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Retail Business Review | Friday, April 15, 2022
FREMONT, CA: Merchandise planning is an approach that depends upon data to opt, buy, present, and sell merchandise to customers to attain maximum investment rate and can also fulfill consumers' demands. The motive of merchandise planning is to fulfill consumers' needs by making the right merchandise available at the right place, at the right prices, and in the right quantities. While merchandise planning varies greatly based on industry and specialty, there are important steps included, no matter the size or niche of the business.
Conducting Post-Season Analysis
The primary thing retailers need how things went during the last sales season, and retailers will get that with data—looking at essential things like total sales and specific results like revenue of a specific item or category. Next, it is time to evaluate the outcomes by comparing those numbers to the planned numbers from the same year to get context. Where are things going? What was the marketing technique? How was the economy? Examining this data implies retailers have not only accurate numbers but also context.
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Forecasting Sales
With the data attained from the post-season analysis, it's time to forecast consumer demand, including sales for individual departments, category of products, and the inclusion of new products/extraction of products that no longer perform well. Once retailers have past & present data and consider the outcome of demand variations, they can settle on a final prediction for each product and determine if it is worth ordering that item for the store.
Planning and Implementing Assortment
Once retailers learn what merchandise to stock, it's time to be more specific and arrange the products based on their categories, for example, a food section, a cosmetics section, and specifics like sizes, colors, and brands. In addition, retailers should ensure a good assortment, that related items are grouped for seamless access for customers, and that there are adequate SKUs of each category without going overboard in any one section.
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