April 11, 2019

Big Problems With New Merchandise

The bottom portion of our table tells a problematic story.

Look at the projected four-year demand totals, per item, by year.
  • 4 Years Ago = $6,599 per item.
  • 3 Years Ago = $5,612 per item.
  • 2 Years Ago = $11,749 per item.
  • 1 Year Ago = $2,388 per item.
Now look at total projected four-year demand, multiplying projections per item by total new items offered.
  • 4 Years Ago = $6,031,000.
  • 3 Years Ago = $5,966,000.
  • 2 Years Ago = $2,679,000.
  • 1 Year Ago   = $3,408,000.
Two years ago the merchandising team offered few new items ... customers craved the small number of new items, spending a projected ton on them ... but the multiplication yields sub-par projected demand. The problem was not fixed in the past year ... many new items but poor yield per new item, giving a modest gain in total projected four-year demand.

In the past two years, the merchandising team hurt this business.

You are a New Marketing Leader. Don't get blamed for problems you didn't cause. Clearly point out your role in fixing the problem (exposing new items in low-cost / no-cost channels like Email and Instagram to customers with pre-disposition to buy new items in the categories new items are offered). But always, ALWAYS know what role your merchandising team is playing in helping (or harming) the business, and communicate the impact to everybody, ok?

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