Develop a merchandise financial plan

Unit of competency Outline

Date retreived
23/07/2026 7:17 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Unit of competency

National Code
SIRRMRM004

State Code
BBB66

TGA Status
Current

DTWD Status
Approved

Current Release Number
1.00

Current Release Date
16/08/2017

View on TGA

State Implementation and Classification

Approved Date

14/12/2017

Field of Education

080101 - Accounting

Original Release Date

14/12/2017

Nominal Hours

Description

This unit describes the performance outcomes, skills and knowledge required to undertake merchandise financial planning for a retail organisation. It requires the ability to forecast sales, inventory and profit to create a merchandise financial plan that maximises organisational profitability and performance. The merchandise financial plan documents a high-level budget for the financial management of merchandise and is used to influence financial planning at a category level. This unit applies to individuals working in merchandise management-related roles in a diverse range of retail sectors and business contexts. They operate with independence and are responsible for making a range of operational business decisions related to the management of merchandise. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

Notes

Elements and Performance Criteria

1. Review organisational financial information.

1.1. Access and review merchandise strategy to determine financial and merchandise objectives for a specified trading period.
1.2. Access and review organisational profit and loss statement to determine organisational financial position and objectives as required.
1.3. Review post-trade analysis data to determine past merchandise financial performance.
1.4. Source and analyse relevant internal and external factors impacting merchandise financial planning.
1.5. Identify merchandise financial planning activity that will maximise profitability and organisational financial performance.

2. Develop merchandise financial plan.

2.1. Plan sales value for the specified trading period using organisational systems and processes.
2.2. Determine gross profit margins that meet financial objectives.
2.3. Plan markdown value to account for potential markdowns and shrinkage and to minimise profit loss.
2.4. Plan optimal inventory values against key performance indicators that maximise profitability and minimise loss.
2.5. Review organisational promotional plan to determine impacts of planned promotional activity on sales, inventory and profit planning.
2.6. Establish merchandise performance indicators.
2.7. Document sales, inventory and profit values using established organisational systems and processes.
2.8. Obtain input from relevant personnel and make adjustments to merchandise financial plan based on feedback received.
2.9. Finalise merchandise financial plan and gain approval as required.
2.10. Communicate merchandise financial plan to relevant personnel.

3. Review and re-plan merchandise financial plan.

3.1. Review in-trade financial performance against actual and budgeted sales, profit and inventory values.
3.2. Investigate and account for variances in sales, inventory and profit values.
3.3. Identify available rebates and incorporate into merchandise financial plan as required.
3.4. Re-plan sales, profit and inventory values in response to the actual sales results.
3.5. Re-plan sales, profit and inventory values in response to internal and external influences on performance.

No information

State Code	National Code	Title	Type
AD720	SIRSS00017	Merchandise Management	Skill set
BDJ6	SIR50317	Diploma of Retail Merchandise Management	Qualification