Chapter 7 Fashion Promotion and Retailing
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Many retailers offer loss leaders. These are
low-priced articles on which retailers make
little to no profi t. They are popular items to
attract shoppers to retail sites. Retailers hope
that shoppers will also buy other goods at their
regular prices to increase profi ts.
Stock control or inventory control is the
receiving, storing, and distributing of mer-
chandise. Large retailers have computerized
conveyors to move the received merchandise
into the proper sections of warehouses or stor-
age areas. Inventory is marked with bar codes of
dark bars and white spaces, so each piece can be
recorded electronically. The goods are prepared
for the selling fl oor and taken to the proper
areas when requested. As merchandise sells,
electronic check-out scanners automatically
record inventory changes.
Basic stock is merchandise that is constantly in
demand. It is mostly staples, such as underwear
or men’s business shirts. It has a predictable
and constant customer demand.
Retailers place purchase orders with manu-
facturers. These are written documents autho-
rizing manufacturers to deliver certain goods at
specifi c prices. Each purchase order has a unique
number for identifi cation. When a manufacturer
fi nishes producing the items specifi ed for a pur-
chase order, the goods are shipped to the retailer.
Retailers can also buy odd lots (sometimes
called job lots). These are incomplete assortments
of goods. They might be items that are being
discontinued or overruns that a manufacturer
has left at the end of a season. Not all sizes or
styles are available. They are bought for reduced
prices to clear out the manufacturer’s inven-
tory. Retailers use these goods as sale items.
The completion date is a date designated on a
purchase order by a retailer. Any merchandise
that has not left the manufacturer by the com-
pletion date is subject to cancellation. If the
completion date cannot be met, the retailer
could grant the manufacturer an extension.
As ready is an expression used by manu-
facturers regarding the estimated delivery time
of merchandise ordered by retailers. This is a
promise to fi ll (ship) orders when they are com-
pleted. It takes the place of the commitment for
an exact shipping date. Decisions about how
fi rm or open the agreement should be depend
a great deal on the past relationship between
the product manufacturer and retailer.
Retail Buying
Thousands of buyers go to New York City or
other regional apparel marts to place orders for
their retail companies. Marts have permanent
manufacturers’ showrooms, as shown in 7-7. They
may also rent additional space to manufacturers
for use during market weeks. Fashion shows and
special displays, as in 7-8, feature manufacturers’
lines during market weeks.
Regional marts save retailers the time and
expense of going to New York City for buying
trips. This matters especially to small, indepen-
dent retailers that may be located far from New
York. In addition, manufacturers’ salespeople
periodically call on retail buyers at their stores.
Retail companies limit their buyers to a spe-
cifi c open-to-buy. Open-to-buy is the amount of
merchandise (in dollars or units) that buyers are
permitted to order for their store, department,
or apparel category. The open-to-buy is for a
specifi ed time period, such as for fall or spring
goods.
Retailers order apparel about six months
ahead of the wearing season. With computer-
ization and collaboration, the lead and response
times are becoming shorter. The merchandise
is promoted to consumers about three months
ahead. Buyers specialize in certain types of
merchandise with a targeted customer audience
in mind.
7-7
Each showroom in a regional mart contains the line of
a specifi c apparel manufacturer.
California Mart: In-Wear/Matinique, Inc.