Creating A Retail Merchandise Plan
Once you have viewed our lesson on Basic Math Concepts for Retail Buying and our lesson on Understanding Retail Profit and Loss, you are ready to create a retail merchandise plan. You will learn about how to plan sales and your stock and what stock turnover means to the success of your retail business. By using actual examples, you will learn all about Stock to Sales Ratio as a method of planning your inventory. You will also learn how to calculate Gross Margin Return on Inventory Investment or GMROII and your Open-To-Buy or OTB.
|2||Planning Stocks & Stock Turnover||1-5|
|3||Calculating GMROII and OTB||1-3|
|4||Planning the Assortment||1-2|
MODULE 1 • Planning Sales
|1||The Objectives for Profit are covered in the Six-Month Plan
|2||The estimate of total sales as well as the expected sales for each month is influenced by a variety of factors including:
|3||Calculating Total Planned Sales (a.k.a. Seasonal Sales)% Increase or Decrease in Sales =(TY Planned Sales – LY Actual Sales) ÷ LY Actual SalesApplying the above formula…Last year’s sales in the children’s shoe department were $52,000 and the buyer plans a sales figure this year of $60,000. What is the planned percentage increase for this year?% Increase in Sales = ($60,000 – $52,000) ÷ $52,000% Increase in Sales = $8,000 ÷ $52,000% Increase in Sales = 0.1538 or 15.38%|
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