Creating a Six-Month Merchandise Plan for a Founding Department Store

Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0064
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A family-owned department store has had a successful 120-year history. They have moved with the times and faced competition well, however, recently some departments within the store have been met with decreasing sales and profits primarily due to increasing competition from fashion brand companies selling their products online. The women’s designer department hasn’t been met with these challenges, is profitable and continuing to grow but is wary of the threat of increased competition. The store’s management is trying to be proactive and become more careful in their merchandise planning, control, and purchasing. The buyer is planning to use a six-month merchandise plan to determine the departments sales and merchandise needs in light of this. Six-month plans forecast a company’s sales and inventory, reductions, stock-to-sales-ratio, and other data to determine merchandise needs. Maintaining merchandise control is necessary for the buyer’s success in meeting the sales and profit goals within a department. The buyer for the women’s designer department must do the best job she can in predicting the future sales, inventory, and profit for her department utilizing the six-month merchandise plan.

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