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SIX MONTH BUYING PLAN

Rachel Johnson Hannah Aylward Madison White

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SIX MONTH RETAIL BUYING PLAN

Women’s Active Wear

WOMEN’S ACTIVE WEAR

SIX MONTH BUYING PLAN SPRING SUMMER

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TABLE OF CONTENTS COMPANY HISTORY NORDSTROM TODAY BRAND IDENTITY BRAND CULTURE DIVERSITY MISSION STATEMENT SCOPE AND SIZE PRODUCT MIX STRATEGIES FOR GROWTH STRENGTHS AND COMPETENCIES OMNI CHANNEL PRESENCE NORDSTROM AND SOCIAL MEDIA NORDSTROM CARES CUSTOMER PROFILES KEY COMPETITORS SPECIALTY ACTIVEWEAR BRANDS ACTIVEWEAR TRENDS ON THE RUNWAY AVTIVEWEAR TRENDS SPORTY STREET STYLE HIGH TECH FABRICS SOCIETY AND CULTURE TRENDS BUYING PLANS ASSORTMENT PLAN

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COMPANY HISTORY

GROWTH By 1960, the Seattle shoe shop had become the largest shoe store in the country. They proudly offered 8 locations in Washington and Oregon. The business owners were constantly looking for new ways to grow and expand. They ventured into women’s clothing market after the purchase of the Seattle based Best Apparel in 1963. Men and children’s clothing were added in in 1966.

THE START In 1901 John W. Nordstrom and Carl Wallin opened a shoe store in Seattle Washington. From the start the main focus of the business was to provide exceptional service, selection, quality and value. A second store was added in 1923. John W. Nordstrom retired in 1928 and sold his share of the company to the two Nordstrom sons in 1928. Carl Wallin retired a year later and also sold his share to the two Nordstrom sons.

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NATIONAL EXPANSION The company became publically traded in 1971 and was formally renamed to Nordstrom, Inc. Two years later annual sales surpassed $100 million and the company was recognized as the largest-volume fashion specialty store on the West Coast. In 1973 the first Nordstrom Rack opened in Seattle as a

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NORDSTROM TODAY

TOPSHOP & TOPMAN

Founded in 1964, Topshop has grown into an international style sensation since its humble beginnings in the basement of a British department store. It’s trend-forward aesthetic and exclusive designer collaborations keep women on the cutting edge, from their teen years well into adulthood. Topshop’s collaboration with Nordstrom has been a huge success and has brought in an entire new group of millennial shoppers.

JEFFREY Jeffrey is a luxury specialty store in both New York’s cutting edge meatpacking district and in fast-paced Atlanta. The stores are known for their high fashion clothing, shoes and accessories, as well as their knowledgeable sales staff and high standard of customer service. These qualities are mirror images of Nordstrom department stores, which is why the founder of Jeffrey, Jeffrey Kalinsky was hired as the director of designer merchandise for Nordstrom. It has been a wonderful collaboration and has brought in a new group of customers looking for the latest and trendiest Jeffrey pieces.

Nordstrom has been awarded the top 100 companies to work for by Fortune Magazine for the past six years, as well as the worlds most admired company and the best place to work for the LGBT community. The Luxury Department store has been presented with many other awards but are most known for their impeccable customer service, giving them a strong base of returning customers. Over the past few years Nordstrom has expanded their product categories to bring in new shoppers across the country. They have also partnered with many different companies such as Topshop, Jeffrey and Hautelook, bringing in a large group of millennial customers, which is very important to the success and growth of Nordstrom Inc. 8

HAUTELOOK Nordstrom’s

exclusive

HauteLook

business

gives

customers select access to limited-time sale events on top fashion brands. HauteLook includes women, men, kids, home, beauty and accessories. Once one signs up they are offered 50 to 75 percent off the best designer brands of the day and new sale events are offered every day at 8am. This is an excellent program and website to get people shopping at Nordstrom who love the items but cannot afford them at full price. 9


BRAND IDENTITY

BRAND CULTURE

“Nordstrom has worked to deliver the best possible shopping experience, helping customers possess style—not just buy fashion.”

Nordstrom, Inc. is a dominant fashion retailer that provides specialty clothing, shoes, and accessories for men, women, and children. Nordstrom is known for its unprecedented customer and works to make decisions with the customer’s best interest in mind. Nordstrom works to provide their customers with the most captivating shopping experience whether it is in store or on line. 10

• Nordstrom works hard to develop good relationship with their employees. • Nordstrom often tries to hire within, in order to promote employee loyalty, dedication, and motivation. • Nordstrom develops a strong culture to ensure consistency throughout the company.

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DIVERSITY

• Nordstrom gives thier employees a notecard with their only rule: “Use good judgement in all situations.

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• Nordstrom has discovered one of the most important variables in providing outstanding customer service is having a diverse employee base. • This ensures that the employees reflect the communities that they serve. • Nordstrom makes it a responsibility to cultivate the contributions of all employees, customers, and vendors are valued and respected. • Nordstrom recently started Heritage Months to share the unique people who inspire their employees. “During our Heritage Months celebrations in 2013, we encourage our employees and customers to “Be Inspired” as we recognize some of the people who have influenced us.” 13


MISSION STATEMENT

SCOPE AND SIZE

We’re family. We continue to cherish our shared experiences, celebrate our achievements and appreciate one another — just like family. Use good judgment. We trust each other’s integrity and ability. Be empowered. We want you to take the initiative, and we’ll support your efforts to deliver exceptional service. Setting goals matters. At Nordstrom, you can determine your own success and make a real difference by accomplishing the goals you set. It’s your business. Our employees have a personal, financial and professional stake in the success of our company. Healthy competition is good. We love to win. Be honest. We value open, honest and respectful communication. Be recognized. We value people who drive results, and we regularly recognize outstanding performance — whether you’re serving customers or supporting those who do. Be a good neighbor. Our company and our employees support hundreds of community organizations through contributions, outreach programs, special events and volunteering their time. Be kind. We work hard to offer great service to each and every customer and we believe great service begins with showing courtesy to everyone, customers and coworkers alike. Have fun. If you’re passionate about fashion, this is the place for you. Our door is always open. It’s important to us that every person who works here feels valued, welcome and cared for. 14

Nordstrom achieved an all time record for the total net sales at $11.7 billion in 2012 and $10.5 Billion in 2011. They currently offer 252 stores in 34 states. With 117 full-line stores, 132 Nordstrom Racks, two Jeffrey boutiques and one clearance store. They plan to open three new full-line stores in 2014, and the first Manhattan store in 2018.

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PRODUCT MIX WOMEN’S Topshop Contemporary Shop The t.b.d Shop Work Shop Cashmere Shop Maternity Shop Women’s Clothing Women’s Shoes Women’s Accessories Women’s Plus Women’s Petite Savvy Trends Designer Collections The Wedding Suite Beauty and Fragrance

MEN’S Snow Gear Shop Denim Men’s Shop Formalwear Shop Topman Men’s Clothing Men’s Shoes Men’s Accessories Designer Colletions The Rail Active & Outdoor Grooming & Cologne

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JUNIOR’S Juniors Clothing Juniors Shoes Juniors Accessories BP Beauty Bra’s, Undies & Lounge BP, Basics & Essentials

KID’S Girls Boys Baby Girl Baby Boy Baby Gear Baby Gifts Shoes Designer Collections Shop Coats & Jackets Shop Sleepwear Shop Swimwear Shop Active Shop Kids’ Special Occasions Shop Toys Shop

SPECIALTY SHOPS Holiday Décor Bed, Bath & Home Décor Pop-In: 4U

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a

STRATEGIES FOR GROWTH

CANADIAN EXPANSION

AGRESSIVE ONLINE GROWTH

Nordstrom’s current strategies for business growth include having an online presence, not only on their website but through social media platforms such as Facebook, Twitter, Pinterest, and Instagram. Nordstrom is focused on providing the best possible selection, ease of using website to find the desired products, and experience customizable to their wide array of costumers. While focusing on these three principles to stimulate growth Nordstrom is also taking a greater initiative to increasing speed when fulfilling orders. Nordstrom increases their reach to the millennial consumers by having a strong online presence. 18

Nordstrom Inc. is expanding north into Canada in the fall of 2014. Nordstrom is planned to partner with the Canadian mall developer, Cadillac Fairview to open full-line stores in Toronto, Vancouver, Calgary and Ottawa. The Cadillac Fairview CEO stated that he envisions more than nine stores in Canada that will “be an excellent fit and will not only transform shopping centers, but will enhance the Canadian retail landscape as a whole. Their launch stores will be a three-story 188,000 square foot store in Toronto’s Yorkdale Shopping Center as well as a smaller store in Toronto’s Gardens mall. Nordstrom.com ships products worldwide and has seen a large response from shoppers in Canada. The stores in Toronto are planned to open in 2014, while the stores in Vancouver, Calgary and Ottawa are scheduled to open in 2015 and 2016. This expansion of Nordstrom Inc. into Canada is a perfect to grow and expand the company far into the future. 19


FUTURE CANADA LOCATIONS

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STRENGTHS AND COMPETENCIES

Bistro Spa Top Shop

Exceptional customer service

Savvy

Customer loyalty

Nordstrom Rack

Free shipping and returns Flexible return policy

Diverse product categories and styles Rewards Program Free Alterations Seamless Omni-channel presence Great online outreach

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OMNI CHANNEL PRESENCE

• Nordstrom has created a shopping experience online that portrays the same brand identity as it would in a brick and mortar store. • Nordstrom also has an app which is consistent with its brand identity & now incudes a virtual dressing room feature to allow customers to view the products as an entire “look”. • Gives online shoppers the option of picking up an item in store if it is in stock.

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• Gives employees iPads to best assist customers in store. • The most recent endeavor by Nordstrom is adding iPads to dressing rooms for customers: this would allow customers to look up information about items to check availability of size, color. This initiative would give Nordstrom a leg up and another heightened shopping experience (and could potentially entice Millennial customers through technology) .

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NORDSTROM AND SOCIAL MEDIA

NORDSTROM CARES

“We’ve always followed a simple philosophy when it comes to running our business: Leave it better than you found it. This also describes Nordstrom’s commitment to social responsibility”.

FACEBOOK Nordstroms uses Facebook for daily updates on special promotions, sales, rewards program, trends and new products in the store.

TWITTER Nordstroms uses Twitter for daily updates on special promotions, sales, rewards program, trends and new products in the store.

INSTAGRAM Nordstroms has furthered its social media platform into the use of instagram, which could be considered the newest fashion social media connection.

PINTEREST Most recently Nordstroms has become active on Pinterest and has set up displays with Pinterest tags showing that the item is a “topped pin items”. 26

Nordstrom works to support the community, the environment, and human rights. Each year Nordstrom donates millions of dollars to nonprofits accross the country. 27


CUSTOMER PROFILES THE FASHIONABLE MOTHER

Gender: Female Age:32-60 Income: 100,000+ Family: Married with children Attributes: Social Self-confident Fashion conscious Shopping Habits: 8-10+ yearly Loyal customer Personal Shopper Closely follows trend 28

THE MILLENNIAL CUSTOMER

Gender: Female Age: 18-29 Income: Allowance-$45,000 Family: Single or Married Attributes: Social media connected Fashion Conscious Education and/or career focused Shopping Habits: Online 1-4+ in store shopping Money conscious Closely follows trends & takes risks 29


KEY COMPETITORS

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SPECIALTY ACTIVEWEAR BRANDS STELLA McCARTNEY FOR ADIDAS

Stella McCartney’s long time collaboration with Adidas presents some of the best in women’s active wear season after season. The interactive showroom presented athletes spinning, swimming and working out, showing how the gear performs. 32

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INTERACTIVE SHOWROOM

C9 BY CHAMPION C9 by Champion – the ongoing collaboration between the iconic active brand Champion and Target. A wide range of apparel available for a variety of sporting events sold exclusively at target.

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HEIDI KLUM NEW BALANCE From the street to the studio, the HKNB collection is designed to perform anywhere life takes you. “When I’m fit is when I feel most inspired. I want to go out there and get it all.”

ACTIVEWEAR ON THE RUNWAY

LACOSTE

Recent runway shows have showcased garments heavily influenced by activewear. This presents another example of the exceeding importance of activewear in the fashion industry.

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ACTIVEWEAR TRENDS NIKE TENNIS SHOES

SOLID BLACK

FLYKNIT

NEON MULTI- COLORED

THE ANORAK VERA WANG

TOMMY HILFIGER

VERA W

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EMIL WANG EMILIO PUCCI

SACAI EMILIO SACAIPUCCI

MOUNTAIN HARDWEAR MARMOT NANOWICK

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PRINTED CAPRIS

COLORFUL SPORTS BRAS

BODY ROCK SPORT

NIKE

NIKE

NIKE

NIKE

NIKE

ZELLA

LULULEMON

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LULULEMON

BLINDING TANKS

BRIGHT SPANDEX

GAP BODY

WOOL AND THE GANG

LULULEMON

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SPORTY STREET STYLE

HIGH TECH FABRICS NIKE Dri-Fit: • Moisture wicking • Wool with great insulation • Durable for cold weather • Reflective-Increases visibility in low light settings

Under Armour: • Ceramic material innovation • Controls temperature between gear and skin • Soft • Thermo conductive coating that absorbs retains body’s own heat New Balance High Visibility: • 360 degree reflective trim on garments • Glow-in-the-dark technology on sleeves

Adidas: • Climaproof- light breathable protection from wind • Formotion- great comfort in motion • Gore windstopper- breathable protection

Lucy Active Wear: • Organic cotton: odor inhibiting, moisture wicking reflective, thermal (retains warmth and dries quickly, core compression (fitted fabric providing targeted muscle support and reduces muscle fatigue)

NIKE Tech Pack • Nike Tech Pack fleece collection-light, warm, engineered specifically for championship athletes

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SOCIETY AND CULTURE TRENDS MOBILE AND TABLET TECHNOLOGY

• Mobile & tablet technology is changing the way retailers do business • Retailers are faced with the challenge of meeting the consumers needs • There has been a growing trend towards using technology to research products and shop online • Ecommerce is bigger than ever and is predicted to grow $370 billion over the next four years

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APPS

• Consumers love apps that make it easy to shop with their favorite retailers • Nordstrom has done an incredible job making apps that are user friendly with personalized features for customers to create looks they love

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BUYING PLANS

ACTIVE LIFESTYLE

FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014 Focus Product Category: Women's Activewear (000's) Spring 2014

Plan Net Sales, Spring 2014: Est. Net Sales, Spring 2013 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's)

• Growing lifestyle trend to eat healthy and exercise regularly • Men & women are attending group workout classes such as yoga, Pilates, barre method classes and many more. • People are then going to run errands in their work out attire after class or they just wear it for comfort and ease

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Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

$ $

$

75,000.00 36,000.00 108% 34035.7 2.20 15,000.00 20% 54.24%

February 12000.0 16% 37200.0 3.1 40500.0 750.0

March 15000.0 20% 40500.0 2.7 36000.0 1500.0

Spring 2014 6 Month Buying Plan April May June 11250.0 11250.0 15000.0 15% 15% 20% 36000.0 33750.0 34500.0 3.2 3 2.3 33750.0 34500.0 27300.0 3000.0 3750.0 3750.0

Spring 2014 75000.0 100% 34035.7

20%

25%

25%

July 10500.0 14% 27300.0 2.6 29000.0 2250.0

16050.0 7344.48

12000.0 5491.2

12000.0 5491.2

15750.0 7207.2

11550.0 5285.28

14450.0 6612.32

81800.0

5%

10%

Profit IMU  %  

54.24%

Expenses 10

34 100

15000.0

15%

Reduc5ons   Cash  Discount Alt.  Cost   20 0 18

AVG

100%

0

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BUYING PLAN: SEATTLE, WASHINGTON

BUYING PLAN: BUFORD, GEORGIA

FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014

FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014

Focus Product Category: Women's Activewear

Focus Product Category: Women's Activewear (000's) Spring 2014

Plan Net Sales, Spring 2014: Est. Net Sales, Spring 2013 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

February 300.0 15% 930.0 3.1 972.0 20.0

5%

362.0 165.7

$ $

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54.24%

Plan Net Sales, Spring 2014: Est. Net Sales, Spring 2013 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %:

2,000.00 960.00 108% 896.0 2.23 400.00 20% 54.24%

$

Spring 2014 6 Month Buying Plan April May June 320.0 320.0 400.0 16% 16% 20% 960.0 960.0 920.0 3 3 2.3 960.0 920.0 780.0 80.0 100.0 100.0

March 360.0 18% 972.0 2.7 960.0 40.0

10%

388.0 177.5

Profit IMU  %  

(000's) Spring 2014

20%

25%

25%

400.0 183.0

380.0 173.9

360.0 164.7

Expenses 10

34 100

Spring 2014 2000.0 100% 896.0

July 300.0 15% 780.0 2.6 750.0 60.0

400.0

15%

100%

330.0 151.0

Reduc5ons   Cash  Discount Alt.  Cost   20 0 18

0

(000's)

AVG

Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

$ $

400.0 192.0 108% 219.8 1.82 80.0 20% 54.24%

$

February 64.0 16% 243.2 3.8 256.0 4.0

March 80.0 20% 256.0 3.2 234.0 8.0

80.8 37.0

66.0 30.2

5%

Spring 2014 6 Month Buying Plan April May June 60.0 60.0 80.0 15% 15% 20% 234.0 222.0 224.0 3.9 3.7 2.8 222.0 224.0 179.2 16.0 20.0 20.0

10%

Profit IMU  %  

54.24%

20%

25%

25%

64.0 29.3

82.0 37.5

55.2 25.3

Expenses 10

34 100

Spring 2014 400.0 100% 219.8 AVG

July 56.0 14% 179.2 3.2 180.0 12.0

80.0

15%

100%

68.8 31.5

Reduc5ons   Cash  Discount Alt.  Cost   20 0 18

0

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ASSORTMENT PLAN FASM 245 Retail Buying Simulation Assortment Plans Fall 2013 Focus Product Category: Women's Activewear Planned Purchases, Retail: Average Retail Price: % Classification Total Jackets 15% Accessories 20% Tops 20% Shorts 15% Pants 20% Sportsbras 10% 100%

$ Purchases $12,270 $16,360 $16,360 $12,270 $16,360 $8,180 $81,800

Unit Purchases 81800 545333 272667 223091 163600 204500 1490991

Avg. Retail $150 $30 $60 $55 $100 $40 $73

% Total 35% 15% 20% 15% 5% 10% 100%

$ Purchases $ 28,630 $ 12,270 $ 16,360 $ 12,270 $ 4,090 $ 8,180 $ 81,800

Unit Purchases $357,875 $136,333 $251,692 $175,286 $90,889 $116,857 $1,128,932

Avg. Retail $80 $90 $65 $70 $45 $70 $70

Vendor Nike addidas by S.M. Lucy Hard Tail Good hYouman Other

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$81,800

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Nordstrom Activewear Buying Plan