Merchandising Manager interview questions and expert answers

Answer example: I analyze category and product performance to identify opportunities for optimization. I work with buying to ensure assortments are balanced by price, style, and margin. I develop pricing strategies that protect luxury positioning while optimizing profitability. I also plan promotional activities carefully to drive sales without undermining brand value. I use data to inform decisions but balance with qualitative brand judgment. When reviewing our handbag category, I identified that we were over-invested in entry price points with lower margins. I worked with buying to rebalance toward higher-margin styles, implemented strategic pricing adjustments, and improved category margin by 4 points while growing sales 10%.

Answer example: I analyze each location by sales volume, customer profile, space constraints, and market characteristics. I allocate inventory to maximize overall productivity while ensuring each location has appropriate assortment for its customers. I consider both quantitative factors like historical sales and qualitative factors like local preferences. I also maintain flexibility to reallocate based on performance. I use systems to automate routine decisions while applying judgment to strategic items. When optimizing allocation, I created a tiered approach based on store profiles, improved allocation algorithms using sales velocity data, and established clear transfer protocols. This reduced stock-outs in high-performers by 30% while improving overall inventory turn.

Answer example: I approach markdowns strategically, viewing them as inventory management tools rather than sales drivers. I analyze aged inventory to determine optimal timing and depth of reductions. I implement markdowns in ways that minimize brand impact: private sales for clients rather than public promotions, transfers to outlet channels when appropriate, or donations for tax benefit. I also work with buying to prevent future overstock through better planning. When faced with excess seasonal inventory, I organized exclusive client events offering early access at modest reductions, transferred slower items to locations where they had better sell-through, and took strategic markdowns on remaining aged stock. This cleared inventory while maintaining brand prestige.

Answer example: I conduct regular assortment reviews analyzing performance by category, subcategory, price point, style attributes, and color. I identify best-sellers and poor performers, looking for patterns that inform future buying. I also analyze white space opportunities where we are missing customer needs. I work with buying to adjust future assortments based on these insights. I use both quantitative metrics and qualitative customer feedback. When reviewing our accessories assortment, I discovered we were over-assorted in styles that cannibalized each other while missing key price points. I worked with buying to rationalize the line and fill gaps, resulting in improved choice perception despite fewer total styles and significantly better sales productivity.

Answer example: I work closely with VM to ensure product is presented in ways that tell compelling stories and drive sales. I share insights on what products deserve prominence based on performance and margin. I also provide feedback on what presentation approaches are working from a sales perspective. I ensure VM has the inventory they need for impactful displays. I view this as a true partnership where commercial goals and aesthetic excellence must align. When launching a new collection, I collaborated with VM on floor sets that highlighted key hero pieces, ensured adequate depth in featured styles, analyzed early sales response by location, and refined the presentation approach. This collaboration resulted in 25% higher attachment rates for complementary products.

Answer example: I establish appropriate stock-to-sales ratios by category based on replenishment capability, seasonality, and sales patterns. I monitor sell-through weekly and adjust on-order accordingly. I work to concentrate inventory in items with proven demand while maintaining controlled depth in newer or riskier styles. I also implement min-max parameters that maintain service levels while preventing overstock. I use exception reporting to identify slow sellers early for action. When optimizing our stock management, I implemented category-specific targets, improved forecasting accuracy, and established clear action protocols for underperformers. This improved overall inventory turn by 20% while maintaining in-stock rates on key items above 90%.

Answer example: I approach pricing strategically, considering brand positioning, competitive landscape, cost structure, and customer value perception. I analyze price elasticity to identify opportunities where we can adjust pricing without affecting demand. I also ensure our pricing architecture creates logical ladders that guide customers through the assortment. I protect pricing integrity by avoiding discounting that trains customers to wait for sales. When reviewing our pricing strategy, I identified several styles where we had room to increase price based on quality, exclusivity, and customer willingness to pay. I implemented strategic price increases averaging 8% on selected items, which improved margin with no impact on sell-through because pricing still reflected appropriate value.

Answer example: I use historical sales data as a foundation but adjust for trend shifts, market changes, and brand initiatives. I monitor early indicators like pre-order response, website engagement, and sell-through of similar items. I also stay connected to market intelligence from stores, competitors, and industry sources. I build flexibility into plans so we can react to stronger or weaker than expected demand. I forecast conservatively for unproven items while betting bigger on proven performers. When forecasting a new category launch, I analyzed analogous category performance, tested customer interest through previews, started with conservative initial buys with reorder capability, and monitored early sales daily to adjust quickly. This approach achieved strong sell-through while avoiding significant overstock.

Answer example: I start by analyzing sales trends, inventory levels, sell-through rates, and margin performance. I dig into performance by subcategory, price point, style, and location to identify specific issues. I review customer feedback and consult with retail teams. I benchmark against competitors and category potential. I then develop a comprehensive action plan addressing assortment, pricing, inventory, presentation, and selling approach. When a key category declined 15%, I discovered the assortment had drifted from our brand aesthetic, pricing had become uncompetitive at certain points, and we had too much slow-selling inventory. I worked with buying to refocus the assortment, implemented strategic price adjustments, cleared aged stock, and improved presentation. Within two seasons, the category returned to growth.

Answer example: I believe luxury requires both sufficient choice to feel curated and edited, and appropriate depth in key items to ensure availability. I concentrate depth in proven bestsellers and brand signatures while offering breadth to provide discovery and newness. I also consider that some categories benefit from breadth, while others need depth. I use sales data to guide these decisions while respecting brand and customer expectations. When optimizing our core category, I identified that we had too many marginal styles with insufficient depth in winners. I worked with buying to rationalize the assortment by 20%, reallocating inventory dollars into deeper positions on bestsellers. This improved in-stock rates, reduced complexity, and actually increased sales through better availability of what customers wanted.