RMG 400 Lecture Notes - Lecture 2: Forever 21, Old Navy, Gross Margin

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

Document Summary

Week 2 the buying function in retailing. Types of merchandise carried (fashion, electronics, furniture, etc. ) Org. structure (flat vs. hierarchical, centralized, independent, start-up ) Negotiate w/ vendors for favourable terms + services. Achieve goals, such as specific sales, markups, markdowns, gross margin, turnover. * day in the life of a buyer * How and what a buyer buys, is directly related to how and where the consumer buys. Technology is providing buyers w/ access to increasing quantities of data, making buyers" jobs more scientific. Top line sales consumer demand, product being sold. Diff. b/w merch cost and its selling price. Must cover all operating expenses for a business or department in addition to providing a reasonable profit. Soft goods industries like fashion apparel (wholesalers and retailers) use markup as a key metric. Consumer packaged goods industries (manufacturers) use gross margin as a key metric. Accessory products for home (towels, sheets, bedspreads, etc. ) 2+ more stores under a single ownership.