Merchandise Planning in Retail: Strategies and Importance

Merchandise planning in retail is a crucial aspect of store management that involves coordinating the introduction, display, and sale of products to match consumer trends and the store's color theme. This process ensures that the store remains visually appealing and responsive to the needs and preferences of its target audience.

Role of Monthly Merchandise Planner (MMP)

Each retail store receives a monthly Merchandise Planner or MMP (short for Monthly Merchandise Plan) each month. This document serves as a roadmap that outlines the store's focus for that particular period and highlights specific color stories. A color story refers to a scheme of colors that are used to guide the presentation and display of products throughout the store, emphasizing a cohesive visual identity.

Associate Responsibility and Visual Merchandising

The associates and visual merchandisers within a store are responsible for implementing the plans laid out in the MMP. They are tasked with outfitting mannequins and fixtures to reflect the color story and to showcase the selected products in an attractive and inviting manner. This process involves:

Selecting and coordinating clothing and accessories to match the chosen color story. Demonstrating outfits and styling choices that appeal to the target market. Encouraging customers to engage with the displayed items through creative window displays and in-store promotions.

For example, some stores may concentrate on their "Wear 2 Work" aisle, featuring professional attire for the workplace, while others might focus on the athletic aisle, highlighting the latest sports gear and apparel. The choice of products depends on what the headquarters wants to feature for that month, as well as the trending items in the market.

The Impact of Concentration and Trending Products

The focus on specific product categories within a store has a significant impact on both the store's image and its sales performance. By concentrating on high-demand or trending items, stores can:

Attract customers seeking specific products. Generate buzz and excitement among shoppers. Capture a segment of the market that may not be fully addressed by other stores.

For instance, a store might feature items from popular casual/trending aisles such as streetwear or edgy fashion, catering to younger demographics. Meanwhile, other stores may emphasize sleepwear aisles or shoes, targeting more mature customers or those in the market for comfortable and stylish footwear.

Conclusion

Merchandise planning in retail is a multifaceted process that requires careful consideration of market trends, customer preferences, and store characteristics. By effectively executing the plans outlined in the MMP, retailers can enhance the shopping experience, increase customer engagement, and drive sales. Understanding the role of the color story and the importance of visual merchandising are key to achieving these goals and maintaining a successful retail presence.

Keywords

Merchandise planning, retail, store management