Unit of competency
Modification History
Not applicable.
Application
This unit describes the performance outcomes, skills and knowledge required to undertake merchandise financial planning for a retail organisation. It requires the ability to forecast sales, inventory and profit to create a merchandise financial plan that maximises organisational profitability and performance.
The merchandise financial plan documents a high-level budget for the financial management of merchandise and is used to influence financial planning at a category level.
This unit applies to individuals working in merchandise management-related roles in a diverse range of retail sectors and business contexts. They operate with independence and are responsible for making a range of operational business decisions related to the management of merchandise.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Pre-requisite Unit
Nil
Competency Field
Merchandise Management
Unit Sector
Retail
Elements and Performance Criteria
ELEMENTS |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Review organisational financial information. |
1.1. Access and review merchandise strategy to determine financial and merchandise objectives for a specified trading period. 1.2. Access and review organisational profit and loss statement to determine organisational financial position and objectives as required. 1.3. Review post-trade analysis data to determine past merchandise financial performance. 1.4. Source and analyse relevant internal and external factors impacting merchandise financial planning. 1.5. Identify merchandise financial planning activity that will maximise profitability and organisational financial performance. |
2. Develop merchandise financial plan. |
2.1. Plan sales value for the specified trading period using organisational systems and processes. 2.2. Determine gross profit margins that meet financial objectives. 2.3. Plan markdown value to account for potential markdowns and shrinkage and to minimise profit loss. 2.4. Plan optimal inventory values against key performance indicators that maximise profitability and minimise loss. 2.5. Review organisational promotional plan to determine impacts of planned promotional activity on sales, inventory and profit planning. 2.6. Establish merchandise performance indicators. 2.7. Document sales, inventory and profit values using established organisational systems and processes. 2.8. Obtain input from relevant personnel and make adjustments to merchandise financial plan based on feedback received. 2.9. Finalise merchandise financial plan and gain approval as required. 2.10. Communicate merchandise financial plan to relevant personnel. |
3. Review and re-plan merchandise financial plan. |
3.1. Review in-trade financial performance against actual and budgeted sales, profit and inventory values. 3.2. Investigate and account for variances in sales, inventory and profit values. 3.3. Identify available rebates and incorporate into merchandise financial plan as required. 3.4. Re-plan sales, profit and inventory values in response to the actual sales results. 3.5. Re-plan sales, profit and inventory values in response to internal and external influences on performance. |
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria, are listed here, along with a brief context statement |
|
SKILLS |
DESCRIPTION |
Numeracy skills to: |
|
Technology skills to: |
|
Unit Mapping Information
No equivalent unit.
Links
Companion Volume Implementation Guides - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=ca051b1b-5101-4ec2-ac1c-49699303188d