EXAM TOPIC 1 Flashcards
Fill in the missing word:
Merchandise Fixtures
Merchandise fixtures are essential for presenting merchandise clearly. Well-planned fixtures make it easy for the store to inventory and sell merchandise. Customers can locate items faster with the help of user-friendly fixtures that make the products more visible. This leads to more time to shop and hopefully additional shopping. Fixturing is the selection of the “furniture” for the selling area of an establishment. In big retailers this is done by the head office so that the fixtures fit in with the retailer’s image.
TRUE/FALSE
Bottom-up planning is the analysis that begins with what was sold
True
Bottom-up planning is the analysis that begins with what was sold: how much, what kind, when and at what price. Projections are then made for the coming sales period and investment in merchandise is based on previous sales. Bottom-up planning is an everyday task of a merchandise manager.
This helps head office with its top-down planning.
TRUE/FALSE
It is not important to group Similiar merchandise together to determine which product sells the best
False
It is important to group similar merchandise together to determine which products sell best and which generate the most sales. This is concrete evidence of which products the customers are buying.
TRUE/FALSE
Proper lighting is vital to selling products
True
Proper lighting is vital to selling because light directs a customer’s eyes to the merchandise
TRUE/ FALSE
*Texture is not an important aspect of colour
False
According to Pegler (2006:13–14), texture is another very important aspect of colour.
TRUE/ FALSE
The aim of visual merchandise is to create a story/theme
True
the aim of visual merchandising is to create a story.
TRUE/ FALSE
Alternatives in merchandising are used to stop visual boredom
True
Alternatives are used to stop visual boredom. Image is of the utmost importance in select- ing the alternatives to use.
TRUE/ FALSE
Methods of dominance factor are very important for visual merchandiser
True
The methods of dominance factors are very important. You will use them every day while working as a visual merchandiser.
Assume a retailer requires an end-of-month inventory of R30 000. She estimates sales of R6 000 and markdowns of R1 000 for the month. Her beginning-of-the-month inventory is R15 000. She is waiting for orders that have been placed to the value of R7 000.
How much inventory is she ready to receive?
(2)
The retailer requires inventory to the amount of: R30 000 + R6 000 + R1 000 = R37 000 (this is the inventory required).
How much inventory is she open-to-buy?
4
How much inventory is she open-to-buy?
She is open to receive R37 000 - R15 000 = R22 000. Of the R22 000, she has already ordered R7 000.
She is therefore open-to-buy R15 000
(R22 000 - R7 000).
Explain how fashion retailers plan effectively for non-staple stock.
(4)
Pre-set order quantities and automatic reorders are not possible with nonstaple goods. Ordering new merchandise requires judgement and being in tune with customer tastes and industry developments.
Conservative ordering and continuous checking of sales pat- terns are important. The selection and management of merchandise are very important.
It is important to group similar merchandise together to determine which products sell best and which generate the most sales. This is concrete evidence of which products the customers are buying. Everyday stock control is important.
Provide an example of a silent sales person and the stores most valuable asset.
(2)
Well-dressed mannequins make an impressive apparel presentation. If mannequins are dressed well, accessorised with style and located correctly, they will create a strong sales generator and fashion image. Customers are attracted to mannequins because they are fun to look at and their image teaches fashion. Mannequins in display windows and in the store should always wear the store’s latest fashion merchandise. The merchandise must be changed every two weeks at the least.
2Name two terms that adds excitement to any visual presentation. (2)
Colour and texture are important to add excitement to any visual presentation.
Describe the following terms/ concept
Historic sales patterns (5)
Historic sales patterns of the best and the worst sellers from a previous season are usually summarised in a report format to show the “lessons learned”. A dull repeat of old formulas is not needed. A fashion business must not repeat historic buying failures, although a successful history is no guarantee of future success in the fickle, volatile world of fashion.
Visual Merchandising works best when it is customer oriented. explain the advantages and describe how the merchandised product must be shown. (4)
Visual merchandising works best when it is customer-oriented. One can only sell when one knows to whom one is selling and when the merchandise is explained clearly and visually to that target market.
The product must be shown in a way that makes it relate to that shopper’s needs, preferences and aspirations (his/her lifestyle and/or fashion attitude)
