The Retail Method

‘The Retail Method’ has been around for many years now, and for those readers who know what it is, it is sufficient for us to say that it is an option that is available within ‘The MINDER Series’.

For those who don’t know what ‘The Retail Method’ is, we offer the following explanation…

Some retailers feel that they are denied access to modern day merchandising management systems because of the nature of their stock. These people tend to be aware of the administrative impracticality (i.e.  the non cost-justifiable expense) of carrying out the housekeeping functions of creating/deleting masterfile records for a merchandising assortment that has a significant proportion of ‘on-going lines of merchandise’ of which many of the individual items are not re-orderable.

Also, some retailers are aware of the impracticality of marking (i.e. coding) merchandise that is high volume, and/or low price, and/or is difficult/impossible to physically mark.

‘The Retail Method’ overcomes these problems “brilliantly”.

The concept works on the basis of creating merchandise ‘Classes’ into which retailers group similar lines of merchandise that are merchandised at similar margins. This may mean, for example, that a retailer who has 5,000 individual lines, might choose to ‘control them’ over 50 merchandise Classes.

That means that when stock is received from a supplier, it only has to be ‘received’ into one of 50 Classes, and when an individual item is sold it is recorded against one of the 50 Classes. Under this method you do not have to create a masterfile record for each item; it belongs to a Class.

By means of this technique, retailer’s whose business it is to merchandise with stock:

  • Where the individual items being bought and sold are constantly changing. And/or…
  • The nature of which it is not cost-justifiable to individually code. And/or…
  • The nature of which it is physically impossible or impractical to code…
    can still get ‘A-Grade quality’ merchandising information. That is, they can get…
    a) Highly accurate and meaningful sales analysis information.
    b) Highly accurate and meaningful stock management information.
    c) Highly accurate and meaningful trading (gross) profitability information.
    d) Highly accurate and meaningful stocktake and shrinkage information.