Right product, right place, right time – that’s what we know makes a retail business tick! And it’s the merchandising department that is pivotal to this formula with its remit on optimising the sales for any retail business – so often the function is over shadowed as a profession by its more glamorous sister position - the Buyer, that can take more of the glory of a successful retail business.
However it’s the Merchandiser that should equally command this acknowledgement by successfully buying the product at the best margin and keeping the Buyer ‘in check’ and adopting the role of 25% Buyer to their 75% Merchandiser, questioning the amount of buy, options/SKU’s, price, weighing up the sale through rate against a mark down to sale scenario. A simple diagram illustrates this relationship between the functions below:-
75% 25% 75%

We are finding in today’s environment the Merchandiser has to be more commercial, understanding the financial implications of the buy on the cash flow and how important it is to trade and optimise the margin to ensure the best return on the buy, the discerning Merchandiser will question the buy. The questions that a retailer should be raising include:-
Would you rather sell out of stock and hit full price meeting your margin?
What are the implications of not buying enough stock and having a great sale through rate – is it a loss of sale scenario or can flipping the coin mean an overbuy with excess stock for a sale item?
Zara maintain the first option, the lack of stock sometimes creates that ‘impulse buy’ - ‘when its gone its gone’ leaving the customer knowing that that the buy could be completely missed, the effect this has is actually two fold, firstly creating a good sale through and secondly returning interest from the customer who will be compelled to buy for FOMO (fear of missing out) reasons.
The merchandiser should be the architect of the buy particularly for ‘bricks & mortar’ stores ensuring there are enough of the right options to optimise the allocated space - continuously with new buy options - working closely with Buying and of course allocating. Merchandisers should question the business on buying scenarios such as:-
What would be the implications of reducing size ratios and obtaining a better cost price?
Would it be better holding griege for RTD garments and being more flexible to market need?
The business of merchandising is trading and the more the merchandiser is commercially aware with sound knowledge of the market, their competitors and their customers, this will put them in a winning business position.
After all Retail is Detail!
If you are looking for new opportunities within Merchandising - get in touch with the team!