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Executive Summary A proposition for a pop-up shop for women’s clothing brand, Reformation. With research and analysis, we’ve chosen a location, based on a proper demographic, where we believe our Reformation pop-up will flourish best. Furthermore, we’ve designed a temoprary store to mimick the brand’s personality and include all the proper amenities for today’s modern shopper.


Company Summary Reformation is a women’s clothing brand made for the cool lady. Effortless silhouettes in the trendiest of styles create serious ‘it’ girl vibes. The Reformation woman is smart, sexy and cares about the environment. Don’t worry, we want to be her, too.


Reformation currently has 500 employees working in their three locations in New York, Los Angeles and their factories. Reformation’s revenue is approximately $25 million, with a majority of the sales being online revenue. They produce 70% of their clothing in the United States at their factory based in Los Angeles.


Reformation’s Mission


Cu rre n t Di st rib u ti o n Re f o rmat ion s el l s d i re ct l y t o t h ei r c u s t om er s an d n ot t o ot he r s t ores. Refor m at i o n m a ke s a b ou t $6 0 m i l l ion in e-com m e rc e s a l es a n d $ 3 m i l l i o n i n s a l e s a n n u al l y f o r ea ch s t o re. B e c a u se t h e y a re a p ri v at el y - o wn ed c om p an y, t h ey do n o t e n g ag e i n a n y l i ce n se s , fran ch i s es , j o i n t ve n t ure s , e tc .


“Fashion is the third most polluting industry in the world, we are here to clean it up!�

Sustainable Practices


Reformation is a B-Corporation. It uses the power of their business to solve social and environmental issues in society. They meet rigorous standards of social and environmental performance, accountability, and transparency. By starting at the source, their HQ and production factory in L.A. executes sustainable practices. Practicing what they preach, they opened the first sustainable sewing factory in the U.S. with their anti-waste production. The waste water that comes off the production line is filtered to the on site garden where green-thumbed employees are encouraged to grow fruits and vegetables.


Reformation Brand as a...


Symbol

Person Sexy Femin ine

L 11

Confident Effortless

We m a k e k i I I er c I o t h es t h a t d o n t I

k i I I t h e env ir o n m ent .

Eco-Fr iendly

11

Sustainable Reduce 1 Reuse 1 Recycle Repurposed Vintage Edgy Relevant

Organization

Product


Market Analysis “Change the World Without Changing Your Style.”


SWOT ANALYSIS Strengths

Weaknesses

- Strong marketing campaigns delivering the message of sustainability

- The price of a sustainable practice makes the clothing more expensive

- Limited stocked items keeps high interest and demand, along with high inventory turnover

- Providing limited stock of items and selling out quickly results in loss of potential purchases

- Fast fashion with an eco-concious business model - Celebrity followings, loyality, and brand collaborations - Reformation is B-Corporation -The RefScale and RefRecycle programs give the company transparency


Opportunities

Threats

- Brand has the ability to expand as more stores

- Other companies and brands breaking into sustainable fashion

- Development of new sustainable fabrics such as virgin material

- Other companies and brands following a similar aesthitic and providing styles at a cheaper price - Trend evolution; sustainable and eco-friendly trend falling out


Price + Accessibility Matrix


Price

Accessibility


Direct Competitors

These brands are direct competition to the Reformation pop-up shop because they are located in the Lincoln Road mall. Club Monaco and Madewell are within the same price range as Reformation and also have the same trendy aesthitic that the Reformation girl is looking for. Zara is a direct competitor due to their fast fahsion module that gives consumers the newest and most popular trends at a lower and reasonable price compared to Reformation. Intermix is a shop in the Lincoln Road mall that carries other competitors such as Rag & Bone in their mix of designer brands in store.


Indirect Competitors

Brands such as H&M, Express and Urban Outfitters are indirect competitors to our Reformation Pop-Up shop because they offer similiar styles at a lower price, without the sustainable conscious in mind. The Miami Design District is also an indirect competitor due to the fact that it is a completely seperate shopping district within 20 blocks from the Lincoln Road Mall. The Miami Design District carries luxury brands such as Gucci, Saint Laurent, Versace, and Burberry. This range of high luxury and fast fashion brands serve as indirect competition to where our target market may shop as an alternative to Reformation.


PESTEL ANALYSIS Political

New government regulations on imported goods under the new prsident, although Reformation manufactuers in the US a small perecent is still manufactured through third parties

Economical High demand for luxury items Incresing stability within economic market and increase of the NYSE since the new presidency has taken over Increasing budget deficit puts the economic prosperity of country at risk as the deficit currently amounts to $506 million

Technological

New innovation to repurpose and reuse and recycle old materials into new products The potential for automated factories in the future could effect the production of Reformation’s goods in their US factories


Environmental The tourism in the Summer is higher than in the Winter, therefore business will thrive more during the Summer months

Legal Labor Regulation and how employees are treated is carefully monitored in all retail businesses Taxes: The combined sales tax rate for Miami, FL is 7%. This is the total of state, county and city sales tax rates. In Miami-Dade county, the location of the pop-up shop, the tax rate is 1% Within city limits our tax receipt is $45.00 with an additional 4.50 for the extra employee, $total $49.50

Social Lincoln Road and Miami Beach are tourist areas with people who have extra money for expenditures such as shopping The average household consists of two people with steady income, and use extra income for the finer things in life Miami is known as a melting pot of Hispanic Immigrants from the Carribean and Cuba


Target Consumer “Drink More in January, Workout the Same & M a i n t a i n M y Po t t y M o u t h .”


Predominantly female between 25-32 years old A socialite, she is always on the go and has the need and want to be fashionable and on trend. With high concern for the environment, she looks for clothing and brands that are eco-friendly and of the highest quality. She is a young professional establishing her career. She has extreme ambition to move up the ladder. The Reformation girl has thoughtful shopping habits, always looking for what is new and trendy but is aware of buying only what she needs rather than what she wants.


Isabella S. Age: 26 Occupation: Graduate Student/Sales assistant at M.A.C Household income: $65,000 Native resident of Miami Currently attends University of Miami in the graduate program for photgraphy Interests include outdoor activities on the beach, volunteering at school events and photographing local street style and architect Extremely active and involved within her friend group and on her social media pages Drives a Volkswagen Other favorite brands include TopShop, Nasty Gal and Genuine People


Jessica H. Age: 31 Occupation: Marketing Director Household income: $250,000 Born and raised in New York, but relocated to Miami for her work. Graduated from Parsons Interests include blogging, shopping, and outings with her closest friends Her well being is important to her so keeping a healthy mind and body is a priority Drives a BMW


Store Location+Design


Lincoln Road, Miami Beach

A tiered level interior with a total of 2,041 sq ft at about $28 per sq ft; the total cost for rent for three months would include $171,444.


Area Attractions

apparel

jewelry

Adidas Y-3 AllSaints Spitalfields American Apparel Anthropologie Banana Republic BCBG Max Azria BeBe Club Monaco French Connection G Star Raw Gap H&M Intermix J Crew Lacoste Lululemon Athletica Madewell Urban Outfitters Victoria’s Secret Zara

Babalu Miami Camille & Lucie Mayor’s Swatch International

cosmetics Aesop Kiko Milano LUSH Handmade Cometics Timesless Cosmetics

food + drink Finnegan’s 2 Haven MOVA Polar Bar Rio Station

clubs Gemma Score Van Dyke

hotels Albion Hotel Fountebluea Ritz-Carlton


Rent Lincoln Road, Brickell and the Design District have experienced the sharpest spikes in property values and rents in the region. Many landlords on Lincoln Road are asking $300 to $400 a square foot for new leases, and there's no shortage of tenants willing to sign, said Lyle Stern, president of Miami Beach-based brokerage Koniver Stern Group. Tenants typically expect to spend 10 to 20 percent of their gross sales on rent, so retailers in high-rent areas need to increase their sales exponentially to justify the expense.

Commercial Zoning Commercial Miami Beach zoning is described as land use where businesses and residential properties operate, such as restaurants, hotels, Miami Beach lodging facilities, bars, fitness centers and more. The type of business allowed in a commercial zone may be affected by the availability of parking and the closeness to other types of businesses. For example, commercial Miami Beach zoning laws prohibit or limit adult entertainment establishments to a certain area. Bar type businesses are also prohibited within a certain distance of schools or churches. Regulations for commercial zoning can vary per municipality, with some neighborhoods having stricter rules and regulations than the next. Commercial Miami Beach zoning is divided into several districts such as Lincoln Road, Collins Avenue and Ocean Drive. Many of the commercial areas in Miami Beach are zoned for both commercial properties such as Miami Beach lodging hotels and residential properties such as condo buildings.

Area Logistics

Parking Parking in Residential areas: Zones 1-4 before 9am or after 6pm weekdays. Zones 1-4 anytime during the weekends. Parking at a meter without paying is subject to a fine. Park no further than 18� from the sidewalk.


The Design With the store design, our goal was to replicate the aesthetic that Reformation presents with their clothing, website, and other stores.

Reformation’s vibes are modern and clean with white furniture and hints of earthy materials scattered about like wood, and plants.


Plans


Reformation Financial Plan Location Foot Traffic Per Day Percent Conversion of Traffic In-Store Foot Fall Traffic In-Store Percent Conversion Dollars Per Transaction Total Revenue Cost of Goods Sold (MKUP 60%) Product Percentage Dresses Jumpsuits Tops Tees Bottoms Accessories Total

0.3 0.1 0.2 0.2 0.1 0.1 1

Profit & Loss Statement (3 months) $ Net Sales $540,000 Cost of Goods Sold $216,000 Gross Margin $324,000 Expenses $252,976 Net Profit/Loss $71,024

% 1 0.4 0.6 0.5 0.1

Sunday 18,000 0.03

Monday 15,500 0.03

Tuesday 14,500 0.03

Wednesday 16,500 0.03

Thursday 16,500 0.03

Friday 17,000 0.03

540 0.05 $250 $6,750 $2,700

465 0.05 $250 $5,813 $2,325

435 0.05 $250 $5,438 $2,175

495 0.05 $250 $6,188 $2,475

495 0.05 $250 $6,188 $2,475

510 0.05 $250 $6,375 $2,550

$2,025 $675 $1,350 $1,350 $675 $675

$1,744 $581 $1,163 $1,163 $581 $581

$1,631 $544 $1,088 $1,088 $544 $544

$1,856 $619 $1,238 $1,238 $619 $619

$1,856 $619 $1,238 $1,238 $619 $619

$1,913 $638 $1,275 $1,275 $638 $638


Operational Plan Our pop up shop will consist of day to day operations that include a focus of providing great customer service and quality fashion in a friendly atmosphere. This pop up shop will be open from 11am to 7pm on Monday thru Saturday and Sunday from 12pm to 6pm. Our management team for these three months will consist of one store manager, one assistant manager, two keyholders, and seven associates. The salaries for three months will be as followed: these positions for the th Store Manager- $12,500 Assistant Manager- $11, 250 Key Holders- $8,160 Associates- $5,040 Both managers have a background in accounting and administration and all employees come from diverse backg backgrounds with various skills and other work experiences.


Operational Plan Operational Plan Hours of Operation Mon.-Sat.- 11am -7pm Sun.-12pm- 6pm Furniture Human Resources Rent Utility Wifi Total

Month 1

Month 2

Month 3

$5,257 $25,117

$25,117

$25,117

$57,148

$57,148

$57,148

$255

$255

$255

$52

$52

$52

$87,829

$82,572

$82,572


Unit Breakdown Total

Style Number 5702

4732 8976 3425 5468

3467 9645 1367 9746 5463 8795 1324 5646 7578 3435 7543 5657 2457 8765 9754 5467 7745 7846 5575 9807 4557 7868 7686 3466 9066 6786 4790

2798

9764

5854

Total

Description Chelsea Dress Lotte Dress

Collette Dress West Dress

Kiwi Two Piece Saige Dress

Gardner Dress Aster Dress

Warner Jumpsuit Basin Jumpsuit

Diane Jumpsuit

Claudia Two-Piece Patton Jumpsuit Berry Jumpsuit

Pamplemousse Top Damon Top

Anjelica Top Kaelyn Top

Flax Relaxed Crew Tee Trees Tee

Meow Tee

Plush Slim Crew Tee Getting Started Tee

Fragile Masculinity Tee

2,998 % of Total 3%

3%

3%

3%

3%

3%

3%

2.50% 2.50% 2.50%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

Parker Denim Skirt

3%

3%

August Skirt

3%

Blitz Skirt

Soko Petite Jay Earrings

Dorfman Pacific Cardenas Hat Soko Band Cuff

Carla Colour Jarvus Sunglasses

Parme Marin Bold Out Shearing Slide

100

100

100

75

2.50%

$118

$11,800

$278

2.50%

2.50%

$22,200

100

100

75 75 75 75 75

100

100

100

100

100

100

100

$118 $158 $388 $248 $218 $118

$27,800 $11,800 $15,800 $38,800 $24,800 $16,350

$8,850

$18,600

$198

$14,850

$218 $118

$16,350 $8,850

$128

$12,800

$98

$9,800

$98 $98 $28

$50 $50

$28

100

$50

$50

100

$158

100

$98

100

$24,800

$248

100

100

Total

$222

$248

100

3%

Clyde Skirt

100

Retail per Unit

100

3%

Belini Pant

Cut off Short

Total Units

$98

$9,800 $9,800 $2,800 $5,000 $5,000 $2,800 $5,000 $5,000

$15,800

$9,800 $9,800

100

$138

$13,800

3%

100

$98

$9,800

0.40%

12

3%

0.40% 0.40% 0.40%

3%

100

12 12 12

100

2,998

$98 $48

$40 $90

$194 $253

$9,800 $576

$480

$1,080

$2,328

$25,300 $428,014


Product Assortment Plan - Dresses

$118

$388

$278 $158

$248


Promotional Plan PRE LAUNCH

JUN 2018

JUL 2018

AUG 2018

LAUNCH

SEP 2018

Create advertisements for pop-up Post advertisements on social media + website Mail event invitations Send event reminder emails Pop-up opening event! Send promotional emails Post about pop-up closing Close pop-up shop

Promotional Party Budget Advertisting Budget Entertainment Decoration Food & Beverage Tote Bag Invitations Photo Booth Rental Total

$500 $80 $1,250 $308 $120 $500 $2,758

POST LAUNCH

OCT 2018

NOV 2018


The Launch Event To ccelebrate the opening of the Reformation pop-up, there will be a launch party at the new store. 50 notable guests from Miami will be invited to shop the store, drink champagne, dance to music and enjoy little treats. In Reformation style, there will be a fun giveaway where attendees can bring in old clothes to be recycled and will receive a Reformation logo tote bag in return.


Citations “Access Denied.” Access Denied. N.p., n.d. Web. 07 Mar. 2017. “B Corporation.” Reformation | B Corporation. N.p., 01 Sept. 2014. Web. 07 Mar. 2017. “Commercial Miami Beach Zoning.” Miami Beach Vaction Rentals. N.p., n.d. Web. 07 Mar. 2017. “ENTER.” Claritas MyBestSegments. N.p., n.d. Web. 07 Mar. 2017. Fernandez, Chantal. “Reformation Debuts Lower-Price Line.” Fashionista. Fashionista, 26 Jan. 2015. Web. 07 Mar. 2017. Flechas, Joey. “Miami Beach Commission Supports New Taxing District to Promote Lincoln Road.” Miamiherald. N.p., 16 Apr. 2016. Web. 07 Mar. 2017. Flechasjflechas@miamiherald.com, Joey. “Lincoln Road Makeover Would Bring Back Original Look and Feel.” Miamiherald. N.p., 15 Sept. 2016. Web. 07 Mar. 2017. Gordonalastairgordonwalltowall.com, Alastair. “Alastair Gordon: Lincoln Road Mall on Miami Beach Has Always Been a Work in Progress.” Miamiherald. N.p., 27 June 2015. Web. 07 Mar. 2017. Koblin, John. “Reformation, an Eco Label the Cool Girls Pick.” The New York Times. The New York Times, 17 Dec. 2014. Web. 07 Mar. 2017. “Miami, Florida Sales Tax - Avalara.” TaxRates.com. N.p., n.d. Web. 07 Mar. 2017. “Parking in Miami Beach - Rules & Regulations.” Miami Beach Vaction Rentals. N.p., n.d. Web. 07 Mar. 2017. “Planning & Zoning @ City of Miami Beach.” Planning & Zoning @ City of Miami Beach. N.p., n.d. Web. 07 Mar. 2017. “Reformation Company Profile.” Owler. N.p., n.d. Web. 07 Mar. 2017. “Reformation: Ethics, Sustainability, Labor Rights Data Researched by JUST.” Project JUST. N.p., n.d. Web. 07 Mar. 2017. Reiser, Emon. “High Rent on Lincoln Road.” Bizjournals.com. N.p., 30 Sept. 2015. Web. 07 Mar. 2017. Schmidt, Ingrid. “Reformation’s Yael Aflalo Brings Cachet of Cool to Eco-friendly Fashion.” Los Angeles Times. Los Angeles Times, 19 Apr. 2015. Web. 07 Mar. 2017. Services, Miami-Dade County Online. “Miami Dade County - Tax Collector.” Miami-Dade County - Tax Collector - Local Business Tax Categories. N.p., n.d. Web. 07 Mar. 2017


Emily Whelan Madeline McBride Sabrina Hong Taylor Jackson

Savannah College of Art and Design FASM 410 - Retail Management Professor Don Levy Winter 2017

Profile for Emily Whelan

Reformation  

Proposition for a pop-up shop for women's clothing brand, Reformation. Conducted in-depth research to plan the appropriate location and laun...

Reformation  

Proposition for a pop-up shop for women's clothing brand, Reformation. Conducted in-depth research to plan the appropriate location and laun...

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