Merchandise Categories classify Products, but in SAP Retail that’s a small part of the story.
Merchandise Category Hierarchy is relevant both for SAP S/4HANA Retail for Merchandise Management and SAP S/4HANA for Fashion and Vertical Business. SAP Retail is used in this document as a shortcut to mean both applications.
As context, let’s first differentiate between the two main product hierarchies that you’ll find in SAP Retail:
