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TABLE OF CONTENTS Objective & Mission Statement Company Profile Business Overview Trends - Fall/Winter 2012-2013: Wild Naturalist New Wave Fresh Romanticism Competitive Shopping Report: Gap Abercrombie & Fitch American Eagle Perceptual Map Customer Profiles: New York City San Francisco Savannah Overall Plan Justifications

New York City Plan Justifications

San Francisco Plan Justifications

Savannah Plan Justifications

Assortments: Fabrics Patterns/Textures Color Size Justifications

Sources


OBJECTIVE - URBAN OUTFITTERS Our established ability to understand our customers and connect with them on an emotional level is the reason for our success. The reason for this success is that our brands are both compelling and distinct. Our goal is to offer product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy.

MISSION STATEMENT Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.


COMPANY PROFILE - URBN Inc. Urban Outfitters Inc. is an American corporation, which houses the retail brands Urban Outfitters, Free People, Anthropologie, BHLDN, and Terrain. Each of the brands under the Urban Outfitters Corporation select a specific customer profile for better customer satisfaction. The companies over all retail strategy consist of creating an overall store environment that connects with the customer on an emotional level. Today the division of Urban Outfitters functions in a specified manner of 130 stores all over the United States, and specific locations in Canada and Europe. The product mix developed by Urban Outfitters can be offered to the customer either by brick-and-mortar, online stores, or catalog.

COMPANY HISTORY Urban Outfitters Inc. was founded in 1970 by Richard Hayne and Scott Belair. The first store originated under the name “The Free People Store� in Philadelphia. It offered a product mix of second hand clothing, Indian fabrics, scented candles, t-shirts, and drug themed items. With an interior designed space of packing crates and old beat up furniture. Six years later in 1976 the company became incorporated.


BUSINESS OVERVIEW

Urban Outfitters is a lifestyle merchandising business, which focuses on building a strong emotional bond with the customer and at the same time make the customer congregate with its social surrounding. The division of URBN Inc. operates under Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN private brands. The Urban Outfitters constitutes the 39% of the overall 2012 URBN Inc. In 1970, Richard Hayne and Scott Belair, located in the city of Philadelphia, PA, founded Urban Outfitters Inc. The first store was founded under the name of ‘”The Free People Store”. Six years later, in 1976 the company became officially incorporated. After almost 30 years of operating its different private brands on North America, URBN Inc. started doing business in Europe by opening its first official Urban Outfitters store located in London, UK. The general Urban Outfitters division customer is a young adult, which is culturally sophisticated, self-expressive and worried with acceptance by their social circle. The stores selected for the Urban Outfitters division have an approximately selling space of 9,000 square feet and usually carry an estimated amount of 55,000 to 60,000 stock keeping units. The stores are usually located in large metropolitan areas, select university communities, specialty centers and enclosed malls. As of late January 2012, the Urban Outfitters division operates 197 stores in North America and Europe plus four operating websites and the Urban Outfitters catalog.


TRENDS FALL/WINTER 2012


COMPETITIVE SHOPPING REPORTS


GAP

Retail Price Range : $39.95 - $64.95 Merchandise Analysis Classifications: Crew neck, V-neck, Cardigans, Wraps, and Vest. A few prints and horizontal stripe patterns. Colors consist of saturated basic colors, and neutrals. Colors: Raspberry, Active blue, Navy, Regular grey, Yellow, Green, White, Midland grey, Off white, Tan, Silver, Vermilion, Hot coral, Fog, Capri blue, and true black. Fabrics: Cotton-Polyester-Linen, Rayon-Cotton (100%), Cotton-Linen, Cotton, Nylon-Linen (100%)  Silhouettes: All sweaters hit just below the waist. Fit ranges from relaxed easy fit to slim relaxed fit. Customer Profile Psychographic: Classic and clean cut all American. Demographic: 18-34 Male/Female, Middle to Upper class. Geographic: 3,000 stores across: United States, UK, Canada, China, France, Ireland, Japan, and Italy. Franchise stores: 200 across: Asia, Australia, Eastern Europe Latin America, Middle East, and Africa. Buying Behavior: Practical, likes basics to mix and match with, has a classic all American style.


AMERICAN EAGLE

Retail price range - $29.50 - $49.50 Merchandise Analysis Classification: Open stitch sweater, Open stitch hoodie, Lightweight cardigan, fringed poncho. Colors: Maroon, brown heather, pink, coral, red, chalk, navy, blue, light heather grey, black, charcoal, soft lilac, purple. Fabrics: Ramie-cotton blend, cotton, cotton-polyester-acrylic, and ramie blend.    Silhouettes: All sweaters consist of the classic fit. All have a narrow fitted silhouette. Customer Profile Psychographic: Young, hip and cool. Demographic: 15-25 Male/Female, Middle to Upper class. Geographic: Mall-based. 700 stores through out the United States and Canada. Buying Behavior: Likes fashions that are young and hip.


ABERCROMBIE & FITCH

Retail Price Range: $58.00-$78.00 Merchandise Analysis Classification: Cardigans and pull over sweaters. All solid colors, no prints. Minimal embellishments on some of lace. Colors: Light heather grey, Navy, Green, Pink, Bright red, Red, White, Blue, and Cream. Fabrics: Cotton-Nylon-Angora, Cotton-Nylon-Viscose CottonAcrylic, Cotton-Modal-Linen   Silhouettes: All sweaters consist of the classic fit. All have a narrow fitted silhouette. Customer Profile Psychographic: Fun-loving, sporty, clean cut, and sexually uninhibited. Demographic: 18-22 Male/Female, Middle to Upper class. Geographic: 355 United States stores, 14 international stores. Buying Behavior: Likes clothing that is sporty, and preppy.


PERCEPTUAL MAP PERCEPTUAL MAP Expensive

Classic

Trendy

Affordable


STORE LOCATIONS & CUSTOMER PROFILES


NEW YORK CITY, NY

526 6th Avenue New York, NY (646) 638-1646

Average Temperature: 53 F Population: 22,085,649 Average Income: $55,603


Ashley Anderson Age: 27 Education: Graphic Design degree from FIT Occupation: Free Lance Graphic Designer Favorite Stores: Urban Outfitters, American Apparel, and Thrift Stores Marital Status: Lives with Boyfriend of 4 years. Career/Life Goals: Develop own graphic t-shirt line. Personal Behaviors: Spends her free time at small local coffee shops working away at her computer, and her weekends supporting local music acts in Brooklyn. Shopping Behavior: Looks for trendy yet casual fashions that she can style in a wide array of options.


SAN FRANCISCO, CA

80 Powell Street San Francisco, CA (415) 989-1515

Average Temperature: 57 F Population: 7,563,460 Average Income: $70,770


Age: 24

Sophia Miller

Education: MOA in Exhibition and Museum Studies from Occupation: Works at the San Francisco Museum of Modern Art Favorite Stores: Urban Outfitters, Jeffery Campbell, And Nasty Gal Marital Status: Engaged for 2 years. Career/Life Goals: Open her own modern art gallery. Personal Behaviors: Spends weekends frequenting new art galleries, and going out to the latest restaurants with friends. Shopping Behavior: Loves urban but girly clothing. Purchases a lot of dresses to mix and match with vintage belts.


SAVANNAH, GA

221 West Broughton Street Savannah, GA (912) 238-5606

Average Temperature: 64 F Population: 355,576 Average Income: $33,332


Age: 20

Lilly Mcgrain

Education: Undergrad Student Majoring in Photography Occupation: Full time student Favorite Stores: Urban Outfitters, Nasty Gal, and Civvies Marital Status: Single Career/Life Goals: Wants to be a Fashion Photographer for Urban Outfitters. Personal Behaviors: Spends weekends between photo-shoots, and time out with her close girlfriends. Loves young hip clothing that she can throw together before class, while still looking stylish. Shopping Behavior: Buys a lot of skinny jeans and loose fitting tops. Wants quality clothing, but with a vintage fun feel.


OVERALL 6- MONTH PLAN

DEPT. NAME

URBN Inc.- Urban Outfitters Division - Women's Knitwear - ONLY Sweaters

BUYER

Alice Burnett & Catalina Romero

FALL

JULY

SALES $

Last Year 2011 Plan 2012 % Inc/Dec Revised Actual

STOCK/SALES RATIO

Last Year Plan

BOM STOCK $ (Retail) EOM STOCK $ (Retail)

Last Year Plan Last Year Plan

MARKDOWNS $

Last Year Plan % to Sales % by Month Revised Actual

PURCHASES $ (Retail) (Cost)

Last Year Plan Last Year Plan

$

Markup %

55%

Markdown %

38%

Gross Margin %

39%

SEPTEMBER

1813817.6 1,510,003.1 -16.8%

1.5

10882905.6 12,583,359.5 15.6%

2.5

2,200,000.0 1,540,000.0 6,461,725.20 7,172,514.9

2,720,726.4 2,265,004.7 9839960.5 10922356

27,207,264.0 31,458,398.8 27914652.9 30985264.4

2,013,337.4 4.0% 20.0%

1,583,489.9 2.0% 15.7%

865,735.1 1.0% 8.6%

9,045,852.3

11,750,844.3

4070633.535

5287879.933

LAST YEAR

Sales

Turnover

2,000,000.0 1,400,000.0

1.1

SEASON TOT.

Average Stock

$

AUGUST

12,975,960.2 5839182.104

P


OCTOBER

NOVEMBER

13603632.0 15,603,365.8 14.7%

DECEMBER

6801816.0 6,543,346.9 -3.8%

JANUARY

9069088.0 9,185,852.4 1.3%

SEASON TOTAL

3174180.8 3,221,340.0 1.5%

2.1

1.9

2.0

3.1

28,567,627.2 32,767,068.1 37908787.8 42078754.2

12,923,450.4 12,432,359.2 42851440.8 47565098.9

18,138,176.0 18,371,704.9 41967204.7 46583596.9

9,839,960.5 9,986,154.1

1,049,955.5 1.0% 10.4%

1,022,775.4 2.0% 10.2%

2,013,337.4 3.0% 20.0%

25,965,007.3 11684253.28 PLAN

42,698,862.1 19214487.92

39,411,081.9 17734986.84

45% 34.0%

15545812.8 3.24

876.8 avg. 15,545,812.8

45000000 1,610,669.9 4.0% 16.0%

39,845,855.9 17930635.13 ACTUAL

50333438.0

45,345,440.0 50,333,438.0 12.5%

0.0 10,066,687.0 45.0% 100.0%

0.0 181,693,463.9 81762058.75


OVERALL 6-MONTH PLAN JUSTIFICATIONS • As for the six-month plan, several different decisions were made. One of the main decisions was based out of research using the Annual Financials published by the New York Times on April 2nd of 2012. Consulting the Annual Financials we saw an increase of the total company of approximately 15% from 2011 to 2012. •

After concluding the increase percentage research, we decided to apply an approximate 12.5% increase for the overall six-month plan.

• When the fall/winter 2012-2013 trends were assigned as base for the research project, we decided to go for the women’s knitwear/sweaters segment, which according to primary data (telephone calls), this segment constitutes the 7% of the overall Urban Outfitters annual sales. • The 12.5% was analyzed based on the chosen segment, the weather change, season change, and season trends. During the period of August to January the weather has a decrease from warm to cold weather, which allows us to analyze that knitwear is necessary and demanding for this type of season. • We selected the locations of New York City, NY as the A store, San Francisco, CA, as the C store and Savannah, GA as the D store because according to the Annual Financials published by the New York Times on April 2nd of 2012, these types of cities classifies as selected university communities. • Comparing the three different location plans, we saw a common decrease on the months of July and August. Based on weather research from the different selected locations, July and August are the warmest months of the year which constitutes less sales for each location on the selected segment (women’s knitwear/sweaters). The same case is presented during the month of January except with an increase in sales. The lowest temperatures are presented and when the demand should be slightly higher because of the student communities surrounding the different selected locations, but events might change the whole prospect of the six-month plan. • Although the different sources told us that the women’s knitwear/sweaters’ sales vary month by month there were two specific units from the fashion merchandise which are identified as best sellers, which are sold throughout the whole year and constituted a certain sales percentage on the selected segment. •

In the year 2012 several events have happened, but on the month of November 2012 presidential elections are coming which means economic insecurity and fewer expenses are supposed to be made by the general U.S. customer. Presidential elections constitute a change on the economy system, increase or decrease on taxes, and doubts about the future market management.


For the stock/sales ratio selection, based on research and lessons learned on the Retail Buying Class we decided to use a range from 1:1 to 3:1. The range goes from the point that the segment or sales is not able to grow at all (1:1) to the point were it can be an increasing point (3:1). The lowest point represents a non-changing pattern of the incoming merchandise, being specific on style, pattern, color, and material changes and the highest point represents a changing pattern where the identity of the store is reflected but never bringing the same exact merchandise.

• The markup percent (55%) was applied through keystoning, which is the double cost to determine the retail price, and might not include operating expenses or profit calculations. •

The gross margin percentage decreased from last year to this year because of the increase on markdowns.

• When selecting the markdown percentage, after a few consultations with the correspondent managers and from several visits to the stores in different locations, the selected segment has a quick movement from the period of the incoming merchandise to the clearance area. •

The markdowns selected by the Urban Outfitters division include lost packets, returns, refunds, and clearance products.

LOCATIONS

TYPE OF STORES

ADDRESS

New York, NY

A

521 Fifth Ave at 43rd st.

San Francisco, CA

B

80th Powell St.

Savannah,Ga

D

Broughton St.


NEW YORK CITY PLAN

FALL

JULY

SALES $

Last Year 2011 Plan 2012 % Inc/Dec Revised Actual

STOCK/SALES

Last Year Plan

RATIO BOM STOCK $ (Retail) EOM STOCK $ (Retail)

Last Year Plan % to Sales % by Month Revised Actual

PURCHASES $

Last Year Plan Last Year Plan

(Retail) (Cost)

$

Markdown % Gross Margin %

Average Stock Turnover

39%

1.1

186154.8 193,590.0 4.0%

1.5 279,232.2 290,385.0 180427 200274

0.1 4.0% 20.0%

0.1 2.0% 15.7%

0.0 1.0% 8.6%

LAST YEAR

55%

28639.2 18,283.5 -36.2%

31,503.1 20,111.9 89497.5 99342

0

Sales

SEPTEMBER

15,000.0 16,650.0 53,698.50 59,605.4

59,605.5

SEASON TOT.

Markup %

15,000.0 16,650.0

1.0

Last Year Plan Last Year Plan

MARKDOWNS $

$

AUGUST

97,513.7 43881.17435

103,479.0 46565.56742 PLAN


OCTOBER

NOVEMBER

257752.8 272,460.0 5.7%

1.6

100237.2 86,040.0 -14.2%

1.3

DECEMBER

JANUARY

114556.8 107,550.0 -6.1%

1.5

SEASON TOTAL

28639.2 43,020.0 50.2%

1.9

412,404.5 435,936.0 286392 317895.2

130,308.4 111,852.0 612162.9 679501

171,835.2 161,325.0 322191 357632.1

54,414.5 81,738.0 400000 500000

0.0 1.0% 10.4%

0.0 2.0% 10.2%

0.1 3.0% 20.0%

0.1 4.0% 16.0%

154,419.2 69488.66112 PLAN

653,689.0 294160.0706

303,857.2 136735.7355

461,282.1 207576.9324 ACTUAL

717000.0

20% 33.0%

159714.0 4.49

715,980.0 717,000.0 3.5%

876.8 avg. 159,714.0

0.0 10,066,687.0 45.0% 100.0%

0.0 1,833,845.8 825230.6119


NEW YORK CITY PLAN JUSTIFICATIONS • Based on primary data (telephone calls to the correspondent managers), New York City reported a loss on the segment on the last semester plus negative prospects as well. This is why the increase/decrease percentage selected is so low on the New York City plan. • During November of 2012 a decrease in sales will be seen due to the upcoming presidential elections, which could constitute a change in the economy, increase or decrease on taxes, and doubts about the future market management. • A common decrease on the months of July and August is seen on all plans. Based on weather research July and August in New York City are the warmest months of the year with average temperatures of 84 and 83 degrees Fahrenheit which constitutes less sales for each location on the selected segment (women’s knitwear/sweaters).


Hours Mon-Sat, 10am-10pm; Sun, 11am-8pm Nearby Subway Stops: 1, 2, 3 at 14th St.; F, V at 14th St. Payment Methods: American Express, Discover, MasterCard, Visa Special Features: Open After 9pm (at least 3 days a week)


SAN FRANCISCO PLAN

FALL

JULY

SALES $

Last Year 2011 Plan 2012 % Inc/Dec Revised Actual

STOCK/SALES

Last Year Plan

RATIO BOM STOCK $ (Retail) EOM STOCK $ (Retail)

Last Year Plan Last Year Plan

MARKDOWNS $

Last Year Plan % to Sales % by Month Revised Actual

PURCHASES $

Last Year Plan Last Year Plan

(Retail) (Cost)

$

AUGUST

7,000.0 7,770.0

1.1 $

SEPTEMBER

7159.8 5,298.2 -26.0%

1.5

33412.4 37,087.7 11.0%

2.5

7,700.0 8,547.0 17,899.50 19,868.4

10,739.7 7,947.4 29832.5 33114

83,531.0 92,719.2 60142.3 66757.8

0.1 4.0% 20.0%

0.1 2.0% 15.7%

0.0 1.0% 8.6%

19,091.5 0

30,465.0 13709.22785

11,126.3 5006.843415


OCTOBER

NOVEMBER

71598.0 82,122.7 14.7%

2.1 150,355.8 172,457.7 95464 105964.8

0.0 1.0% 10.4%

15,629.9 7033.434721

52505.2 52,982.4 0.9%

2.0 105,010.4 105,964.8 204054.3 226449.8

0.0 2.0% 10.2%

173,467.4 78060.35057

DECEMBER

JANUARY

57278.4 59,207.8 3.4%

2.6 148,923.8 153,940.4 107397 119210.4

0.1 3.0% 20.0%

24,478.0 11015.08146

SEASON TOTAL

16706.2 17,616.6 5.4%

238,660.0 264,912.0 9.4%

3.1 51,789.2 54,611.6 100000 110000

0.1 4.0% 16.0%

73,005.1 32852.30004

876.8 avg. 85,169.7

0.0 10,066,687.0 45.0% 100.0%

0.0 347,263.1 156268.4086


SAN FRANCISCO JUSTIFICATIONS • In the city of San Francisco, the incoming merchandise was received during the fall/ winter season period, which allowed customers to come into the store and look for the new trend on this specific segment. • During November of 2012 a small increase of 0.9% in sales will be seen due to the upcoming presidential elections, which could constitute a change in the economy, increase or decrease on taxes, and doubts about the future market management. • A common decrease on the months of July and August is seen on all plans. Based on weather research July and August in San Francisco are the warmest months of the year with average temperatures of 70 and 72 degrees Fahrenheit which constitutes less sales for each location on the selected segment (women’s knitwear/sweaters).


Hours Mon-Sat 9 am - 11 pm Sun 10 am - 10 pm Payment Methods: American Express, Discover, MasterCard, Visa Special Features: Open After 9pm (at least 3 days a week)


SAVANNAH PLAN

FALL

JULY

SALES $

Last Year 2011 Plan 2012 % Inc/Dec Revised Actual

STOCK/SALES

Last Year Plan

RATIO BOM STOCK $ (Retail) EOM STOCK $ (Retail)

Last Year Plan Last Year Plan

MARKDOWNS $

Last Year Plan % to Sales % by Month Revised Actual

PURCHASES $

Last Year Plan Last Year Plan

(Retail) (Cost)

$

AUGUST

5,000.0 5,550.0

1.1 $

SEPTEMBER

5369.9 4,609.5 -14.2%

1.5

62648.3 56,624.9 -9.6%

1.8

5,500.0 6,105.0 13,424.60 14,901.3

8,054.8 6,914.2 22374.4 24835.5

112,766.9 101,924.9 45106.7 50068.4

0.1 4.0% 20.0%

0.1 2.0% 15.7%

0.0 1.0% 8.6%

14,346.4 6455.8755

22,530.8 10138.87637

4,768.5 2145.819015


OCTOBER

NOVEMBER

21479.4 23,842.1 11.0%

2.5

35799.0 34,769.7 -2.9%

1.9

DECEMBER

JANUARY

26849.3 28,809.2 7.3%

2.2

SEASON TOTAL

26849.3 30,796.0 14.7%

3.1

53,698.5 59,605.2 71598 79473.6

68,018.1 66,062.4 153040.7 169874.8

59,068.4 63,380.2 80547.8 89407.8

83,232.7 95,467.7 81000 90000

0.0 1.0% 10.4%

0.0 2.0% 10.2%

0.1 3.0% 20.0%

0.1 4.0% 16.0%

43,710.5 19669.73712

138,582.1 62361.95207

54,836.9 24676.5933

178,995.0 198,684.0 6.3%

25,328.4 11397.7935

876.8 avg. 57,065.7

0.0 10,066,687.0 45.0% 100.0%

0.0 304,103.7 136846.6469


SAVANNAH PLAN JUSTIFICATIONS • In the city of Savannah, the knitwear segment is introductory merchandise for the current season, which allows a small increase for the Savannah plan plus several other reasons such as back to school arguments. • During November of 2012 a decrease in sales will be seen due to the upcoming presidential elections, which could constitute a change in the economy, increase or decrease on taxes, and doubts about the future market management. • A common decrease on the months of July and August is seen on all plans. Based on weather research July and August in Savannah, GA are the warmest months of the year with average temperatures of 93 and 91 degrees Fahrenheit which constitutes less sales for each location on the selected segment (women’s knitwear/sweaters). Savannah also known for its very humid climate carries its warmest months into September also with average temperatures of 86 degrees Fahrenheit, which constitutes this month to also carry a decrease in sales.


Hours 10:00 AM-7:00 PM Monday-Thursday 10:00 AM-8:00 PM Friday-Saturday 11:00 AM-5:00 PM Sunday Payment Methods: American Express, Discover, MasterCard, Visa


ASSORTMENTS


FABRICS

Fabrication Distribution

Percent to Total

Cotton

35.0%

Cotton Blends

20.0%

Acrylic

10.0%

Acrylic Blends

5.0%

Spandex Blends

1.0%

Polyester

11.0%

Polyester Blends

2.0%

Silk blends

1.0%

Bamboo blends

0.5%


PATTERNS//TEXTURES

Patterns / Textures

Percent to Total

Bulky

5.0%

Cable Knit

20.0%

Open Knit

15.0%

Ribbed Knit

15.0%

Striped

20.0%

Printed Knit

15.0%

Open - Crocheted

5.0%


COLOR

Color Distribution

Percent to Total

Red Tones

15.0%

Yellow Tones

15.0%

Blue Tones

5.0%

Green Tones

20.0%

Purple Tones

2.0%

Black

20.0%

Grey Shades

10.0%

Brown and Earth Tones

15.0%


SIZE

Size Distribution

Percent to Total

X Small

15.0%

Small

40.0%

Medium

45.0%

Large

10.0%


ASSORTMENTS JUSTIFICATIONS

•

Based on research made on different medias such as WWD, different official fashion magazines, forecasting trends websites such as PeclersParis.com, the assortment plans were selected and assigned with different percentages representing the strongest trends reflected on the selected segment.


SOURCES

Clodfelter, Richard. Retail Buying from Basics to Fashion, 3rd ed., . child Books

Fair-

“National and Local Weather Forecast, Hurricane, Radar and Report.” The Weather Channel. Web. <http://www.weather.com/>. “The New York Times.” The New York Times. Web. <http://www.nytimes. com/>. “PeclersParis…fashioning the future” PeclersParis. Web. <http://www. peclersparis.com/>. URBAN OUTFITTERS, INC. “FORM 10-K.” (2012). Print. “Urban Outfitters.” Urban Outfitters. Web. <http://www.urbanoutfitters. com/>. “URBN INC.” URBN INC. Web.<http://www.urbn.com/>.


CATALINA ROMERO & ALICE BURNETT Retail Buying Simulation Prof. Quy Cory Quach Spring 2012


Six Month Buying Plan for Urban Outfitters  
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