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Retail Voice: |
Product Planning
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By: Lisa Kanack
Cropper's Corner |
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When we first opened our store, it was so exciting shopping for
products. There was so much to choose from, and it was so easy
to get caught up in the excitement and just buy and buy. Today,
while we still are easily excited about selecting products, we
have gotten much more disciplined in our approach.
We knew we wanted a good selection, but we honestly didn’t know
if we were succeeding. In order to get a better sense of variety
and selection within the store, we first had to make changes to
our product arrangements. We took four basic steps:
Departmentalization, Plan-O-Gram, Slotting, and Planned
Purchasing.
Departmentalization had to come first. We needed to know what
major categories for products we had, and which categories we
were missing. We identified universal theme areas we felt were
crucial to our store such as: Military, Wedding, Baby & Child,
Pets, Sports, School, Seasons & Holidays, Travel, etc. Each
“department” was given a certain amount of space in the store
based upon sales.
Next, we designed a basic plan-o-gram for each area. We
dedicated a certain amount of space to embellishments and
stickers for each theme, and a certain amount of space for
paper. This allowed us to set a cap on the number of products we
could purchase for any one given department. We call these
“product slots.” This gives us an actual number we have to stay
within, reducing our penchant to over-buy in some areas, and
under-buy for others.
Armed with the number of available slots for each category, we
can then hit the catalogues (or trade shows) in search of
products to fill those slots. But even this isn’t as simple as
it used to be. After getting caught with too much similar
product – and having none of it sell very well – we’ve begun a
more stringent purchasing plan.
My mother and I sit with catalogues from our top tier vendors
first, knowing that these lines will most likely be purchased.
After we make those initial decisions, we calculate the
remaining slots, and then pull out our second tier vendors and
begin comparing these lines by color, style and design to our
top tier vendors. If it’s a style we haven’t filled yet (such as
traditional, funky, juvenile, vintage, shabby chic, etc.), we’re
more likely to purchase it, than if it’s in a style we’ve
already filled. We look at our 3rd tier and potential new
vendors last with the same criteria.
Our purchasing goal is simple, diversify product selection by
first purchasing from our core vendors, adding products from
additional vendors by concentrating on lines that do not
resemble one another in design, style, color or feel.
By following these steps, we have done much better at truly
carrying a variety of products for our customers – instead of
getting caught up in the excitement of shopping. We still have a
ways to go – but at least we’re heading in the right direction. |
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