Merchandising and Pricing Strategy Questions and Answers Flashcards
6 cards from real Walmart practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Merchandising and Pricing Strategy Questions and Answers flashcards as text
A product has a cost of $8.00 and Walmart targets a 25% markup on cost. What should the retail price be?
Answer: $10.00
A 25% markup on an $8.00 cost equals $2.00, making the retail price $10.00.
What is the primary purpose of an endcap display in a Walmart store?
Answer: To highlight promotional or high-margin products and increase impulse purchases
Endcap displays are premium retail real estate used to showcase promotional items and drive impulse buying.
What does 'planogram compliance' mean in Walmart's merchandising context?
Answer: Stocking products in the exact positions specified by the visual merchandising plan
A planogram is a visual diagram showing where specific products should be placed on shelves, and compliance means following it exactly.
A vendor wants to increase their shelf space from 2 facings to 4 facings. What data should drive this decision?
Answer: Sales velocity, inventory turnover rate, and profit contribution per facing
Shelf space allocation should be based on measurable performance metrics that justify the additional space.
What is 'shrinkage' in retail merchandising terminology?
Answer: The loss of inventory due to theft, damage, administrative errors, or vendor fraud
Shrinkage represents inventory loss from all causes, directly reducing profitability.
During a modular reset, you find a product that is not listed on the new planogram but still has significant remaining inventory. What is the correct procedure?
Answer: Place it on the clearance endcap, mark it down, and process it through the disposition system
Products removed from the active assortment should follow the markdown and disposition process to recover value.