The Buy is Where Profit is Made: Retail Merchandising Strategies for Building a Profitable Range
There’s nothing like building a new season range. New products, fresh energy, and the chance to tell a new story to your customers. For many retail teams, it’s one of the most exciting parts of the job.
But here’s the reality: the buy is also where most of your profit (or loss) is decided. A brilliant, creative range can still underperform commercially if it hasn’t been built with the right merchandising strategy behind it.
When retailers ask me, “What’s the single most important step in making a range profitable?” my answer is always the same: how you plan the buy.
The Risks of Poor Range Planning in Retail
Even the best brands can trip up if the buy isn’t balanced. Common challenges I see include:
Overbuying in one area – stock piles up, cash is tied up, and markdowns eat away at profit.
Too much “newness” without enough core – exciting, but hard to trade and unpredictable.
Unclear option count – either not enough choice to inspire, or too many options diluting sales and creating confusion for the customer.
Disconnect between product vision and financial plan – creativity without commercial guardrails.
This is where strong assortment planning and merchandising discipline make all the difference.
What is Range Planning in Retail?
Range planning is the process of deciding which products, categories, and options you will buy for a season, and in what depth. It’s the bridge between customer demand, brand vision, and commercial targets.
Why does merchandising matter in range planning?
Because merchandising ensures the range is profitable, not just creative. It helps you balance investment across the assortment, set the right depth, and avoid tying up cash in stock that won’t perform.
Where Great Merchandising Makes the Difference
Strong merchandising turns your buy into a growth engine by:
Balancing core, fashion, and seasonal newness.
Ensuring option count aligns with space, marketing, and customer appetite.
Creating a clear, commercial framework that supports both online and offline channels.
In short, retail merchandising is not about stifling creativity. It’s about giving creative decisions the best possible chance to deliver profitable results.
3 Quick Merchandise Planning Tips for Your Next Buy
Whether you’re finalising your SS26 branded buy or AW26 own-brand collections, here are three simple checks that can strengthen your range planning:
Start with the numbers, not the samples
Ground yourself in sales data before getting swept away by product. Look at category performance, size curves, and price point analysis.Balance newness with dependability
Customers love newness, but they reliably buy core. Make sure your range has a healthy mix of proven bestsellers alongside the new product stories.Stress-test your option count
Too few options and you risk missing demand. Too many, and you spread sales too thin. Use merchandising frameworks to align options with minimums, space and traffic.
Final Thought: Plan to Profit
At its best, retail merchandising isn’t about restricting creativity, it’s about making sure your creativity pays off.
The brands that grow profitably are those that treat range planning as a strategic process, not just a seasonal task. Done well, it sets the stage for higher sell-through, stronger margins, and healthier cash flow.
And that’s why the buy really is where profit is made.
