Unit of competency Outline
Date retreived
23/07/2026 1:07 AM AWST
23/07/2026 1:07 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage retail merchandise
Manage retail merchandise
Unit of competency
National Code
SIRXINV404
SIRXINV404
State Code
WD967
WD967
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080501 - Sales
Original Release Date
15/10/2014
Nominal Hours
25
Description
This unit describes the performance outcomes, skills and knowledge required to conduct market analyses, plan merchandise ranges, procure and rationalise stock, and implement staff merchandise training to maximise profit in a changing retail environment.
Notes
Elements and Performance Criteria
1. Analyse market.
- 1.1.Identify and analyse store merchandise and marketing policy and procedures to confirm current market position.
- 1.2.Monitor customer requirements formally and informally in order to evaluate market trends and customer needs.
- 1.3.Research new products to clarify demand and fit with current market position.
- 1.4.Identify and evaluate opportunities to adjust merchandise range to improve sales.
- 1.5.Monitor merchandise range to identify the demand for individual items and seasonal variations.
- 1.6.Monitor market competition to identify and evaluate changes to merchandise range.
- 1.7.Measure, analyse and report on existing and potential stock loss and dissipation and their impact on business operations.
- 1.8.Analyse store or department sales figures to determine contribution rates of different product lines.
- 1.9.Determine store or department space requirements and brand product mix according to store policy.
- 1.10.Determine future directions for merchandise ranges according to store policy.
2. Analyse factors affecting stock levels and range requirements.
- 2.1.Measure, analyse and report on existing and potential stock loss and dissipation and their impact on business operations.
- 2.2.Analyse store or department sales figures to determine contribution rates of different product lines.
- 2.3.Determine store or department space requirements and brand product mix according to store policy.
- 2.4.Determine future directions for merchandise ranges according to store policy.
3. Plan merchandise ranges.
- 3.1.Develop and implement buying plan, according to outcomes of analysis and store policy.
- 3.2.Liaise with relevant personnel to coordinate promotional and marketing activities.
- 3.3.Determine investment levels with reference to previous years’ sales figures, predicted demand and projected gross profit.
- 3.4.Identify and implement strategies to improve contribution of different product lines to overall sales.
- 3.5.Determine required stock levels according to peak seasons, special events and supplier lead time.
- 3.6.Analyse, evaluate and amend merchandise range and sources of supply according to feedback from management, staff and customers.
4. Introduce product ranges.
- 4.1.Inform relevant personnel of new product ranges and advise on preferred location of merchandise.
- 4.2.Implement staff training in product knowledge to introduce product range.
- 4.3.Demonstrate or display new ranges to staff, according to store merchandising plan.
5. Maximise profit.
- 5.1.Calculate or estimate individual product range contributions against budget and targets.
- 5.2.Develop and implement product range assessment checks against budget and targets.
- 5.3.Calculate or estimate overall selling space contributions according to store merchandising plan.
- 5.4.Determine store pricing policies according to stated net profit margin in store merchandising plan and consumer law.
6. Rationalise stock.
- 6.1.Review and update stock range at regular intervals.
- 6.2.Identify stock lines to be deleted and take action to minimise adverse effect on profit.
- 6.3.Consolidate stock as required to maximise sales potential.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the individual, accessibility of the item, and local industry and regional contexts) may also be included.
Store merchandise and marketing policies may include:
current market position
store culture
target market.
Customer requirements may be monitored by:
observation
questionnaires
surveys.
Merchandise range may include:
existing stock
new stock.
Impact on business operations may include:
budgeting
buying
ordering patterns
planning.
Relevant personnel may include:
frontline staff
relevant managers
specialist staff
supervisors
team leaders.
Feedback may be sought and given:
in groups or individually
verbally or in writing.
Staff training may include:
off-the-job
one-on-one coaching
on-the-job
any combination of the above.
Staff may include:
fulltime, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Stock lines may be deleted due to:
changes in store policy and culture
customer requirements
fashion trends
problems with supply
product availability
sales performance.
Consolidation of stock may include:
movement of stock between departments or stores.
Store merchandise and marketing policies may include:
current market position
store culture
target market.
Customer requirements may be monitored by:
observation
questionnaires
surveys.
Merchandise range may include:
existing stock
new stock.
Impact on business operations may include:
budgeting
buying
ordering patterns
planning.
Relevant personnel may include:
frontline staff
relevant managers
specialist staff
supervisors
team leaders.
Feedback may be sought and given:
in groups or individually
verbally or in writing.
Staff training may include:
off-the-job
one-on-one coaching
on-the-job
any combination of the above.
Staff may include:
fulltime, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Stock lines may be deleted due to:
changes in store policy and culture
customer requirements
fashion trends
problems with supply
product availability
sales performance.
Consolidation of stock may include:
movement of stock between departments or stores.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
applies store policy and procedures, industry codes of practice, statutory requirements and regulations in regard to buying, merchandising and marketing practices
demonstrates planning, procurement and rationalisation of stock and merchandise ranges
interprets market trends and applies them to the store situation to create opportunities to improve sales, while maximising profits
trains and communicates information to and from staff or team members in regard to stock, merchandise and service range.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment, including existing merchandise ranges
relevant store systems, information and documentation, including:
stock management system
store or department sales figures
merchandise budget information
merchandising and marketing policies
merchandising plan, including space allocation data
merchandise and supplier data
sales staff.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
customer feedback
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
applies store policy and procedures, industry codes of practice, statutory requirements and regulations in regard to buying, merchandising and marketing practices
demonstrates planning, procurement and rationalisation of stock and merchandise ranges
interprets market trends and applies them to the store situation to create opportunities to improve sales, while maximising profits
trains and communicates information to and from staff or team members in regard to stock, merchandise and service range.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment, including existing merchandise ranges
relevant store systems, information and documentation, including:
stock management system
store or department sales figures
merchandise budget information
merchandising and marketing policies
merchandising plan, including space allocation data
merchandise and supplier data
sales staff.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
customer feedback
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| S6144 | SIRXINV004A | Buy merchandise | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| J151 | SIR50112 | Diploma of Retail Management | Qualification |
| J150 | SIR40212 | Certificate IV in Retail Management | Qualification |
| J510 | SIS40412 | Certificate IV in Sport and Recreation | Qualification |
| J515 | SIS50712 | Diploma of Sport and Recreation Management | Qualification |
| AYW2 | SIS50115 | Diploma of Sport and Recreation Management | Qualification |