Question

Explain process of merchandising planning for an electronic showroom

Answer 1

Merchandising Planning System can't be defined in just one line! Different retailers have different definitions for it. This is because it can be difficult to limit, and therefore to define, its scope. However, in a generalized manner Merchandise Planning is a systematic approach. It is aimed at maximizing Return on Investment (ROI), through planning sales and inventory in order to increase profitability. It does this by conducting proper Field Data Collection, maximizing sales potential and minimizing losses from mark - downs and stock - outs.

So, with retailers laser focused on maximizing return on investment and increasing profitability, a merchandise planning system assist in minimizing losses from out-of-stock and markdowns while optimizing sales performance. Not surprisingly, finding the right balance between planning sales and inventory is both a challenge and a critical goal for retailers in the merchandise planning process.

Merchandise planning systems enable management to set financial targets, review target achievement and create open-to-buy budgets. For planners, these solutions support planning from the top-down to bottoms-up, guide the downstream planning process and support the comparison of high-level targets to plan. In this regard, a Retail Merchandising Software is very effective in retail merchandising. Retail merchandising software provides the boundaries within which merchandisers and planners plan categories and assortments across store grades, using their knowledge of the business and the buying personas of customers in order to optimize the inventory in each store.

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