Author Question: The process used to track the quantities, wholesale value, and retail value of garments received and ... (Read 64 times)

Sufayan.ah · **on:** Sep 11, 2018

The process used to track the quantities, wholesale value, and retail value of garments received and sold in a fashion store is called inventory control. Every retailer must maintain the right inventory at the right price in order to satisfy customers and make a profit. Read the article on the ICSC.org web site to answer the following questions about inventory control.
What are the negative consequences for a retailer of having too much merchandise on hand? Having too little?
Which type of retailer typically has a higher turnover rate: fashion retailers or vendors of commodity products, such as health and beauty aids, soft drinks, and snack foods?
True or false: A retailer with a high inventory turnover rate pays less to carry inventory in warehouses or on shelves than a retailer with a low turnover rate.

Question 2

The number of Hispanic Americans in the U.S. population increased to 53.3 million in the 2000 census. Many fashion retailers are moving to take advantage of this growing market. Hispanic-Research, Inc. is a market research company that supplies information about the Hispanic marketplace to interested retailers. Visit the web site to answer the following questions.
What is the country of origin for most Hispanic Americans? What percentage of the total U.S. Hispanic population is accounted for by this group?
After you have browsed the site, tell which advertising medium you think would be a particularly good choice for a fashion retailer to use to reach Hispanic Americans. Explain your answer.
Do most Hispanic Americans care about brand names? How might this information be important to a fashion retailer?

jessicaduplan · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

A retailer that has too much merchandise on hand will need to remove those excess inventories through lower prices and heavy promotions, which eats into profits. A retailer with too little inventory on hand can lose business because customers may decide to shop elsewhere, which consumes revenues.
According to the site, retailers of more commodity products have higher turnover rates than higher fashion content retailers.
True

Answer to Question 2

Mexico is the country of origin for most Hispanic Americans. Mexicans account for 58 percent of the U.S. Hispanic population.
According to the site, television is the medium of choice for Hispanics. Hispanics watch more television than non-Hispanics.
Hispanic Americans do tend to care about brand names. Answers may vary regarding how fashion retailers might use this information. For example, fashion manufacturers might want to prominently display the brand names of their products in advertisements targeted to Hispanic Americans.