RMG 400 Lecture Notes - Lecture 5: Cash Flow, Private Label

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

Document Summary

Week 5 chapter 8: preparing buying plans. 6-month merchandise plan translates profit objectives into a framework for merchandising planning and control: normally conforms to two selling seasons, spring-summer (february to july) fall-winter (august to january) Components of the plan (and order of operation) Internal conditions: store-wide or departmental promotions/sales current store-wide and departmental trends changes in store hours changes in the amount of selling space. External conditions: holidays, population shifts, new competition moving into the area, economic conditions shifts in demographic characteristics of the population. Planned bom inventory = planned sales x stock-to-sales ratio. Planned purchases at retail = planned sales + planned eom + planned reductions planned bom. Planned purchases at cost = (100% - initial markup %) x planned purchases at retail. What is the goal of assortment planning: to maintain a balanced assortment of merchandise that will meet the needs of as many customers as possible.