Retail merchandiser

Retail merchandisers work closely with buyers to predict up-and-coming sales trends to 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 will include overseeing the delivery and distribution of stock and deal 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, sometimes called 'statements'
• 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 range from £16,000 to £18,000, rising to £22,000 with experience.
• 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 are only viable options if you set up 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 will be 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 also often a requirement.

Work experience

Strong competition for vacancies means that pre-entry office-based work experience is often essential. In addition, work experience with one of the major high street retailers may help to demonstrate both an interest in retailing and an understanding of stock control levels, which can be advantageous at the application and interview stage.

There are relatively few graduate training schemes for merchandising, although some retail management training schemes include merchandising as one of the specialist areas. Most graduates will need to apply directly for junior or entry-level posts, usually as an allocator whose main responsibilities include data analysis, assisting the merchandiser to allocate stock to stores, and liaising with suppliers over stock delivery times.

It may be useful to make speculative applications for work experience directly to the merchandising departments of major retailers. It's important to understand an organisation's definition of the role when you’re applying for work experience or vacancies, as the job description and work activities can vary greatly.

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
• fast food, sandwich and coffee chains
• larger independent high-street retailers
• wholesale suppliers
• manufacturers
• mail order companies
• internet shopping providers.

There are opportunities to work abroad, particularly with retail firms which have international outlets.

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 be possible to enter this career by starting in a similar role, such as visual merchandising, and then progressing to the retail merchandise position. A visual merchandiser creates window and in-store displays in shops and department stores, taking responsibility for the 'look' of the store, with the aim of promoting goods to maximise sales.

Professional development

Training for retail merchandisers is largely on the job and competency-based, and usually involves working towards specific set tasks and undertaking projects, either individually or as part of a larger team.

Most retail companies will have a training scheme. This will vary according to employer but may include courses on:

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

There are a number of merchandising courses, including short courses in fashion merchandising at the London College of Fashion, and postgraduate taught courses and research opportunities at a variety of universities.

Further education colleges often offer courses that focus on retail display and merchandising. You can also study a distance learning courses in buying and merchandising.

To support those wishing to embark on a career in fashion retail there is the Fashion Retail Academy. The Academy aims to work in partnership with the retail industry to deliver professional and vocational training programmes, including the Level 4 Merchandising for Fashion.

The Academy has strong links with fashion retail head offices in London, enabling students to gain first-hand experience as part of their studies. Shorter merchandising courses are also offered at introductory, intermediate and postgraduate level.

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

The entry point of a retail merchandiser can vary between companies and will depend on relevant experience and qualifications. Usually, new entrants begin as allocators, distributors or merchandise administrative assistants (MAAs).

There is a clear career development path in merchandising. Companies often have a competency-development programme in place, with a set of competencies that must be achieved in order to qualify for the next level and gain promotion.

The next level up from working as an MAA is assistant merchandiser, although in some companies, there is the additional step in between these two roles of senior allocator or senior distributor. Remaining at assistant level for a couple of years before promotion to merchandiser, and then to senior merchandiser, is common.

Working up to merchandise manager, head of merchandising and then merchandising director is possible for those interested in management. These roles will be based at a head office.

Career development can be rapid but is largely dependent on individual performance. It's possible to have responsibility for a large budget and a team of people within five years, and common to have reached senior merchandiser level within eight years.

Merchandisers usually specialise in a certain product area, such as homeware, food or fashion, but skills and experience are transferable between products. It's also possible to move sideways into a business analyst role. However, moving between career areas within a company (from merchandising to buying, for example) is not always as simple.