Retail merchandiser

Retail merchandisers work closely with buyers to predict future sales and ensure maximum profitability

Your role as a retail merchandiser is to ensure that products appear in the right store or website, at the right time and in the right quantities. This involves working closely with buying teams to accurately forecast trends, plan stock levels and monitor performance.

You'll play a key role in maximising profits by setting prices, managing the performance of ranges and planning promotions and markdowns. Other responsibilities include overseeing the delivery and distribution of stock and dealing with suppliers.

While the buyer selects the lines, the merchandiser decides how much money should be spent, how many lines should be bought, and in what quantities. In smaller companies, both roles may be carried out by the same person.

Responsibilities

As a retail merchandiser, you'll typically need to:

• plan product ranges and prepare sales and stock plans in conjunction with buyers
• liaise with buyers, analysts, stores, suppliers and distributors
• maintain a comprehensive library of appropriate data
• work closely with visual display staff and department heads to decide how goods should be displayed to maximise sales
• produce layout plans for stores - commonly known as planograms
• forecast profits and sales, and optimise the sales volume and profitability of designated product areas
• plan budgets and present sales forecasts and figures for new ranges
• control stock levels based on forecasts for the season
• use specialist computer software, for example to handle sales statistics, produce sales projections and present spreadsheets and graphs
• analyse every aspect of bestsellers (for example, the bestselling price points, colours or styles), ensuring that they reach their full potential
• maintain awareness of competitors' performance
• monitor slow sellers and take action to reduce prices or set promotions as necessary
• gather information on customers' reactions to products
• analyse the previous season's sales and report on the current season's lines
• make financial presentations to senior managers
• accompany buyers on visits to manufacturers to appreciate production processes
• meet with suppliers and manage the distribution of stock, by negotiating cost prices, ordering stock, agreeing timescales and delivery dates and completing the necessary paperwork
• identify production and supply difficulties and deal with any problems or delays as they arise
• manage, train and supervise junior staff.

Salary

• Starting salaries for an assistant merchandiser typically range from £18,000 to £22,000.
• After several years' experience, a merchandiser can expect to earn between £28,000 and £36,000.
• Salaries for a senior merchandiser range from £45,000 to £65,000, plus a benefits package. At the top of the profession, a head or director of merchandising in a large company can earn more than £85,000, plus benefits.

Salaries vary depending on location, employer size, turnover and product type. Large, high-street multiples often offer the highest salaries. Other benefits, such as a company car and private health insurance, are common.

Income figures are intended as a guide only.

Working hours

Working hours are normally 9am to 5pm, Monday to Friday. However, longer working hours may be necessary to support the opening of a new store, during a special sales promotion, to launch a new product or range, or to deal with unforeseen production difficulties.

Weekend or evening work is occasionally necessary to visit stores or for competitive shopping.

It can be difficult to get part-time work because of the need to be available daily to deal with problems with suppliers. However, some companies may offer flexible working hours.

What to expect

• Work is mainly office based with a balance between independent work and regular team contact. Some of your time will be spent each week visiting stores or suppliers and occasionally attending trade fairs or fashion shows.
• Merchandising can vary in different retail organisations, and it can be a head-office or a branch-based function. Most retail merchandisers work from head offices, commonly based in London and the South East, or in other large cities.
• The job involves working in a fast-moving and competitive environment, with high levels of responsibility for potentially very large budgets, where even minor errors can result in vast reductions in profit. This aspect can either be motivating and challenging or a source of stress.
• You may occasionally need to spend short periods away from home and there can be opportunity for overseas travel, particularly in fashion, for example, to accompany buyers to Latin America, East Asia or South East Asia. At senior level, you may be required to travel to find new suppliers, select and buy goods or solve problems with manufacturers.
• Self-employment or freelance work is usually only possible if you establish yourself as a retail consultant.

Qualifications

Although this profession is open to all graduates, a degree in the following subjects may increase your chances of finding work:

• accountancy and finance
• business or management
• economics
• IT or computer studies
• marketing
• mathematics or statistics
• retail management.

Many companies prefer to recruit graduates with business-related or maths-based degrees due to their analytical abilities, but others will consider graduates from any discipline, provided they have the necessary skills.

Having an interest in the products that the company retails is an advantage.

This occupation is also open to those with an HND, particularly in the following subjects:

• accountancy and finance
• business or management
• transport, distribution, logistics or operations management.

Entry without a degree or HND is possible for candidates with other relevant qualifications or experience. Some allocator or assistant merchandiser posts require good A-level results.

A postgraduate qualification isn't needed, although there are relevant courses available. Search postgraduate courses in merchandising.

Skills

You'll need to have:

• strong analytical and numerical skills to work out budgets and understand sales figures
• the ability to work under pressure in a dynamic environment and to quickly identify problems and recommend solutions
• sound decision-making skills and the ability to plan and prioritise
• excellent communication and negotiation skills
• the ability to work well as part of a team and to build and maintain effective working relationships with a range of people
• strong commercial acumen and the ability to understand what will appeal to customers
• computer literacy
• creative flair
• self-confidence
• a driving licence is often a requirement.

Work experience

Strong competition for vacancies means that pre-entry office-based work experience is often essential. Experience with a major high-street retailer can demonstrate an understanding of stock control and interest in retail.

Graduate training schemes for merchandising are limited, though some retail management schemes include merchandising components. Most graduates apply directly to entry-level roles such as allocator, which involves data analysis, stock allocation and liaising with suppliers.

Speculative applications to major retailers' merchandising departments for experience may be helpful. Job descriptions can vary significantly, so it's important to understand how each organisation defines the role.

Find out more about the different kinds of work experience and internships that are available.

Employers

The retail industry employs around three million people. The industry is currently in a state of change, largely due to the rapid growth of online retail. Over the next five to ten years, online retail sales will continue to increase - while the number of traditional high street stores is expected to decline, according to the Centre for Retail Research.

The types of employers most likely to recruit retail merchandisers include:

• fashion retailers
• department stores
• multiple high-street chain stores
• supermarkets
• coffee, sandwich and fast-food chains
• larger independent high-street retailers
• wholesale suppliers
• manufacturers
• mail order companies
• online retailers.

International opportunities exist with global retail firms.

Look for job vacancies at:

• Retail Choice
• RetailWeek

Fashion and retail recruitment agencies frequently handle merchandising vacancies, for example:

• Fashion & Retail Personnel
• Retail Human Resources
• Success Appointments
• Talisman Fashion

It may also be possible to enter the field via a related role such as visual merchandising, which involves designing in-store displays to promote sales.

Professional development

Training is typically on the job and project based. Most employers offer internal training schemes, which may include courses on:

• assertiveness
• communication
• consumer behaviour
• negotiation
• system training
• time management.

Short merchandising courses are available at institutions such as the London College of Fashion, and further education colleges offer retail display and merchandising programmes. Distance learning courses in buying and merchandising are also available.

The Fashion Retail Academy offers vocational and professional training in partnership with industry, including the Level 4 Merchandising for Fashion qualification. The Academy works closely with London-based head offices to offer students real-world experience.

Shorter merchandising courses are also offered at introductory, intermediate and postgraduate level at fashion schools and universities and with online training providers.

Other professional qualifications that may appeal to merchandisers are offered by:

• The Chartered Institute of Marketing (CIM)
• Chartered Institute of Purchasing and Supply (CIPS)

Career prospects

Entry-level roles vary by company and include allocator, distributor and merchandise administrative assistant (MAA).

A common career path for retail merchandiser is from allocator/MAA to assistant merchandiser, merchandiser, senior merchandiser and potentially finally to head or director of merchandising.

Progression is generally performance-based and it's usually possible to advance quickly in this career. Within five years, you could manage a team and budget, and many merchandisers reach senior level within eight years.

You may specialise in a product area, such as fashion, food or homeware, but the skills you develop are transferable. Transitioning to roles like business analyst is possible, though moving between merchandising and buying may be more difficult.