2. Learning outcomes
• Discuss key purchasing variables
• Identify the dimensions of a retail assortment
plan
• Understand the relationship between
products and the consumer and how this
affects retail purchasing
3. Strategic issues underpinning buying
decisions (McGoldrick, 2002)
• Who are our target customers?
• Which of their needs can we satisfy?
• What are our competitors doing?
• How can we do it differently?
4. The product range
‘Retail buyers must translate customer needs
and wants into actual products, focussing on
product features that are going to provide
value to the customer in use’ (Varley, 2006, p. 67)
Note that these products must reflect the
image of the company.
5. Definitions
(Varley, 2006)
• A product range is the total product offering
expressed in terms of width and depth
• Width – variety / number of types of product
category (wide-narrow)
• Depth – amount of choice of product and
brand variation offered within a product
category (deep-shallow) Note deep
assortments can cover a number of price
levels
6. The product range: key purchasing variables
(Baily et al, 2005)
• Quality
• Quantity
• Source
• Price and cost (discounts, auctions)
• Time (delivery, seasonal)
• Negotiation
(Baily, cpt 5-10)
7. Ways of dividing total product offer
(Varley, 2006)
• Product similarity
• End use (think meal solutions)
• Price (good, best, better)
• Brand (where it has authority over a number
of categories e.g. own brand)
• Core (staples, consistent demand) and non-
core (trends, seasonal)
8. Assortment plan
‘A list of product types stocked at any one time’
Examples of variables:
• Price level (not actual price)
• Styling design themes
• Colours
• Flavours
• Pack size
• Fabrication / type
Plans should be flexible and offer variety
9. Assortment plan considerations
• Store size
• Store characteristics (walkways, pillars, stairs)
• Available fixtures
• Complementary merchandise (balance eg
laptops/cases)
• Profitability of merchandise (exercise caution
– not a customer issue)
• Corporate objectives (eg service level)
10. Product lifecycle
Buyers need to understand the trends that
influence the product lifecycle:
• Demographics
• Consumer economics (employment, interest
rate, inflation, income etc.)
• Social trends (eco)
• Technology
• Legislation (eg FSA (2001) meaningless product
descriptions such as ‘pure’, ‘natural’
11. Product selection criteria
(Varley, 2006)
• Physical properties (size, weight, volume, tog
rate for a duvet)
• Packaging
• Style
• Utility (performance in use)
• Product quality
