Advanced merchandise mathematics. Apply six month merchandise plan and open-to-buy formulas through a simulated buying experience including store planning, merchandising and marketing.
Course Description
Assess stock activity
Develop and implement product assortments, budgets, and distribution strategies
Calculate and assign product markup based on direct and indirect costs to achieve profitability
Establish and evaluate reductions, terms and dating, and net costs
Analyze statistical reports and computer operations
Perry's Department Store Simulation
As a new buyer for Perry’s Department Store, the fictional retail store developed throughout the semester by use of simulation, Megan Marie and her classmates “shopped” the competition that they believed would compete with Perry's Women's Outerwear department. Three local department stores were chosen that would directly compete with Perry’s and a survey of each was completed. Once all competitors were analyzed, an Assortment Plan, Style Summary, Purchase Order, and Six Month Merchandising Plan were prepared using Microsoft Excel.
Competitive Shopping
Macy's, Inc. Women's Outerwear Floor Plan
Many of the Straight Arm displays in the Women's Outerwear department were sparse, holding at most two garments or none at all. In example, a Women's Shirt Form that hung from a Straight Arm display was bare. There was also a Four-way fixture carrying bathing suits at regular price in the back corner of the department. Due to the time sensitive nature of the merchandise, competitors of Women's Outerwear for Perry's Department Store will most likely be prevalent before or during the Autumn/Winter season.
Competitor Assortment Plan
Assortment Plan Sample
As the Microsoft Excel file for the Assortment Plan is too extensive to display properly, a sample is shown below.
Style Summary Sample
As the Microsoft Excel file for the Style Summary is too extensive to display properly, a sample is shown below.
Purchase Order Sample
As the Microsoft Excel file for the Purchase Order is too extensive to display properly, a sample is shown below.
Six Month Merchandising Plan
Final Assessment
Advanced Merchandising Mathematics
Finding Sell-Thru %
In the problem below, the most purchased sheets were 300 Thread Count. This indicates that consumers are price conscious but still want value that exceeds the price.
The information compiled in this next chart indicated that for the brand Guess, too much inventory might have been purchased or was placed in the wrong store locations. Product may also be priced too high and customers may be willing to purchase if it is marked down.
Finding Markdown Dollars and Markdown Percent
Additional Formulas
Outcomes
Having acted as a retail buyer throughout the semester, Megan Marie better understood how to develop and implement product assortments, budgets, and distribution strategies as well as how to manage a Department. This knowledge would be furthered throughout her Sales and Management Internship where she took on the role as a Department Manager at the Buckle.