retail buying-session 1&2.ppt
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13-1
Retail Buying& Category Management
Session: 1 & 2
13-2
This process of Merchandise Planning begins with the formulation of objectives, setting of policies and implementation of procedures necessary to carry out dept. / store objectives.
It includes both –
•Cash planning in terms of Merchandise budgets
•Unit planning in terms of Merchandise lists
Merchandise Planning
13-3
Six-month merchandise plan
Successful retail working requires the right merchandise assortment.
To achieve this, the following variables must be planned at least 6 months in advance.
•Receipt Plans
•Sales Plan
•Mark-up Plans
•Mark-down Plans
•Inventory shortages
•EOM Stock levels
•Weeks Supply
•Gross Margins – Profits
This plan is called the merchandise budget & it forecasts specific merchandising activities for a dept. or store for a specified period of time. This merchandise budget is also referred to as the six-month merchandise plan.
13-4
WHY IS PLANNING IMPORTANT??
Complex business environment
Stock-out – Loss of Sale
Overstocking – Dead stock
13-5
The Planning Process
Planning is based on 3 components:
Objectives : the goal towards which the management activities of the business establishment are directed.
Policies: provide management with a frame of reference for decision making that is consistent with planned objectives – they provide guidelines for dealing consistently with problems & issues.
Procedures: are necessary steps that must be followed to execute a given policy. Management must emphasize if the procedure is a rule / guide.
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Cash Disbursements
Cash Receipts
Credit
Expenses
oDirect: paid out directly for the dept.’s benefit. E.g. salary, advertising, promotions, special events.
oIndirect: that serve the whole store. E.g. electricity, rent, taxes, insurance etc.
Dept. Sales 20,000
COGS - 14000
Total 6000
Direct Expenses -4000
Total 2000(indirect ex + profit)
Variables of record-keeping
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Sales
Purchases
Stocks & Inventories
Profit & Loss Statement / Income Statement / Operating Statement
13-8
Key factors – P & L
Net Sales = Gross Sales - Returns & Adjustments
Total Cost of Purchases = Op. Inventory
(cost)+ Purchase
(cost)Shipping
(cost)+
Net Cost ofGoods Sold = Total Cost
of Purchases - Closing Inventory (Cost) = Gross COGS -
Cash Discount
13-9
Gross Margin
Net Sales Net COGS
Total Operating Expenses
Direct Expenses
IndirectExpenses
Net ProfitGross
MarginTotal Operating
Expenses=
=
= -
+
-
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The Planning Process
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Operations Budget
It is defined as a forecast of expected sales along with expected costs for a specified time period.
It is also referred to as the revenue and expense budget.
It is usually made one year in advance though estimates may be for 3-5 yrs also.
Close monitoring of Sales analysis, inventory turnover etc. is done to determine if sales figures are in line with the goals.
However, internal & external factors may also affect the goals.
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Cash Budget
•It is an estimate of the cash receipts & cash disbursements for a specified period of time.
•It tells management the amount of cash required in the future period under consideration.
•Cash budgets may extend over one year with cash receipts & disbursements estimated on a daily basis.
Capital Budget•It plans for the investment of assets that will last longer than one year.
•It contains a list of future investment projects with a justification for each proposal mentioned against it.
•It takes into account an analysis of the geographical region, income level, competition etc. It is prepared by the store research division.
•However, the buyer has the responsibility of merchandising each new branch.
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Merchandise Management
Retail Pricing
RetailCommunication
Mix
Merchandise Planning Systems
Managing Merchandise Assortments
Buying Merchandise
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Merchandise Budget
■ It is a plan that forecasts specific merchandising activities for a department or store for a specific period of time.
■ The buyer works with other department executives to develop the plan that will guide him through various phases of merchandising activities.
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•Merchandise Mix
Definition: The breadth and depth of the products carried by retailers.Also Known As: Product Assortment
•Product Breadth
Definition: The variety of product lines offered.Also Known As: Product Assortment Width, Merchandise Breadth.
•Product Depth
Definition: The number of each item or particular style of a product.Also Known As: Product Assortment, Merchandise Depth.
•SKU Definition: A number assigned to a product by a retail store to identify the price, product options and manufacturer of the merchandise.
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Steps In The Retail Merchandising Process
1. Develop the merchandise mix and establish the merchandise budget.
2. Build the logistic system for procuring the merchandise mix.
3. Price the merchandise offering.4. Organize the customer support service and manage
the personal selling effort.5. Create the retailer’s advertising, sales incentive and
publicity programs.
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Retail merchandising requires managementof the merchandise mix including:
1. Planning Merchandise Variety2. Controlling Merchandise Variety3. Planning Merchandise Assortment4. Controlling Merchandise Assortment5. Merchandise Mix Strategies
Developing the merchandise mix allowsthe retailer to segment the market andappeal to a select group of consumers!!
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Retail merchandising requires management of the merchandise budget including:
1. Planning And Controlling Retail Sales2. Planning And Controlling Inventory Levels3. Planning And Controlling Retail Reductions4. Planning And Controlling Purchases5. Planning And Controlling Profit Margins
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THE COMPONENTS OF THE MERCHANDISE MIX
Merchandise Variety (# of product lines)
Merchandise Assortment (# of product items)
Merchandise Support
(#of product units)
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Planning Merchandise Variety Involves Planning And Controlling Product Lines
Retailers use MANY factors to evaluate product lines!!
Planning Merchandise Variety Involves Planning And Controlling Product Lines
Retailers use MANY factors to evaluate product lines!!
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FACTORS USED TO EVALUATE PRODUCT LINES
1. The compatibility among product lines.Must Consider:
Product substitutes Product complements Unrelated products
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FACTORS USED TO EVALUATE PRODUCT LINES
2. The physical attributes of each product line.
Must Consider: Product standardization Product service levels Product selling methods
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FACTORS USED TO EVALUATE PRODUCT LINES
3. The product lines’ potential profitability.
Must Consider: Direct and indirect contribution to
profitability Calculations of gross margin % and $$
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FACTORS USED TO EVALUATE PRODUCT LINES
4. The role branding plays in the success of the product line.
Must Consider: How brands can distinguish a retailer from competitors How brands can build store loyalty The advantages and disadvantages of offering different types
of brands – no names, vendor brands, store brands (private labels) and licensed merchandise
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FACTORS USED TO EVALUATE PRODUCT LINES
5. The age of each product within the product lifecycle
Must Consider: What stage a product is in to judge future sales
potential The number of products offered at different stages
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FACTORS USED TO EVALUATE PRODUCT LINES
6. The fashionable nature of each product line.
Must Consider: Use of unique designer fashions as part of the
store’s strategy The above average risk of fashion merchandise
( But also note: high margin items with above average profitability)
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FACTORS USED TO EVALUATE PRODUCT LINES
7) The market appropriateness of each product line.Must Consider:
How well the product matches consumption patterns and buying needs of targeted consumers
The relative advantage, affinity, trialability, observability and complexity of new product introductions
Market trends– provide products the market wants!!
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FACTORS USED TO EVALUATE PRODUCT LINES
8. The impact of lifestyle on product line acceptance.Must Consider:
Targeted customers’ activities, interests, and opinions
The match between consumers’ lifestyle and retailer’s image
Usefulness of trade shows to identify product lines for targeted consumers’ lifestyles
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FACTORS USED TO EVALUATE PRODUCT LINES
9. The competitive threat facing each product.Must Consider:
Competitive conditions under which the product line is available – intensive, selective or exclusive distribution
Is the product line available to direct (intra type) competitors or indirect (inter type) competitors, or both
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FACTORS USED TO EVALUATE PRODUCT LINES
10. The conditions under which each product line will be procurable.
Must Consider: Availability and reliability of various suppliers Terms and conditions under which the product will
be made available
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CONTROLLING MERCHANDISE VARIETY
Is an art and a science No rules for what should be included in the
merchandise mix and what should be excluded Two useful management methods
I. Category Management: each product managed as a business unit at the store level
II. ABC Analysis: each product line is rank ordered based on performance levels
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PLANNING MERCHANDISE ASSORTMENT AND SUPPORT
Must organize the merchandise mix as to the number of different product lines carried
Must decide on: Brands Sizes Colors Material Styles Price points
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PLANNING MERCHANDISE ASSORTMENT AND SUPPORT
Goal is to ensure that product choice meets targeted consumer needs
Must carefully plan the number of units to have on hand to meet the expected sales for the brand, size, color combinations
Must develop merchandise lists1. Basic Stock List (staple items)2. Model Stock List (fashion items)3. Never Out List (key items and best sellers)
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CONTROLLING MERCHANDISE ASSORTMENT AND SUPPORT
■ Involves monitoring and adjusting the types of product lines that are added and dropped from the merchandise mix
■ Two widely used methods to control assortment and support:1. Inventory turnover: rate at which the retailer depletes and
replenishes stock2. Open-to-buy:amount of new merchandise a retailer can
buy during a specific time period without exceeding planned purchases for the period
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Merchandise Mix StrategiesDifferent optimal variety and assortment strategies possible!!
■ Narrow Variety/Shallow Assortment Vending machines Newsstands Door-to-door
■ Wide Variety/Shallow Assortment Variety Stores General Stores Discount Stores
■ Narrow Variety/Deep Assortment Specialty Stores
■ Wide Variety/Deep Assortment Full-line Department Stores
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MERCHANDISE BUDGET MANAGEMENT
■ Financial management tool used to plan and control the total amount (in dollars) of inventory carried in stock at any time
■ Determines how much a retailer should invest in inventory during a specified period
■ Remember: Merchandise Budget controls dollars; Merchandise Mix controls product units
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Methods used for Planning
■ Top-down: Planning of overall sales based on economic trends, external conditions & changes in store policies. The sales goals thus set are further broken down for departments.
■ Bottom-up: initial planning is done by people
responsible for actually implementing the plans.
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Questions
■ How does a staple merchandise buying system operate?
■ What are a merchandise budget plan and open-to-buy systems, and how are they developed?
■ How do multi-store retailers allocate merchandise to stores?
■ How do retailers evaluate their merchandising performance?
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Types of Merchandise Management Systems
Staple Merchandise
Predictable Demand
Relatively Accurate Forecasts
Continuous Replenishment
Fashion Merchandise
Unpredictable Demand
Difficult to Forecast Sales
Merchandise Budget Plan
Open-to-Buy
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Staple Merchandise Planning
■ Buyer Determines: Basic Stock or Assortment Plan Level of Backup Inventory
■ System: Monitors Inventory levels Automatically reorders when inventory gets
below a specified level
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Inventory Levels for Staple Merchandise
Cycle (base) stock: inventorythat goes up and down due tothe replenishment process
Backup (buffer, safety) stockInventory needed to avoid stockout
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Inventory Levels for Staple Merchandise
Retailers try to reduce the stock level to keep Inventory Investment low by reordering and receivingmerchandise often but without increasedadministrative and transportation costs with frequent reorders
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Basic Stock
Indicates the Desired Inventory Level for Each SKU
Cost of CarryingInventory
Lost Sale Due to Stockout
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Factors Determining Backup Stock
■ Higher product availability (service level) retailer wishes to provide to customers
■ Greater the fluctuation in demand■ Longer lead time from the vendor■ More fluctuations in lead time ■ Lower vendor’s Fill rate (% of
complete orders received from a vendor)
MoreBackup Stocks
Needed with
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Staple Merchandise Management Systems
Staple merchandise planning systems provide information needed to assist buyers by performing three functions:
■ Monitoring and measuring current sales for items at the SKU level
■ Forecasting future SKU demand with allowances made for seasonal variations and changes in trend
■ Developing ordering decision rules for optimum restocking
13-46
Staple Merchandise Management
Ryan McVay/Getty Images
Most merchandise at home improvement centers are staples.
13-47
Inventory Management Report for Rubbermaid Merchandise
Inventory available
sales rate
Performance measures
Backup stock for desired product availability
desired product availability
Sales forecasts
Appropriate ordering decisions
13-48
Order Point
the point at which inventory available should not go below or else we will run out of stock before the next order arrives
Order point = sales/day (lead time + review time) + buffer stock
■ Assume Lead time = 3 weeks, review time = 1 week, demand = 100 units per week
Order point = 100 (3+1) = 400
■ Assume Buffer stock = 50 units, then
Order point = 100 (3+1) + 50 = 450We will order something when order point gets below 450 units.
13-49
Calculating the Order Point
Avocado Bath Mat
In a situation in which the lead time is two weeks, the buyer reviews the SKU once a week, 18 units of backup stock are needed to maintain the product availability desired, and the sales rate for the next four weeks is 5.43 per day. Order Point?
Order Point = (Demand/Day) x (Lead Time +Review Time) + Backup Stock
132 units = [5.43 units x (14 + 7 days)] + 18 unitsSo Buyer Places Order When Inventory in Stock Drops Below 132 units
13-50
Order Quantity
When inventory reaches the order point, the buyer needs to order enough units so the cycle stock isn’t depleted and sales dip into backup stock before the next order arrives.
Order Quantity = Order Point – Quantity Available
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Inventory Management Report for Rubbermaid SKUs
Avocado Bath MatQuantity available = Quantity on Hand + Quantity on Order = 90Order Quantity = Order Point – Quantity AvailableOrder Quantity = 132 – 90 = 42
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Fashion Merchandise Management Systems
The system for managing fashion merchandise categories is typically called a Merchandise Budget Plan
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Merchandise Budget Plan
■ Plan for the financial aspects of a merchandise category
■ Specifies how much money can be spent each month to achieve the sales, margin, inventory turnover, and GMROI objectives
■ Not a complete buying plan--doesn’t indicate what specific SKUs to buy or in what quantities
Royalty-Free/CORBIS
13-54
Steps in Developing a Merchandise Budget Plan
■ Set margin and inventory turn goals■ Seasonal sales forecast for category■ Breakdown sales forecast by month■ Plan reductions – markdowns, inventory loss■ Determine stock needed to support forecasted
sales■ Determine “open to buy” for each month
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Stock Turnover or Inventory Turnover
■ Stock turn is the rate at which stock is disposed of or depleted & replaced in a given period of time.
■ It helps in more profitable use of capital investment/control inventory/maximize profits.
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Computation of Stock Turnover or Inventory Turnover
Stock TurnRetail Basis
Stock TurnCost Basis
Stock TurnUnit Basis
=
=
=
Net SalesAvg. Stk at Retail Price
Cost of Goods Sold
Avg. COGS
No. of Units Sold
Avg. No. of units in stock
1
2
3
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Methods to increase Stock Turnover
■ Reducing the no. of price lines carried.■ Limiting the no. of brands carried.■ Reducing duplicate styles.■ Carrying smaller reserve stocks.■ Avoiding accumulation of unsaleable goods.■ Eliminating unsaleable goods.■ Closely following the buying plan.
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Factors affecting rate of Stock Turn
■ Different lines of merchandise have different rates of stock turn. E.g. Food Vs Apparel
■ Type of Retail Institution. E.g. Discount Store Vs Premium EBO
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Planned Reductions
■ Allowance for the difference between the original retail value & actual final sales value of the merchandise.
■ It consists of 3 factors:Merchandise Shortage/OveragesEmployee DiscountMarkdowns
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Merchandise Shortage
■ It is the diff. between the book inventory & the physical inventory when the book inventory is larger.
■ Special attention should be paid while inwarding stocks or transferring stocks.
Merchandise Overage
•It is the diff. between the book inventory & the physical inventory when the physical inventory is larger.
•This is generally due to error in physical count.
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Employee Discounts & Discounts for Other Special Groups
■ It is the price reduction granted to store employees.
■ They are also granted to some groups like charitable institutions / bulk corporate orders etc.
Markdown & Markdown %
Reduction in price from original retail price is called Markdown.
•Markdown = Original Retail Price – Markdown Price
•Markdown % = Net Markdown
Net Sales* 100
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Why Markdowns are needed?
■ To clear slow selling merchandise.■ To attract customers to the stores which
ultimately results in sale of regular merchandise.
Errors are generally of two types:■ Buying errors■ Pricing errors
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Markups
■ Buyer sells merchandise at a price that will cover the cost of goods & the expenses incurred for acquiring the goods & thereby also yield profit.
■ Markup = Retail Price – Cost Price
■ Foll. Information is crucial for planning mark-ups:■ Total amount of sales for the season■ Planned expenses■ Planned reductions■ Profit goal for the season
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Markups
■ Initial Markups & Maintained Markups
■ For planning initial markups the buyer must consider the foll:
■ Covering costs & expenses & making profits■ Consumer demand ■ Store clientele■ Kind of merchandise■ Type of Retail■ Competition
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■ Markup = Retail Price – Cost Price
■ Markup% at Retail = Markup/ Retail Price
■ Initial Markup = Retail Price – Cost Price
■ Maintained Markup = Final Retail Price – Cost Price
Markups
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Methods used to plan Needed Stocks
Basic Stock Method (BOM)
=Planned Sales
for Month +Avg. Stock at
Retail -Avg. Monthly
Sales1
% Variation/Deviation Method
=
Avg. yearly sales/Turnover [1/2 (1+ Sales
for MonthAvg. Monthly
Sales )]2
Week’s SupplyMethod
=
52 WeeksDesired Stock
Turn3
Stock-Sales Ratio Method
=Beginning Stock Month’s Sales
4
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Six Month Merchandise Plan for Men’s Casual Slacks
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Monthly Sales Percent Distribution to Season (Line 1)
1. Sales % Distribution to Season 6 mo. data April May June July Aug Sept
100.00% 21.00% 12.00% 12.00% 19.00%21.00% 15.00%
The percentage distribution of sales by month is based on• Historical data• Special promotion plans
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Monthly Sales Percent Distribution to Season (Line 1) Continued
Retail sales are very seasonal. The Christmas season often accounts for more than 40% of a retailer’s annual sales.
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Monthly Sales (Line 2)
Sales % Distribution 1. Month 6 mo. data April May June July Aug Sept
100.00% 21.00% 12.00% 12.00% 19.00% 21.00% 15.00%2. Mo. Sales $130,000 $27,300 $15,600 $15,600 $24,700 $27,300
$19,500
Monthly sales = the forecasted total season for the six-month period x monthly sales %
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Monthly Reductions Percent Distribution (Line 3)
3. Reduction % Distribution to Season
6 mo. data April May June July Aug Sept 100.00% 40.00% 14.00% 16.00% 12.00% 10.00%
8.00%
To have enough merchandise every month to support the monthly sales forecast, buyers need to consider factors that reduce the inventory level in addition to sales made to customersMarkdownsShrinkage Discounts to Employees
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Shrinkage
Inventory loss caused by shoplifting, employee theft, merchandise being misplaced or damaged and poor bookkeeping.
Retailers measure shrinkage by taking the difference between
1. The inventory recorded value based on merchandise bought and received
2. The physical inventory actually in stores and distribution centers
Shrinkage % = $ shrinkage
$ net sales
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Monthly Reductions(Line 4)
Reduction % Distribution 3. Month % 6 mo. data April May June July Aug Sept
100.00% 40.00% 14.00% 16.00% 12.00% 10.00% 8.00%
4. mo. reductions $16,500 $6,600 $2,310 $2,640 $1,980 $1,650 $1,320
Monthly Reductions = Total reductions x Monthly reduction %
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Beginning of Month (BOM) Stock-to-Sales Ratio (Line 5)
5. BOM Stock to Sales Ratio 6 mo. data April May June July Aug Sept 4.0 3.6 4.4 4.4 4.0 3.6 4.0
Stock-to-Sales Ratio specifies the amount of inventory (in retail dollars) that should be on hand at the beginning of the month to support the sales forecast and maintain the inventory turnover objective for the category
Retails often use a related measure, Weeks of Inventory
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Steps in Determining the Stock-to-Sales Ratio
Step 1: Calculate Sales-to-Stock Ratio
GMROI = Gross margin% x Sales-to-stock ratio
Sales-to-Stock Ratio = GMROI/Gross margin %
■ Assume that the buyer’s target GMROI for the category is 123%, and the buyer feels the category will produce a gross margin of 45%.
Sales-to-Stock Ratio = 123/45 = 2.73
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Steps in Determining the Stock-to-Sales Ratio Continued
Step 2: Convert the Sales-to-Stock Ratio to Inventory Turnover
Inventory Turnover = Sales-to-stock ratio x (1 – GM%/100)
Inventory Turnover =2.73 x (1 – 45/100) = 1.50
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Steps in Determining the Stock-to-Sales Ratio Continued
Step 3: Calculate Average Stock-to-Sales Ratio
Average Stock-to-Sales Ratio = 6 months/Inventory turnover
= 6/1.5 = 4
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Steps in Determining the Stock-to-Sales Ratio Continued
Step 4: Calculate Monthly Stock-to-Sales Ratio
• Monthly stock-to-sales ratios vary in the opposite direction of sales
• To make this adjustment, the buyer considers the seasonal pattern, previous years’ stock-to-sales ratios
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BOM Stock (Line 6)
6. BOM Inventory 6 mo. data April May June July Aug Sept 98280 98280 68460 68640 98800 98280 8000
BOM Stock = monthly sales (line 2) x BOM stock-to-sale ratio (line 5)
= $27,300 x 3.6
= $98,280
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End-of-Month (EOM) Stock (Line 7)
7. EOM Inventory 6 mo. data April May June July Aug Sept 85600 68640 68460 275080 98280 78000 65600
The BOM stock for the current month = the EOM stock in the previous month
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Monthly Additions to Stock (Line 8)
8. Monthly additions to stock 6 mo. data April May June July Aug Sept 113820 4260 17910 48406 26180 8670 8420
Additions to stock
= Sales (line 2) + Reductions (line 4) + EOM Stock (line 7) – BOM Stock (line 6)
Additions to stock (April)= $27,300 + $6,600 + $68,640 - $98,280 = $4,260
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Evaluating the Merchandise Budget Plan
■ Inventory turnover GMROI, sales forecast are used for both planning and control
■ After the selling season, the actual performance is compared with the plan
Why did performance exceed or fall short of the plan? Was the deviation from the plan due to something
under the buyer’s control? Did the buyer react quickly to changes in demand by
either purchasing more or having a sale?
13-83
Open-to-Buy System
The OTB system is used after the merchandise is purchased
Monitors Merchandise Flow
Determines How Much Was Spent and How Much is Left to Spend
PhotoLink/Getty Images PhotoLink/Getty Images
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What Is Open To Buy Planning?
■ The goal of good inventory management is to maintain an appropriate level of inventory for the amount of sales that you are generating.
■ You want to have adequate assortments when sales are slow so that you don’t miss possible sales, but not so much that you drain your cash flow.
■ When sales pick up, you want to increase your inventory levels to support the increased sales, but be careful not to over buy
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■ The Right Amount
■ Of the Right Stuff
■ At the Right Time
■ This is where Open To Buy planning comes into play.
■ It helps the buyer to decide how much inventory should be on hand at the beginning of any given month and how much new merchandise should be received during the month to maintain your optimum inventory levels.
Open-to-Buy System
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■ There are four basic steps to creating a simple, effective open to buy system.
■ The first three steps are usually done once a year and,
when completed, gives the buyer/planner a complete open to buy plan for the upcoming year.
■ The final step is to use the open to buy plan thus created to adjust for monthly merchandise flow.
Open-to-Buy System
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■ Step 1. Plan annual sales and markdowns. This is probably the most important step in the process since the stock levels are derived from the planned sales.
■ Step 2. Plan your average stock, turn, and Beginning Of Month stocks. This step is the more difficult step. This determines what stock levels and turnover rates are appropriate for the business.
Turns that are too slow will give stock levels that are too high - high markdowns and low cash flow.
If turns are too fast, the planned stock levels will be too low - you’ll miss sales and give poor customer service due to out of stocks.
■ Step 3. Calculate an Open To Buy plan for every month. Once sales and stocks are planned, calculate how much merchandise to receive (how much you have “open to buy”) each month.
Open-to-Buy System
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■ Start with the beginning of month stock plan (stocks at retail dollars) and subtract sales (sales decrease stock levels), and subtract markdown dollars (the amount you take in markdowns also decreases stock levels). Compare the result to your planned end of month stock levels.
■ The difference is how much merchandise you should receive during that month.
Open-to-Buy System
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■ What does the monthly plan look like and how does it work?
Open-to-Buy System
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■ Step 4. Adjust monthly using OTB projections. The last step is to use the plan to monitor sales, stock levels, and purchases.
■ For example, if sales slow down, stock levels are likely to increase. In order to stay on plan, buy has to be less the next month, or take additional markdowns, or cancel orders, or a combination of these.
■ If sales are increasing, buy more in order to stay on stock plan.
■ Adjusting monthly lets the buyer keep stock levels at the optimum levels for business.
Open-to-Buy System
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Six Month Open-to-Buy
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Allocating Merchandise to Stores
Allocating merchandise to stores involves three decisions:
■ how much merchandise to allocate to each store
■ what type of merchandise to allocate
■ when to allocate the merchandise to different stores
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Inventory Allocation Based on Sales Volume and Stock-to-Sales Ratios
Smaller stores require a proportionally higher inventory allocation than larger stores because the depth of the assortment or the level of product availability is too small, customers will perceive it as being inferior.
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Type of Merchandise Allocated to Stores
Retailers classify stores according to the characteristics of the stores’ trading area
The assortment offered in a ready-to-eat cereal aisle should matchthe demands of the demographics of shoppers in a local area
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Type of Merchandise Allocated to Storescontinued
Even the sales of different apparel sizes can vary dramatically from store to store in the same chain.
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Sales of Capri Pants by Region
Timing of Merchandise Allocation to Stores
Seasonality differences and consumer demand differences
top related