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6 MONTH BUYING PLAN

URBAN OUTFIT TERS


TABLE OF CONTENTS 4 | COMPANY PROFILE 6 | BRAND IDENTITY 8 | STORE ENVIRONMENTS 12 | CUSTOMER PROFILES 16 | COMPETITORS 22 | TRENDS 30 | 6 MONTH BUYING PLAN 32 | ASSORTMENT PLAN 38 | GROWTH STRATEGIES


COMPANY PROFILE

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MI SSI ON

Our mission is to help our customers express their individuality while connecting with their needs, passions, and each other. We feel that music, fashion, art, architecture, design, and technology are vital to our business and infuse each with our individualistic approach to life. We believe that our customer is always evolving with new ideas, outlooks, and expectations to their world. This being said, we are committed to evolving with them while retaining our fundamental values.

HI STORY

It all began with a small store in Pennsylvania, in a Philadelphia row house in 1970. Located several blocks from the University of Pennsylvania, Richard Hayne revolutionized the fashion world by offering and eclectic mix of merchandise for both apparel and home. Today the company has expanded to stores all over the United States, Canada, and Europe, as well as e-commerce.

SCOPE AND SIZE

-Over 130 stores in the US, Canada, and Europe -Men & Women’s apparel, accessories, footwear, beauty, and home goods. -Brick and mortar, online, and catalog

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BRAND IDENTITY

Urban Outfitters is a young, fresh retailer ready to keep up with todays youth. We cater to the hip, counter-culture, earthy, unconventional styles of our customers. UO is influenced by travel, music, art, and street style over mainstream runway trends. Urban Outfitters is not only a clothing store but also reflects the lifestyle of our customers and provides the merchandise for that lifestyle.

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As a part of Urban Outfitter’s brand identity, we find inspiration from our customers, just as much as they find inspiration from us. We are dedicated to maintaining the individuality of our customers and providing the opportunity for them to freely express their personal aesthetic. This passion that we have for our brand provides us with unique customer loyalty and continues to enhance the experience we provide for artistic individuals.

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STORE ENVIRONMENT

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Our store environments are an integral part of the Urban experience. The customer is exposed to the Urban lifestyle before they even walk in the door. The storefront displays engage the customer while maintaining the image of the brand and invite them in with the originality and creativity of the displays. As they enter, their senses are immediately heightened by the smell of a candle, the sound of a great band, and the visually stimulating floorsets. The eclectic displays put together are constructed using unconventional materials that add a unique quality to the Urban Outfitters experience.

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CUSTOMER PROFILES

Stephanie

Age: 21 Occupation: Student Likes: Shopping, Seeing Friends, Music Festivals Style: Laid Back, Street, Urban, Dream-like, Comfortable Shops At: Urban Outfitters, American Apparel, H&M

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David Age: 25 Occupation: Videographer Likes: Classic films, music, traveling Style: Casual, comfortable, more than just jeans and a t-shirt Shops At: Urban Outfitters, Gap, Pacsun

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VALS PROFILE

Experiencers

Achievers Strivers Experiencers are trend seeking, impulsive, and variety seeking Strivers are contemporary, imitative, and style conscious Achievers are goal oriented, brand conscious, and conventional

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DEMOGRAPHICS

Key demographic is men/women 15-30, more geared towards women. They are urban minded individuals living in urban, rural, and suburban settings.

PSYCHOGRAPHICS Our consumers, as told by Urban Outfitters, are interested in eclectic merchandise, while having an interest in contemporary art, music, and fashion. Our customer is also involved in social media, they care about their appearance, usually an impulse buyer to the extent that their wallet will allow. The way they dress is fashionable and derived from street style while they have a fear of “blending in� with society.

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COMPETITORS

BRICK & MORTAR ZARA FOREVER 21 H&M ABERCROMBIE & FITCH GAP AMERICAN EAGLE

ONLINE ONLY JACK THREADS

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Founded in 1984, Los Angeles •480 retail stores •In 2012, revenue reached $3.4 billion •Focuses on fast fashion •Delivers products to consumers quickly and has less of a focus on quality •Includes basics and fashion items | 18


Founded in Vasteras, Sweden in 1947 •2,629 retail stores •Revenue $21.6 billion in 2012 •A company that relies on fast fashion and getting product to the consumer quickly •Has a higher quality than Forever 21 but still not a very long life cycle •Includes basics and fashion items | 19


CULTURAL TRENDS

There are several cultural trends that are happening within the store environments. A few of these being, charging stations, photo booths, and the exclusive UO App. The charging stations allow the customers to charge their electronic devices in-store while shopping. The photo booths provide a fun and unique experience, specifically for Urban shoppers. The UO App allows customers to receive exclusive coupons, updates, and promotions.

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SOCIAL MEDIA

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RUNWAY TRENDS

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STREET TRENDS

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6 MONTH BUYING PLAN

Our Fall 2014 buying plan will have a planned net sales of $80, 704, 000 with an planned increase of 10% compared to last year. This is based off of the upcoming trends in men’s knitwear that appeared on the runways and how it is translated into street style. Our reductions are planned at 17% to be able to respond quickly to the high risk of the growing product category.

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Project Model

Focus Product Category: Men's Knitwear

Project Model

(000's) Fall 2014 Focus Category: Plan Net Sales, Fall Product 2014: Project 80,704.0Men's Knitwear Model Est. Net Sales, Fall 2013: 73,367.0 (000's) Plan % Last Year: Fall 2014 10% uct Category: Men's Knitwear Average Stock, Retail: Plan Net Sales, Fall37,002.4 2014: 80,704.0 's) Inventory Turnover: Est. Net Sales, Fall 2.18 2013: 73,367.0 ll 2014 Planned Reductions, $: % Last Year: 13,719.7 Plan 10% ales, Fall 2014: Reductions % Sales: 80,704.0 17.00% Average Stock, Retail: 37,002.4 ales, Fall 2013: Plan IMU %:Inventory Turnover: 73,367.0 56% 2.18 Last Year: 10% Planned Reductions, $: 13,719.7 Stock, Retail: (000's)37,002.4 Reductions % Sales: Fall 2014 6 Month Buying Plan 17.00% y Turnover: 2.18 August October November December January Fall 2014 Plan IMU September %: 56% Reductions, $: Net Sales 13,719.7 9,684.5 12,105.6 13,719.7 16,140.8 18,561.9 10,491.5 80,704.0 ns % Sales: 17.00% (000's) Fall % Fall 12% 15% 17% 20%2014 6 Month 23% Buying Plan 13% 100% IMU %: 56% Plan BOM Stock 29,053.4 32,685.1 37,043.1 41,966.1 44,548.6 37,002.4 August September October November 36,720.3 December January Fall 2014 Stock / Sales Ratio Net Sales 3 2.7 2.7 2.6 2.4 3.5 9,684.5 12,105.6 13,719.7 16,140.8 18,561.9 10,491.5 80,704.0 Fall 2014 6 Month Buying Plan Plan EOM Stock 37,043.1 41,966.1 44,548.6 36,720.3 37,000.0 % 32,685.1 Fall 12% 15% 17% 20% 23% 13% 100% August September October November 32,685.1 December January 2014 Plan Reductions 1,372.0 2,058.0 2,332.3 2,743.9 2,058.0 13,719.7 Plan BOM Stock 29,053.4 37,043.1 Fall 3,155.5 41,966.1 44,548.6 36,720.3 37,002.4 9,684.5% Fall12,105.6 18,561.9 10,491.5 80,704.0 10% 13,719.7 15% 20% 23% 15% 100% Stock / Sales Ratio 3 16,140.8 17% 2.7 2.7 2.6 2.4 3.5 Purchases, Retail 12% 15%Plan EOM 17% 20% 23% 13% 100% 14,688.1 18,521.6 20,975.0 21,467.3 Stock 32,685.1 37,043.1 41,966.1 13,889.2 44,548.6 12,829.2 36,720.3 102,370.2 37,000.0 ck Purchases,32,685.1 CostPlan Reductions 29,053.4 37,043.1 8,149.5 41,966.1 44,548.6 36,720.3 37,002.4 6,462.8 9,229.0 9,445.6 6,111.2 5,644.8 45,042.9 1,372.0 2,058.0 2,332.3 2,743.9 3,155.5 2,058.0 13,719.7 atio 3 2.7 3.5 % Fall 2.7 10%2.6 15%2.4 17% 20% 23% 15% 100% ck 32,685.1 37,043.1 41,966.1 14,688.1 36,720.3 37,000.0 15 Purchases, 34Retail 17 44,548.6 18,521.6 0 0 20,975.0 21,467.3 13,889.2 12,829.2 102,370.2 ns 1,372.0 2,332.3 -6,462.8 2,743.9 3,155.5 13,719.7 IMU % = Profit2,058.0 + Expenses Reductions Cash Discounts + Alt. Costs 2,058.0 Purchases,+ Cost 8,149.5 9,229.0 9,445.6 6,111.2 5,644.8 45,042.9 Net Sales + 23% Reductions 15% 10% 15% 17% 20% 100% tail 14,688.1 18,521.6 20,975.0 100 13,889.2 12,829.2 102,370.2 18 17 0 0 15 3421,467.3 ost 6,462.8 8,149.5 5,644.8 45,042.9 IMU % = Profit 9,229.0 + Expenses + 9,445.6 Reductions - 6,111.2 Cash Discounts + Alt. Costs 56% 66 Net Sales + Reductions 34 17 0 0 118 100 18 + Expenses + Reductions - Cash Discounts + Alt. Costs Net Sales66 + Reductions 56% 100 18 118 Page 1

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ASSORTMENT PLAN

Urban Assortment Plan

FASM 245 Retail Buying Simulation Assortment Plans Fall 2014 Focus Product Category: _Men's Knitwear_ Planned Purchases, Retail:

Classification Tees Sweaters Knit Pants Hoodies

Sizes S M L XL

% Total 25% 50% 10% 15% 100%

$102,370,000 $ Purchases $25,592,500 $51,185,000 $10,237,000 $15,355,500 $102,370,000

Sweaters Cardigan Crew Neck V Neck Turtleneck Henley

% $ Total Purchases 15% $7,677,750 40% $20,474,000 35% $17,914,750 10% $5,118,500 100% $51,185,000

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% Total 30% 35% 20% 5% 10% 100%

$ Purchases $15,355,500 $17,914,750 $10,237,000 $2,559,250 $5,118,500 $51,185,000


Our Fall 2014 assortment plan for men’s knitwear was broken into the categories of: tees, sweaters, knit pants, and hoodies. The largest category for Urban Outfitters Men’s Knitwear is sweaters taking up 50% of our inventory, tees at 25%, hoodies at 15%, and knit pants, our smallest category, at 10%. Sweaters were divided into the various types of necklines that include cardigan, crew neck, v-neck, turtleneck, and henley. The percentages are based off popularity with the Urban customer.

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PHILADELPHIA

Based off of our parent 6 month buying plan, we created a new buying plan catered towards a larger metropolitan area, ours being the Philadelphia location. With this new plan, we altered our net sales to reflect the size and scope of this specific store. Our inventory turnover rate is increased over our parent plan because of the population size and the classification of Philadelphia as the flagship location of URBN Inc. We also altered our BOM flow of receipts to reflect the drastic weather climates during the winter season.

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Project Model

Project Model

Focus Product Category: Men's Knitwear Philladelphia

(000's) Fall 2014 Focus Product Category: Plan Net Sales, Fall 2014: 900.0 Men's Knitwear Philladelphia (000's) Est. Net Sales, Fall 2013: 815.0 Plan % Last Year: Fall 2014 10% Average Stock,Plan Retail: Net Sales, Fall 2014: 353.70 900.0 Inventory Turnover: Est. Net Sales, Fall2.54 2013: 815.0 Planned Reductions, $: % Last Year: Plan 153.00 10% Reductions % Sales: Average Stock, 17.00% Retail: 353.70 Plan IMU %: Inventory Turnover: 56% 2.54 Planned Reductions, $: 153.00 Reductions % Sales: (000's) Fall 2014 6 Month Buying Plan 17.00% Plan IMUSeptember %: 56% August October November December January Fall 2014 Net Sales 108.0 135.0 153.0 180.0 207.0 117.0 900.0 (000's) Fall Plan % Fall 12% 15% 17% 20%2014 6 Month 23% Buying 13% 100% August September October November December January Plan BOM Stock 324.00 364.50 413.10 468.00 496.80 409.50 353.70 Fall 2014 Stock / Sales Ratio Net Sales 3 2.7 108.0 2.7135.0 2.6 153.0 2.4 180.0 3.5 207.0 117.0 900.0 Plan EOM Stock % Fall 364.50 413.10 468.00 496.80 409.50 375.00 12% 15% 17% 20% 23% 13% 100% Plan ReductionsPlan BOM15.30 Stock 27.54 26.01 30.60 30.60 22.95 153.00 324.00 364.50 413.10 468.00 496.80 409.50 353.70 % Fall Stock / Sales 10% Ratio 18% 17% 20% 20% 15%2.4 100% 3 2.7 2.7 2.6 3.5 Purchases, RetailPlan EOM Stock 163.80 211.14 233.91 239.40 150.30 105.45 364.50 413.10 468.00 496.80 409.50 1,104.00 375.00 Purchases, CostPlan Reductions 72.1 92.9 102.9 105.3 66.1 46.4 485.8 15.30 27.54 26.01 30.60 30.60 22.95 153.00 % Fall 10% 18% 17% 20% 20% 15% 100% Purchases, Retail 163.80 211.14 233.91 239.40 150.30 105.45 1,104.00 15 Purchases, 34 Cost 17 72.1 0 92.9 0 102.9 105.3 66.1 46.4 485.8 IMU % = Profit + Expenses + Reductions - Cash Discounts + Alt. Costs Net Sales + Reductions 100 18 15 34 17 0 0 IMU % = Profit + Expenses + Reductions - Cash Discounts + Alt. Costs Net Sales + Reductions 100Page 1 18

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Project Model

Focus Product Category: Men's Knitwear Savannah

Project Model

(000's) Fall 2014 Plan Net Sales, Fall 2014:Product Category: 250.0 Men's Knitwear Philladelphia Focus Est. Net Sales, Fall 2013: (000's) 227.0 Plan % Last Year: 10% Fall 2014 Average Stock, Retail: 123.46 Plan Net Sales, Fall 2014: 900.0 Inventory Turnover:Est. Net Sales, Fall 2.02 2013: 815.0 Planned Reductions, $: Plan % Last Year: 42.50 10% Reductions % Sales:Average Stock, 17.00% Retail: 353.70 Plan IMU %: 56% Inventory Turnover: 2.54

SAVANNAH

(000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

Planned Reductions, $: Reductions % Sales: %: September August Plan IMU

30.0

37.5 15% August 90.00 112.50 Net 108.0 3 Sales 3 % Fall 12% 112.50 144.50 Plan BOM Stock 324.00 4.25 6.38 Stock / Sales Ratio 3 10% Plan EOM Stock 15% 364.50 75.88 Plan 56.75 Reductions 15.30 25.0 33.4 % Fall 10% (000's) 12%

Purchases, Retail

163.80

153.00 17.00% Fall 2014 6 Month Buying Plan 56% October November December

17%

42.5

September 144.50 3.4135.0 15% 200.00 364.50 7.23 2.7 17% 413.10 105.23 27.54 18% 46.3 211.14 0 92.9

January Fall 2014 50.0 57.5 32.5 250.0 Fall20% 2014 6 Month 23% Buying Plan 13% 100% October November December January Fall 2014 200.00 184.00 133.25 123.46 153.0 180.0 207.0 117.0 900.0 4 3.2 4.1 17% 20% 23% 13% 100% 184.00 133.25 120.00 413.10 468.00 496.80 409.50 353.70 8.50 9.78 6.38 42.50 2.7 2.6 2.4 3.5 20% 23% 15% 100% 468.00 496.80 409.50 375.00 42.50 16.53 26.01 30.60 30.6025.63 22.95 322.50 153.00 18.7 7.3 11.3 141.9 17% 20% 20% 15% 100% 233.91

15 34 17 0 Purchases, Cost 72.1 102.9 IMU % = Profit + Expenses + Reductions - Cash Discounts + Alt. Costs Net Sales + Reductions 15 17 0 100 34 18

IMU % = Profit + Expenses + Reductions - Cash Discounts + Alt. Costs Net Sales + Reductions 100 18 Page 1 Page 1

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239.40 105.3 0

150.30 66.1

105.45 46.4

1,104.00 485.8


Based off of our parent 6 month buying plan, we created a new buying plan catered towards a smaller city environment, ours being the Savannah location. With this new plan, we altered our net sales to reflect the size and scope of this specific store. Our inventory turnover rate is decreased over our parent plan because of the reduced population size. We also altered our BOM flow of receipts to reflect the fluctuating weather climates during the fall season.

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STRENGTHS

Our strengths as a company rely on our ability to stay current with street style trends, as well as being able to pin point our target customer and their needs. We offer a wide variety of items for fashion minded individuals at both ends of the style spectrum. With our broad variety of product assortments we can fully round out the lifestyle of our customer. By focusing on music, art, and fashion, we provide an incomparable experience that is W in the retail marketplace.

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GROWTH STRATEGIES

Urban Outfitters has the possibility to grow as a company by continuing to adapt to current trends. We are also continuing to use and implement new technologies to improve the in store and online experiences for our customers. Our collaborations with designers, musicians, and artists will remain a large part of our aesthetic and merchandising method. We will maintain our brand image in all aspects by moving forward with these strategies.

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RETAIL BUYING SIMULATION PROFESSOR DANIEL GREEN ERIN WILBUR | MACKENZIE DAKIN | CASSANDRA ASKIN | SARA SPICER


Urban Outfitters Buying Plan  

Created by Mackenzie Dakin, Erin Wilbur, Sara Spicer, and Cassandra Askin

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