Merchandising: Pros and Cons of Merchandise Planning Methods

* Staffers may feel more motivated and involved in the planning process if they have a hand in creating it.

Disadvantages:

* Such plans are notoriously overly optimistic or pessimistic, said Jackson. “Store managers tend to be more optimistic in their assortment planning,” he noted. “On the other hand, managers on a bonus program who also are doing bottom-up planning for their individual channels tend to be more pessimistic, hedging their bets, if you will.”