RETAIL CONCEPTS

Part 2 : Merchandising

Retail Concepts Merchandising – Scopes

RETAIL Concepts 2

Merchandiser

Product Procurement

Product Availability

Product Pricing

Assortment & Range

Offers & Promotions

Product Visibility

Procurement Budget

Vendor Communication

Retail Concepts Merchandising – Scopes

RETAIL Concepts 3

# Few External Factors, beyond Merchandiser control which can affect Merchandising Scope

Retail Concepts Merchandising – Category Hierarchy

RETAIL Concepts 4

MERCHANDISE GROUP

CATEGORY-1

SUB-CATEGORY A

SKU 1

Variant 1 Variant 2

SKU 2

Variant 3 Variant 4

SUB-CATEGORY

B

SKU 3

Variant 5

CATEGORY-2

SUB-CATEGORY

C

SKU 4

Variant 6

Retail Concepts Merchandising – Category Behaviors

BAKERY & Confectionaries

Yearly demand based on seasons and promotional offers

Monthly Buying pattern constant

Divided over periods of week

Assortment & Range constant over month, varies based on seasons

New Product Introduction high, based on market analysis and Vendors

Demand Forecast Accuracy low, based on day-of-week, festive seasons

Very low Shelf-life, daily / weekly procurement

RETAIL Concepts 5

Retail Concepts Merchandising – Category Behaviors

FMCG Non-Food

Yearly demand constant

Monthly Buying pattern constant

Divided over periods of month

Assortment & Range constant over month, varies based on seasons

New Product Introduction high, based on market analysis and Vendors

Demand Forecast Accuracy low, based on LYSM, LYSQ

High Shelf-life, monthly / quarterly procurement

RETAIL Concepts 6

Retail Concepts Merchandising – Category Behaviors

FMCG Food

Yearly demand constant

Monthly Buying pattern constant

Divided over periods of week

Assortment & Range constant over month, varies based on seasons

Demand Forecast accuracy high

New Product Introduction low, based on market analysis and Vendors

Demand Forecast Accuracy moderate, based on LYSM, LYSQ

Moderate Shelf-life, fortnightly / monthly procurement

RETAIL Concepts 7

Retail Concepts Merchandising – Category Behaviors

STAPLES – Cereals, Pulses, Oils & Spices

Yearly demand constant

Monthly Buying pattern constant

Divided over periods of month

Assortment & Range constant over year, varies based on promotional offers

New Product Introduction very low, based on Vendors

Demand Forecast Accuracy high, based on LYAS, LYSM

Moderate Shelf-life, fortnightly / monthly procurement

RETAIL Concepts 8

Retail Concepts Merchandising – Category Behaviors

GENERAL Merchandise

Yearly demand varied and skewed

Monthly Buying pattern not fixed

Divided over periods of year

Assortment & Range constant over year, varies based on promotional offers

New Product Introduction very low, based on market analysis and Vendors

Demand Forecast Accuracy high, based on LYAS, LYSM

Very high Shelf-life, quarterly or yearly procurement

RETAIL Concepts 9

Retail Concepts Merchandising – Category Behaviors

APPARELS & FASHION Merchandize

Yearly demand based on seasons and promotional offers

Monthly Buying pattern does not exist

Divided over periods of year

Assortment & Range constant over month, varies based on seasons and promotional offers

New Product Introduction very high, based on market analysis and Vendors

Demand Forecast Accuracy very low, based on LYSQ, LYSM

Very high Shelf-life, seasonal (Spring-Summer-Fall-Winter) procurement

RETAIL Concepts 10

Retail Concepts Merchandising

RETAIL Concepts 11