A retail buyer buys products that will be sold in stores. She’s in charge of researching consumer buying habits, analyzing the market, and identifying the most recent styles and products. In the clothing industry, for example, a buyer must consider all of the latest fashion trends before determining which ones are appropriate for her shop’s demographics.
The job of a retail buyer has many facets. A person in this position is usually responsible for negotiating contracts with the wholesaler or the person who sells the product. For example, if she discovers an electronic device that fits the demographics of her store, she must attempt to negotiate a contract and purchase the product for the lowest possible price. She may then consult with the store’s financial manager to determine how much to charge the customer for the product.
A person in this position’s other responsibilities include managing her store’s inventory. If a product sells well, the buyer will be required to keep it in stock at the store. When a consumer wants to buy something that isn’t available in one store, she usually goes to another store to get it. As a result, inventory management is extremely important.
Forecasting buying trends is one of the most difficult tasks for a retail buyer. She’ll collaborate closely with market analysts to forecast how much money people will spend in each fiscal quarter. She can use this information to determine whether the product’s price point will be higher or lower. If consumers are not expected to spend as much money, a clothing store may stock more items in the $50 range rather than the $500 range.
The retail buyer must frequently determine the types of items that customers will want to buy. She must consider whether customers prefer brightly colored or metallic electronics, swooped or square necklines, animal prints or stripes, and even straight or double-tipped skis. She might go to fashion shows and conferences to learn more about the latest trends and products. New clothing lines, for example, are displayed during New York Fashion Week, electronic gadgets are revealed at the Las Vegas Electronics Show, and new skiing fashions are seen at the Colorado Ski Expo.
When a buyer makes a purchase, she must consider the financial risk. It could be disastrous for the store if she chooses a clothing line and the consumer is not drawn to it. There will be fewer sales and revenue for the store if consumer traffic is low. The retail buyer, in the end, is responsible for the store’s success.
Retail buyer education requirements vary organization and industry. Many large employers prefer candidates who have completed a four-year business or economics degree. Some employers in the specialized manufacturing industries may insist on master’s degrees in their fields. After landing a job, a new retail buyer can expect to go through an interim training period of one to five years before being able to work independently.