What is option plan in retail?
Table of Contents
- 1 What is option plan in retail?
- 2 What are the four components of a merchandise plan?
- 3 What are the three major options in selecting and interacting with merchandise sources?
- 4 What is the first step in merchandise planning?
- 5 What are the 4 types of merchandise?
- 6 What are the 3 levels of merchandising?
What is option plan in retail?
Option Planning, or Assortment Planning, is the process by which a retailer selects which products and how many of each product it will release in the market to maximize its profits. The Option Planning process starts once the budget has been set.
What are the four components of a merchandise plan?
There are four key components of merchandising: buying, planning, managing, and controlling. These four components must lead to, above all, providing the store’s customers a highly desirable merchandise mix. This mix needs to be adjusted as the needs of the store’s target market customer’s change.
How are retail purchase planned purchases calculated?
Planned purchases = Planned Sales + Planned Reductions + Planned EOM – Planned BOM.
What is the process of merchandise planning?
Merchandise planning process refers to selecting, managing, and displaying products in a manner that they bring maximum turnover on a brand name. The activity seeks to meet consumer demand by making the right merchandise available to customers at the right time, place, price and quantity.
What are the three major options in selecting and interacting with merchandise sources?
three procedures possible:
- Inspection.
- Sampling.
- Description Buying.
What is the first step in merchandise planning?
The merchandise budget is the first stage in the planning of merchandise. It is a financial plan which gives an indication of how much to invest in product inventories, stated in monetary terms. (a) The sales plan, i.e. how much of each product needs to be sold, this may be department wise, division wise or store wise.
How do you calculate planned sales?
Stock to Sales Ratio – This is the relationship of stock on hand at the beginning of the month to the planned sales for that month….(At a Glance)
| Retail = | Cost + Markup $’s |
|---|---|
| Turn Rate = | Sales / Average Inventory |
| Sell Through \% = | Sales / (Sales + On Hand) |
| Average Stock for Season = | (Bos + 6 months EOM’s) / 7 |
How do you calculate planned inventory?
1. Basic stock method
- Stock at the beginning of the month = Planned monthly sales + basic stock.
- Average stock for season = Total planned sales for season / Estimated inventory turnover.
- Average monthly sales = Total planned sales for season / Number of months.
What are the 4 types of merchandise?
Merchandising can be categorized according to different criteria, but the most common types are product merchandising, retail merchandising, visual merchandising, digital marketing, and omnichannel merchandising.
What are the 3 levels of merchandising?
The goal of a merchandise hierarchy is to organize your merchandise so that your customers can quickly find what they are looking for.
- Level One: Store. Your store is the highest level of merchandise hierarchy.
- Level Two: Department.
- Level Three: Division.
- Level Four: Product.
- Level Five: Class.
- Level Six: Sub-Class.
What is merchandise planning and allocation?
What is Planning and Allocation (P&A)? Merchandise Planning is defined as the process of setting and maintaining future performance goals for sales, inventory and other financial metrics and tracking actual results and variances to those goals. Planning requires user intervention.
What is a 6 month merchandising plan?
The Six-Month Merchandise Plan/Budget is: 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 plan for the future that can be reviewed and revised or adjusted throughout the period.
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