Class Notes (1,200,000)
CA (650,000)
Ryerson (30,000)
RMG (300)
RMG 200 (100)

Buying Strategies

Retail Management
Course Code
RMG 200
Brent Barr

This preview shows half of the first page. to view the full 1 pages of the document.
Week 9
Balancing inventory:
Breadth of assortment must meet store target customer
Inventory depth must rreflect anticipated rates of sales
Branding strategies:
Manufacturer (National) Brands Made by vendor sold by many retailers
Private Label (store) brands Developed and sold by 1 retailer
Bargain Branding No-Frills at a discount price
Copycat Branding Imitated manufacturer brand in appearance and dress
Premium branding Private label at a comparable manufacturer brand quality
Parallel Branding Private labels that closely imitate the trade dress and attributes
of leading manufacturer brands
Licensed brand Developed by licensee and sold to manufacturer or retailer (Barbie)
Issues in International Sourcing of Private Label Merch:
Country of Origin Effects
Costs: Foreign Currency Fluctuations, Tariffs (allows Canadian industries to
compete), Supply chain efficiency and inventory, carrying cost, transportation cost
Quality Control
Domestic VS International Sourcing:
Domestic: Higher merch cost, shorter lead times, human rights controlled, preferences
International: Lower Cost, Longer lead times, more control problems
Regulations affecting the costs of importing goods: World Trade Organization, NAFTA, Free
Trade Zones
Connecting with vendors: Internet (Product Directories, Reverse Auctions), Market Centres,
Trade Shows, Buying Offices
Chargeback Used by retailers when they deduct money from the amount they owe a
vendor because either Merch isnt selling or vendor made a mistake
Slotting Allowances Fees paid by vendor for space in a retail store
Buybacks Used to get products into a retail store by buying competitors products and
clearing it from the system
You're Reading a Preview

Unlock to view full version