Retail Math: Developing the Six Month Merchandise Plan

Welcome to the (Section 3, Part 1): Developing the Six Month Merchandise Plancourse. “Preparing the Six Month Merchandise Plan” provides step by step procedures, with needed formulas and additional information, for developing the Six Month Merchandise Plan. Part 1 (1-1 – 1-2) “Developing the Six Month Merchandise Plan” provides terminology and background information.

 

We recommend printing off the course content reference guide via the button below to assist you in the Retail Math for a Profit: How to Think Like a Buyer courses. 

 

Three Stage Development

Specifically defined, The Six Month Merchandise Plan/Budget is:

  • A dollar plan that controls the merchandise activities of the retailer
  • A blueprint, map, or guide for assisting the retailer in attaining realistic retail objectives and sales goals
  • A projection in retail dollars of the amount of merchandise that is needed to achieve the planned sales goals
  • A merchandise vehicle that coordinates the balance of sales and stock or inventory levels
  • A tool to estimate the value of inventory needed in the store for a given period of time
  • A merchandise vehicle that coordinates sales, stock or inventory levels, purchases, reductions (i.e., markdowns, shrinkage/shortages, employee discounts, customer returns and allowances), initial markup, gross margin and turnover
  • A means by which the retailer can measure effectiveness of current business operations by analyzing actual figures as compared to plan in order to evaluate and improve the buying process
  • A plan for the future that can be reviewed and revised or adjusted throughout the period
  • An organized “how to” guide that may impact the retailer’s day-to-day merchandising activities

Retailing Terminology

Retailing is all the business activities involved in planning and procuring goods and services from vendors and pricing, positioning, presenting, packaging, promoting and ultimately selling those goods to the target consumer.

 

Merchandising is all the business activities involved in planning, creating, distributing and marketing merchandise assortments and classifications to the target consumer while reflecting the company image. There are different types of merchandising based on which link or level (i.e., fiber, textile, apparel/home furnishings companies, retail stores) in the supply chain the merchandising is housed.

 

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Terminology for Six Month Merchandise Plan

Click on the button below for “Developing the Six Month Merchandise Plan” terminology 

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