ABSTRACT
This chapter provides a detailed discussion of all the activities and analysis that (primarily) merchandisers conduct during the trading period, and their importance in buying and merchandising. Trading refers to the period of time that the product is available for sale to customers. Detailed planning defines the product itself, but it is trading that makes the product work to its best ability and fulfil its potential. In some cases, such as with super-fast fashion pureplay retailers, the open-to-buy (OTB) can now make up to 60 per cent of the overall budget for the season, whereas in the past it would typically been around 20–30 per cent. Promotions can be price-reduction-related, such as a percentage off, or a 3-for-2 incentive, or they could just involve a campaign to draw attention to a particular product or style to gain more sales. Forecasted sales will be compared to actual sales figures and the sell-through rate of the range calculated.
