Annual Budgets

Financial Budgets of any retail organisation are prepared at the beginning of a financial year and cover the full financial year. This financial budget defines the following for the coming year

• Sales Planned for the year
• Gross and Net Margins ( Profits)
• Stock Levels
• Costs (HR costs, travelling etc)

While planning the annual budget, several factors are taken into account , some of which are

• Market Growth
• Initiatives planned in merchandise
• Increase in outlets
• Planned growth in Like to Like store sales
• Planned increase in footfalls
• Marketing Activities
• Improvement in Supply Chain
• Private Label Initiatives

Once the annual budget is finalised and approved by the Top Management, it cannot be changed. What follows from the Annual Budget is the Buying Plan and the Range Plan. These plans are normally seasonal and prepared at the beginning of the season. The winter season in India starts from October and it is now time to prepare the Winter Range Plan. Will take this up in the next post.