Retailing - Strand 2 - Buying and Merchandising - 2 of 2

How could a retail buyer determine the best products to stock?

• By analyzing past sales data to predict customer demand.

• By focusing solely on the products with the lowest wholesale cost.

• By selecting items based on employee preferences.

• By choosing products from a single supplier for simplicity.

Why is inventory control essential in retail operations?

• It helps avoid overstocking and ensures products are available when needed.

• It creates marketing opportunities for promoting slow-moving items.

• It guarantees a fixed number of items are sold daily.

• It eliminates the need for manual stock checks in large stores.

How does forecasting benefit a retailer's planning process?

• It helps estimate future sales trends to guide purchasing decisions.

• It allows retailers to monitor employee performance effectively.

• It ensures seasonal promotions are executed without delays.

• It reduces the lead time for receiving new inventory shipments.

What action should be taken when stock turnover is too slow?

• Increase promotions or discounts to boost sales.

• Reduce the hours of operation to save on costs.

• Focus solely on increasing inventory levels for future demand.

• Eliminate all low-performing items from the store’s inventory.

How can a retailer optimize lead time to prevent stockouts?

• By ordering products earlier based on historical demand trends.

• By reducing store hours during off-peak shopping periods.

• By outsourcing shipping to multiple suppliers in various regions.

• By eliminating non-essential products from the store catalog.

What strategies can be used to reduce the impact of perishability?

• Implementing effective inventory rotation methods to minimize waste.

• Offering perishable products exclusively during promotional events.

• Storing perishable items in areas with minimal customer traffic.

• Eliminating perishable goods from the inventory entirely.

Why is supply chain management critical for retail success?

• It ensures that goods arrive on time and meet customer demand.

• It helps track the profitability of various product categories.

• It determines the effectiveness of in-store employee training programs.

• It increases the efficiency of promotional campaigns for seasonal items.

How could a merchandise plan improve sales performance?

• By aligning product availability with customer demand patterns.

• By focusing exclusively on high-margin products across all categories.

• By reducing the amount of shelf space allocated to best-selling items.

• By providing employees with more training in visual merchandising.

How does a retailer determine the appropriate markup for a product?

• By adding a percentage to the cost price to cover expenses and profits.

• By setting a price lower than competitors for every product sold.

• By offering promotional discounts at regular intervals.

• By calculating the average wholesale cost for similar items.

How can markdowns impact a retailer’s bottom line?

• They can help clear excess inventory and improve cash flow.

• They reduce the profitability of top-selling items permanently.

• They create long-term demand for discounted items.

• They eliminate the need for new inventory purchases.