Merchandise Planner interview questions and expert answers

Answer example: I combine multiple approaches: analyzing comparable products from previous seasons, researching market trends and competitive activity, consulting with buyers and merchants on expected performance, and testing demand through pre-orders or limited releases when possible. I also build scenarios with conservative, moderate, and optimistic forecasts to bracket uncertainty. I adjust forecasts as early sales data becomes available. When planning a new luxury sneaker category, I studied performance of similar introductions by competitors, analyzed our customer purchase patterns in adjacent categories, started with conservative forecasts with chase production capability, and refined projections weekly based on actual sell-through. This approach minimized both stock-outs and overstock.

Answer example: I start with top-down sales and margin targets by season and category. I analyze historical seasonal curves to phase sales by month. I calculate required inventory levels using planned stock-to-sales ratios appropriate for luxury. I work backward to determine required receipts timing, considering production lead times. I allocate OTB budget across categories based on performance and strategy. I also maintain contingency reserves for opportunities or adjustments. I review plans with buyers and merchants to validate assumptions. For our fall season, I developed category plans totaling to our overall targets, phased receipts to support peak selling periods, validated with the buying team, and established monthly checkpoints to adjust based on actual performance.

Answer example: I analyze each location sales patterns, customer preferences, and space constraints to build allocation models. I allocate new receipts based on projected sell-through, concentrating inventory where it will be most productive. I monitor sell-through weekly and redistribute slow sellers to locations with stronger demand. I also identify aged inventory early for markdown or transfer decisions before it becomes a bigger problem. I use systems to handle routine allocation while applying judgment to strategic items. When I optimized our allocation approach, I implemented size-curve adjustments by location based on customer demographics, established automatic replenishment for core items, and created redistribution protocols that improved overall sell-through by 12% while reducing aged inventory 25%.

Answer example: I analyze category performance including sales trends, margin contribution, inventory turn, and strategic importance. I invest proportionally more in high-performing, high-margin categories with strong momentum. I maintain investment in strategic categories even if current performance is weaker when I see long-term potential. I reduce investment in declining categories or those with poor returns. I also consider competitive positioning and white space opportunities. When rebalancing our inventory investment, I increased allocation to outerwear showing strong performance, maintained leather goods as our strategic anchor, reduced investment in a declining accessories category, and tested a new category with controlled budget. This optimization improved overall GMROI by 18%.

Answer example: I noticed our stock-to-sales ratios were elevated despite sales growth, indicating planning inefficiency. I analyzed inventory composition and discovered we had excessive depth in some styles while being under-stocked in bestsellers. I worked with the team to understand root causes: allocation was based on outdated assumptions and we were not reacting quickly enough to performance signals. I developed more dynamic allocation parameters, improved replenishment triggers, created exception reports for faster action, and established weekly inventory reviews. These changes reduced overall inventory levels by 20% while improving in-stock rates on key items, demonstrating we could do more with less through better planning.

Answer example: I analyze historical sales by size and color to understand customer preferences, recognizing these vary by category, price point, and location. I work with buyers to understand planned color and size offerings for new products. I develop size curves and color mixes based on expected demand, adjusting by location characteristics. I monitor sell-through by attribute and adjust future planning accordingly. I also maintain appropriate depth in core sizes and colors while testing newer options more conservatively. When planning a new handbag collection, I analyzed size preferences in comparable styles, developed location-specific size curves based on customer demographics, allocated color conservatively with ability to chase winners, and adjusted quickly based on early response. This minimized markdown of wrong attributes while capturing demand.

Answer example: I monitor actual performance against plan weekly, identifying variances quickly. For overperforming items, I pursue reorders or transfers to capture demand. For underperformers, I reduce future commitments and develop exit strategies. I also reforecast remaining season sales to guide decisions. I work closely with buyers and merchants to align on actions. I balance maximizing sales with protecting margin through disciplined markdown timing. Mid-season in our spring collection, I identified strong performance in dresses and weak performance in tops. I secured additional dress inventory through expedited production, reduced top commitments, and implemented strategic markdown timing on slow tops. These in-season adjustments improved season ending margin by 3 points despite the category mix challenge.

Answer example: I establish regular planning rhythms including seasonal planning sessions, monthly reviews, and weekly trade meetings. I provide buyers with clear OTB parameters and work with them on allocation of budget across the line. I partner with merchants on assortment balance and pricing. I work with operations on receipt timing and capacity. I also maintain transparent communication about inventory positions and performance. I view planning as a collaborative process where we align on strategy and adjust together as needed. When planning a major season, I facilitated joint sessions with buying and merchandising to align on strategy, developed detailed plans with their input, provided regular performance updates, and led weekly trade meetings to make in-season adjustments collectively.

Answer example: I track forecast accuracy comparing planned to actual sales to understand prediction quality. I monitor sell-through rates and inventory turn to assess inventory productivity. I measure gross margin achievement and markdown rates to evaluate profitability protection. I also track stock-to-sales ratios and weeks of supply to ensure appropriate inventory levels. I analyze these metrics by category and location to identify specific opportunities. When reviewing my planning performance, I found forecast accuracy was strong on established categories but weaker on new items. Sell-through was good overall but certain locations had persistent issues. I used these insights to refine my forecasting approach for newness and worked with operations on location-specific allocation improvements.

Answer example: I use planning systems for forecasting, OTB management, allocation, and reporting to handle data complexity and enable analysis. I maintain forecast models that incorporate historical patterns, trends, and business rules. I build dashboards that provide real-time visibility into key metrics. I also use systems to automate routine decisions, freeing time for strategic planning activities. However, I recognize systems are tools that require human judgment, especially in luxury where brand and customer nuances matter. When implementing a new planning system, I worked with IT to configure it appropriately, loaded historical data to build forecasting models, trained the team on functionality, and established processes for when to trust the system versus when to override with judgment. This balanced approach improved efficiency while maintaining planning quality.