Retailing today

The world of retailing is a mystery to many people, and it is a complex world. It basically involves buying merchandise, usually from manufacturers, and reselling it to end consumers to generate a profit. Demand is created through marketing, advertising and promotional activity. Profit is generated by buying at one price, selling at another that…

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The retailer’s infrastructure

So why haven’t they done this already? I think it is a case of not having the correct infrastructure. Manufacturers are set up to manufacture, make deals with retail groups and react to their orders and estimates. The retailer has the staff who are used to forecasting demand from the outset of the season, they…

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Types of retailers

There are a number of types of retailers, based on several factors. These factors are not mutually exclusive, and in today’s world the boundaries are rapidly becoming blurred and the characteristics of a retailer increasingly complicated and mixed. Retailers can be considered by;- Their outlet type – They can be online, or bricks and mortar,…

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How does stock get onto the shelves?

Unless they are personally involved in retail, most people have no idea how stock of a product gets onto the shelves. Many are perplexed when a product such as a toy is in great demand, they don’t understand why the retailers don’t have stock of a product that customers want to buy. To find out…

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Why doesn’t product stay on the shelves when it is demand?

This problem has been illustrated in the past with shortages of Teletubbies in the UK, Teenage Mutant Ninja Turtles worldwide. The most difficult products to keep in stock are toys associated with TV programming or Film releases. Usually toys associated with TV programming are manufactured under licence in developing countries where production is cheaper than…

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How does a buyer select a range?

The Buyers task is to select a range of merchandise, for a specific season or time period, in line with agreed parameters, including space and budgets, to be offered for sale and produce a profit for the company. Space and budget is allocated carefully by product category, to optimise the use of retail space, whatever…

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Sourcing Direct Imports

In part 4, we looked at how stock get onto the shelves and considered the various methods by which stock is brought to market. Generally the closer to the market the buyer purchases the product, and the further up the supply chain, the more profitable it is. But this has to be weighed against the…

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Product mix

The Buyers skill is needed to make the most of the space available to them to select a range that will satisfy and delight their consumers, and drive volume sales .There is normally more product competing for the retail space available than can be accommodated So the challenge for the buyer here is to select…

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Margin mix

The buyer will have a target margin to achieve for each range, based on target for the company target, and the individual range history. But it is not the mix of the range offer, but the onsale mix that is important, the volume of sales on each line will alter the margin mix. Once the…

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Selection of domestic product

Completing Selection Before selecting, the Buyer will view all the available ranges, attend Trade Fairs, talk to suppliers, look at competitors, analyse market reports, and so will develop a good understanding of the market, its successes and trends. If they are considering licensed merchandise, for example toys and gifts, they will be aware of relevant…

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