final project
Running Head: MERCHANDISE ASSORTMENT PLAN ! 1
Merchandise assortment planning is the optimal arrangement of items in a store to
maximize sales conversion (Bahng, et al., 2018). The ultimate goal of a business is to make
profits and one of the most effective tools that a retailer can use for sales conversion is
merchandise assortment. Merchandise assortment planning effectively helps retailers to organize
their merchandise especially in the cases of seasonal selling. This merchandise assortment plan is
for an apparel retail store that seeks to maximize profits from its fall/winter apparel collection.
The assortment will focus on the six apparel categories and how they will be presented to their
target market.
Table 1 shows the assortment plan per merchant category for the store. Since the fall
season is characterized by cold weather and snow, the category has more focus on apparels that
are warmer such as coats and sweaters, yet stylish and breaking from the fashion norm of dull
colors. Pieces from the collection can be used to make statement fashion due to their unique
designs and variable colors. Since the apparel store is new to the market, retail management has
to carefully map out the objectives of the business. From the display arrangement, the target
market should clearly understand the product that the store is introducing to them, and the
uniqueness of the brand (Yu, et al., 2018). The display will determine the rate at which customers
are attracted to the product which in turn converts into sales.
Table 2 shows the quantity of stock per merchandise category. The main target market for
the business is the middle working class individuals who have a taste of style and attention to
detail. Away from the traditional dull colors of fall collections, the store offers pieces that are
MERCHANDISE ASSORTMENT PLAN ! 2
vibrant, warm and stylish which can make individuals to stand out with statement inexpensive
pieces. This is also the competitive advantage the store plans to use.
Table 3 shows the monthly unit allocations for the apparel line. The fall season is also the
festive season, hence more people are expected to spend money on clothing and gifts. The table
allocates less office wear for both men and women in the month of December and more of the
classy wear including those of children in that month. Being a colder month, December also has
a higher stock of coats and warm clothing compared to the other months.
The success of the merchandise assortment plan relies on the attractiveness of the
assortment and the sales turnover rate. The store starts with a relatively lower stock levels of the
line allowing room for the customers to dictate their interests. From the category assortment
sales turnover, the retailer will be able to understand consumer behavior that will help them plan
better (Yu, et al., 2018). This will also inform future merchandise budget planning in order to
stock goods that the market really needs.
The merchant assortment plan also capitalizes on the festive season spending spree by
stocking more during the month of December (Bahng, et al., 2018). The retailer understands well
which products are needed and at what time, and uses the information to sort inventory in the
best profit maximization plan. All the six apparel categories serve the needs of the client during
the season which are; to be stylish and to stay warm without spending too much money.
MERCHANDISE ASSORTMENT PLAN ! 3
Table 1: Model Stock Plan
Merchant Category
Merchant assortment
description colors style sizes
Office Men’s wear
shirts Cotton tailored
variabl e
Short and long sleeves
Small to 5xl
Trousers Tailored variabl e
Fitting Small to 5xl
Two piece suits tailored variabl e
Fitting Small to 5xl
Three piece suits
tailored variabl e
Fitting Small to 5xl
Mixed suits tailored variabl e
Fitting Small to 5xl
Office women’s wear
dresses tailored variabl e
Fitting, circular, A line
Small to 5xl
skirt tailored variabl e
Fitting, circular, A line
Small to 5xl
shirts tailored variabl e
Fitting circular, A line
Small to 5xl
trousers tailored variabl e
Fitting, straight Small to 5xl
Classy Men’s wear
trousers Khaki, jeans variabl e
fit Small to 5xl
Casual shirts Cotton Variabl e
fitting Small to 5xl
Sweaters Cotton, woolen
variabl e
fitting Small to 5xl
Classy women’s wear
dresses Tailored Variabl e
Body con, free fit Small to 5xl
Statement t- shirts
tailored variabl e
Fitting, free fit Small to 5xl
trousers Jeans variabl e
Skinny stretchy Small to 5xl
MERCHANDISE ASSORTMENT PLAN ! 4
Table 2: Merchandise allocation
Coats Men coats tailored variabl
e Detailed, leather Small to 5xl
Women coats tailored variabl e
Faux fur, cotton Small to 5xl
Kids wear Boys clothing tailored variabl
e Small to 5xl
Girls’ clothing tailored variabl e
Small to 5xl
Merchant Category Merchant assortment Number of units total
Office Men’s wear Shirts 1000 2,500
Trousers 800
Two piece suits 200
Three piece suits 300
Mixed suits 200
Office women’s wear dresses 900 2,500
Skirt 600
Shirts 500
trousers 500
Classy Men’s wear trousers 1000 2500
Casual shirts 1000
Sweaters 500
Classy women’s wear Dresses 900 2,500
Statement t-shirts 600
trousers 1000
Coats Men coats 1250 2,500
Women coats 1250
Kids wear Boys trendy pants 800 2,500
Girls’ dresses 1000
Boys shirts, sweaters 200
Girls coats and sweaters
500
MERCHANDISE ASSORTMENT PLAN ! 5
Table 3: Monthly Allocation
Merchant category
Month
Office Men’s wear
August Septem ber
Octobe r
Novemb er
Decemb er
Januar y
total
Units on floor
400 400 300 100 100 400 2,500
Units in stock
300 100 100 100 100 100
Office women’s
wear
Units on floor
400 400 300 100 100 400 2,500
Units in stock
300 100 100 100 100 100
Classy Men’s wear
Units on floor
100 200 200 300 600 200 2,500
Units in stock
100 50 50 100 400 200
Classy women’s
wear
Units on floor
100 200 200 300 600 200 2,500
Units in stock
100 50 50 100 400 100
Coats Units on floor
100 100 100 200 500 400 2,500
Units in stock
200 100 100 100 300 300
Kids wear Units on floor
100 100 100 400 700 100 2,500
MERCHANDISE ASSORTMENT PLAN ! 6
References
Bahng, Y., Kincade, D. H., & Rogers, F. T. (2018). Assortment Planning for Retail Buying, Retail
Store Operations, and Firm Performance. The Journal of Distribution Science, 16(8),
15-27.
Yu, H., Sedlezky, S., Wong, K., Hernandez, T., Larsen, P., & Stephenson, G. (2018).
Merchandising, Inventory and Logistics. Pop-up Retail Strategies in an Omnichannel
Context.
Units in stock
100 100 100 200 400 100