The Fundamentals of Merchandising
The Principles of Merchandising
The past decade has witnessed sea change in the world of retail, of which increasing competition is just one aspect. New and emerging technologies and customers fragmentation has made it even more difficult for retailers to retain consumers who are loyal to their stores. Walters and Hanharan have identified four key elements of the strategic direction that are retailer may take, they are: * Merchandise strategy; * Communications strategy; * Customer service strategy; and * Format and environment strategy.
Among all the elements of retail strategy, that of merchandising is becoming increasingly important, eventually determining the loyalty that a customer may have for a retail store. Over the years, the concept of merchandising has also evolved. From an era when manufacturers decided what the consumers needed to buy, to a time when consumers are the decision-makers – the change in the world of merchandising has been phenomenal.
The Concept of Merchandising The word “merchandise”, means goods and sold for a profit. It originate from the French word “merchant” which led to merchandise – meaning “goods” derived from the old French marchat. According to Business Dictionary, merchandise refers goods and commodities sold at the retail level. “Merchandising” is the buying, presenting, and selling of the merchandise. This includes all related activities such as advertising, display and promotion of merchandise involving the retail customers. The merchandising challenge of consistently having the right product in the right quantity, available at the place, at the right time and at the right price becomes increasingly difficult as more selling an fulfilling locations are added to a distributed retail model. Achieving these ‘five rights’ is the key to successful merchandising and, many a times, remains an elusive goal for most retailers. On the one hand, when an inventory enhanced with a view to improve service levels
The past decade has witnessed sea change in the world of retail, of which increasing competition is just one aspect. New and emerging technologies and customers fragmentation has made it even more difficult for retailers to retain consumers who are loyal to their stores. Walters and Hanharan have identified four key elements of the strategic direction that are retailer may take, they are: * Merchandise strategy; * Communications strategy; * Customer service strategy; and * Format and environment strategy.
Among all the elements of retail strategy, that of merchandising is becoming increasingly important, eventually determining the loyalty that a customer may have for a retail store. Over the years, the concept of merchandising has also evolved. From an era when manufacturers decided what the consumers needed to buy, to a time when consumers are the decision-makers – the change in the world of merchandising has been phenomenal.
The Concept of Merchandising The word “merchandise”, means goods and sold for a profit. It originate from the French word “merchant” which led to merchandise – meaning “goods” derived from the old French marchat. According to Business Dictionary, merchandise refers goods and commodities sold at the retail level. “Merchandising” is the buying, presenting, and selling of the merchandise. This includes all related activities such as advertising, display and promotion of merchandise involving the retail customers. The merchandising challenge of consistently having the right product in the right quantity, available at the place, at the right time and at the right price becomes increasingly difficult as more selling an fulfilling locations are added to a distributed retail model. Achieving these ‘five rights’ is the key to successful merchandising and, many a times, remains an elusive goal for most retailers. On the one hand, when an inventory enhanced with a view to improve service levels