This section concerns itself with merchandise retail management which involves:
Merchandise retail management is sometimes mistaken with merchandising. Merchandising refers to good in-store display and promotion of merchandise.
Merchandise management, as described above, is much more, as will be seen in the discussion to follow.
Selection Of Merchandise
What merchandise should be carried in stock is basic to good merchandise management. For this reason, much thought and research must be given to selecting merchandise appropriate for your store. In initiating a new store, as well as during periodic merchandise reviews in an established store, you need to think about your market. What are the people like, who shop in your area? Are they young married with children, or elderly couples, blue or white collar, high or low income? What are their leisure activities, and wants and needs, etc.? Each of these factors has impact upon the type of merchandise you would select.
Other ways for obtaining ideas for merchandise selection include:
Studying other stores in the area, watching closely the merchandise they do and do not offer. Determining whether merchandise not offered may have potential.
Obtaining suggestions from salespeople in similar stores.
Carefully listening and speaking to customers in general about what they like about other stores.
Reading the trade literature.
Following advertisements of chains and department stores.
In general, knowing your customers and their needs is crucial in merchandise selection.
In a more specific way you select merchandise with the use of the tools for merchandise management discussed later in this section.
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