Fundamentals of Merchandise Planning 9: Margin Planning

  • retail planning
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Merchandise planning at the most basic level is about

  1. anticipating customer demand, then
  2. planning your inventory needs to meet that demand while
  3. satisfying the company’s financial objectives – to maximize profit.

Now that you understand the basics of how to plan for customer demand and how to match your inventory to meet the sales needs, we’ll dive into how to maximize your business profitability.

Introduction to Margin Planning

What is gross margin? Why is it used?

Let’s explore some of the detailed calculations in margin planning

Receipts and Markdown Planning

This session covers concepts such as MMU% and IMU%. Find out what they are, and how they are used.

Cost, of course, is a critical component in margin planning.

MMU% and Associated Metrics

This session explores metrics used for MMU calculations.

The profitability of any merchandise category is determined by the margin it yields from its inventory.

Margin Performance Metrics

In this last session of margin planning, we discuss the performance metrics and best practice considerations in your merchandise planning.

For more resources and information about merchandise planning, check out our article on what is merchandise planning.

Additional e-book resources:

Next, we’ll explore how buying or assortment planning is the perfect partner to ensure your merchandise financial goals are met.

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