Merchandising is about planning and developing a strategy to enable a company to sell a range of products that delivers sales and profit targets. A Merchandiser will work closely with a Buyer to ensure the product that's bought will enable them to achieve the sales plan.
It's often explained as getting the right merchandise, in the right place, at the right time, in the right quantities at the right price. Never just say this in response when someone asks you what merchandising is, as this doesn't take into consideration all the planning and strategy that goes on prior to getting the stock into stores. You need to give a more considered answer and this will really pay off at interview
• Analysing past sales figures/trends to anticipate future product needs.
• Devising a merchandise plan using the above techniques.
• Relaying the merchandise plan to the buyer who, in turn, can decide on what products, styles, colours etc to purchase and from which suppliers, at what price.
• Devising a contract for the suppliers including quality control, accuracy and flexibility. This is done throughout the season.
• Allocating certain amounts of stock, to each outlet, throughout the season. Retailers are now trying to minimise stock holdings and commitment to allow for maximum flexibility.
• Once the products are all distributed and put on sale, the Merchandiser can monitor stock movement, consider markdowns, inter-branch transfers, promotions or clear outs etc