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Store Grades Nobody Has Reviewed in Three Years

A store grade is a planning assumption that needs fresh evidence. Merchmix Core Plus supports grades and allocation inputs so the team can compare an old label with current demand and capacity. Review the location’s role before repeating the quantity the label once justified.

A young planner reviewing store floor plans and grade-related assortment cards.
Editorial illustration of the retail planning decision.

THE MERCHMIX DECISION / Core Plus

An old grade is not current demand.

Recheck the grade, local rate and capacity before repeating the quantity.

Independent worked retail example. Quantities are planning assumptions, with financial amounts shown in US dollars. Proposed changes remain subject to review.

merchmix.Core Plus / Store Clusters
Read the old gradesCurrent assumptions

Review a store grade against current demand and its separate unit capacity.

Store clusters › Knitwear grade review

Store clusters

Review the grouping evidence, then the proposed buying grade.

Comparison only
Knitwear Comparable period Three invented store profiles
Grouping basis

Period category sales: $10,000–$70,000
Floor area: 80–200 m²

Neither measure is a weekly unit rate or stock-unit capacity.
Revenue bands across · floor-area bands down
Floor area$10k–$30k$30k–$50k$50k–$70k
80–140 m²
Store CGrade C$20k · 90 m²
Store AGrade A$40k · 120 m²
No stores
140–200 m²
No stores
No stores
Store BGrade B$60k · 180 m²

Sales and area values are additional grouping assumptions. The store locations in this matrix stay fixed; only the grade proposal changes.

Supply in both comparisons240 units
Old capacity exceptionA: 20 above
Decision stateReview basis
Store / gradeQuantityUnits / weekCover / weeksCapacity / units
Store AOld grade A120206100
Store BOld grade B80302.7140
Store COld grade C4010460
Why the old basis needs reviewA holds six weeks. B holds 2.7.

A’s old 120-unit quantity also exceeds its hundred-unit capacity. B’s current thirty-unit weekly assumption is higher than A’s twenty; a historical grade alone cannot settle depth.

No configuration saved

Grades A/B/C and their quantities are independent planning assumptions, not a demonstrated automatic mapping from revenue bands. Validate the category, evidence window, size needs and accepted allocation configuration before use.

Read the old quantities

A receives the deepest quantity under the old grading basis.

THE KEY IDEA

Recheck the grade, local rate and capacity before repeating the quantity.

The label can outlive the store it describes

A branch can change its customer mix, selling space or local competition while keeping the same grade. Repeating last season’s allocation then makes a historical classification look like current evidence. The resulting stock imbalance can persist even when the new selling pattern is visible.

Core Plus’s Store Clusters workspace groups stores across revenue and floor-area bands and supports reviewing the buying grade assigned to a cell. Those inputs need a defined category and trading period. A grade remains a planning assumption: it does not replace the separate checks for current unit demand, usable sizes or stock-unit capacity.

Planning and product referencesMerchmix Core Plus: product scope Assortment planning reference: location and inventory capacity

Compare compatible trading evidence before moving a grade

Review the relevant category, season and availability window. A store’s total revenue may improve while a particular category loses relevance, and extra floor space may not support every product. Separate a sustained change from a short promotion or a temporary closure elsewhere.

Core Plus allows bands to be suggested or set by hand, with outliers visible for review. Confirm which evidence and period support the proposed move. A recommendation is not proof that the store has changed grade in the live allocation process; the accepted configuration must be checked.

For the animation’s grouping illustration, A has $40,000 period category sales and 120 m², B $60,000 and 180 m², and C $20,000 and 90 m². These additional assumptions locate the example stores in the matrix. They are not observed retailer results, weekly unit rates or the hundred/140/sixty unit capacities used below. The store nodes stay in place while their grade proposals are reviewed.

Translate the old grades into their stock consequence

The worked incoming allocation contains 240 units. Old grade quantities are 120 for A, eighty for B and forty for C. Current assumed weekly demand is twenty, thirty and ten respectively, giving six, 2.7 and four weeks of cover.

The old label sends the deepest quantity to A even though B now has the higher rate. The number is also above A’s assumed hundred-unit capacity. B can hold 140 and C sixty. Grade, demand and capacity should therefore be reviewed together rather than treated as interchangeable measures.

THE FIGURES BEHIND THE DECISION

An old grade is not current demand. Recheck the grade, local rate and capacity before repeating the quantity.
StoreOld quantityCurrent weekly rateProposed quantityCapacity
A1202080100
B8030120140
C40104060

Old cover is 6 / 2.7 / 4 weeks; proposed cover is 4 / 4 / 4. Both allocations total 240 units.

Compare a regraded proposal on the same supply

A revised split of eighty, 120 and forty units gives four weeks of cover in each store at the stated rates. All three fit the assumed capacities, and the total remains 240. The proposal changes forty units between the first two planned destinations.

This is a comparison before release, not a completed forty-unit transfer. It does not prove equal cover is always the right objective. Presentation minimums, size needs and delivery response may justify different targets. The example uses a common four-week basis to expose what the old grading decision concealed.

Challenge the persistence of the new rate before moving a permanent grade. If B’s thirty-unit rate came from a short promotion and its sustainable rate were 24, the proposed 120 units would represent five weeks rather than four. That may still be acceptable, but it changes the justification for the decision.

THE PLANNING REFERENCERead the allocation and replenishment guide

Keep category exceptions explainable

A large store can deserve a smaller depth in one category and a larger one in another. Record the commercial reason rather than create an override with no owner or expiry. Repeated exceptions may indicate that the grade definition itself needs work.

Core Plus supports the relevant allocation inputs and store overrides. Review the category’s size curve and local capacity after considering the grade. A new grade does not create the missing size or expand the stockroom, and the article does not claim automatic demographic modelling.

Review the effect before refreshing every line

Apply the proposed grading basis to a defined scope first. Compare which locations gain or lose planned depth and whether the source can support the resulting size quantities. A change that improves one style may be unsuitable for another with different presentation or demand needs.

Retain the old basis for comparison and set a review point after trading. If the new classification is accepted, confirm that the intended allocation settings use it. A revised spreadsheet label or meeting decision alone is not evidence that the next release will follow the new quantities.

Check whether stores are comparable in the evidence window: trading days, space changes, missing sizes and temporary closures can distort a ranking. A good grade review records those exceptions. It should not repeatedly promote and demote a store to follow noise from the most recent week.

SignalMerchmix workspaceDecision to review
A grade looks outdatedCore Plus / gradingReview a compatible category and trading period.
The proposed depth exceeds capacityCore Plus / allocationCheck capacity separately from the grade.
Exceptions recurCore Plus / reviewRevisit the grading definition and its owner.

End with a dated grading judgement

For this allocation, the eighty/120/forty proposal fits the stated capacities and four-week rates. The responsible owner should confirm those assumptions and the supported configuration before committing the allocation. No store has been regraded automatically in the animation.

Merchmix Core Plus connects grading with the quantity decision it influences. A seasonal review is useful when it changes an outdated assumption for a reason, keeps the relevant exceptions visible and gives the team a way to judge the outcome after stock reaches the stores.

BEFORE THE NEXT DECISION

  • Allocation owner

    Validate the rate and grade scope.

  • Store owner

    Confirm capacity and local changes.

  • Planning owner

    Approve and review the accepted configuration.

Common questions

Is the grade the same as demand?

No. A grade is an input; current demand, sizes and capacity still need review.

Why reconsider Store A?

Its old 120-unit allocation gives six weeks of cover and exceeds the assumed hundred-unit capacity.

What does the revised split achieve?

Eighty/120/forty gives four weeks each at the stated rates and fits the stated capacities.

Has forty stock units been transferred?

No. This compares planned destinations before release.

Must every store target four weeks?

No. The shared horizon isolates this example; actual policies can differ.

core plus

Review a compatible category and trading period.

Explore

Continue reading: Local assortment decisions

Read the retail planning glossary

FROM THE ARTICLE TO YOUR OWN RETAIL PLAN

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