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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

  1. Determine category planning requirements.
  2. Develop category financial plan.
  3. React to trade.

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 a merchandise financial plan to create a category financial plan for one product category across a six-month trading period, using either:

open-to-buy method

space capacity method

document the above category plan detailing:

core and seasonal line spend

sub-category spend

percentage held back for reaction to trade

trial items

key winners

repeat items

deleted items

promotional items

key delivery dates

use action levers to adjust the above category plan in response to the following in trade activity:

seasonal changes

competitor activity

sales decreases

sales increases

supply challenges.


Knowledge Evidence

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

role and purpose of category financial planning

methods for creating merchandise category plan:

open-to-buy method:

at retail

at cost

space capacity method

internal and external factors impacting category planning:

merchandise strategy

merchandise financial plan

merchandise category structures:

category

sub-category

planned promotional activity

consumer trends

post-trade analysis

open-to-buy

space capacity in stores

like-for-like sales comparisons

stock-quit cycles

stock availability

full price, markdown and promotional

supplier performance

competitor performance

aged stock

category pricing structures and role in category financial planning:

volume

promotional

high-margin

good, better, best

everyday low pricing

values included within a category plan:

core and seasonal line spend

sub-category spend

trial items

key winners

repeat items

deleted items

promotional items

key delivery dates

role of re-forecasting processes

merchandise performance indicators and role in category plan:

sales

gross profit margin

margin mix

purchase margin

markdown value

levers to react to trade:

markdowns

promotions

repeats

re-pricing

competitor review

holding stock

new product trial

stock returns

impacts of, and strategies for, reacting to:

seasonal changes

competitor activity

sales decreases

sales increases

supply challenges

commonly-used merchandise category planning methods within the retail industry.