John Lewis -The White Company Loungewear Range Plan

JOHN LEWIS PLANOGRAM LAUNCH DATE: 15 OCTOBER 2018 BOTTOM STORES (MINIMUM CREDIBLE OFFER) - 16 STORES £89 DRESSING GOWN

£69 COTTON CASHMERE HOODIE

£69 CAMI & SHORT PJ SET

£35 RACER BACK JERSEY CAMI

NEW JOHN LEWIS CONCESSION,

STONE £99 CLASSIC PJ SET

SKY STRIPE

BLUSH £59 COTTON CASHMERE JOGGER

BLUSH

EMILIA PRINT £69 COTTON CASHMERE ROLL NECK

SILVER GREY

INK £39 COTTON CASHMERE SHORTS

SILVER GREY

MID STORES - 20 STORES £89 DRESSING GOWN

STONE £99 CLASSIC PJ SET

SKY STRIPE

£69 COTTON CASHMERE HOODIE

BLUSH £59 COTTON CASHMERE JOGGER

BLUSH

£69 CAMI & SHORT PJ SET

EMILIA PRINT £69 COTTON CASHMERE ROLL NECK

SILVER GREY

£35 RACER BACK JERSEY CAMI

£35 RACER BACK JERSEY CAMI

INK £39 COTTON CASHMERE SHORTS

BLUSH £169 CASHMERE CARDIGAN

£69 COTTON CASHMERE HOODIE

SILVER GREY £59 COTTON CASHMERE JOGGER

SILVER GREY

INK

£35 RACER BACK JERSEY CAMI

£35 RACER BACK JERSEY CAMI

SILVER GREY

TOP STORES - 4 STORES £89 DRESSING GOWN

STONE £99 CLASSIC PJ SET

SKY STRIPE

£69 COTTON CASHMERE HOODIE

BLUSH £59 COTTON CASHMERE JOGGER

BLUSH

£69 CAMI & SHORT PJ SET

EMILIA PRINT £69 COTTON CASHMERE ROLL NECK

SILVER GREY

INK £39 COTTON CASHMERE SHORTS

SILVER GREY

BLUSH £169 CASHMERE CARDIGAN

£69 COTTON CASHMERE HOODIE

SILVER GREY £59 COTTON CASHMERE JOGGER

INK

SILVER GREY

£119 100% WOOL HAND KNIT CARDIGAN

STONE £59 CAMI PJ PLAYSUIT

SKY STRIPE

£69 CAMI & SHORT PJ SET

£89 DRESSING GOWN

SKY STRIPE £59 CAMI PJ PLAYSUIT

EMILIA PRINT

£79 QUILTED JERSEY DRESSING GOWN

BLUSH £89 SILK NIGHTIE

SILVER GREY £89 SILK NIGHTIE

INK

BLUSH

RANGE PLAN Option Description COTTON CASHMERE HOODIE

Colour BLUSH

End Use

Selling Price

Cost Price

Intake Margin %

No. of stores

No of weeks on sale

ROS

Unit Buy

Buy Selling Value

Loungewear

£

69.00

£

12.46

78.3%

40

12

8

3840

£264,960.00

69.00

COTTON CASHMERE HOODIE

SILVER GREY

Loungewear

£

£

12.46

78.3%

24

12

18

5184

£357,696.00

COTTON CASHMERE JOGGER

BLUSH

Loungewear

£

59.00

£

13.11

73.3%

40

12

6

2880

£169,920.00

59.00

COTTON CASHMERE JOGGER

SILVER GREY

Loungewear

£

£

13.11

73.3%

24

12

15

4320

£254,880.00

COTTON CASHMERE ROLL NECK

SILVER GREY

Loungewear

£

69.00

£

14.98

73.9%

40

8

8

2560

£176,640.00

39.00

COTTON CASHMERE SHORTS

SILVER GREY

Loungewear

£

£

8.43

74.1%

40

8

10

3200

£124,800.00

RACER BACK JERSEY CAMI

INK

Loungewear

£

35.00

£

8.95

69.3%

40

12

6

2880

£100,800.00

35.00

RACER BACK JERSEY CAMI

BLUSH

Loungewear

£

£

8.95

69.3%

24

12

9

2592

£90,720.00

CAMI & SHORT PJ SET

EMILIA PRINT

Nightwear

£

69.00

£

17.42

69.7%

40

12

5

2400

£165,600.00

CAMI & SHORT PJ SET

SKY STRIPE

Nightwear

£

69.00

£

17.42

69.7%

4

8

15

480

£33,120.00

CLASSIC PJ SET

SKY STRIPE

Nightwear

£

99.00

£

20.93

74.6%

40

12

6

2880

£285,120.00

CAMI PJ PLAYSUIT

EMILIA PRINT

Nightwear

£

59.00

£

13.87

71.8%

4

8

16

512

£30,208.00

CAMI PJ PLAYSUIT

SKY STRIPE

Nightwear

£

59.00

£

13.87

71.8%

4

8

16

512

£30,208.00

89.00

SILK NIGHTIE

INK

Nightwear

£

£

21.32

71.3%

4

12

10

480

£42,720.00

SILK NIGHTIE

BLUSH

Nightwear

£

89.00

£

21.32

71.3%

4

12

10

480

£42,720.00

169.00

CASHMERE CARDIGAN

INK

Loungewear

£

£

34.53

75.5%

24

12

6

1728

£292,032.00

100% WOOL HAND KNIT CARDIGAN

STONE

Loungewear

£

119.00

£

35.42

64.3%

4

8

15

480

£57,120.00

89.00

DRESSING GOWN

STONE

Nightwear

£

£

16.56

77.7%

40

12

6

2880

£256,320.00

DRESSING GOWN

BLUSH

Nightwear

£

89.00

£

16.56

77.7%

4

12

16

768

£68,352.00

Nightwear

£

79.00

£

21.21

67.8%

4

8

15

480

£37,920.00

41536

£2,881,856.00

QUILTED JERSEY DRESSING GOWN Totals

SILVER GREY

72.6%

WSSI

Wk 1 w/c... 08/10/18 Sales £ Closing Stock £ Total Budget

Flat Cover Promo Markdown £

£ £ 2,881,856.00

147,500.00

Wk 2 w/c... 15/10/18 £

154,100.00

Wk 3 w/c… 22/10/18 £

160,050.00

Wk 4 w/c… 29/10/18 £

152,350.00

Wk 5 w/c… 05/11/18 £

157,600.00

Wk 6 w/c… 12/11/18 £

130,150.00

Wk 7 w/c… 19/11/18 £

275,500.00

£

95,950.00

Wk 9

Wk 10

w/c… 17/12/18

w/c… 24/12/18

£

£

149,800.00

£

395,650.00

£ 198,950.00

£

478,281.00

£ 141,831.00

142,950.00

£ 2,420,206.00

£ 2,267,856.00

£ 2,110,256.00

£ 1,980,106.00

£ 1,635,731.00

£ 1,539,781.00

£ 1,396,831.00

£ 1,247,031.00

18.5

16.7

15.1

14.9

13.4

15.2

5.9

16.0

9.8

8.3

£

Wk 12

w/c… 10/12/18

£ 2,580,256.00

£

Wk 11

w/c… 03/12/18

£ 2,734,356.00

1.2

68,875.00

Totals

£ 2,160,550.00

0.7

68,875.00

Perm Markdown £ Total Markdown £

Wk 8 w/c… 26/11/18

£

68,875.00

£

373,100.00

£ 137,500.00

£

510,600.00

£

373,100.00

£ 137,500.00

£

579,475.00

END OF SEASON ACTION SHEET

Option Description

Colour

Original Selling Price

Annual Conversion

Seasonal Conversion

Job Off

Markdown %

Markdown Selling Price

COTTON CASHMERE HOODIE

BLUSH

£69

29%

£49.00

COTTON CASHMERE HOODIE

SILVER GREY

£69

29%

£49.00

COTTON CASHMERE JOGGER

BLUSH

£59

34%

£39.00

COTTON CASHMERE JOGGER

SILVER GREY

£59

34%

£39.00

COTTON CASHMERE ROLL NECK

SILVER GREY

£69

29%

£49.00

COTTON CASHMERE SHORTS

SILVER GREY

£39

36%

£25.00

RACER BACK JERSEY CAMI

INK

£35

46%

£19.00

RACER BACK JERSEY CAMI

BLUSH

£35

46%

£19.00

CAMI & SHORT PJ SET

EMILIA PRINT

£69

29%

£49.00

CAMI & SHORT PJ SET

SKY STRIPE

£69

29%

£49.00

CLASSIC PJ SET

SKY STRIPE

£99

30%

£69.00

CAMI PJ PLAYSUIT

EMILIA PRINT

£59

24%

£45.00

CAMI PJ PLAYSUIT

SKY STRIPE

£59

24%

£45.00

SILK NIGHTIE

INK

£89

34%

£59.00

SILK NIGHTIE

BLUSH

£89

34%

£59.00

CASHMERE CARDIGAN

INK

£169

41%

£99.00

100% WOOL HAND KNIT CARDIGAN

STONE

£119

25%

£89.00

DRESSING GOWN

STONE

£89

34%

£59.00

DRESSING GOWN

BLUSH

£89

34%

£59.00

£79

30%

£55.00

QUILTED JERSEY DRESSING GOWN SILVER GREY

33%

Rationale for action The colour means it is not suitable for seasonal/annual conversion. It is a popular product so a 29% MD (close to the general 30%) will give customers an incentive to buy in order to sell through any remaining stock and avoid going too deep into MD. Marked down the same as blush option to avoid separate colour markdown - as the products are intended to sell well, the 29% will help to sell through any remaining stock in the business.

The colour means it is not suitable for seasonal/annual conversion. It is a popular product so a 34% MD will give customers an incentive to buy in order to sell through any remaining stock and avoid going too deep into MD. Marked down the same as blush option to avoid separate colour markdown - as the products are intended to sell well, the 34% will help to sell through any remaining stock in the business.

The style and fabric is not suitable for seasonal/annual conversion therefore, like other cotton cashmere styles, it is marked down 29% to help sell through any remaining stock.

This style will not fit with anything next season and will be unsuitable for next A/W therefore, it cannot be seasonally or annually converted and with a MD of 36% it should sell through any remaining units.

This style is specific to this range in terms of fabric, shape and colour therefore, it cannot be seasonally/annually converted. It is at a 46% MD reduction to ensure every unit sells through and does not end up in terminal stock.

This style is specific to this range in terms of fabric, shape and colour therefore, it cannot be seasonally/annually converted. It is at a 46% MD reduction to ensure every unit sells through and does not end up in terminal stock.

This set is specific to this range due to the print therefore, it cannot be seasonally/annually converted. At 29% MD (close to the general 30%), it will give customers an incentive to buy in order to sell through any remaining stock and avoid going too deep into MD. This set is specific to this range due to the print therefore, it cannot be seasonally/annually converted. At 29% MD (close to the general 30%), it will give customers an incentive to buy in order to sell through any remaining stock and avoid going too deep into MD. This set is specific to this range due to the print therefore, it cannot be seasonally/annually converted. At the general 30% MD it will give customers an incentive to buy in order to sell through any remaining stock and avoid going too deep into MD. This style is specific to this range due to the print therefore, it cannot be seasonally/annually converted. It is a popular style because it's a cheaper alternative to the cami & short pj set therefore, a 24% MD reduction keeps it at a lower price while retaining a good margin for a markdown at 63%.

This style is specific to this range due to the print therefore, it cannot be seasonally/annually converted. It is a popular style because it's a cheaper alternative to the cami & short pj set therefore, a 24% MD reduction keeps it at a lower price while The fabric and colour is not suitable for seasonal/annual conversion therefore, being silk, with a markdown of 34% customers will have an incentive to buy it in order to sell through any remaining stock.

The fabric and colour is not suitable for seasonal/annual conversion therefore, being silk, with a markdown of 34% customers will have an incentive to buy it in order to sell through any remaining stock.

There is a deeper MD on this style, at 41%, as it is at the exit price and needs a larger reduction to attract sales. However, the intake margin was well within the 70% target therefore, such a deep first MD is viable as it only drops the margin to 58%.

The fabric/shape is not suitable to be seasonally/annually converted however it is commercial as customers are still buying for the colder months planning for Jan/Feb cold weather ahead so no need to have deep MD. It had the lowest margin, and was one of the smallest unit buys, a smaller markdown will help to get rid of the remaining stock (which would be less than bigger buys) whilst retaining a 52% margin.

The fabric and colour is not suitable for seasonal/annual conversion therefore, with a markdown of 34% customers will have an incentive to buy it in order to sell through any remaining stock.

The fabric and colour is not suitable for seasonal/annual conversion therefore, with a markdown of 34% customers will have an incentive to buy it in order to sell through any remaining stock.

This style is specific to this range in terms of fabric and detailing therefore, it cannot be seasonally/annually converted. At the general 30% MD reduction it should help to ensure all remaining stock sells through

ATTRIBUTE ANALYSES PRICE RANGE Entry

Mid

Exit

TOTAL

PRICE

UNIT BUY

£

35.00

5,472

£

39.00

3,200

£

59.00

8,224

£

69.00

14,464

£

79.00

480

£

89.00

4,608

£

99.00

2,880

£

119.00

480

£

169.00

1,728 41,536

MIX % 40.7%

COLOUR

MIX %

Stone

3,360

8.1%

Blush

10,560

25.4%

5,088

Ink Silver Grey 54.0%

UNIT BUY

Multi

TOTAL

STYLE

13.9%

BOTTOMS

10,400

25.0%

12.2%

TOPS

19,264

46.4%

15,744

37.9%

DRESSING GOWN

4,128

9.9%

6,784

16.3%

SLIP/NIGHTDRESS

960

2.3%

1,024

2.5%

100%

PLAYSUIT

TOTAL 5.3%

100%

MIX %

5,760

41,536

MATCHING PYJAMAS

UNIT BUY

41,536

100%

RATIONALE FOR RANGE AND FIGURES This is a loungewear range for a concession that is new to John Lewis, The White Company. The range uses whole pound price points with 88.9% ending in £9 and the remaining in £5. For the price architecture 54% sits at a mid-price range (£69-£99), with 40.7% at entry (£35-£59) and 5.3% at exit (£119-£169). The cashmere cardigan is the most expensive product at the exit price of £169. It is introduced at mid stores in order to give it the opportunity to sell at more locations. This allows the exit price to be available at 24 stores, cutting a risk if it had only been at the 4 top stores – where it would be available to less customers. The entry and exit price ranges are in line with a premium market, perfect for John Lewis “with 42% of its customers falling into the AB socio-economic group” (Mintel, 2018).

In terms of colour WGSN (2018) explains for AW18/19, that “gentle cosmetic hues soften winter collections” such as “tones of blush, nude and pale pink”. This trend is emulated through the cotton cashmere separates, jersey racer back cami and silk nightie, it is also shown in the Emilia print. As a block colour, blush holds 25.4% of the range. Silver grey has the largest percentage with 37.9%. This is suitable for the John Lewis customer as it is a classic colour that will not come and go as quickly as a more trend-led colour would. Yet it has gained traction for AW18/19 with WGSN (2018) noting that “charcoal and silver grey are ideal” for the season. Therefore the customer will have an incentive to buy it as it is an emerging colour this season; but will also transcend as seasons pass. Therefore the highest expected ROS of 18 is on the silver grey cotton cashmere hoodie.

For loungewear, the most bought category shown in a Mintel (2018) report, is matching pyjamas; with 34% of women having bought some in the last 12 months. For this range, matching pyjamas make up 13.9% of the total unit buy. This is because the John Lewis “consumers can mix and match” (Mintel, 2018) with the higher amount of tops and bottoms at 46.4% and 25% respectively. This includes camis, cardigans, jumpers, shorts and joggers.

There is a promotional markdown planned for 25% off in week 7 (w/c 17/11/2018) in line with the week of black Friday 2018. This is a standard time for a promotion to occur in retail. It would be unusual to not have one here as customers will be expecting it. Being in week 7, it is just over half way through the 12 week period when sales may start to dip. Yet not too close to the final permanent markdown, that sales in weeks 9 and 10 can gain traction again.

For the exit strategy, the whole range is planned to go into markdown as this is a collection of loungewear exclusively for the Autumn/Winter Christmas period of 2018. Therefore, colours, fabrics and styles will not be appropriate to seasonally or annually convert as they are not suitable for the packs in the Spring/Summer season. It will also be inappropriate for the loungewear range in 2019.