Unit of competency Outline
Date retreived
22/07/2026 7:11 AM AWST
22/07/2026 7:11 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.
Buy merchandise
Buy merchandise
Unit of competency
National Code
SIRXINV004A
SIRXINV004A
State Code
S6144
S6144
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
13/12/2011
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
13/12/2011
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to buy merchandise in a retail environment. It involves analysing the market, planning the product range, establishing supplier relationships, negotiating supply of goods, introducing the product range, maximising profit and rationalising stock.
Notes
Elements and Performance Criteria
1 Analyse market.
- 1.1 Identify and analyse store merchandise andmarketing policy and procedures.
- 1.2 Monitor customer requirements formally and informally in order to evaluate market trends and customer needs.
- 1.3 Research new products and services.
- 1.4 Identify, evaluate, implement and review opportunities to improve sales.
- 1.5 Monitor merchandise range to identify the demand for individual items and seasonal variations.
- 1.6 Monitor market competition.
2 Analyse factors affecting stock levels and range requirements.
- 2.1 Apply mathematical calculations to measure analyse and report on existing and potential stock loss and dissipation and its impact on business operations.
- 2.2 Analyse store or department sales figures to determine contribution rates of product lines.
- 2.3 Determine store or department space requirements and brand product mix according to store policy.
- 2.4 Determine future directions for merchandise ranges according to store policy.
3 Plan merchandise ranges.
- 3.1 Develop and implement buying plan according to outcomes of analysis and store policy.
- 3.2 Determine future directions for merchandise ranges according to store policy.
- 3.3 Liaise with relevant personnel to coordinate promotional and marketing activities.
- 3.4 Analyse store or department sales figures to determine contribution rates of product lines.
- 3.5 Determine investment levels with reference to previous years' sales figures, predicted demand and projected gross profit.
- 3.6 Identify and act upon contribution improvement opportunities.
- 3.7 Determine store or department space requirements and brand product mix according to store policy.
- 3.8 Determine stock levels according to peak seasons, special events and supplier lead time.
- 3.9 Analyse, evaluate and amend merchandise range and sources of supply according to management, staff and customer feedback.
4 Establish supplier relations.
- 4.1 Develop cooperative relationships with supplier representatives according to store policy.
- 4.2 Continuously review existing suppliers in regard to quality, profitability, service and delivery status.
- 4.3 Identify new suppliers and delete existing suppliers according to performance indicators.
5 Negotiate supply of goods.
- 5.1 Negotiate and implement arrangements with suppliers according to store policy and procedures, and communicate to relevant personnel.
- 5.2 Authorise special pricing arrangements and customer payment agreements and communicate to relevant staff and management personnel according to store policy.
- 5.3 Monitor records of suppliers and stock for accuracy and legibility and take appropriate action where necessary.
- 5.4 Identify market factors affecting supply and communicate to relevant personnel.
- 5.5 Convey complete and accurate records of negotiations and agreements to relevant personnel within designated timelines.
- 5.6 Take immediate corrective action where potential or actual problems with supply are indicated.
- 5.7 Identify and develop new suppliers to maintain and improve sales and service delivery.
- 5.8 Analyse, evaluate and amend stock range and source of supply according to management, staff and customer feedback.
6 Monitor quality control.
- 6.1 Establish merchandise quality standards with suppliers according to legal requirements, customer requirements and store policy.
- 6.2 Monitor and ensure quality of merchandise during supply, manufacture and delivery processes.
- 6.3 Record and analyse stock return figures against target figure.
7 Introduce product ranges.
- 7.1 Inform relevant personnel of new product ranges and advise on preferred location of merchandise.
- 7.2 Implement staff training in product knowledge to introduce product range.
- 7.3 Demonstrate or display new ranges to staff according to store merchandising plan.
8 Maximise profit.
- 8.1 Calculate or estimate individual product range contributions against budget and targets.
- 8.2 Develop and implement product range assessment checks against budget and targets.
- 8.3 Calculate or estimate overall selling space contributions according to store merchandising plan.
- 8.4 Maximise profit margins in negotiations with suppliers.
- 8.5 Determine store pricing policies according to stated net profit margin in store merchandising plan and consumer law.
- 8.6 Negotiate specifications for terms of trade.
9 Rationalise stock.
- 9.1 Review and update stock range at regular intervals.
- 9.2 Identify stock lines to be deleted and take action to minimise adverse effect on profit.
- 9.3 Consolidate stock as required to maximise sales potential.
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.
Store merchandise and marketing policies may include:
store culture
current market position
target market.
Customer requirements may be monitored by:
questionnaires
surveys
observation.
Merchandise range may include:
existing stock
new stock.
Impact on business operations may include:
buying
ordering patterns
planning
budgeting.
Relevant personnel may include:
frontline staff
relevant managers
supervisor
team leader
specialist staff.
Feedback may be sought and given:
verbally
in writing
in groups
individually.
Performance indicators may include:
price
quality
performance
supply reliability
merchandise range.
Negotiation process may include:
face-to-face
correspondence
meetings
telephone or electronic media.
Pricing arrangements may include:
cash on delivery (COD)
cheque
credit card
invoice
GST.
Market factors may include:
fashion trends
product availability
sales performance.
Legal requirements may include:
sale of second-hand goods
Trade Practices and Fair Trading Acts
licence, patent or copyright arrangements
pricing procedures, including GST requirements.
Staff training may include:
on-the-job
off-the-job
one-on-one coaching
any combination of the above.
Staff may include:
full-time, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Terms of trade may include:
special buys
payment terms
promotional deals with supplier.
Stock lines may be deleted due to:
changes in store policy and culture
sales performance
customer requirements
fashion trends
product availability
problems with supply.
Methods to consolidate stock may include:
movement of stock between departments or stores.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.
Store merchandise and marketing policies may include:
store culture
current market position
target market.
Customer requirements may be monitored by:
questionnaires
surveys
observation.
Merchandise range may include:
existing stock
new stock.
Impact on business operations may include:
buying
ordering patterns
planning
budgeting.
Relevant personnel may include:
frontline staff
relevant managers
supervisor
team leader
specialist staff.
Feedback may be sought and given:
verbally
in writing
in groups
individually.
Performance indicators may include:
price
quality
performance
supply reliability
merchandise range.
Negotiation process may include:
face-to-face
correspondence
meetings
telephone or electronic media.
Pricing arrangements may include:
cash on delivery (COD)
cheque
credit card
invoice
GST.
Market factors may include:
fashion trends
product availability
sales performance.
Legal requirements may include:
sale of second-hand goods
Trade Practices and Fair Trading Acts
licence, patent or copyright arrangements
pricing procedures, including GST requirements.
Staff training may include:
on-the-job
off-the-job
one-on-one coaching
any combination of the above.
Staff may include:
full-time, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Terms of trade may include:
special buys
payment terms
promotional deals with supplier.
Stock lines may be deleted due to:
changes in store policy and culture
sales performance
customer requirements
fashion trends
product availability
problems with supply.
Methods to consolidate stock may include:
movement of stock between departments or stores.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
consistently applies store policy and procedures, industry codes of practice, statutory requirements and regulations in regard to buying, merchandising and marketing practices
applies market analysis, planning, procurement and rationalisation of stock and merchandise and service ranges, maintenance of supplier relations and quality control
interprets market trends and applies these to the store situation to create opportunities to improve sales and services, while maximising profits
analyses market and plans the introduction of a product and service range
identifies suppliers, negotiates supply of goods, rationalises stock and monitors quality control
trains and communicates information to and from staff or team members in regard to stock and merchandise and service range.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment
relevant information and documentation, including:
store policy and procedures
legislation and statutory requirements
industry codes of practice
merchandise and supplier data.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
customer feedback
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
consistently applies store policy and procedures, industry codes of practice, statutory requirements and regulations in regard to buying, merchandising and marketing practices
applies market analysis, planning, procurement and rationalisation of stock and merchandise and service ranges, maintenance of supplier relations and quality control
interprets market trends and applies these to the store situation to create opportunities to improve sales and services, while maximising profits
analyses market and plans the introduction of a product and service range
identifies suppliers, negotiates supply of goods, rationalises stock and monitors quality control
trains and communicates information to and from staff or team members in regard to stock and merchandise and service range.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment
relevant information and documentation, including:
store policy and procedures
legislation and statutory requirements
industry codes of practice
merchandise and supplier data.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
customer feedback
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| N0689 | WRRI4B | Buy merchandise | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| WD967 | SIRXINV404 | Manage retail merchandise | Unit of competency |
| WD968 | SIRXINV407 | Manage suppliers | Unit of competency |