. ... Retail, buying and merchandising graduate jobs, internships and expert careers advice; Making speculative ...
Read more

Retail Merchandising - Management Study Guide - Free ...

Merchandising. Retail Merchandising refers to the various activities which contribute to the sale of products to the consumers for their end use.
Read more

Retail Merchandising Jobs - Search Retail Merchandising ...

Search for Retail Merchandising jobs at Monster. Browse our collection of Retail Merchandising job listings, including openings in full time and part time.
Read more

visual merchandising » Retail Design Blog

Retail store design - Furniture - Visual Merchandising - Branding - Materials - Lighting - ECO
Read more

retail merchandising - Deutsch-Übersetzung – Linguee ...

Viele übersetzte Beispielsätze mit "retail merchandising" – Deutsch-Englisch Wörterbuch und Suchmaschine für Millionen von Deutsch-Übersetzungen.
Read more

Retail Merchandising Signs, LLC - Welcome to Retail ...

We have become one of the largest suppliers of retail sale signs and supplies. Adding many new designs to our current product categories has expanded our ...
Read more

Careers - USA - Retail Merchandising Services | A ...

Careers - USA. Welcome to the Retail Merchandising Services careers page. To help you decide if working for Retail Merchandising Services is right for you ...
Read more