Effective merchandising means having the right product, in the right amount, in the right place, at the right price, at the right time, all the time! These are essential components of your merchandising plan.
Overall Budget
For most retailers, inventory is typically one of the biggest investments so having a budget that is strategic and flexible is critical. Do you know how much is the right amount to spend, for both immediate and future merchandise buys?
Product Categories
Having a thoughtful, on-brand and edited category strategy will not only help you build credibility with your target customers (they can really count on you as the expert in these categories) but can also help give you buying power with vendors if you build up enough volume. Do you know what you plan to carry for your store?
Product Assortment
Developing a compelling assortment is one of the most enjoyable and rewarding aspects of merchandising—but can also be one of the most challenging. Constantly being out in the marketplace, knowing what products are hot before everyone else does and really tailoring your buying strategy to target market needs will help give you competitive advantage and drive $ into the register. Do you know where to start to get the best assortment for your concept?
Private Label Products and Packaging
Is this relevant to your business now or in the future? As private label is a great differentiator for many businesses—providing competitive advantage and terrific mark-up, it is a strategy worth exploring for many retail businesses. Is this right for you?
Purchase Order System
A purchase order system can be a big investment so it is critical to choose one that truly fits your needs. Often times retailers purchase POS systems that are too complex and robust so instead of being a useful tool, it becomes an overwhelming and ineffective one. Do your homework, think realistically about short term and long term needs before making this investment. Do you know where to start to find the best POS for your specific needs?
Pricing and Markdown Strategy
Strategically planning your markup and markdown strategy can make all the difference in the profitability of your store. Being very attune to the market and proactively anticipating customer behavior will ensure you are maximizing product potential and always making room to bring new and exciting merchandise to your store. How much markup and markdown do you think makes sense for your product and your target market shopping patterns?
Receiving and Allocation
What process do you have in place for inventory receiving and Allocation? Thinking about this in advance and developing processes and procedures that are easy for your staff to manage will save you time, money and a lot of potential headaches down the road. Do you have a plan in place to make this process seamless?
Shortage Control
Even in the smallest and most intimate store environments, shortage is an issue. Proactive strategies need to be implemented to create an intolerant environment for theft, for both customers and staff alike. Do you have a plan to tackle this?
In summary, your merchandise plan is a road map for success. It must optimize all aspects of your business. It must take into consideration your expense management, maintained markup, sales goals with planned markdowns, inventory levels based on required stock to sales levels, marketing and store events, and your cash-flow requirements. If you manage by the right numbers, the profits will take care of themselves.
