Last Word
Think Retail
by Erinn Morgan
what's the plan?
Why have it: ■
■ As the growth market becomes fragmented and difficult to manage,
increases in profitability will only be available from reductions in fixed costs
or the better management of variable ones.
John
Hobson from the Planning Factory Ltd., rece-ntly discussed the reasoning for merchandise
planning.
■ As a last resort. Most retailers have already shaved fixed costs leaving better margin management as the only viable remaining.
How it helps:
■ You will be forced to take stock of some of the uncomfortable realities of your current position.
■ The learning process will be invaluable, and the change process, if managed properly, will inject new enthusiasm into those involved.
■ There are concrete improvements in the achie-ved margin that the system will bring when it is used.
■ There are various benefits that are available from the new possibilities crea-ted by the system, such as efficient consumer response programs, consolidated planning by integrating merchandise plans and financial budgets, and better provision of information.
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