Market Prep and Negotiation Scenario
As the Girls 4-6X buyer for Macy's, you are in the preparing for market week and to meet with your key branded vendors to discuss the buy for Fall 2019 which are the key back-to-school selling months of August, September and October.
After conducting your post purchase analysis of thevendor sales and profitability, you have found that some of your vendors are not meeting their sales or gross margin plan. You need to still have an assortment from each of the vendors as they appeal to various target customers and you purchase different product categories from them. You would like to continue to buy from them at the level you have in recent years, but without some type of assistance and assurance that you will be shipped on a timely basis, you won't be able to continue giving this company the same amount of your open-to-buy dollars.
The recap of the total yearly sales and gross margin profitability resultsfor 2018 are on the separate Excel document.
You will need to formulate a strategy and address the following points after analyzing your sales increase or decrease and the GM $ planned vs. actual:
1. Which vendors should get more of your open-to-buy for fall? Which vendors could potentially get less of your open-to-buy? Why?
2. After analyzing their business and shipping performance, you will need negotiate with the vendors; assistance to improve their sales, gross margin and shipping performance. As the buyer, how will you negotiate this with each vendor? What will you ask the vendor for and why?
When you write the proposal, please write it as if you are presenting your case to the vendors as the buyer for Girls 4-6X. Explain why you need for them to help you.
3. If you do not secure any assistance, what other actions can you take as the buyer?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.