RMG 400 Lecture Notes - Lecture 7: Plans, Cash Flow, Shoplifting

• School: Ryerson University
• Department: Retail Management
• Course: RMG 400
• Professor: Janice Rudkowski

Document Summary

Merchandise plan: projection in dollars of sales goals of store/dept over a specified period of time (usually 6 months) Translates profit objectives into framework for merch planning + control. Normally spring/summer (feb to july) or fall/winter (aug to jan) Provide estimate of amount of capital required to be invested in inventory for specific period. Provide estimate of planned sales for period that translates into cash flow estimates for store mgmt. If merch plan is used successfully, following outcomes should result: Plan (this year) huge incentive on this number. Calculate ly monthly sales figures as percentage (%) of ly total sales. You would plan for following % of sales to occur each month, assuming: Detected no major changes during current season. Sales analysis of previous years indicates that % of total sales has remained fairly constant. There must be adequate opening merch assortment to meet anticipated customer demand.