What is Merchandise Planning in Retail? Explained

Merchandise Planning is the strategic process of managing and optimizing a retailer's inventory to align with overall business goals in the retail industry. This involves forecasting demand, setting inventory levels, determining assortment plans, and planning product allocations. Merchandise planners work to ensure that the right products are available at the right time, in the right quantities, and at the right locations. The goal is to maximize sales, minimize stockouts and overstocks, and enhance overall profitability. Effective merchandise planning requires a deep understanding of market trends, consumer behavior, and the retailer's unique positioning in the competitive landscape.