Buying Offices
The buying office provides not only market coverage, but also
relates value of merchandise to the stores. It acts as the eyes and ears of the
stores and provides the following information.
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Merchandise News
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Special items
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Reordering
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Fashion activity
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A good buying office provides personalized service to the store.
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To do this, knowledge of each stores merchandise unique character,
clientele etc must be known.
·
The buying office represents leadership to a group of smaller
stores to compete with larger chains.
·
The group buying activities benefits the smaller stores in
reduction of prices for consultation, better delivery and availability of
merchandise etc.
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Staple/Basic Merchandise consists of items that are in continuous
demand over an extended time period. Examples: salwars, kurtis
·
Fashion Merchandise consists of items that are in demand for a
relatively short period of time. New products are continually introduced into
these categories, making the existing products obsolete. Examples: high-end
women’s apparel.
·
A Fad is a merchandise category that generates a lot of sales for a
relatively short time, often less than a season. Example : cowl collars, puff
sleeve garments.
·
Relatively easy to forecast demand and the consequences of making
mistakes in forecasting are not great
·
Predictability of demand makes it easy to plan for continuous
replenishments
·
Generating orders for inventory replacement can be automatic when
the inventory falls below a pre-determined level
·
Forecasting of sales is much more complex
·
Buyers for fashion category have much less flexibility in
correcting forecasting errors.
·
The attempt is to be as close to out of stock as possible at the
same time that the SKUs become out of fashion
·
Seasonal merchandise categories are treated more or less similar
to the fashion merchandise and they consist of items whose sales fluctuate
dramatically depending on the time of the year
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