Modification History
The version details of this endorsed unit are in the table below. The latest information is at the top.
Release |
Comments |
First Release |
New unit incorporating some content from SIRXINV004A Buy merchandise. |
Unit Descriptor
This unit describes the performance outcomes, skills and knowledge required to conduct market analyses, plan merchandise ranges, procure and rationalise stock, and implement staff merchandise training to maximise profit in a changing retail environment.
Application of the Unit
This unit applies to store and department managers with responsibility for managing the range and quality of merchandise offered, and creating opportunities to improve sales while maximising profits.
Licensing/Regulatory Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Pre-Requisites
Nil
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements and Performance Criteria
Element |
Performance criteria |
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
1. Analyse market. |
1.1.Identify and analyse store merchandise and marketing policy and procedures to confirm current market position. 1.2.Monitor customer requirements formally and informally in order to evaluate market trends and customer needs. 1.3.Research new products to clarify demand and fit with current market position. 1.4.Identify and evaluate opportunities to adjust merchandise range to improve sales. 1.5.Monitor merchandise range to identify the demand for individual items and seasonal variations. 1.6.Monitor market competition to identify and evaluate changes to merchandise range. 1.7.Measure, analyse and report on existing and potential stock loss and dissipation and their impact on business operations. 1.8.Analyse store or department sales figures to determine contribution rates of different product lines. 1.9.Determine store or department space requirements and brand product mix according to store policy. 1.10.Determine future directions for merchandise ranges according to store policy. |
2. Analyse factors affecting stock levels and range requirements. |
2.1.Measure, analyse and report on existing and potential stock loss and dissipation and their impact on business operations . 2.2.Analyse store or department sales figures to determine contribution rates of different product lines. 2.3.Determine store or department space requirements and brand product mix according to store policy. 2.4.Determine future directions for merchandise ranges according to store policy. |
3. Plan merchandise ranges. |
3.1.Develop and implement buying plan, according to outcomes of analysis and store policy. 3.2.Liaise with relevant personne l to coordinate promotional and marketing activities. 3.3.Determine investment levels with reference to previous years’ sales figures, predicted demand and projected gross profit. 3.4.Identify and implement strategies to improve contribution of different product lines to overall sales. 3.5.Determine required stock levels according to peak seasons, special events and supplier lead time. 3.6.Analyse, evaluate and amend merchandise range and sources of supply according to feedback from management, staff and customers. |
4. Introduce product ranges. |
4.1.Inform relevant personnel of new product ranges and advise on preferred location of merchandise. 4.2.Implement staff training in product knowledge to introduce product range. 4.3.Demonstrate or display new ranges to staff , according to store merchandising plan. |
5. Maximise profit. |
5.1.Calculate or estimate individual product range contributions against budget and targets. 5.2.Develop and implement product range assessment checks against budget and targets. 5.3.Calculate or estimate overall selling space contributions according to store merchandising plan. 5.4.Determine store pricing policies according to stated net profit margin in store merchandising plan and consumer law. |
6. Rationalise stock. |
6.1.Review and update stock range at regular intervals. 6.2.Identify stock lines to be deleted and take action to minimise adverse effect on profit. 6.3.Consolidate stock as required to maximise sales potential. |
Required Skills and Knowledge
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure access to:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
Range Statement
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the individual, accessibility of the item, and local industry and regional contexts) may also be included. |
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Store merchandise and marketing policies may include: |
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Customer requirements may be monitored by: |
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Merchandise range may include: |
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Impact on business operations may include: |
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Relevant personnel may include: |
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Feedback may be sought and given: |
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Staff training may include: |
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Staff may include: |
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Stock lines may be deleted due to: |
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Consolidation of stock may include: |
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Unit Sector(s)
Cross-Sector
Competency Field
Inventory