Merchandising and inventory management are key success factors for firms in the retail industry. The two ideas are tied together. Merchandising reflects in the product mix a store offers, but also in the ways in which that product mix is presented. Inventory management in part reflects the merchandising needs of an organization, but it also reflects on the optimal profitability that a company can have.
Merchandising tactics allow the store to optimize its retail space for revenue and profit generation. Effective merchandising will allow the store to have the products that are in demand at the time that they are in demand. Furthermore, the choice of how certain goods are displayed, where in the store, at what level, and beside what other products, all influences consumer buying decisions. Part of merchandising is simply understanding demand and ensuring that the supply is there to meet that demand -- a basic example would be to have enough umbrellas at the front of the store on a rainy day to meet the spike in demand that the weather will bring. Another part of merchandising, however, is in how to use displays and placement within the store to simulate demand. A classic example of this is the high end boutique with sparse racks of clothes, and no item repeated, all to create the impression of uniqueness in the garments, given that exclusivity is one of the main attractions in high-end clothing.
Modern retailers have taken to using modelling to help optimizing their merchandising decisions. In particular, such modeling can help them to understand different demand conditions (Piotrowski & Sladkowski, 2001). This modeling is naturally...
Systems for a Retail Store Nostalgic Record Store Information Systems Proposal Benefits and Drawbacks of Information Systems Comparison of Cost and Benefits Any new store will require a series of accounting, e-commerce, finance, customer relationship management (CRM), pricing and services applications to ensure it stays profitable. When the products being sold are highly unique, as is the case with nostalgic music, the role of these systems becomes even more critical. It is the
' For example: a low-inventory method requires careful monitoring of past behavior of consumers during key periods of high use, and this market research and data tracking comes at a price, if it is done in a through and effective manner (Supply meets demand, 2009, Accenture). Also, computing is such a necessity for some users, even waiting one day for the latest technology may be unacceptable. Dell relies upon almost
In fact, the very face of business has undergone great metamorphosis with the technology that has been applied to the labeling of merchandise. Labeling whether for the purpose of fighting shoplifting crimes or for the more efficient tracking of merchandise from point of production to point of sales has become the very nerve center of today's business operations and processes. RFID technology will soon enable customers to breeze throughout
Efficiency in the Supply Chain and Inventory Management Explain the purpose of using stock-outs to control inventory 'Stock-outs' is a method aimed at reducing production flow times and response times from the company to consumers (Fleisch, & Tellkamp, 2005). Based on the name itself, this inventory control method holds that Stone Horse Supply Company will order products only if they are required for manufacturing or shipping. The company may order an
Retail Business Analysis Burlington Coat Factory Corporate History and Summary Originally founded in 1972 by Monroe and Henrietta Milstein with only one coat/outerwear factory and store, Burlington Coat Factory Warehouse Corporation has grown into an extremely successful discount retail outlet chain. Although it began as a family-owned and -operated business, the company went public for a time, with the Milsteins retaining a majority of share holdings (BCF, 2011). Eventually, the company was purchased
Performance Management Job description for Retail Sales Associate In today's 'brick and mortar' retail environments, one of the most critical objectives is to create an excellent customer experience. Management of the customer experience is a concept being embraced globally by retailers and has even become part of mission statements for corporations. Thus, Starbucks is renowned for the unique experience it creates for customers, the computer giant Dell focuses on positive customer interactions,
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