In an earlier post, I wrote about how the right merchandise mix can drive business. Yesterday in my email inbox, I received my weekly Chain Store Age business blurbs (I call them McNuggets of information – processed, but tasty). In it, several mcnuggets were about retailers who blamed their failures on their merchandise mix.
Ann Taylor Loft CEO Kay Krill stated that “Our LOFT division continued to be challenged with a product assortment that was not balanced and did not offer enough updated classics or color.”
Comp USA announced plans to change and narrow their focus. It seems that business is suffering so they’re going to focus on their core customers who are gadget lovers and small and medium-size businesses.
And Wal-Mart announced that they are cutting back on their second fashion line as sales are stymied and inventory is piling up — seems the mass discount retailer isn’t viewed as a fashion plate in the eyes of its customers, nor is anyone making a special trip to Wal-mart for the latest and greatest in fashion.
THE REAL WORLD RETAILING TAKEWAY
I’ve said it before…it really is all about the merchandise. The right
merchandise assortment, in the right sizes and in colors and styles
that are relevant to trends AND your target audience.
It’s time to take inventory. What merchandise is moving – what styles, what colors, what categories? And more importantly, what’s not moving? It’s time to mark it down and get rid of it in order to bring in more of what’s selling.