Michigan Occupational Information System
#036 - RETAIL BUYER  

A  Michigan Jobs & Career Portal    service.

Retail Buyers select, order, and purchase merchandise or commodities to be sold by the firm for which they work. The kind and variety of goods they purchase depend on the firm.  

JOB DUTIES  

Retail Buyers may:

Consult with the store or merchandise managers about a budget and goods to be purchased  

Analyze sales records to determine what goods are in demand  

Select and order merchandise based on fashion and market trends, customer tastes and buying habits, merchandise in stock and price and delivery arrangements of sellers  

Inspect, grade, or appraise merchandise or commodity value and yield  

Visit manufacturers' show rooms  

Assist in setting markup rates and selling prices of new goods  

Determine markdowns on slow-selling merchandise  

Travel in the United States or other countries to examine and select merchandise  

Talk with Assistant Buyers and sales clerks to determine likes and dislikes of customers  

Train Assistant Buyers and sales personnel  

Tools and equipment used may include:

OCCUPATIONAL SPECIALTIES  

Retail Buyers may specialize in these areas:

162.157-022 ASSISTANT BUYERS are usually responsible for the more routine aspects of buyer's work, such as authorizing payment of invoices, approving advertising copy, and inspecting merchandise. They also give price tag markers information to print on price tickets. In addition, they may sell merchandise to become familiar with customer attitudes, preferences, and purchasing problems.  

162.157-018 BUYERS may be designated according to the type of merchandise purchased, such as Toy Buyer or Food Buyer. They may also be identified by their level of responsibility.  

In addition to learning about these specialties, you may also find it helpful to explore the following MOIScripts:  

WORKING CONDITIONS AND REQUIREMENTS  

Retail Buyers constantly work with a wide variety of people including management, salespeople, clerks, and customers. They usually work in air-conditioned, well lighted, clean, and comfortable offices, which are usually located in stores or office buildings. Their work may also take them to warehouses, factories, or other locations.  

Depending on the employer, Retail Buyers may work long hours, especially during pre-holiday periods. They may also have flexible office hours to help make up for the irregular hours they may work. Sometimes they are required to work on weekends.  

Buyers usually spend much time traveling to branch stores, market areas, and sometimes to foreign markets to select merchandise.  

You Should Prefer:

• Activities involving business contact with people and travel  

• Activities concerned with communication of data and information  

• Activities which bring recognition or appreciation from others  

You Should Be Able To:

• Communicate effectively, both orally and in writing  

• Make decisions based on personal judgment, logic, and reason  

• Solve basic math problems quickly and accurately  

• Deal effectively with all kinds of people  

• Negotiate with and persuade people  

• Direct, control, or plan activities of others  

• Perform a variety of duties which may change often  

• See details and recognize errors in written materials  

Math Problem You Should Be Able to Solve:

A retailer has yearly sales of $1.5 million. Inventory on January 1 is $600,000 (at cost). During the year, $1.5 million of merchandise (at cost) is purchased. The ending inventory is $880,000 (at cost). Operating costs are $100,000. Calculate the cost of goods sold and net profit, and set up a profit and loss statement.  

Reading Example You Should Be Able to Read and Comprehend:

The cost of unit pricing to retailers includes calculations of per unit prices, printing of product labels, printing of shelf labels, and computer records. These costs are affected by the way prices are adhered, the number of items in a store subject to unit pricing, the frequency of price changes, sales volume, and the number of stores in a chain.  

Writing Example You Should Be Able to Produce:

Prepare a written appraisal for a product.  

Thinking Skill You Should Be Able to Demonstrate:

Should be able to demonstrate analytical skills and be detail oriented in assessing and buying merchandise.  

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EDUCATION AND PREPARATION OPPORTUNITIES  

NOTE: On-The-Job Training provided by the employer or a High School Diploma with specific Vocational Education Classes or a Certificate (program of up to one year of study beyond high school) or an Associate Degree (two years of study beyond high school) or a Bachelor's Degree (four years of study beyond high school) may qualify a person for this occupation.  

The following education and preparation opportunities are helpful in preparing for occupations in the MOIScript:  

***SCHOOL SUBJECTS***

0200 ART , 0600 BUSINESS , 0700 CAREERS , 1100 ECONOMICS , 1300 ENGLISH , 1400 FASHION , 2200 MATH , 2800 PUBLIC SPEAKING , 3000 SOCIAL STUDIES , 3100 STUDY & WORK OPTIONS

***VOCATIONAL EDUCATION PROGRAMS***

011 MARKETING EDUCATION

Approved vocational education programs in Marketing Education prepare students for occupations in moving industrial and consumer goods and providing services to users of those goods. These programs deal with marketing, sales, distribution, merchandising, and management. In addition, these programs provide instruction in buying, pricing, promoting, financing, storage, and market research.  

The following courses may be required for completion of this program:

High school students should consult their guidance office for more information about the specific requirements of this program at their school or area vocational education center.  

***POSTSECONDARY PROGRAMS***

093 MARKETING & PURCHASING

Programs in Marketing and Purchasing provide opportunities to gain the knowledge and skills needed for managerial employment in activities that contribute to the exchange of goods and services. Marketing functions include buying, merchandising, advertising, selling, transportation and distribution, storage and finance, and market research. Individuals who teach Marketing and Purchasing at the secondary level must have a Michigan Teaching Certificate.  

Courses vary from school to school but may include:

211 FASHION MERCHANDISING

Programs in Fashion Merchandising provide opportunities to gain the knowledge and skills necessary for employment in the retail merchandising industry. Individuals may wish to specialize in merchandise display, marketing, retail advertising and consumer behavior, retailing or fashion.  

Courses vary from school to school but may include:

Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this MOIScript  

***MILITARY TRAINING OPPORTUNITIES***

There are no Military Programs related to this MOIScript    

E-Learning Courses and Programs    

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OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY  

Part-time or summer jobs in retail stores or warehouses can provide a useful background for a career as a Retail Buyer. Secondary vocational education programs in marketing education as well as postsecondary programs in marketing and purchasing and fashion merchandising may offer co-op opportunities for practical experience. You may find part-time work as a buyer-trainee while still in college.  

School-to-Work opportunities include:

informal apprenticeships  

mentorships  

job shadowing experiences  

touring a local Retail Buyer employer  

internships  

volunteer work with a Retail Buyer employer  

community service work with an agency  

Methods of becoming a Buyer include direct application to employers, referral by a college placement office, and assistance at an office of Michigan Works!. Job openings might be listed in the newspaper want ads. In addition, you should access and search the Internet's on-line employment services sites such as:    

American Marketing Association's Career Center ( http://www.ama.org/jobs )    

Careers-in-Business ( http://www.careers-in-business.com )    

Michigan Talent Bank

Michigan Jobs & Career Portal

Classifieds Employment  

Yahoo! Careers

MONSTER.COM  

JobOptions    

You should also enter an electronic resume on these on-line services.

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EARNINGS AND ADVANCEMENT  

The earnings of Retail Buyers vary according to the sales volume of the store, the type of merchandise purchased, and the size and location of the firm. Buyers for discount department stores and other mass merchandisers and those who buy centrally for large chain department stores are among the most highly paid of all Buyers.  

Nationally, graduates with a bachelor's degree in buying and merchandising were offered an average starting salary of $35,500 per year in late 2000. Most offers ranged from $32,000 to $38,000. Highly skilled Buyers may earn up to $125,000 or more per year. In 2000, the median annual earnings of all Buyers, both wholesale and retail, were $33,228. The median yearly earnings of "all" workers in the U.S. were $29,952 in 2000.  

Beginning Retail Buyers at several large Michigan department stores started at $35,000 to $82,000 per year, in mid 2001. Most experienced Buyers earned from $50,000 to $95,000 yearly. Top Buyers' salaries ranged from $66,000 to $115,000. Some Buyers may earn cash bonuses based on their job performance. In addition, many stores have incentive plans, such as profit sharing and stock options.  

Most Buyers receive paid vacations and holidays and life and health insurance. Some firms also offer profit sharing and retirement plans. Retail Buyers are usually given a 10% to 35% employee discount on merchandise they buy for themselves. Some employees may offer stock purchase/savings plans for salaried employees.  

A college degree is very helpful in career advancement in this occupation. Experience as a clerk may help a worker to advance to a position as Retail Buyer. College graduates trained in store operations and policies, sales, and fundamentals of merchandising and management may advance more quickly and eventually become store managers or open their own store. Additional training, experience, job performance, and a personality suited for the job are factors influencing advancement.  

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EMPLOYMENT AND OUTLOOK  

Nationally, in 1998, it was estimated that about 45,700 Retail Buyers were employed. Little or no change is expected in the employment of Retail Buyers through the year 2008. Most job openings will result from replacement needs because many experienced Buyers transfer to other occupations, such as sales or managerial positions.  

Technological changes in computers and other business equipment have improved Retail Buyer's efficiency. For example, cash registers connected to a computer, known as point-of-sale terminals, allow retail chains to maintain centralized, up-to-minute sales and inventory records. This decreases the routine bookkeeping and enables Retail Buyers to concentrate on complex merchandising functions and market analysis. It may also reduce the number of Retail Buyers.  

In retail trade, mergers and acquisitions have forced the consolidation of buying departments, eliminating jobs. In addition, larger retail stores are removing their buying departments from geographic markets and centralizing them at their headquarters, eliminating more jobs.  

There are approximately 2,050 Retail Buyers employed in Michigan. Most Buyers worked in urban areas. Many were employed by department stores. Other major employers included stores specializing in selling clothing, food and drugs, hardware and building materials, furniture, and appliances.  

Little or no change is expected in the employment of Buyers in Michigan is expected to grow more slowly than the average for all occupations through the year 2008. An average of 50 annual openings is expected, with all due to replacement of those who retire or leave the labor force for other reasons. Additional openings will occur as workers change jobs or occupations. Competition for jobs will be keen since merchandising attracts large numbers of college graduates each year. Prospects will be best for persons who work well in competitive, demanding, fast-paced jobs.  

MICHIGAN'S EMPLOYMENT OUTLOOK TO 2008

SOURCES OF ADDITIONAL INFORMATION  

Printed occupational information is available upon written request from the sources below: