Application
This unit describes the performance outcomes, skills and knowledge required to review the performance of retail merchandise during a specified trading period. It requires the ability to gather and analyse post-trade information to draw insights and conclusions and use these findings to make recommendations for improved merchandise performance.
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 that relate to the management of merchandise.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication
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. Access post-trade information. | 1.1 Determine objectives of post-trade analysis and product category to be reviewed. 1.2 Source financial and merchandise performance data from specified trading period. 1.3 Source supplier performance data from specified trading period. 1.4 Source customer and store feedback from specified trading period. 1.5 Obtain summaries of promotional activity that occurred during the specified trading period. 1.6 Review and make informed conclusions about competitor performance during the specified trading period. 1.7 Consult with relevant stakeholders to seek input on merchandise performance for the specified trading period. |
2. Analyse post-trade information. | 2.1 Confirm accuracy and integrity of performance information and data. 2.2 Evaluate financial performance data against performance indicators to determine financial performance of the product category. 2.3 Analyse post-trade information and data to develop evidence-based conclusions about merchandise performance. 2.4 Identify strengths, weaknesses, opportunities and threats based on findings. |
3. Report on findings. | 3.1. Document post-trade findings according to organisational requirements. 3.2 Use findings to make recommendations for improved merchandise category performance. 3.3 Communicate findings to relevant personnel. |
Evidence of Performance
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
source and analyse the following post-trade performance information from a six-month trading period, for one product category:
financial performance
product performance
supplier performance
customer feedback
store feedback
competitor activity
promotional performance
use findings from the above analysis to document a post-trade analysis report identifying:
strengths
weaknesses
opportunities:
new
missed
threats
make recommendations for improved merchandise performance.
Evidence of Knowledge
Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:
post-trade analysis:
purpose
role in informing merchandise strategy
performance indicators and their role in post-trade analysis:
financial:
sales
gross profit margin
Gross Margin Return on Investment
stock to sales
stockturn
sell-through rates
average sale price
unit sales
purchase margin
markdowns
stock availability
best and worst sellers
full-price, markdown and promotional
Stock Keeping Unit performance
product performance
supplier performance
promotional performance
competitor activity
key stakeholders and their role in post-trade analysis:
buyers
planners
production
visual merchandisers
stores
management
marketing
warehousing
customer
techniques used to interpret financial and performance information
types of conclusions that can be drawn from a post-trade analysis
types of recommendations made following a post-trade analysis
formats for post-trade analysis reporting.
Assessment Conditions
Skills must be demonstrated in a retail environment. This can be:
an industry workplace
a simulated industry environment.
Assessment must ensure access to:
templates for post-trade analysis reporting
financial and performance information for one product category over a six-month trading period:
financial performance
supplier performance
competitor activity
promotional performance
product performance.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors, and:
have worked in the retail industry for at least three years where they have applied the skills and knowledge within this unit of competency.
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: | interpret complex retail financial data to determine financial performance of a product category. |
Technology skills to: | access, document and communicate information using digital technologies and systems. |
Sectors
Retail
Competency Field
Merchandise Management