SIRRMRM005 — Develop a category financial plan

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What an assessment for SIRRMRM005 must cover

100 assessable components: 3 elements (17 performance criteria), 19 performance evidence and 62 knowledge evidence requirements, plus 2 foundation skills. An audit-defensible tool maps every question and task back to these — that mapping is the coverage matrix Auditori generates alongside the assessment.

Elements & performance criteria

1 Determine category planning requirements.

1.1Access and review organisational merchandise financial plan to determine category financial planning requirements at the category and sub-category level.
1.2Profile target market and identify relevant trends to optimise sales opportunities within category plan.
1.3Determine open-to-buy or space capacity for the trading period.
1.4Determine strategies and pricing structures to achieve gross margin and margin mix.

2 Develop category financial plan.

2.1Plan and calculate inventory values using open-to-buy or space capacity method for each category.
2.2Allocate inventory value to core and seasonal lines.
2.3Assess risk level of inventory within each category and plan markdown value and stock exit strategy to maximise profitability and maintain inventory at budgeted levels.
2.4Review promotional plan to determine impacts of planned promotional activity on category planning.
2.5Identify and hold back a percentage of category plan spend for reaction to trade.
2.6Document category plan using established organisational systems and processes.
2.7Obtain input from relevant personnel and make adjustments to category financial plan based on feedback received.
2.8Finalise category financial plan and gain required approval.
2.9Communicate category financial plan to relevant personnel to inform range planning and merchandise buying.

3 React to trade.

3.1Evaluate internal and external factors impacting category performance and make any required adjustments.
3.2Use action levers to react to in-trade performance.
3.3Re-plan category financial plan based on sales, inventory and profit values during trade.
3.4Communicate changes to relevant personnel as required.

Performance evidence

review a merchandise financial plan to create a category financial plan for one product category across a six-month trading period, using either:
open-to-buy method
space capacity method
document the above category plan detailing:
core and seasonal line spend
sub-category spend
percentage held back for reaction to trade
trial items
key winners
repeat items
deleted items
promotional items
key delivery dates
use action levers to adjust the above category plan in response to the following in trade activity:
seasonal changes
competitor activity
sales decreases
sales increases
supply challenges

Knowledge evidence

role and purpose of category financial planning
methods for creating merchandise category plan:
open-to-buy method:
at retail
at cost
space capacity method
internal and external factors impacting category planning:
merchandise strategy
merchandise financial plan
merchandise category structures:
category
sub-category
planned promotional activity
consumer trends
post-trade analysis
open-to-buy
space capacity in stores
like-for-like sales comparisons
stock-quit cycles
stock availability
full price, markdown and promotional
supplier performance
competitor performance
aged stock
category pricing structures and role in category financial planning:
volume
promotional
high-margin
good, better, best
everyday low pricing
values included within a category plan:
core and seasonal line spend
sub-category spend
trial items
key winners
repeat items
deleted items
promotional items
key delivery dates
role of re-forecasting processes
merchandise performance indicators and role in category plan:
sales
gross profit margin
margin mix
purchase margin
markdown value
levers to react to trade:
markdowns
promotions
repeats
re-pricing
competitor review
holding stock
new product trial
stock returns
impacts of, and strategies for, reacting to:
seasonal changes
competitor activity
sales decreases
sales increases
supply challenges
commonly- used merchandise category planning methods within the retail industry.

Foundation skills

Numeracy skills: apply financial formulas and perform retail financial calculations to inform the development of a category financial plan.
Technology skills: use complex features of merchandise planning systems to create and manipulate a category financial plan.

Unit content sourced from training.gov.au — © Commonwealth of Australia, licensed under CC BY 4.0. Auditori is not affiliated with the Department of Employment and Workplace Relations.

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Questions about assessing SIRRMRM005

What does an assessment tool for SIRRMRM005 need to cover?

To satisfy the Principles of Assessment and Rules of Evidence, an assessment for SIRRMRM005 needs to address all 100 unit components: 3 elements with 17 performance criteria, 19 performance evidence requirements, 62 knowledge evidence requirements, and the foundation skills. A coverage matrix mapping each question and task to these components is what an auditor looks for.

How does Auditori generate an assessment tool for SIRRMRM005?

Auditori pulls the current release of SIRRMRM005 from training.gov.au and generates a complete package: candidate assessment, assessor guide with model answers and observation criteria, and a coverage matrix mapping every component. A suitably qualified person then reviews and approves the draft in a built-in workflow — consistent with ASQA's guidance on AI use in VET — before export as branded PDF and editable Word.

Is the first assessment tool really free?

Yes. Every new account includes one free credit — enough to generate the complete assessment tool for SIRRMRM005 — with no card and no subscription required. After that it's pay-as-you-go per unit.

Can I check my existing SIRRMRM005 assessment instead of generating a new one?

Yes — upload your existing assessment or learner guide and Auditori maps it against every element, performance criterion, PE and KE of SIRRMRM005, showing exactly what's covered and what's missing. Mapping costs a quarter of a credit.

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