Last Word
Think Retail
by Erinn Morgan
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what's the plan? |
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John
Hobson from the Planning Factory Ltd., rece-ntly discussed the reasoning for merchandise
planning.
Why have it: ■ To deliver a return on your company's investment in stock.
■ As the growth market becomes fragmented and difficult to manage, increases in profitability will only be available from reductions in fixed costs or the better management of variable ones. |
■ As a last resort. Most retailers have already shaved fixed costs leaving better margin management as the only viable remaining.
How it helps:
■ You will be forced to take stock of some of the uncomfortable realities of your current position.
■ The learning process will be invaluable, and the change process, if managed properly, will inject new enthusiasm into those involved.
■ There are concrete improvements in the achie-ved margin that the system will bring when it is used.
■ There are various benefits that are available from the new possibilities crea-ted by the system, such as efficient consumer response programs, consolidated planning by integrating merchandise plans and financial budgets, and better provision of information.
