Organization For Buying And Merchandising

Retailing and Merchandising in Textiles and Appare 3(2+1)

Lesson 06: Chain Organizations

Organization For Buying And Merchandising

Centralized buying, merchandising, and distribution of fashion assortments prevail among retail chain organizations. The majority of chain stores are departmentalized. But a chain buyer located in a central buying office is usually assigned to purchase only a specific category or classification of merchandise instead of buying all categories carried in a single department, as a non chain buyer does. This practice is called category buying or classification buying. For example, a sportswear buyer for a department or specialty store might be responsible for departmental buying; that is, buying all the various categories of merchandise usually carried in a typical sportswear department, such as swimwear, tops, jeans, sweaters, and slacks. In contrast, one chain organization buyer might be assigned to purchase swimwear, another to purchase sweaters, and so on. Category buying, rather than departmental buying, is necessary because of the huge quantities of goods in each category that are needed to stock all the individual units of a chain. These units sometimes number in the thousands.

Centrally purchased merchandise is usually distributed to the units of a chain from central or regional distribution centers. Larger chains have set up elaborate systems of supervision and reporting so that their central-office buyers are kept informed at all times of what is selling and what remains in stock at each of their many units.

Unlike single-unit or multi branch department or specialty store buyers, central buyers are not directly responsible for sales. Sales are the responsibility of the store manager of each unit in the chain and the appropriate department manager. Neither are central buyers responsible for the merchandise training of salespeople in each unit. However, they do supply trend and other information to chain units about the merchandise distributed to them. And, since central buyers are usually responsible for providing stock in only one or a few merchandise categories, they are not responsible for the profitable merchandising of a department as a whole.

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Last modified: Monday, 30 April 2012, 6:41 AM