RMG 400 Lecture Notes - Lecture 5: Volatile Times, Focus Group

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

Document Summary

E. g. , activities w/in business that will affect sales, factors w/in control. Changes in store hours or physical facilities. Number + type of distribution channels (i. e. online, brick-and-mortar) Both national + local economic climate should be analyzed. Retailers use customer surveys to forecast future consumer buying patterns. Note: in volatile times, data more than 5 years old is likely of little value. Actual sales should be periodically monitored to determine accuracy. Overestimating sales will require changes in marketing strategies. Note: retail buyers" performance is evaluated against accuracy of their forecasts. Merch in stock must be sufficient to meet sales expectations while allowing for unanticipated demand. If a department had merch valued at ,000 to begin the month of april and sales amounted to ,000, the resulting stock-to-sales- ration would be stock sales ration= Stock-to-sales ratio is used to calculate planned bom stock levels. Planned bom i nventory =stock sales planned sales.