Application
This unit describes the performance outcomes, skills and knowledge required to develop a commercially viable range of retail merchandise that reflects an established merchandise category financial plan and merchandise strategy.
This unit applies to individuals working in merchandise management related roles in a diverse range of retail sectors and business contexts. They operate with independence and are responsible for making a range of operational business decisions that relate to the management of retail merchandise.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Determine merchandise-range requirements. | 1.1. Access and review category financial plan to determine range requirements. 1.2. Profile target market and identify relevant trends to inform range planning. 1.3. Source input from relevant stakeholders and use feedback to inform range planning. 1.4. Review product performance information and use findings to plan range optimisation and exit strategies. |
2. Generate options for merchandise range. | 2.1. Generate range options that respond to target market and trend information. 2.2. Confirm commercial viability of range options to maximise profitability and minimise risk. 2.3. Determine assortment planning including core and seasonal, and width, depth and breadth, of the range. 2.4. Identify aged and carry-over stock and action strategy for clearance. 2.5. Determine range option planning for Stock Keeping Unit (SKU) requirements. 2.6. Accurately quantify product units to be ordered based on open-to-buy or space capacity method. 2.7. Review merchandise promotional plan and ensure range aligns with planned activity. 2.8. Refine range options through consultation with cross-functional teams and gain approval as required. 2.9. Document finalised range identifying key features, costs and benefits. |
3. Plan merchandise range sourcing. | 3.1. Determine critical path for range sourcing and distribution. 3.2. Review supplier strategy and determine range sourcing. 3.3. Brief product development teams on new range. 3.4. Identify product branding needs and develop branding strategy accordingly. |
4. Purchase merchandise. | 4.1. Place merchandise order with supplier and confirm delivery schedules as per agreed supplier arrangements. 4.2. Document and exchange order and invoice information according to organisational procedures. 4.3. Implement and adjust orders as required. |
5. Plan range distribution. | 5.1. Communicate relevant merchandise information to stores. 5.2. Determine strategy for stock allocation, replenishment and distribution based on individual store requirements. 5.3. Communicate planned merchandise ranges to relevant personnel. |
Evidence of Performance
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 category financial plan to develop a merchandise range plan that includes:
assortment planning
width, depth and breadth of range
core and seasonal items
option planning
Stock Keeping Unit (SKU)
exit strategy
the above product range must contain a minimum of 20 items
document the above range plan to ensure it details:
features
costs
benefits
profitability
quantification
critical path
branding
document a plan for range sourcing and distribution:
external supply arrangements
allocation to stores
prepare documentation for the purchase of merchandise.
Evidence of Knowledge
Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:
role and purpose of merchandise range planning
strategies for:
maximising profitability of a product range
determining viability of product range
key aspects of merchandise product range planning:
assortment planning
width, depth and breadth of range
core and seasonal items
option planning
Stock Keeping Unit (SKU)
exit strategies
internal and external factors impacting product range planning:
feedback from stores
merchandise category buying plan
product performance information
promotional plan
target market profile information and how it is used in constructing the product range
trends in industry, and global and local trends impacting on merchandise product range
critical path
common product exit strategies
exit strategies applied to:
poorly performing products
event and promotional products
short-life-cycle products
factors influencing range allocation:
store grading
climate
target market demographic
competitors
replenishment of core lines
stock turns
supply considerations in the purchasing of merchandise
commonly-used merchandise range planning methods and structures within the retail industry.
Assessment Conditions
Skills must be demonstrated in a retail environment. This can be:
an industry workplace
a simulated industry environment.
Assessment must ensure access to:
organisational documentation:
category financial plan
product range performance information
templates for merchandise range planning
software for merchandise range planning.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors, and:
have worked in the retail industry for at least three years where they have applied the skills and knowledge within this unit of competency.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria, are listed here, along with a brief context statement. | |
SKILLS | DESCRIPTION |
Numeracy skills to: | interpret key retail financial metrics contained within merchandise category plans. |
Technology skills to: | access, document and communicate information using digital technologies and systems. |
Sectors
Retail
Competency Field
Merchandise Management