This document discusses the merchandise planning process for retailers. It begins by defining merchandise management as offering the right quantity, type, and timing of products to meet financial goals. It then outlines the types of merchandise and the key steps in the planning process, which include forecasting sales, developing assortment plans, determining inventory levels, allocating to stores, purchasing, inventory management, and performance monitoring. The document also covers factors that affect sales projections such as promotions, location, placement, and economic conditions. It provides details on developing assortment plans based on variety, assortment, and availability. Finally, it discusses the three decisions involved in allocating merchandise to different stores.

1. MANAGING THE
MERCHANDISE
PLANNING PROCESS

2. Merchandise
Management
Process by which a retailer
offers the correct quantity of the
right merchandise in the right
place at the right time and
meets the company’s financial
goals.
2

3. Types of
Merchandise
 Staple Merchandise
 Fashion Merchandise
 Seasonal Merchandise
3

4. Merchandise
Planning process
4
Forecast sales
Develop an
assortment plan
Determine
inventory levels
Allocate
merchandise to
stores
Buy
Merchandise
Plan for
managing
inventory
Monitor
performance

5. Factors Affecting
Sales Projections
 Promotions
 Store Locations
 Merchandise Placement
 Cannibalization
Uncontrollable
 Seasonality
 Weather
 Competitive Activity
 Product Availability
 Economic Conditions
5
Controllable

6. Developing an Assortment Plan
Assortment plan is a list of the SKUs that a retailer will offer in a
merchandise category and reflects the variety and assortment that
the retailer plans to offer in a merchandise category
Variety (breadth) is the number of different merchandising categories
within a store or department
Assortment (depth) is the number of SKUs within a category.
Product availability defines the percentage of demand for a
particular SKU that is satisfied. 6

7. Allocating Merchandise to Stores
Allocating merchandise to stores involves three
decisions:
• how much merchandise to allocate to each store
• what type of merchandise to allocate
• when to allocate the merchandise to different stores 7

8. THANK
YOU!
PRESENTORS:
DORON, JIRAH MAE
PASCUAL, SHEENA NICOLE