Buying and Category Management
Retail Buyers are responsible for sourcing new products and analysing the performance of existing goods to make sure their company retains its competitive edge. Understanding customers’ needs is at the heart of this job and a Buyer will research, plan and choose the range, type and quality of the products they source in light of this.
The Buyer’s role is one of the more glamorous within the Retail sector, offering autonomy and opportunities for regular travel. Responsibilities include identifying and developing products in line with anticipated trends or seasons, identifying suitable suppliers, dealing with contract negotiations and managing margins. Buyers work in close partnership with the merchandising and operations teams, as well as suppliers to research and identify opportunities for growth.
Category Management as a job title can mean different things to different retailers. Whilst for some it is a buying management role, the term derives from the break down of the total range of products into groups of similar or related products, known as product categories. Each category is then run like a "mini business" in its own right, with its own set of turnover and/or profitability targets and strategies.
An important characteristic of Category Management is the shift in relationship between retailer and supplier. Traditionally competitive, category management requires retailers and suppliers to work together to grow the total category, maximising sales and profits for all parties.
Category Managers are responsible for ensuring that shopper and consumer needs are met or exceeded at the point of purchase. When a shopper approaches a tinned fish display in a store, they see a range of related products and perhaps some promotions. What they don’t see is the many hours of work that allows them to easily find and select their desired item. How and where items are displayed will be the result of research carried out by supplier and retailer category teams to identify the key to category growth and the appropriate tactics to achieve it.
Merchandising and Merchandise Planning
In most cases, Merchandisers ensure products appear in the right store, on time and in the right quantities; they also work with the buying team to anticipate trends, manage stock and monitor sales.
Put simply, Buyers select the lines while Merchandisers decide how many to buy, decide on price and often make trading decisions on the existing range.
Salaries range from £26,000 to £35,000, although a head of merchandising in a large company could earn more than £80,000.
Merchandise Planners are key players in the trading function of any retailer. This role is often incorporated into the role of a Merchandiser, however in some retailers the responsibility is split. Merchandise Planners analyze and forecast trends, coordinate the activities of the distribution team, review product performance on a branch by branch basis and manipulate available stock.
Visual Merchandising
Visual Merchandising, according to the New Oxford English Dictionary, is the activity of promoting the sale of goods, especially by their presentation in retail outlets. A vital element of modern retailing, visual merchandising, or window dressing, combines product and environment to create a stimulating and engaging display that encourages the sale of a product or service.
Visual Merchandising is about setting out a store in a way that customers will find attractive and appealing, reflecting the principles that underpin the store’s image and displaying 'goods for sale' with the end purpose of making a sale; it is season based, introducing new arrivals to customers and increasing conversions through a planned and systematic approach to the display of stock.
Space Planning and Store Design
A Space Planner is responsible for maximising profit and sales per square foot via effective use of in-store shelf space. A critical element of this role is the design of effective planograms.
A planogram is a diagram of fixtures and products that illustrates how and where retail products should be displayed in order to increase customer purchases. Planograms can be created for macro, category and micro space:
Macro space is the allocation and combinations of store space to optimize customer flow and/or space. The output of macro space analyses are used to create floor plans and fixture plans.
Category space is the space needed for specific types of products. For instance, high traffic categories need more space in general, while high browsing products need more eye-level shelf space. The output of category space analyses are blocked planograms for each category. Micro space takes planning down to the SKU level and where the specific item should be put on the shelf.
Micro space analyses determine how many facings there should be and what the required depth and height of the products are for the shelf.
A Space Planner takes all of these factors into account to decide which product is placed in which area of a shelving unit and in what quantity. Optimising the use of space (floor, page or virtual) in this way enables them to communicate brand and ultimately increase turnover.
Store Designers are responsible for creating a retail environment that draws people into the store and converts browsing into purchasing. The primary concerns of a Store Designer are to ensure that:
- Storefront entrances allow for easy customer traffic flow into the store, provide a sense of the store’s identity and achieve instant customer recognition.
- Fixtures and freestanding display materials allow for easy traffic flow in and around the store.
- The sales counter is clearly definable, easy to access and kept free from clutter.
- Merchandise such as accessories or smaller items of interest are near the counter to entice the customer to make impulse purchases.
- There are points of interest in-store, for example feature walls and displays, to promote new product lines.
- General housekeeping standards are maintained and met regularly by staff. Empty or dusty fixtures and fittings do not convey a good message to customers.
Quality Assurance Management
Quality Assurance guarantees that a product or service provided by a retailer is fit for purpose, meeting both legal compliance and customer expectations. In essence the Quality Assurance Manager drives a business to plan, formulate and agree comprehensive quality procedures, often in compliance with European and international standards and legislation such as ISO9000; this is a family of standards for quality management systems, maintained by the International Organisation for Standardisation and administered by accreditation and certification bodies.
Irrespective of the standards being applied, the Quality Manager is responsible for ensuring that there is an adequate process and procedure in place. Working closely with the supplier, buyer and merchandiser to ensure the quality process is adhered to, they may advise on upgrades and provide training, tools and techniques to enable others to maintain quality standards.
