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Retail Management: A Strategic Approach

Thirteenth Edition

Chapter 14

Developing Merchandise Plans

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Learning Objectives

14.1 To demonstrate the importance of a sound merchandising philosophy

14.2 To study various buying organization formats and the processes they use

14.3 To outline the considerations in devising merchandise plans: forecasts, innovativeness, assortment, brands, timing, and allocation

14.4 To discuss category management and merchandising software

Merchandising

Activities involved in acquiring particular goods/ services and making them available at the places, times, prices, and quantities that enable a retailer to reach its goals.

Retailers must have the proper product assortments and sell them in a manner consistent with their overall strategy. Merchandising consists of the activities involved in acquiring particular goods and/or services and making them available at the places, times, and prices and in the quantity that enable a retailer to reach its goals.

This chapter discusses the planning aspects of merchandising. The implementation aspects of merchandising are examined in Chapter 15. The financial aspects of merchandising are described in Chapter 16. Retail pricing is covered in Chapter 17.

Merchandising Philosophy

Sets the guiding principles for all the merchandise decisions that a retailer makes

It should reflect

Target market desires

Retailer’s institutional type

Market-place positioning

Defined value chain

Supplier capabilities

Costs

Competitors

Product trends

A merchandising philosophy sets the guiding principles for all the merchandise decisions that a retailer makes.

It must reflect target market desires, the retailer’s institutional type, the marketplace positioning, the defined value chain, supplier capabilities, costs, competitors, product trends, and other factors. The merchandising philosophy drives every product decision. See Figure 14-1. The merchandising philosophy of Costco, the membership club giant, is described in the text. In forming a merchandising philosophy, the scope of responsibility for merchandise personnel must be stated.

Product Proliferation Data

Aldi $620 sales/sq.ft 1,400 SKUS

Costco $929 3,700

Stew Leonard’s $1500-$3,750 est. 2,000

Trader Joe’s $1,750 2,500-3,500

Average Supermarket $500 47,000

Average Sales Per SKU

Aldi $ 5.0 million

Costco $18.4 million

Stew Leonard‘s $188,000

(only 5 stores)

Trader Joe’s $2.4 -$2.9 million

Winn-Dixie $142,000-$247,000

With only four stores, Stew Leonard’s has the same bargaining power per SKU than Winn-Dixie, a chain with revenues 20 times higher that Stew Leonard’s

Scope of Merchandising Responsibility

Full array of merchandising functions

Buying and selling

Selection, pricing, display, customer transactions

Focus on buying function only

In many firms, buyers engage in both buying and selling activities. Some retailers consider their buyers to be skilled specialists who should not be active in the selling function. Full-line discount store managers often have great influence on product displays but have little impact on whether to stock or promote particular brands.

The following is found with a merchandise-oriented philosophy:

The buyer’s expertise is used in selling.

Responsibility and authority are clear.

The buyer ensures that items are properly displayed.

Costs are reduced.

The buyer is close to consumers due to selling involvement.

The following is found when buying and selling are separated:

Specialized skills are applied to each task.

The morale of store personnel goes up as they get more authority.

Selling is not viewed as a secondary task.

Salesperson—customer interaction is better.

Buying and selling personnel are distinctly supervised.

Figure 14.1 The Unique Merchandising Philosophy of CarMax

CarMax merchandises both new and used vehicles in numerous categories. As this example involving used station wagons shows, a consumer has a lot of choices when shopping: 4-wheel versus all-wheel drive, ABS brakes, type of transmission, auxiliary audio input, overhead and side airbags, power windows, traction control, a sunroof, and power seats.

Micro Merchandising

Retailers adjust shelf-space allocations to respond to customer differences and other differences among local markets.

Retailers are turning to micro merchandising and cross-merchandising to capitalize on merchandising opportunities. With micro merchandising, a retailer adjusts shelf-space allocations to respond to customer and other differences among local markets. It is successful for Dominick’s supermarkets and Walmart. It is easier today due to the data generated.

Cross-Merchandising

Retailers carry complementary goods and services to encourage shoppers to buy more.

In cross-merchandising, a retailer carries complementary goods and services to encourage shoppers to buy more. Like scrambled merchandising, it can be ineffective if taken too far. Yet, it has tremendous potential, pharmacies sell many complementary products like food items, soda, paper products, seasonal clothing, gift items, to increase basket size.

Figure 14.2 Attributes and Functions of Buying Organizations

A retail merchandising plan cannot be properly devised unless the buying organization and its processes are well defined. Figure 14-2 -range of organizational attributes from which to choose.

Level of Formality:

A formal organization exists if merchandising (buying) is a distinct retail task and a separate department is set up. In an informal organization, the same personnel handle both merchandising and other retail tasks.

A formal organization has well-defined responsibilities and the use of full-time specialized merchandisers. It is also relatively costly.

An informal organization has lower costs and more flexibility. However, responsibilities are less defined and there is less emphasis on merchandise planning.

Both structures exist in great numbers.

Degree of Centralization:

In a centralized buying organization, all purchase decisions emanate from one office. In a decentralized organization, purchase decisions are made locally or regionally.

Centralized buying has an integrated effort, strict controls, a consistent image, proximity to top management, staff support, and volume discounts. It can result in inflexibility, time delays, poor morale at local stores, and excessive uniformity.

Decentralized buying is adaptable, fast, and good for employee morale. It can be disjointed, inconsistent, uncontrollable, unsupported by staff personnel, and more expensive due to a loss of volume discounts.

Many chains combine both formats by deploying a centralized buying organization while also giving store managers some input. The text explains how Madrid-based Zara, a global apparel chain, operates.

Merchandising and Store Functions Performed (1 of 2)

Merchandising view

All buying and selling functions

Assortments

Advertising pricing

Point-of-sale displays

Employee utilization

Personal selling approaches

Merchandising includes various steps in the buying and selling of goods and services such as assortments, advertising, pricing, point-of-sale displays, employee utilization, and personal selling approaches.

Buyers must be attuned to the marketplace, be able to bargain with suppliers, and be capable of preparing detailed plans. They may travel to the marketplace

A sales manager typically supervises the on-floor selling and operational activities for a specific retail department. Sales managers must be good organizers, administrators, and motivators.

Merchandising buyers must possess the attributes of both buyers and sales managers.

. An inside buying organization is staffed by a retailer’s personnel, and merchandise decisions are made by permanent employees. See Figure 14-3. With an outside buying organization, a firm or personnel external to the retailer are hired, usually on a fee basis.

An inside organization is most often used by large retailers and very small ones - to have greater control over merchandising decisions and to be more distinctive, eg. Ross Stores

At very small retailers, the owner or manager does all merchandising functions to save money and keep close to the market.

An outside organization is most frequently used by small or medium-sized retailers or those far from supply sources.

It has clout in dealing with suppliers, usually services noncompeting retailers, offers research, and may sponsor private brands.

This organization may be paid by retailers or by vendors that give commissions.

The Doneger Group is one of the leading outside buying firms, with hundreds of retailer clients.

Merchandising and Store Functions Performed (2 of 2)

Buying view

Buyers manage buying functions:

Buying

Advertising

Pricing

In-store personnel manage other tasks:

Assortments

Point-of-sale displays

Employee utilization

Personal selling approaches

“Buying” includes the buying of products, advertising, and pricing.

A buyer is responsible for selecting the merchandise to be carried by a retailer and setting a strategy to market that merchandise. Buyers do the following:

a.Devise and control sales and profit projections for a product category.

b.Plan proper merchandise assortments, styling, sizes, and quantities.

Negotiate with and evaluate vendors.

Oversee in-store displays.

Buyers must be attuned to the marketplace, be able to bargain with suppliers, and be capable of preparing detailed plans. They may travel to the marketplace. All buying personnel must relate to customers and anticipate future needs. Macy’s, Inc. has career tracks that recognize the value of both merchandising and in-store personnel. Figure 14-4 shows two distinct career tracks.

In a general buying organization, one or several people buy all of a retailer’s merchandise. With a specialized organization, each buyer is responsible for a product category.

A general approach is better when the retailer is small or there are few products involved.

A specialized approach is better if a retailer is large or many products are carried.

Figure 14.4 Store Management versus Omni/Digital Career Tracks at Macy’s, Inc

Positions at the top of organizational chart are strategic in nature with P&L responsibility. Positions at the lower end of organizational chart are tactical in nature.

Figure 14.5 Devising Merchandise Plans

The factors to consider in devising merchandise plans are shown in Figure 14-5.

Forecasts

These are projections of expected retail sales for given periods

Components:

Overall company projections

Product category projections

Item-by-item projections

Store-by-store projections (if a chain)

Forecasting from a general planning perspective is examined in this chapter. The financial dimensions are reviewed later in Ch. 16. When preparing forecasts, it is essential to distinguish among different types of merchandise.

Career: Trend Forecaster, Buyer

Please click URL to view:

https://youtu.be/CQcOmHphL-4

Fashion Buyer and What is a Trend Forecaster | S1, E4 | Future of Fashion | British Vogue

What does a buyer actually do? How does trend-forecasting work? How did Paul Smith become Paul Smith and why is he talking about bosoms and underpants? All these questions are answered in the fourth instalment of Alexa Chung’s acclaimed documentary series for British Vogue.

Types of Merchandise

Staple merchandise

Assortment merchandise

Fashion merchandise

Seasonal merchandise

Fad merchandise

When preparing forecasts, it is essential to distinguish among different types of merchandise. With fad merchandise, high sales are generated for a short time. Fads may turn into extended fads (e.g., Trivial Pursuit board games). In forecasting for best-sellers, many retailers use a never-out list to determine the amount of merchandise to purchase for resale. The goal is for products to always be in stock.

For almost all retailers, it is good to use a combination of a basic stock list, a model stock plan, and a never-out list. The lists may overlap.

Staple Merchandise

Regular products carried by a retailer

Grocery store examples: milk, bread, canned soup

Basic stock lists specify inventory level, color, brand, style, category, size, package, etc.

Staple merchandise consists of the regular products carried by a retailer. A basic stock list specifies the inventory level, color, brand, style category, size, package, and so on for every staple item.

Assortment Merchandise

Apparel, furniture, automotive, and other categories for which the retailer must carry a variety of products in order to give customers a proper selection

Decisions on assortment

Product lines, styles, designs, and colors are projected

Model stock plan

Assortment merchandise consists of apparel, furniture, autos, and other products for which a retailer must carry a variety of products in order to give customers a proper selection. Decisions are two-pronged: Product lines, styles, designs, and colors are projected.

A model stock plan is used to project specific items. With it, many items are ordered for popular sizes and colors, and small amounts of less popular sizes and colors fill out the assortment. More difficult to predict than staples due to demand variations, style changes, differences in criteria used to evaluate products due to external influences.

Fashion and Seasonal Merchandise

Fashion Merchandise: Products that may have cyclical sales due to changing tastes and life-styles

Seasonal Merchandise: Products that sell well over nonconsecutive time periods

Fashion merchandise consists of products that may have cyclical sales due to changing tastes and lifestyles (hot styles/ colors)

Assortment changes year to year - trend forecasting.

Seasonal merchandise (e.g., ski equipment) consists of products that sell well over nonconsecutive time periods – easier to forecast compared to fashion merchandise.

Table 14.1a Factors in Planning Merchandise Innovativeness

FACTOR	RELEVANCE for PLANNING
Target market(s)	Evaluate whether the target market is conservative or innovative
Goods/service growth potential	Consider each new offering on the basis of rapidity of initial sales, maximum sales potential per time period, and length of sales life
Fashion trends	Understand vertical and horizontal fashion trends, if appropriate
Retailer image	Carry goods/services that reinforce the firm’s image

The innovativeness of a merchandise plan depends on these factors (as enumerated in Table 14-1):

Target market(s).

Goods/service growth potential.

Fashion trends.

Retailer image.

Competition.

Customer segments.

Responsiveness to consumers.

Amount of investment.

Profitability.

Table 14.1b Factors in Planning Merchandise Innovativeness

FACTOR	RELEVANCE for PLANNING
Competition	Lead or follow competition in the selection of new goods/services
Customer segments	Segment customers by dividing merchandise into established-product displays and new-product displays
Responsiveness to consumers	Carry new offerings when requested by the target market
Amount of investment	Consider all possible investment for each new good/service: product costs, new fixtures, and additional personnel

Table 14.1c Factors in Planning Merchandise Innovativeness

FACTOR	RELEVANCE for PLANNING
Profitability	Assess each new offering for potential profits
Risk	Be aware of the possible tarnishing of the retailer’s image, investment costs, and opportunity costs
Constrained decision making	Restrict franchisees and chain branches from buying certain items
Declining goods/ services	Delete older goods/services if sales and/or profits are too low

An innovative retailer has a great opportunity—distinctiveness (by being first in the market)—and a great risk—possibly misreading customers and being stuck with large inventories.

Figure 14.6 Innovation in Retailing

In this apparel store, a unique in-store layout and unusual clothing displays highlight the innovativeness of merchandise to shoppers.

Figure 14.7 Traditional Product Life Cycle

A useful tool for assessing growth potential is the product life cycle, which shows the expected behavior of a good or service over its life. The basic cycle has four stages (shown in Figure 14-7):

Introduction, with a limited target market.

Growth, when sales increase rapidly.

Maturity, when sales reach their maximum, the largest portion of the target market is attracted, and product offerings are broad.

Decline, brought on by a shrinking market.

Structured Guidelines for Pruning Products

Select items for possible elimination on the basis of declining sales, prices, profits, and appearance of substitutes

Gather and analyze detailed financial/ miscellaneous data about these items

Consider non-deletion strategies such as cutting costs, revising promotion efforts, adjusting prices, and cooperating with other retailers

After making a deletion decision, do not overlook timing, parts and servicing, inventory, and holdover demand

Sometimes, a seemingly obsolete good or service can be revived, e.g., “greatest hits” recordings featuring individual music artists and compilations of multiple artists.

Apparel retailers must be familiar with fashion trends. A vertical trend occurs when a fashion is first introduced to and accepted by upscale consumers and then undergoes changes in its basic form before it is sold to the general public. This type of fashion goes through three

stages:

distinctive—original designs, designer stores, custom-made, worn by upscale shoppers;

emulation— modification of original designs, finer stores, alterations, worn by middle class; and

economic emulation—simple copies, discount stores, mass-produced, mass-marketed.

With a horizontal trend, a new fashion is marketed to a broad spectrum of people at its introduction while retaining its basic form. New fashions must be accepted by opinion leaders , who then convince other members of the same social class (who are more conservative) to buy the items.

Figure 14-8 has a checklist for predicting fashion adoption.

Figure 14.8 Predicting Fashion Adoption

Table 14.2a Factors in Planning Merchandise Quality

FACTOR	RELEVANCE for PLANNING
Target market(s)	Match merchandise quality to the wishes of the desired target market(s)
Competition	Sell similar quality or different quality
Retailer’s image	Relate merchandise quality directly to the perception that customers have of retailer
Store location	Consider the impact of location on the retailer’s image and the number of competitors, which, in turn, relate to quality

An assortment is the selection of merchandise a retailer carries. It includes both the breadth of product categories and the variety within each category.

A firm first chooses its quality of merchandise. Several factors must be considered. See Table 14-2.

DISCUSSION: Merchandising strategy of Dollar-Tree:

Dollar Tree is the largest single-price-point ($1.00) retailer in North America. Its overall visual merchandising strategy encourages a “treasure hunt” orientation to shopping with a selection of high-value, low-cost merchandise in attractively designed stores that are conveniently located. Dollar Tree provides a balanced selection of everyday consumables such as candy and food, health and beauty care; basic consumables such as paper products and household chemicals; variety merchandise such as toys, stationery, gifts, party goods, greeting cards, an soft goods; seasonal (Valentine’s Day, Easter, Halloween, and Christmas merchandise); and closeout and promotional merchandise.

Table 14.2b Factors in Planning Merchandise Quality

FACTOR	RELEVANCE for PLANNING
Profitability	Recognize that high quality goods generally bring greater profit per unit than lesser-quality goods; turnover may cause total profits to be greater for the latter
Manufacturer versus private brands	Understand that, in the minds of many consumers, manufacturer brands connote higher quality than private brands
Customer services offered	Know that high-quality goods require personal selling, alterations, delivery, etc.
Personnel	Employ skilled, knowledgeable personnel for high-quality merchandise

When making assortment plans, sales, profits, and investment costs should be reviewed. Also, space requirements should be analyzed: How much is required? How much is available? The inventory rate should be considered in assigning shelf space.

These factors are also key as a retailer considers a wider, deeper assortment:

Risks, merchandise investments, damages, and obsolescence may rise dramatically.

Personnel may be spread too thinly over dissimilar products.

Both the positive and negative ramifications of scrambled merchandising may occur.

Inventory control may be difficult.

Sometimes, manufacturers insist that full product lines be stocked.

Table 14.2c Factors in Planning Merchandise Quality

FACTOR	RELEVANCE for PLANNING
Perceived goods/ service benefits	Analyze consumers. Lesser quality goods attract customers who desire functional product benefits; High-quality goods attract customers who desire extended product benefits
Constrained decision making	Face reality. Franchises or chain store managers have limited or no control over products, so independent retailers that buy from a few large wholesalers are limited to the range of quality offered by those wholesalers

Retail Assortment Strategies

Width of assortment refers to the number of distinct goods/service categories (product lines) a retailer carries.

Depth of assortment refers to the variety in any one goods/service category (product line) a retailer carries.

An assortment can range from wide and deep (department store) to narrow and shallow (convenience store).

Assortment strategies vary widely. Web retailer Discount Art (www.discountart.com) says it is geared to “the artist who demands good-quality art materials, but also appreciates good prices.” But even small retailers with a narrow product assortment, like the one in Figure 14-10, need a good selection to draw shoppers. KFC’s thousands of worldwide outlets emphasize chicken and related products. They do not sell hamburgers, pizza, or many other popular fast-food items. Macy’s department stores feature thousands of general merchandise items, and Amazon.com is an online department store with millions of items for sale. This is the dilemma that retailers may face in determining how big an assortment to carry.

Figure 14.10 Product Assortment: A Key to Sales, Regardless of the Retailer

Specialty retailers, such as the chocolate store featured here, need to have a strong product assortment to attract shoppers and increase impulse purchases.

Brands

Manufacturer (national)

Private (dealer or store)

Generic

The mix of manufacturer, private, and generic brands needs to be chosen.

Manufacturer (national) brands are usually well known, well advertised, and somewhat pre-sold. They require limited retailer investment in marketing and often represent maximum quality. They dominate sales in many product categories. Popular manufacturer brands include Apple, Coke, Gillette, Levi’s, Microsoft, Nike, Nintendo, Revlon, and Sony.

The retailers likely to rely most heavily on manufacturer brands are small firms, Web firms, discounters, and others that want the credibility associated with well-known brands or that have low-price strategies.

Manufacturer brands account for more than 80 percent of all retail sales worldwide.

Generic brands are no-frills goods stocked by some retailers.

They usually receive secondary shelf locations, have little or no promotion support, may be of lesser quality, are stocked in limited assortments, and have plain packages.

They account for under one percent of supermarket sales but 60 percent of sales in the prescription drug industry.

The battle of the brands exists when manufacturer, private, and generic brands fight each other for more space and control.

Private Lable Market shares by volume

Country	2012	2016
United Kingdom	42% of sales	46
Belgium	41	42
Germany	38	43
Spain	32	50
France	31	35
Sweden	26	31
Denmark	25	32
Finland	25	30
Netherlands	23	29
Norway	19	29
Hungary	18	34
United States	17	17

Source: PLMA International/AC Nielsen

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Private (dealer) brands, also known as store brands, are more profitable to retailers, are better controlled by retailers, are not sold by competing retailers, are less expensive for consumers, and lead to customer loyalty.

Retailers must line up suppliers, arrange for distribution and warehousing, sponsor ads, create displays, and absorb losses from unsold items.

The text provides many reasons for retailers’ growing interest in private brands. See Table 14-3.

Private label offerings are now seen by some shoppers as being as good (and sometimes better) as their brand name counterpart. See Figure 14-11.

A form of private branding is the premium private brand. One company offering a premium private brand is supermarket chain Harris Teeter.

Retailers must take care in deciding how much to emphasize private brands.

Table 14.3 The Berman/Evans/Chatterjee Private Brand Test

Advantages of Private Labels versus National brands

Store loyalty– A 1 percent increase in private label purchasing increases a retailer’s market share of a household’s purchases by 0.3 percent. A 10 percent increase in private label purchases, increases that retailer’s market share of that household by 3 percentage points.

Differentiation strategy- Opportunity to differentiate store on the basis of recipe, styling, value, features.

Increased channel power over suppliers— Depends on strength of private label versus national brand

Higher profit margins on private labels- 25 to 30 percent higher (but no return privileges, co-op promotions, slotting fees, and warehousing support).

Successful Private Label Strategies

Be a purchasing agent for consumers, not a selling agent for suppliers

Develop distinctive products (Trader Joe’s wild salmon in a can, chocolate-covered sunflower seeds, pretzels with sesame seeds (instead of salt)

Co-brand with famous designer (Target with Michael graves, Mossimo and Liz Lange) or with national brand (Costco and Starbucks, Jelly-Belly, StonyField)

Taste and product perfromance testing (Costco, Trader Joe’s, Aldi)

Tell a story about the product (ingredients, source, recipe, and health).

Figure 14.11 Auto Dealers and Manufacturer Brands

When shopping for an automobile, consumers place great importance on the brand(s) carried by a dealer. Most people extremely brand-conscious about what automobile they ultimately buy. Pictured here are Fiat 500 models available at a Fiat dealer. Only people considering a Fiat would visit this dealer.

Timing, Allocation decisions

Timing:

Peak seasons.

Order and delivery time.

Routine versus special orders.

Stock turnover.

Discounts.

The efficiency of inventory procedures.

Allocation:

How much merchandise to place on the sales floor.

How much merchandise to place in the stockroom.

Whether to use a warehouse.

Timing

Retailers must decide when each type of merchandise is to be stocked.

To properly plan the timing, the retailer should take into account its forecasts and these other factors:

Peak seasons.

Order and delivery time.

Routine versus special orders.

Stock turnover.

Discounts.

The efficiency of inventory procedures.

Allocation

Retailers must decide the following:

How much merchandise to place on the sales floor.

How much merchandise to place in the stockroom.

Whether to use a warehouse.

Some retailers rely on warehouses as distribution centers. Others (including many supermarket chains) have at least some goods shipped directly from suppliers to individual stores. A chain must also have a clear store-by-store allocation plan.

Category Management

Category management is a merchandising technique used to improve productivity.

It is a way to manage a retail business that focuses on the performance of product category results rather than individual brands.

It arranges product groupings into strategic business units to better meet consumer needs and to achieve sales and profit goals.

Retail managers make merchandising decisions that maximize the total return on the assets assigned to them.

Good category management involves these steps:

Define the category based on the needs of the target market.

Assign a role to the category.

Assess the category to find opportunities for improvement.

Set performance targets and measure progress with a category scorecard.

Create a marketing strategy that draws the overarching picture of how to achieve the category role and scorecard targets.

Choose tactics for category management, pricing, promotion, merchandising, and supply chain strategies.

Roll out the plan.

Review performance regularly and adjusting as needed.

A retailer must empower specific personnel to be responsible for the financial performance of each product category. In deciding on the space per product category, these are several of the crucial measures of performance to retailers:

Sales per linear foot of shelf space.

Gross profit per linear foot of shelf space.

Return on inventory investment.

Inventory turnover.

Days’ supply.

Direct product profitability.

Figure 14.13 Applying Category Management

Merchandising Software

General Merchandise Planning Software

Forecasting Software

Innovativeness Software

Assortment Software

Allocation Software

Category Management Software

One of the most significant advances in merchandise planning is the widespread availability of computer software. It enables retailers to prepare forecasts, try out various assortment scenarios, coordinate the data for category management, and so forth.

Some merchandising software is provided by suppliers and trade associations at no charge as part of the value delivery chain and relationship marketing. Other software is sold by marketing firms. General Merchandise Planning Software Some retailers prefer functionally driven software. Others (e.g., Groupon) use integrated software packages.

Forecasting Software

JDA Software is one firm that produces software that enables retailers to use their data warehouses to make merchandising forecasts. Shoe chain DSW is a major retail client. SAS offers sophisticated software for forecasting purposes. It provides a wide range of analytic tools.

Innovativeness Software

This allows retailers to monitor and more quickly react to trends. Overstock.com uses social collaboration from Spigit.

Assortment Software

A number of retailers employ merchandising software to better plan assortments. Sport Chalet relies on a variety of SAS software programs.

Allocation Software

Several software programs allow retailers to improve how they allocate merchandise to their stores. JustEnough’s Allocation software helps retail planners to better tailor their merchandise to local needs.

Category Management Software

A wide range of software programs is available to help manufacturers and retailers deal with category management’s complexities. A few retailers have developed their own software. Programs typically base space allocation on sales, inventory turnover, and profits at individual stores.

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