Newport Home Furnishing
ISSN 1940-204X
Newport Home: Multichannel Merchandising and Inventory Management
Regina M. Anctil
University of St. Thomas
Opus College of Business
P. Jane Saly
University of St. Thomas
Opus College of Business
Introduction
furniture, are based on classic designs that change somewhat over time. Seasonal products, mainly soft goods, upholstery, and small hard goods, change frequently.
The introduction of seasonal products has become a year-round job for the company designers and buyers.
Designers continually work with new color schemes, fabrics, and materials. Buyers arrange one-time purchases of seasonal and holiday merchandise throughout the year.
The company sources its inventory from domestic and international manufacturers, and must commit to designs and purchase contracts up to a year in advance. This places the company at risk of overestimating or underestimating demand when predicting the success of a concept. Ideally, an item of seasonal inventory would sell out completely by the end of the season. But in practice, merchandise buyers plan to sell through only a portion of the inventory, replacing unsold inventory with new seasonal items before floor stock becomes sparse. Buyers keep a close eye on seasonal items, and will remove an item from the store schematic and replace it with something else as soon its sales volume starts to decline. Each time a new schematic is issued, stores can be left with varying amounts of overstock items no longer on the schematic.
Overstock merchandise on closeout is sold in each store’s
“Marketplace.” Mr. Ransom introduced the Marketplace in his first store to merchandise inventory reaching the end of the season, along with limited special-purchase items. With markdowns of 10%-50%, the Marketplace has become a customer favorite. The company usually disposes of unsold
Newport Home, Inc. is a specialty retailer selling home furnishings, including dining, kitchen, bed and bath
Newport Home: Multichannel Merchandising and Inventory Management
Regina M. Anctil
University of St. Thomas
Opus College of Business
P. Jane Saly
University of St. Thomas
Opus College of Business
Introduction
furniture, are based on classic designs that change somewhat over time. Seasonal products, mainly soft goods, upholstery, and small hard goods, change frequently.
The introduction of seasonal products has become a year-round job for the company designers and buyers.
Designers continually work with new color schemes, fabrics, and materials. Buyers arrange one-time purchases of seasonal and holiday merchandise throughout the year.
The company sources its inventory from domestic and international manufacturers, and must commit to designs and purchase contracts up to a year in advance. This places the company at risk of overestimating or underestimating demand when predicting the success of a concept. Ideally, an item of seasonal inventory would sell out completely by the end of the season. But in practice, merchandise buyers plan to sell through only a portion of the inventory, replacing unsold inventory with new seasonal items before floor stock becomes sparse. Buyers keep a close eye on seasonal items, and will remove an item from the store schematic and replace it with something else as soon its sales volume starts to decline. Each time a new schematic is issued, stores can be left with varying amounts of overstock items no longer on the schematic.
Overstock merchandise on closeout is sold in each store’s
“Marketplace.” Mr. Ransom introduced the Marketplace in his first store to merchandise inventory reaching the end of the season, along with limited special-purchase items. With markdowns of 10%-50%, the Marketplace has become a customer favorite. The company usually disposes of unsold
Newport Home, Inc. is a specialty retailer selling home furnishings, including dining, kitchen, bed and bath