Unit of competency Outline

Date retreived
22/07/2026 11:09 AM AWST

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Plan merchandise buying strategy

Plan merchandise buying strategy

Unit of competency
National Code
SIRRMRM001
State Code
AWX43
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
31/03/2016
View on TGA
State Implementation and Classification
Approved Date
13/09/2016
Field of Education
080599 - Sales And Marketing, N.e.c.
Original Release Date
13/09/2016
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to plan stock levels and purchase retail merchandise. This unit applies to senior personnel working in a diverse range of retail sectors and business contexts. They operate independently and are responsible for making a range of operational business decisions and for the buying and planning of retail merchandise. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1.Undertake post trade analysis.
  • 1.1.Complete a post trade analysis to review past performance against planned performance, identifying missed opportunities.
  • 1.2.Analyse customer buying patterns, and predict future trends.
  • 1.3. Review competitor activity within the local and global marketplace.
  • 1.4.Consult relevant stakeholders for input on post trade analysis and future range strategy.
2. Determine strategy.
  • 2.1 Determine range strategy for relevant future trading period based on post trade analysis.
  • 2.2 Determine price strategy, marketing strategy and product mix for the next trading period.
  • 2.3Communicate strategy to relevant personnel and seek input and approval as required.
3.Develop merchandise plan.
  • 3.1.Review marketing calendar and new store openings and closures as required.
  • 3.2.Establish base line sales and gross margin requirements.
  • 3.3.Plan buying margin, markdowns, shrinkage and other reductions.
  • 3.4.Determine open to buy, weeks cover or other stock measures.
  • 3.5.Determine width and depth of range.
  • 3.6.Quantify products to be ordered.
4.Respond to trade.
  • 4.1.Evaluate sales against plans and performance benchmarks and interpret impact to the forward plan.
  • 4.2.Manage merchandise plan in response to sales and account for variances in sales trends.
  • 4.3.Adjust purchases within the merchandise plan, and manage slow moving surplus stock or aged stock to minimise impact on overall margin.
  • 4.4.Consolidate stock as required.
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