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Elements and Performance Criteria

  1. Analyse the operating environment.
  2. Develop merchandise strategy.
  3. Review merchandise strategy.

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

review the strategic objectives and direction of one retail organisation and develop a merchandise strategy for a six-month trading period by:

analysing the internal and external operating environment

analysing merchandise performance data

documenting a SWOT analysis identifying:

strengths

weaknesses

opportunities

threats

document the above merchandise strategy and detail:

brand strategy

competitor strategy

pricing strategy

product strategy

promotional strategy

supplier strategy

target market strategy

store and multi-channel strategy

develop and document an action plan for the above merchandise strategy that details:

resourcing requirements

key responsibilities

performance indicators

timeframes

evaluate the merchandise strategy against performance indicators and make recommendations for ongoing improvements.


Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:

retail merchandise strategies:

purpose

common objectives and priorities

key stakeholders:

organisational decision-makers

strategy influencers and drivers

influence on merchandise budget and planning

trends

role of critical path in merchandise strategy development and execution

external operating environmental factors and their impact on a merchandise strategy:

competitor

consumer behaviour

economic

environmental:

sustainability

seasonality

ethical

political

social

technological

target markets:

current

potential

trends

internal operating environmental factors and their impact on a merchandise strategy:

organisational:

objectives and direction

resourcing

gross margin

percentage contribution mix

supply arrangements

logistics

current merchandise strategy

stock positions

product and sales trends

space management

store changes:

openings

refurbishments

closures

role and interrelationship of key retail functions in merchandise management:

buyers

logistics

marketing

planners

production

retail operations

senior management

visual merchandisers

key aspects of a merchandise strategy:

brand strategy

competitor strategy

pricing strategy

product strategy:

growing

maintaining

exiting

promotional strategy

supplier strategy

target market strategy

store and multi-channel strategy

key inclusions in an action plan for merchandise strategy execution:

resourcing requirements

key responsibilities

performance indicators:

qualitative

quantitative

timeframes.