Merchandising and Pricing Strategy Flashcards

A clearance item is marked down repeatedly over several weeks. What is the main reason for progressive markdowns?

Answer: To sell remaining stock quickly and free up shelf space

Progressive markdowns move slow or discontinued inventory before it ties up space.

Which factor most directly drives 'seasonal' merchandising changes in a store?

Answer: Holidays and changing customer demand throughout the year

Seasonal resets align product offerings with holidays and seasonal demand.

Why might a store place complementary products (like chips near salsa) together?

Answer: Cross-merchandising encourages customers to buy related items together

Cross-merchandising pairs related items to lift basket size and total sales.

What is the main benefit of Walmart's private-label (store-brand) products like Great Value?

Answer: Lower prices for customers and higher margins for the store

Private labels typically offer customers savings while giving the retailer better margins.

An associate notices a shelf price tag doesn't match the register price. What is the correct first action?

Answer: Report and correct the discrepancy promptly to ensure accurate pricing

Price integrity requires correcting mismatches so customers are charged accurately.

What does 'eye-level is buy-level' mean in shelf merchandising?

Answer: Products at eye level sell best and are prime placement spots

Items at eye level get the most attention, making it premium shelf space.

How does loss-leader pricing work as a merchandising tactic?

Answer: Selling a popular item at a low margin to draw shoppers who buy other items

A loss leader is priced low to attract traffic that generates profit on other purchases.