Merchandising

Stop and ask yourself: Do your merchants think of themselves as servants? That is, do they come to work each day thinking about how they can create products that make your customers’ lives better in some way?

It turns out that consumers don’t necessarily buy more merchandise just because you offer them more merchandise. Consumers tend to have a “budget,” if you will. In other words, customers are only capable of spending so much on any family of merchandise categories, regardless of how many items or SKUs you choose to offer.

Victoria's Secret anticipates its inventory levels will be down in the low- to mid-single digits this quarter, and plans to throttle back on its discounting-based promotional activity, as it won’t need to clear merchandise out. As a result, the direct aspect of the company’s semiannual sale will be shortened by five days. Its retail element will not be affected during the semiannual sale, but its Memorial Day sale will be shorter and smaller. This doesn’t mean the company is pulling back on promotions, period. In fact, it's publishing a new catalog exclusively focusing on the Victoria’s Secret Pink line, which will be published to take advantage of back-to-school shopping.

Amazon.com Inc. said it plans to launch a publishing imprint that will produce English-language translations of foreign-language books. The imprint, AmazonCrossing, will acquire rights to books and hire writers to translate them into English before printing and selling them through Amazon's retail website, said Jeff Belle, Amazon's vice president of books.

The current buzz about GPS-based marketing on smartphones may be obscuring a whole slew of location-based marketing opportunities for retailers: namely, geo-targeting opportunities that have nothing to do with mobile devices. That's because an overwhelming majority of online purchases are still made from notebooks and desktops, and the general location of these devices can be determined by IP address. This simple fact of internet technology means any online store has the potential to market and merchandise relative to location. But does it makes sense to do this, and what geo-targeting strategies should you use?

A clear vision and a defined process for product information management prevents mistakes and ensures merchants can effectively manage product offers — no matter where they pop up. By ensuring the quality and integrity of product information, merchants stand to grow both their businesses and preserve their relationships with consumers at the same time.

I follow Harvard professor Clayton Christensen’s axiom as my merchandising golden rule: “A product has a job to do for your customer.” I also add to that: “A product has a job to do for your brand.” These guiding factors play out in all the best merchandising strategies. Customer-centric products have only two paths — they can either enhance or detract from the brand.

PATIENT: "Doc, my small company needs to grow — even this year. But I don't want to branch out recklessly and try to be all things to all people. How can I grow my company, remain relevant, but not lose focus of our unique brand?" CATALOG DOCTOR: "It's possible for a small company to grow, even in today's economy. Look at expanding into new programs while improving existing programs as well. Here are prescriptions for both."

Having come a long way from its modest beginning as a chain of floral shops in metropolitan New York, 1-800-Flowers.com usually has set trends, not followed them.

Multichannel merchants are born multitaskers. They juggle the planning of multiple seasons and offers, industry macro and micro trends, numerous categories, SKUs, forecasts, vendors, inventory levels, management expectations, channels, customer feedback, product reviews, creative input, trips for sourcing, and product development processes. Their time — your time — is precious and must be used strategically.