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But at the same time merchants’ margins are being squeezed, making intelligent pricing and promotions strategies even more critical for success. And by taking an integrated approach to pricing, promotions and markdowns, retailers can use a holistic data-driven strategy that uses the same science and is measurable for all teams.
As they begin to address these expectations, many retail IT teams are finding that the process is costly and complex. Today’s promise engines have gotten smarter about transit time, carrier rates, inventory location and other factors. Today, retailers are finding that too many dials makes the process unmanageable.
By creating narrower product assortments and limiting inventory levels — especially for product shipments headed to brick-and-mortar stores —merchants would gain the ability to react more quickly to changing consumer trends, and even potentially reduce their need for markdowns. It’s a different approach and a different thought process.
Why should retailers care about their Order Fulfillment Process? Order fulfillment may seem like a fairly straightforward process and according to the generic “high-level” definition, it is. In fact, the best order fulfillment processes become sources of revenue, profit, and even customer loyalty.
It’s important because these visits help you keep your finger on the pulse of industry and community trends, customer service standards, and competitor offerings. Stop in each important area of the sales floor and watch shoppers, trying to see the merchandising and customer service through their eyes. Is it clutter free?
We refer to these as Merchant-driven organizations. If you plan to mark down products at a certain stage of the product lifecycle, such as the last trimester of the season, you need to adjust the numbers to account for markdowns. In some organizations, the OTB (budget) serves more as a guiding or advisory tool.
We refer to these as Merchant-driven organizations. If you plan to mark down products at a certain stage of the product lifecycle, such as the last trimester of the season, you need to adjust the numbers to account for markdowns. In some organizations, the OTB (budget) serves more as a guiding or advisory tool.
Stop in each important area of the sales floor and watch shoppers, trying to see the merchandising and customer service through their eyes. Where are important basics and hot sellers located on the sales floor? Don’t forget to visit service areas, classrooms, and rest rooms, too. Is it clutter free? Is it effective?
Stop in each important area of the sales floor and watch shoppers, trying to see the merchandising and customer service through their eyes. Where are important basics and hot sellers located on the sales floor? Don’t forget to visit service areas, classrooms, and rest rooms, too. Do customers linger or get in and out?
The Cons of using a Sales-based forecast: The problem with this approach is that if you’re a modern retailer that sells through multiple channels, with multiple locations and DCs, a sales-based forecasting will result in far too many exceptions. Demand Forecast Definition. Conclusion.
Retail merchandise planning is the strategic process retailers use to determine what products to stock, in what quantities, and where to allocate inventory across stores and e-commerce channels. For instance, a merchant may have a hunch that fluorescent tracksuits will trend this season.
Merchants and inventory analysts must be aware of how well they are getting their products to the stores. Retailers must maintain a healthy In-Stock Percentage for every product at every store, in order to avoid out-of-stocks, lost sales, failed promotions, and costly markdowns. This avoids markdowns that cut into profit margins.
Soon, merchants everywhere began to experience what many thought could only happen in third-world economies and banana republics – panic buying, empty shelves and bottomless backlogs to fill them. But in the process also opened global consumer markets to risks that would make the cotton collapse of 1861 look like a picnic.
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