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Practitioner · Course 2: Range and Assortment Planning · Lesson 1 of 5

Building a range plan from a store's own customer and space

Level: PractitionerTime: 45 minutesOrder used: A (the T-shirt), used to size a range against Fairway Stores' own selling spaceTool: Range and assortment plan workbook
This lesson is for a retail buyer or merchandiser who builds a range plan. No previous lesson is needed. Store and space figures for Fairway Stores are illustrative teaching examples, not reported company data.
BuyerFairway Stores' buyer (department-store chain), sourcing from Northline Apparel
FactoryDelta Garments, via Northline Apparel
Order A (the reference style)T-shirt, 15,000 pieces, USD 3.20 FOB, wholesale USD 8.00
Fairway Stores' network (illustrative)25 stores
Fairway Stores' rail space per store (illustrative)40 linear metres for this category
Starting point of a range planThe store's own customer and space, not the supplier's offer
02Opening

This page explains how a retail buyer builds a range plan starting from a store's own customer and space, not from a supplier's offer

This page explains where a range plan actually starts: not with what a factory or a brand happens to be showing, but with the store's own customer and the store's own physical space. It is for a retail buyer or merchandiser at a store or chain, whether they buy wholesale from a brand or direct from a factory.

At work, a buyer meets suppliers who arrive with a finished range already built, priced and photographed. Fairway Stores' buyer sees Northline Apparel's whole T-shirt-to-jeans range this way every season. The trap is building a store's own range plan around whichever supplier range looks best, instead of around who actually shops at Fairway Stores and how much space Fairway Stores actually has to display the goods. A range plan sized to a supplier's catalogue, not to the store's own customer and space, either fills the shop with the wrong mix or buys far more stock than the floor can ever display at once. This lesson gives you the method for building the plan the right way round.

03Before you start

What you need, and what this lesson does not cover

You need: nothing but this page. Familiarity with Order A (the T-shirt) is useful background but not required.

By the end of this lesson you can:

  • state why a range plan starts from the store's own customer and space, not from a supplier's offer;
  • describe the two inputs, customer profile and selling space, that set the size and shape of any range plan;
  • apply the three-step method for turning space into a buy quantity for one style;
  • read the range and assortment plan workbook's space-allocation columns and say what they add to a simple style list;
  • avoid the common mistake of copying a supplier's own range shape onto the shop floor unchanged.

Not covered here: balancing core, fashion and basic styles within the range (lesson 2.2), setting exact quantities per colour and size (lesson 2.3), and phasing delivery across the season (lesson 2.4).

04Key terms

Words you will meet in this lesson

TermMeaning
Customer profileA description of who a store actually serves, used to decide what a range should include before any style is chosen.
Selling spaceThe physical floor, rail or shelf space in a store available to display a range, measured for planning purposes in linear metres or units.
Store networkThe full set of a retailer's own shops that a single range plan must supply, not one shop alone.
Range planA single sheet listing every style in a collection, so its category, price and colour balance can be checked at a glance.
Range planningDeciding a collection's mix of styles, price points and colours before any single style's order is confirmed.
AssortmentThe specific set of styles, colours and sizes a retailer actually decides to stock and display for a season, built from a wider range plan.
Space allocationThe share of a store's selling space set aside for one style or category, used to size how much of it to buy.
05Teaching
The rule

A range plan starts from the store's own customer and space, and only then meets what a supplier can offer

A range plan is not built by taking whatever a supplier shows and shrinking it to fit. It is built the other way round: first describe who the store's customer actually is and how much selling space the store actually has, then decide what mix of styles fills that space for that customer, and only then go to a supplier such as Northline Apparel to see how much of that mix it can supply. Fairway Stores' buyer who instead starts from Northline Apparel's own range risks filling the shop floor with a mix built for a different customer, in a quantity that never matches the floor's real capacity.

Customer profile +selling space Store's own rangeplan (the mix wanted) Checked againstsupplier's own range
A range plan is built in a fixed order. The store's own customer and space come first; a supplier's own range is checked against that plan, not used to set it.
What you meet in real life

The two inputs that shape a range plan vary by market, model and who is doing the planning

What can differThe shapes you will meetWhy it matters
Export, wholesale buyerFairway Stores' buyer plans a range for its own store network, then places a wholesale order with a brand such as Northline Apparel to fill it, in a made-to-order arrangement built to the plan.The retailer's own customer and space set the plan; the brand supplies against it, not the reverse.
Domestic, brand-owned shopsA domestic brand such as Cedar & Co. plans a range for its own 12 shops, then places its own make-to-stock order with Delta Garments to fill that plan from forecast, not from a wholesale catalogue.The same customer-and-space logic applies even when the retailer and the brand are the same company.
Single flagship storeA single large store plans a range against one detailed customer profile and one measured selling space.The simplest case: one profile, one space, one plan.
Multi-store networkFairway Stores plans one range across 25 stores of differing size, then allocates the resulting buy quantity across stores by each store's own share of total selling space.A single range plan sheet must still work for a network, not just for one shop.
The case we follow

Fairway Stores' buyer sizes a T-shirt range against its own store network's selling space, not against Northline Apparel's full catalogue

Fairway Stores' buyer is planning next season's basic-tops range. Northline Apparel shows its full catalogue, several T-shirt styles across many colours. Instead of buying a slice of that catalogue, the buyer first sets out Fairway Stores' own customer profile for this category (value-seeking shoppers who buy basic tops in low-to-mid price bands) and its own selling space: an illustrative 40 linear metres of hanging rail set aside for basic tops in each of Fairway Stores' 25 stores. Only once that plan exists does the buyer turn to Northline Apparel's catalogue and select Order A, the basic cotton T-shirt, as the single style that best matches the plan.

QuestionStarted from Northline Apparel's catalogueStarted from Fairway Stores' own customer and space
What decides which styles are chosen?Whatever the brand happens to be showing this seasonThe store's own customer profile for this category
What decides the quantity bought?The brand's own minimum order or catalogue pack sizesThe store network's own measured selling space
Who carries the risk of a mismatch?Fairway Stores, if the catalogue mix does not suit its customerReduced, because the plan was built for Fairway Stores' own customer from the start
The worked number

Fairway Stores' illustrative rail space works out to roughly 600 T-shirts per store, close to Order A's own store-network split

For this worked example, say each linear metre of Fairway Stores' basic-tops rail displays about 15 folded T-shirts at planning density, an illustrative figure specific to this lesson, not a reported industry standard.

Display capacity per store: 40 linear metres × 15 pieces per metre = 600 pieces
Fairway Stores' network capacity: 600 pieces × 25 stores = 15,000 pieces
Order A's own total quantity: 15,000 pieces
Fairway Stores' network capacity vs Order A's quantity 25 stores × 600 pieces of display capacity = 15,000 pieces, matching Order A's own 15,000-piece quantity
A range plan sized from the store network's own space lands on a sound buy quantity. Fairway Stores' illustrative 600-piece-per-store capacity, across its 25-store network, matches Order A's own fixed quantity of 15,000 pieces.
The method

Three steps that turn a store's own customer and space into a range plan, before any supplier is asked to quote

  1. Write the customer profile for the category being planned. Name who actually shops this part of the store, and at what price band, before looking at any supplier's range.
  2. Measure the store's own selling space for the category, across the whole network. Record linear metres or unit capacity per store, then multiply by the number of stores.
  3. Convert measured space into a target buy quantity, then take that plan to suppliers. Only once the target quantity exists should a supplier such as Northline Apparel be asked how much of it, and in what mix, it can fill.
The trap

A common mistake is letting a supplier's own catalogue set the shape of a store's range plan

A common mistake is to let whichever supplier presents first, or presents best, set the shape of the store's own range plan, buying a slice of that catalogue instead of building a plan from the store's own customer and space first. If Fairway Stores' buyer had simply bought a proportional slice of Northline Apparel's full catalogue without first measuring its own 25-store rail capacity, it could easily have bought more T-shirts than the network's floor space could ever display, leaving the excess in a stockroom for the whole season.

06In plain words

A range plan should start with the store itself: who its customers are, and how much space it actually has to show goods. Only after those two things are known should a buyer look at what a supplier can offer, and pick the styles and quantities that fit the plan already built. Building the plan the other way round, starting from a supplier's own catalogue, risks a mix that suits the wrong customer and a quantity that the store's own floor space cannot display. Measuring space in linear metres or unit capacity, multiplied across every store in the network, turns a vague sense of "enough stock" into a specific target quantity a supplier can be asked to fill.

07Quick check
  • A range plan starts with the store's own customer profile and selling space, never with a supplier's own catalogue.
  • Selling space is measured per store, then multiplied across the whole store network to reach a network-wide target quantity.
  • The same customer-and-space logic applies whether the retailer buys wholesale, like Fairway Stores from Northline Apparel, or make-to-stock from its own factory relationship, like Cedar & Co. from Delta Garments.
  • A supplier's range is checked against the store's own plan; it never replaces the plan.
  • If a buy quantity is set only by a supplier's minimum order or catalogue pack size, the store's own space has not actually been measured yet.
08Workplace scenario

Northline Apparel's sales team offers Fairway Stores' buyer a larger basic-tops range than the store network's rail space can display

Northline Apparel's sales team shows Fairway Stores' buyer a basic-tops catalogue covering four T-shirt styles at a combined 22,000 pieces, and suggests Fairway Stores take the full catalogue to "maximise the range" in its stores.

  • Fairway Stores' own 25-store network has an illustrative 40 linear metres of basic-tops rail per store, at 15 pieces per metre.
  • That illustrative network capacity works out to 15,000 pieces, matching Order A's own fixed quantity.
  • Northline Apparel's proposed 22,000-piece catalogue is 7,000 pieces above that measured capacity.

Fairway Stores' buyer's note back to the sales team:

Buyer: "Our basic-tops rail space across the network holds about 15,000 pieces at planning density. Can you confirm which styles and quantities from the catalogue you'd recommend we prioritise within that figure?"

Should Fairway Stores take the full 22,000-piece catalogue because the range looks stronger on paper? Decide before you open the answer.

Show decision

No. A stronger-looking catalogue is not the same as a range the store's own space can display, and two facts settle this, not the catalogue's own size.

First, the store's own measured capacity. Fairway Stores' 25-store network holds an illustrative 15,000 pieces of basic tops at planning density, a fixed ceiling set by the store's own space, not by what any supplier offers.

Second, what happens above that ceiling. Any quantity bought beyond 15,000 pieces cannot be displayed on the floor at once; it either sits in a stockroom unsold or forces an early markdown to clear space, eroding the very margin the range was meant to earn.

Fairway Stores' buyer should hold the order to the measured 15,000-piece capacity, choosing which of Northline Apparel's styles and colours best fit that quantity, rather than take the larger catalogue on the strength of its own size. Lesson 2.2 develops how that quantity is then split across core, fashion and basic styles.

09What it costs

Buying past a store's own measured selling space either strands stock in a stockroom or forces an early markdown that erodes margin

Framed in money and space rather than a single penalty figure: if Fairway Stores had accepted the full 22,000-piece catalogue against a measured 15,000-piece display capacity, the extra 7,000 pieces would have had nowhere on the shop floor to go.

Measured network display capacity: 600 pieces × 25 stores = 15,000 pieces
Catalogue offered by Northline Apparel: 22,000 pieces
Quantity above the store's own measured capacity: 22,000 − 15,000 = 7,000 pieces

At Order A's own wholesale price of USD 8.00 per piece, those 7,000 excess pieces represent USD 56,000 of stock with no floor space to display it, likely to sit in a stockroom or move only after an early, margin-reducing markdown. Measuring the store's own selling space before committing to a quantity catches this mismatch before the order is placed, not after the goods have already arrived.

10Working template

Range and assortment plan workbook: the space-allocation columns this lesson fills

The range and assortment plan workbook's "Range plan" sheet lists each style alongside a customer-profile note, a selling-space figure per store, a store-network count and the resulting target quantity. This lesson fills the customer-profile, selling-space and store-network columns for Order A, letting the target-quantity column calculate itself from the space figures rather than from a supplier's own catalogue quantity.

Fairway Stores' buyer's row records: T-shirt category, value-seeking basic-tops customer, 40 linear metres per store, 25 stores, target quantity 15,000 pieces, matching Order A exactly. A second, blank row is ready for the buyer's own next category.

Download the Range and assortment plan workbook (Excel)

11Check yourself

1. Where should a retail buyer's range plan start?

2. Fairway Stores' 25-store network has an illustrative display capacity of 15,000 pieces for a category. Northline Apparel offers a 22,000-piece catalogue in that category. What should Fairway Stores' buyer do?

3. Why is a store's selling space measured per store and then multiplied across the whole store network, rather than measured once for the network as a whole?

12Glossary
ENARFRTRMeaning
Customer profileملف العميلProfil clientMüşteri profiliA description of who a store actually serves, used to decide what a range should include before any style is chosen.
Selling spaceمساحة البيعEspace de venteSatış alanıThe physical floor, rail or shelf space in a store available to display a range, measured for planning purposes in linear metres or units.
Store networkشبكة المتاجرRéseau de magasinsMağaza ağıThe full set of a retailer's own shops that a single range plan must supply, not one shop alone.
Range planخطة التشكيلةPlan de collectionÜrün gamı planıA single sheet listing every style in a collection, so its category, price and colour balance can be checked at a glance.
Range planningتخطيط التشكيلةPlanification de la gammeÜrün gamı planlamasıDeciding a collection's mix of styles, price points and colours before any single style's order is confirmed.
Assortmentالتشكيلة المعروضةAssortimentAsortiThe specific set of styles, colours and sizes a retailer actually decides to stock and display for a season, built from a wider range plan.
Space allocationتخصيص المساحةAllocation d'espaceAlan tahsisiThe share of a store's selling space set aside for one style or category, used to size how much of it to buy.
13Next

Lesson 2.2: Balancing core, fashion and basic styles in one assortment

You now know how to size a range from a store's own customer and space. The next lesson looks at what fills that space: how a retailer balances core, fashion and basic styles inside one assortment. Back to the course map

14Ladder

RecognizeTell a range plan built from a store's own space apart from one copied off a supplier's catalogue.
ConnectSee how a store's own selling space, multiplied across a network, sets a target buy quantity.
CompareTell a wholesale buyer's range plan from a make-to-stock brand's own range plan.
DecideHold a buy quantity to the store's own measured capacity rather than a supplier's larger catalogue.