RMG 400 Lecture Notes - Lecture 2: Markdown, Gross Margin, Planogram

• School: Ryerson University
• Department: Retail Management
• Course: RMG 400
• Professor: Janice Rudkowski

Document Summary

Week 2 chapter 2: the buying function. Quantitative performance measurements: net sales, cumulative markup. Individual markup percentages: gross margin percentages, open-to-buy, profit percentage. Markup: the difference between merchandise cost and its selling price, must cover all operating expenses for a business or department in addition to providing a reasonable profit, used for determining retail price, markup % = (retail cost)/retail. Chapter 3: buying for different types of stores. Accessory products for the home (towels, sheets, bedspreads, etc. : hard lines. Buying at different retail formats: department stores, discount department stores, outlets, pop-ups, direct to consumer. Bricks & mortar: consumer decision tree, planogram, product package. Search: digital taxonomy, product detail page, quick shop feature. Central merchandising plan: a central office representing a group of stores has complete responsibility for the selection and purchase of merchandise for all the stores. Warehouse requisition plan: regional distribution centers are established to serve a number of stores in the area.