Merchandising

"Our mission is to dedicate ourselves to the success of our clients as they define it.

By helping our clients succeed, our employees will also achieve their own personal goals."

Merchandising

Merchandise is an asset – but unfortunately, as long as it has not sold – it is a depreciating one. Merchandise sitting on shelves in a warehouse should be thought of as piles of money hiding under the mattress: it’s comforting to know that you have it, but every day sitting there its value decreases. Our merchandising program is intended to assist you in reducing the expenses associated with carrying excess inventory, thus giving you a greater return on your investment and improving sales by attempting to disprove the old 80/20 rule: “We do 80% of our business from 20% of our stock!”

How Much Money Should I Be Spending?

Understanding how much to spend on inventory and how to spend it wisely are questions that plague most retailers. Grasping the concept of “Open-to-buy” and the subtleties of inventory investment is difficult even for experienced buyers. Bob Moorman, a Senior Retail Consultant and Business Analyst (click Here for to learn more about our Business Analysis process) for JRM, wrote This Article on this subject. It will aid you in gaining deeper insight into this complicated subject.

JRM's Method to Success

We will begin by developing assortment plan worksheets for each category of merchandise that you carry. This will give us a good snapshot of how effective your current merchandise mix is, and it will give us a plan for future buying decisions. We will work with you to develop a war room mentality. Rep visits and market trips will be driven by a plan. This is not intended to stymie the creative aspects of buying, only to direct and control it.

We will develop plans for open-to-buy by department, as well as the company as a whole. One of the results of implementing an open-to-buy is improved cash flow. We will develop inventory turnover goals and gain greater understanding on how to coordinate decisions in this area with gross margin performance (GMROI).

We will develop plans for recognizing ineffective merchandise. We will put together plans for handling product that is not living up to standards, in attempts to move unhealthy product into a healthy situation. Ultimately, we will have a plan for the elimination of poorly performing product.

We will assist in the development of an appropriate nail-down policy, and demonstrate the impact of releasing merchandise off the floor.

We will develop a format to determine customer wants through surveys and salesperson feedback.

It all starts with a Business Analysis. Please look at our Business Analysis section for more information on this extremely valuable process. If you have any questions, please don't hesitate to Contact Us.

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