CONTENTS Company Research and Profile.........................................................................................................5-10 History.....................................................................................................................................................................6 Mission Statement...................................................................................................................................................7 Business Type...........................................................................................................................................................8 Market Position........................................................................................................................................................9 Product Offering......................................................................................................................................................10
Competitor Research and Profile......................................................................................................11-19 Banana Republic.......................................................................................................................................................12-13 History..................................................................................................................................................................................12 Mission Statement................................................................................................................................................................12 Merchandise Analysis............................................................................................................................................................13 Customer Profile...................................................................................................................................................................13
Kate Spade...............................................................................................................................................................14-15 History..................................................................................................................................................................................14 Mission Statement................................................................................................................................................................14 Merchandise Analysis............................................................................................................................................................15 Customer Profile...................................................................................................................................................................15
White House | Black Market .....................................................................................................................................16-17 History..................................................................................................................................................................................16 Mission Statement................................................................................................................................................................16 Merchandise Analysis............................................................................................................................................................17 Customer Profile...................................................................................................................................................................17 Perceptual Maps.......................................................................................................................................................18-19
6 Month Plans..................................................................................................................................20-27 6 Month Plan for the Jewelry Department................................................................................................................21 Store A.....................................................................................................................................................................22-23 Customer Profile..................................................................................................................................................................22 6 Month Plan........................................................................................................................................................................23
Store C.....................................................................................................................................................................24-25 Customer Profile..................................................................................................................................................................24 6 Month Plan........................................................................................................................................................................25
6 Month Plans Cont..................................................................................................................................................20-27 Store D.....................................................................................................................................................................26-27 Customer Profile..................................................................................................................................................................26
6 Month Plan........................................................................................................................................................................27
Trend Report.....................................................................................................................................28-35
Mood Board.............................................................................................................................................................29 Key Items.................................................................................................................................................................30 Necklaces.................................................................................................................................................................31 Earrings....................................................................................................................................................................32 Bracelets..................................................................................................................................................................33 Rings........................................................................................................................................................................34 Color........................................................................................................................................................................35
Assortment Plan...............................................................................................................................36-38
Assortment by Material, Gems, and Color.......................................................................................................................37
Pricing......................................................................................................................................................................38
Sales by Classification.......................................................................................................................39-43
Necklaces.................................................................................................................................................................40 Earrings....................................................................................................................................................................41 Bracelets..................................................................................................................................................................42 Rings........................................................................................................................................................................43
Justifications....................................................................................................................................44-49 Works Cited......................................................................................................................................50-51
COMPANY RESEARCH AND PROFILE
HISTORY It all began with a vision and a small store in 1970. Situated in a Philadelphia row house several blocks from The University of Pennsylvania, the first Urban Outfitters revolutionized the fashion world by offering an eclectic and funky mix of merchandise for both home and wardrobe. Thirty-three years later, the Company has grown to manage three distinct brands providing fashion essentials for diverse customers: Urban Outfitters, Anthropologie, and Free People. Urban Outfitters operates stores in North America and Europe as well as the urbn.com website. Anthropologie runs stores in the United States, as well as the Anthropologie Direct catalog and website. Free People, our wholesale brand, designs and markets young women’s apparel and opened its first store in Paramus, New Jersey in November 2002. Anthropologie, Free People, and Urban Outfitters plan to open more stores in the near future. The vision continues... Today the Company is the strongest it has been in its history. Each brand shares a unique concept, a compelling environment, and tremendous consumer loyalty. To achieve this takes talented and dedicated people as well as a strong management team. With that in place, we are firmly positioned to enjoy and achieve aggressive and controlled growth!
Anthropologie
6
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.�
Anthropologie
7
BUSINESS TYPE Founded in 1992, Anthropologie currently operates stores worldwide. The brand launched its mail-order catalog and website in 1998. Eleven years later, its first international stores opened in Canada and UK. Anthropologie is a lifestyle brand that imparts a sense of beauty, optimism and discovery to our customer. For her, Anthropologie is an escape from the everyday; it is a source of inspiration and delight, where innovative merchandising, customer centricity and a curated array of products come together to create an unimagined experience. Anthropologie products are an expression of our customer's appreciation for artfulness and good design. To that end, our buyers and designers travel the world to uncover special products and to collaborate with talented artisans. Our assortment includes clothing, accessories, shoes, beauty, home furnishings, found objects, gifts and dĂŠcor that exhibit influences ranging from vintage to global.
Anthropologie
8
MARKET POSITION Anthropologie has the ability to understand their customers and connect with them on an emotional level had lead them to a succesful company. The reason for this success is that their brands — Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN — are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment. In the retail brands they design innovative stores that resonate with the target audience; offer an eclectic mix of merchandise in which hard and soft goods are cross merchandised; and construct unique product displays that incorporate found objects into creative selling vignettes. The emphasis is on creativity. Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy.
Anthropologie
9
PRODUCT OFFERING Anthropologie provides clothing, shoes, accessories, lounge and beauty products, and home products. It provides products through its stores in the United States and Canada, and catalogs, as well as online. The company offers dresses, sweaters, blouses, knits and tees, basic layers, jackets and outerwear, denim, pants and shorts, skirts, petites, and intimates; and heels, wedges, flats, boots, and oxfords and loafers
It also provides earrings, necklaces, bracelets, rings and pins, estate jewelry, bags, wraps and scarves, hats, belts, hair accessories, eyewear, fragrance, skin care, bath and body, hair care, natural and organic products, and gift sets
Tops, bottoms, chemises, cosmetics and tools, and candles
Anthropologie
10
In addition, the company offers bedding and bath supplies, furniture, rugs, curtains, hardware and lighting products, pillows and throws, wallpapers, wall dĂŠcor products, room dĂŠcor products, and garden and outdoor supplies
COMPETITOR RESEARCH AND PROFILE
BANANA REPUBLIC Summary Banana Republic opened in Mill Valley, California in 1978. In 1983, Banana Republic became a subsidiary of Gap Inc. It originally sold safari and expedition wear from faraway places. In recent years, the company branched out to sell housewares, personal care items, footwear and dressy as well as casual clothes and is one of The Gap’s most successful ventures in the specialty fashion market.
Mission Statement Gap Inc’s mission statement states: “Gap Inc is a brand builder. We create emotional connections with customers around the world through inspiring product design, unique experiences, and compelling marketing.”
Anthropologie
12
Product Banana Republic brings a fresh twist on classic apparel to men and women around the world. The company that started as a safari outfitter in San Francisco now outfits a whole new generation of explorers in clothes that walk the line between easy and refined. Banana Republic offers apparel, handbags, shoes, jewelry, personal care products, and eyewear for men and women. The customers can purchase Banana Republic products in its specialty and outlet stores, online, and in franchise stores.
Customer Profile Banana Republic is the Gap Inc’s luxury brand. It reflects an American sensibility with a positive and optimistic viewpoint. It only offers adult sizes, they target men and women, ages 25 to 45 that live in middle and high income households. She has a classic chic style, that captures a modern interpretation of classic fashion and its relaxed attitude expresses a comfortable and confident quality. Its customer is focused on work, but also in having a social life, therefore she makes time between lunch and breaks during work to go to shop. The adventurous spirit of the line is built from its heritage in travel and living a life full of passion that is open to discovery.
Anthropologie
13
WHITE HOUSE | BLACK MARKET Summary Established in 1983, Chico’s Retail ServicesFAS began in a small store on Sanibel Island, Fla., selling Mexican folk art and cotton sweaters. The company now sells exclusively designed, private-label women’s clothing and related accessories through its retail outlets and catalog. The company operates in more than 780 women’s specialty stores, including stores in 47 states, the District of Columbia, the Virgin Islands and Puerto Rico.
Mission Statement The mission statement of Chico’s FAS Inc. and White House Black Market retail stores is really a set of “Values” and “Guiding Principles” that define “how they behave.” Throughout everything, our passion has always been to make women feel beautiful. That’s what we’re about. And our clothing remains a symbol of who we are: the honest simplicity of black and white, and the remarkable individuality of the different styles we build from it.
Anthropologie
14
Product The company offers a wide range of women apparel, including dresses, skirts, tops, sweaters and pants. In addition, White House/Black Market provides a variety of women’s wear, including prom dresses, bridal gowns, and wedding and party clothes in various sizes, such as misses, junior, petites and plus. The company also offers a wide range of jewelry for women, including, necklaces, bracelets, rings, earrings and tiaras. It provides a variety of accessories for women, such as handbags, shoes and belts.
Customer Profile White House Black Market customer is a person who wants to feel beautiful wearing the label’s products and by being in the store. It is all about emphasizing beauty and to reflect it. She is in her 40’s, very busy and focused on work, that is why she shops on weekends. She has a mid-high income, kids, and she owns a house or she is just finding one. This woman likes personalized attention and wants to be trendy but anything that will be appropiate for her age.
Anthropologie
15
KATE SPADE Summary Kate Spade opened in 1993 in New York City. Fifth and Pacific Companies, Inc. took over the reins of Kate Spade in 2007. The company along with its subsidiaries operates in various countries spread across North America, South America, Europe, Asia Pacific and Middle East. The Company’s KATE SPADE brand offers fashion products (accessories, apparel and jewelry) for women and men under the KATE SPADE and JACK SPADE respectively. These products are sold primarily in the United States through wholly owned specialty retail and outlet stores.
Anthropologie
16
Product Kate Spade’s product line includes handbags, small leather goods, fashion accessories, jewelry and apparel. In addition, KATE SPADE has licensing agreements for footwear, optics, fragrances, tabletop products, legwear, electronics cases, bedding and stationery. JACK SPADE products include briefcases, travel bags, small leather goods and apparel.
Customer Profile Kate Spade help women to express their personal style with charm and a dash of rebellion; she is has a trendy chic style and lives her life colorfully. These are young urban professionals who appreciates great design, be different and fun. Through market research, they identified the ideal “Kate Spade customer” by photographing New York and Los Angeles women carrying the bags. These images personified the target: She may be fun-loving, but she also wants to appear neat and polished. She wants to be the most interesting person in the room by wearing bold and colorful products.
Anthropologie
17
PERCEPTUAL MAPS
Night Out
Inexpensive
Expensive
Work
*Refer to pages 44-47 for justifications
Anthropologie
18
Trendy
Inexpensive
Expensive
Classic
*Refer to pages 44-47 for justifications
Anthropologie
19
6 MONTH PLANS
6 MONTH PLAN F/W 2014 SALES $
AUG Last Year Plan % Inc/Dec % by Month
SEP
OCT
NOV
DEC
JAN
SEASON TOTAL
$ 18,470.43 $ 15,392.03 $ 13,339.76 $ 20,522.70 $ 23,601.11 $ 11,287.49 $ $ 19,948.06 $ 15,515.16 $ 14,406.94 $ 21,056.29 $ 26,597.42 $ 13,298.71 $ 8.0% 0.8% 8.0% 2.6% 12.7% 17.8% 18.00% 14.00% 13.00% 19.00% 24.00% 12.00%
102,613.50 110,822.58 8.0% 100.0%
STOCK/SALES RATIO Last Year Plan
2.9 2.7
3.0 2.9
3.0 3.0
2.7 2.6
2.5 2.5
3.5 3.4
$ 46,176.08 $ 44,993.97
$ 40,019.27 $ 43,220.81
$ 55,411.29 $ 54,746.35
$ 59,002.76 $ 66,493.55
$ 39,506.20 $ 45,215.61
BOM STOCK $ (Retail) Last Year Plan
$ 53,564.25 $ 53,859.77
Last Year Plan % to Sales % by Month
$ $
Last Year Plan
$ 13,955.44 $ 13,874.99
MARKDOWNS $ 2,873.18 $ 2,792.73 $ 14.0% 14.0%
3,899.31 $ 3,790.13 $ 24.4% 19.0%
4,104.54 $ 3,989.61 $ 27.7% 20.0%
2,667.95 $ 2,593.25 $ 12.3% 13.0%
2,462.72 $ 2,393.77 $ 9.0% 12.0%
4,514.99 $ 4,388.57 $ 33.0% 22.0%
20,522.69 19,948.06 18.0% 100.0%
PURCHASES $ (Retail)
SEASON TOTAL Sales Markup % Markdown % Gross Margin % Average Stock Turnover
LAST
PLAN
$102,610.00
$110,822.58
47%
49.5%
19.00%
18%
36.9%
35.91%
$ 27,003.55 3.8
$ 31,663.59 3.5
$ 13,134.53 $ 17,532.15
$ 32,836.32 $ 29,922.08
$ 26,782.12 $ 35,396.74
$ $
6,567.27 7,713.25
$ 27,230.35 $ 23,515.22
$ $
120,506.03 127,954.43
*Numbers refer to millions of dollars Example: $102,613.50 = $102,613,500.00 *Refer to pages 44-49 for justifications
Anthropologie
21
STORE A Los Angeles, CA. Nearby Stores: Santa Monica, San Francisco. Customer Profile: Lauren Lauren is 33 years old and lives in her hometown in Los Angeles. She is in a committed relationship and has two children. She works in an artistic field with an annual income of $190,000 and “wants to have a very unique look�. She has a feminine style, 40s-driven English girl who mixes silks and embroideries. She loves to read magazines, she is aware of trends and wants the current looks, but she is not a fashion victim. She is going to save her clothes and wear them in different ways year by year. She has a vintage-rustic inspired feel to her personal style. Lauren is the type of person who would prefer to buy statement necklaces, earrings, bracelets, and cuffs with bright gems. She also prefers gold jewelry and delicate rings. She wants to feel charming and seductive, but soft at the same time. She introduces a romantic touch to her decision in buying clothes and her preference for feminine separates with retro touches are mainstays.
Anthropologie
22
FALL SALES $
AUG Last Year Plan % Inc/Dec % by Month
SEP
OCT
NOV
DEC
JAN
SEASON TOTAL
$ 133,632.00 $ 125,280.00 $ 116,928.00 $ 141,984.00 $ 167,040.00 $ 150,336.00 $ $ 153,342.72 $ 126,282.24 $ 126,282.24 $ 162,362.88 $ 180,403.20 $ 153,342.72 $ 14.8% 0.8% 8.0% 14.4% 8.0% 2.0% 17.0% 14% 14% 18% 20% 17%
835,200.00 902,016.00 8% 100.0%
STOCK/SALES RATIO Last Year Plan
2.8 2.6
3.4 3.1
3.4 3.3
2.8 2.7
2.6 2.6
2.8 2.8
$ 425,952.00 $ 391,474.94
$ 397,555.20 $ 416,731.39
$ 397,555.20 $ 438,379.78
$ 434,304.00 $ 469,048.32
$ 420,940.80 $ 429,359.62
BOM STOCK $ (Retail) Last Year Plan
$ 374,169.60 $ 398,691.07
Last Year Plan % to Sales % by Month
$ 25,056.00 $ 30,067.20 $ 30,067.20 $ 26,726.40 $ 23,385.60 $ 31,737.60 $ $ 21,047.04 $ 28,563.84 $ 28,563.84 $ 22,550.40 $ 19,543.68 $ 30,067.20 $ 13.7% 22.6% 22.6% 13.9% 10.8% 19.6% 14.0% 19.0% 19.0% 15.0% 13.0% 20.0%
167,040.00 150,336.00 18.0% 100.0%
Last Year Plan
$ 210,470.40 $ 167,173.63
975,513.60 991,916.93
MARKDOWNS $
PURCHASES $ (Retail) $ 126,950.40 $ 180,102.53
$ 146,995.20 $ 176,494.46
$ 205,459.20 $ 215,581.82
$ 177,062.40 $ 160,258.18
$ 108,576.00 $ 92,306.30
$ $
*Numbers refer to thousands of dollars *Refer to pages 44-49 for justifications
Anthropologie
23
STORE C Savannah, GA. Nearby Stores: Atlanta, Jacksonville Customer Profile: Jessica Jessica lives in downtown Savannah, she is 40 years old, and she is married with three kids. She has a Master’s Degree in Finances and has her own business. She has an income of $150.000 and she is inspired by her work and house duties. She loves to spend time with her kids and also enjoys pampering them. She is a shopping lover and she is able to buy expensive products for the benefit of her home and family. She is a person with a preppy style who likes classic silhouettes, because she wants clothes that can fit perfectly for work, but also for an afternoon shopping with her friends and for a ride with her family. She is the type of person who can combine classic clothes with statement accessories. She will buy a beautiful embroidered clutch, statement earrings with neutral colors and a classic pair of pants.
Anthropologie
24
FALL SALES $
AUG
SEP
OCT
NOV
DEC
JAN
SEASON TOTAL
Last Year $ 42,336.00 $ 57,456.00 $ 54,432.00 $ 48,384.00 $ 48,384.00 $ 51,408.00 $ Plan $ 42,456.96 $ 62,052.48 $ 55,520.64 $ 58,786.56 $ 55,520.64 $ 52,254.72 $ % Inc/Dec 0.3% 8.0% 2.0% 21.5% 14.8% 1.6% % by Month 13.00% 19.00% 17.00% 18.00% 17.00% 16.00%
302,400.00 326,592.00 8.0% 100.0%
STOCK/SALES RATIO Last Year Plan
3.4 3.3
2.6 2.4
2.8 2.5
2.9 2.7
2.8 2.7
2.9 2.8
$ 149,385.60 $ 148,925.95
$ 152,409.60 $ 138,801.60
$140,313.60 $158,723.71
$ 135,475.20 $ 149,905.73
$149,083.20 $146,313.22
BOM STOCK $ (Retail) Last Year Plan
$ 143,942.40 $ 140,107.97
MARKDOWNS $ Last Year $ Plan $ % to Sales % by Month
9,676.80 $ 10,886.40 $ 11,491.20 $ 9,405.85 $ 10,581.58 $ 11,169.45 $ 22.15% 17.05% 20.12% 16.0% 18.0% 19.0%
9,072.00 $ 8,817.98 $ 15.00% 15.0%
7,257.60 $ 12,096.00 $ 7,054.39 $ 11,757.31 $ 12.71% 22.50% 12.0% 20.0%
60,480.00 58,786.56 18.0% 100.0%
PURCHASES $ (Retail) Last Year Plan
$ 57,456.00 $ 60,680.79
$ 71,366.40 $ 62,509.71
$ 53,827.20 $ 86,612.20
$ 52,617.60 $ 58,786.56
$ 69,249.60 $ 58,982.52
$ 59,572.80 $ 59,439.74
$ $
364,089.60 387,011.52
*Numbers refer to thousands of dollars *Refer to pages 44-49 for justifications
Anthropologie
25
STORE D Orlando, FL. Nearby Stores: Tampa, Palm Beach Gardens Customer Profile: Amanda She lives in Orlando, where she often meets people from different part of the world. She is an upscale women who is curious, wants to be different, reflects her own style and stands out from others by using Anthropologie’s products as an everyday lifestyle. She makes time to go shopping on the weekends, because Anthropologie is an escape from her everyday life; it is a source of inspiration and delight. She is a very particular free-spirited, bohemian person who is 29 years old and just started to work a few years ago. Her annual household income is of $165,000. She loves coffee, embroidered bed linens, beading and fringe jewelry. She is a person who would buy bead or fringe necklaces, earrings and bracelets with a few details such as earth stones and very subtle colors. Nothing bright, but something that will help her feel confident, show her personality and feel fashion trendy from year to year. Her identity is a tangle of connections to activities, places, interests, values, and aspirations. She practices yoga. Her trendy bohemian style will lead her to buy neutral colors, browns and pale blues. She will prefer softer fabrics, unusual styles and details.
Anthropologie
26
FALL
AUG
SEP
OCT
NOV
DEC
JAN
SEASON TOTAL
SALES $ Last Year Plan % Inc/Dec % by Month
$ 19,584.00 $ 15,912.00 $ 17,136.00 $ 23,256.00 $ 23,256.00 $ 23,256.00 $ $ 23,794.56 $ 17,184.96 $ 17,184.96 $ 25,116.48 $ 27,760.32 $ 21,150.72 $ 22% 8% 0% 8% 19% -9% 18.0% 13.0% 13.0% 19.0% 21.0% 16.0%
122,400.00 132,192.00 8.0% 100.0%
STOCK/SALES RATIO Last Year Plan
2.7 2.5
3.3 3.0
3.4 3.2
3.0 2.7
2.5 2.3
2.9 2.8
$ 52,509.60 $ 51,554.88
$ 58,262.40 $ 54,991.87
$ 69,768.00 $ 67,814.50
$ 58,140.00 $ 63,848.74
$ 67,442.40 $ 59,222.02
BOM STOCK $ (Retail) Last Year Plan
$ 52,876.80 $ 59,486.40
Last Year Plan % to Sales % by Month
$ 3,182.40 $ 4,651.20 $ 4,896.00 $ 4,161.60 $ 3,182.40 $ 4,406.40 $ $ 2,855.35 $ 4,283.02 $ 4,758.91 $ 4,283.02 $ 3,331.24 $ 4,283.02 $ 12.0% 24.9% 27.7% 17.1% 12.0% 20.2% 12.0% 18.0% 20.0% 18.0% 14.0% 18.0%
Last Year Plan
$ 22,399.20 $ 18,718.39
MARKDOWNS $ 24,480.00 23,794.56 18.0% 100.0%
PURCHASES $ (Retail) $ 26,316.00 $ 24,904.97
$ 33,537.60 $ 34,766.49
$ 15,789.60 $ 25,433.74
$ 35,740.80 $ 26,464.84
$ 11,138.40 $ 12,478.92
$ $
144,921.60 142,767.36
*Numbers refer to thousands of dollars *Refer to pages 44-49 for justifications
Anthropologie
27
TREND REPORT
Moodboard
KEY ITEMS Statement Necklace Giant Gem Earrings
Cuffs
Key commercial item across a wealth of brands; vital to achieve an eye-catching look
Over the top embellishment, designs with giant gems and large stones confirms this luxurious trend Cuff bracelets are a classic piece that is timeless. They will come now stronger to achieve a more couture look. Anthropologie
30
*Refer to pages 44-47 for justifications
NECKLACES Materials Combine velvet ribbon, chainmail, pearls, gems, crystals and filigree detailing to create a sense of dramatic opulence
Oversized Collar
Scale
Styling
Oversized proportions are a key statement, jewelry in the form of large statement pendants or heavily encrusted collars. Easy to wear and combine together with decorative detail giving a feminine look.
Layering jewelry with apparel remains an important styling direction, with high-neck blouses taking over from shirt collars
Statement Pendant Collar
Chains
Multi-pendant Collar Anthropologie
31
EARRINGS Materials
Floral Motifs
Style
Glittering crystals remain a key trend when it comes to women’s fashion jewelry design. A combination of natural materials and handcrafted details shows an artisanal feel for this coming fall
Floral themes and pared-back motifs are the key update
The chandelier, the drop pendant and the pendant styles continue to drive this coming fall, making a statement with dramatic earrings bigger and better than before
The Classic Pendant
The Drop Pendant
The Chandelier Anthropologie
32
BRACELETS Styling
Materials
Gold can accent a neutral business dress look. Silver or bejeweled cuffs can glam up a white t-shirt with a pair of jeans, making an ordinary outfit special
Gold and silver metal, gems and crystal are key materials for this coming fall. Cuffs decorated with gems, grunge bracelets and bracelets with gems can be used combined for a more fashion forward look
Cuff
Grunge Bracelet
Bracelet with gems Anthropologie
33
RINGS Materials
Motifs
Color
Colored iridescent stones are key to add interest to the outfit, while classic toned metals and crystals remain important
Freeform shapes inspire a bolder look for this coming fall, while single floral blooms offer the most important direction in the market
Rose gold metals remain key. Contrasts of black and gold have a bold industrial feel, while sapphire and ruby warm metal tones maintain a more subtle look
Antiquity Anthropologie
34
Free Form
Winter Blooms
COLOR The statement colors for this coming fall are black and white, ultra blue and dusted silver. Part of this coming trend are also new shades for jewelry design to compliment with the statement ones.
Ultra blue: The commercial shade for the next coming months. This royal hue works best with golds, again confirming an opulent look.
Black & white: Monochromatic black and white are seen across accessories shapes, reaffirming a 60’s modernist theme.
Dusted silver: Worked across with metallic leather and jewelry shapes, silver will give a high-shine surface instead of offering a muted finish Anthropologie
35
ASSORTMENT PLAN
ASSORTMENT BY MATERIAL, GEMS AND COLOR
Material
%
Gems
%
Color
%
Gold metal
42%
Swarovski crystals
50%
Gold
38%
Brass
18%
Crystals
20%
Silver
16%
Iron
18%
Jades
20%
White
16%
Glass
9%
Pearls
10%
Brown
10%
Acrylic
9%
Turquoise
10%
Leather
4%
Coral
6%
Black
4%
*Refer to pages 44-49 for justifications
Anthropologie
37
PRICING Price
%
$25 - $50
Price
52%
$50 - $100
$28 7% $32 13% $38 20% $42 30% $48 30%
Price $200 - $300
38
16%
$58 40% $68 22% $78 22% $88 10% $98 6%
% 5%
$228 6% $238 4% $248 40% $268 25% $278 25%
Anthropologie
%
Price $300 - $500
Price $100 - $150
%
Price
9%
$150 - $200
$108 7.5% $118 7.5% $128 38% $138 32% $148 15%
% 3%
$328 10% $348 15% $368 10% $398 35% $428 10% $448 10% $478 10%
*Refer to pages 44-49 for justifications
% 13%
$158 22% $168 4% $78 20% $188 6% $198 48%
Price $500 - $1000
% 2%
$548 10% $598 50% $758 10% $898 10% $928 10% $948 10%
SALES BY CLASSIFICATION
NECKLACES Delicate
Pendant
Statement
Percentage of Sales 20%
Anthropologie
40
30%
50%
EARRINGS Chandeliers
Drops
Hoops
Posts
Percentage of Sales 30%
20%
10%
40%
Anthropologie
41
BRACELETS Bracelets
Cuffs
Watches
Watchlets
Percentage of Sales 45%
Anthropologie
42
40%
10%
5%
RINGS Cocktail
Delicate
Stacked
Percentage of Sales 50%
20%
30%
Anthropologie
43
JUSTIFICATIONS
Perceptual Maps We believed that showing the different preferences women has when it comes to using a certain style of jewelry would be the best way to compare Anthropologie with the its competitors. We believe that women would prefer to use Anthropologie’s jewelry style and designs for a special or casual night out rather than just use it for work. They are willing to pay more to look trendy and feel confidence. Also, we wanted to show where Anthropologie falls when it comes to classic vs. trendy style. We believe Anthropologie falls within the trendy category since our customers tend to follow trends, or even set them.
6 Month Plan - Sales Anthropologie’s total 12m net sales are $1,264.24m, while the total 6m net sales, which include Q3 and Q4, consist of $684.09m. When we went to the store and also when we went to Anthropologie’s website, we realized that 15% of the entire store consisted of the jewelry department, and this is how we came up with last year’s 6m sales number of $102.6m for the jewelry department.
$684.09 * 15% = $102.6m
Then, since we wanted to do have an 8% increase in sales from last year, we came up with the following formula
($102.6m * 8%) + $102.6m = $110.8m
We estimated the sales percentages, according to back to school, holidays, and such. From there, the planned total was multiplied by the % by month to be able to come up with the planned total by month. To calculate the % increase/decrease, we did the following:
(Planned - Last Year) / Last Year = % increase or decrease
Anthropologie
45
6 Month Plan cont. - Stock/Sales Ratio Since our department is jewelry, we are well aware that our products move slower than those from other departments. From last year, we estimated that our stock to sales ratio falls between 2.5 and 3.5, depending on the month, and considering that we’re talking about jewelry, not much was able to be changed for our planned year.
- BOM Stock $ (Retail) To be able to calculate the BOM Stock at retail, we did the following formula:
monthly sales * montly stock to sales ratio = BOM Stock
- Markdowns After looking up online and going to the store, we were able to estimate the markdowns. Also, we calculated into the number the loses. We estimated last year’s markdowns at 19%, and since we cannot change much because of loses, we thought that trying to go for 18% was reasonable. Also, the markdown % by month was estimated according to any special dates that may occur during certain month. To calculate the total markdown in dollars, markdown dollars by month and markdown % to sales, the following formulas were used:
total sales * 18% = total markdown $ total markdown $ * markdown % by month = markdown $ by month markdown $ by month / sales by month = markdown % to sales
- Purchases $ (Retail) To be able to calculate the purchases $ at retail, we did the following formula: sales by month + EOM + markdown $ by month - BOM = purchases $ by month at retail Anthropologie
46
6 Month Plan cont. - Markup % We were able to estimate that last year’s markup % was 47%, therefore we wanted to improve the percentage for this upcoming year. We increased it by 2.5%
- Gross Margin % Since we worked on the income statement of Anthropologie, we were able to obtain net sales and cost of merchandise sold, which is the way to calculate the gross margin in dollars and also in percentage. To do this, we did the following:
net sales - cost of merchandise sold = gross margin $ gross margin $ / net sales = gross margin %
- Average Stock We calculated the average stock by doing the following formula:
net sales for the period / stock turn for the period = average stock
- Turnover Although turnover is calculated by dividing net sales by average stock, we estimated our turnover according to our department. As mentioned before, our products in the jewelry department don’t move as fast as those from other departments since they tend to be a little pricier than others.
Anthropologie
47
A store The Los Angeles Anthropologie store is one with the most sales per year. We chose this store as a A store because of its location and the fact that 50.15% of the population is female. The store is strategically located on La Grove, which has other stores and restaurants around. Also, there are museums nearby. Residents, workers and tourists can have lunch or get frozen yogurt if it is needed to take a break from shopping. It is a store which has bigger volume sales. The neighborhood is also the home of many cultural institutions, the place is surrounded by culturally diverse people, something that helps Anthropologie to attract our target customer.
- 6 month planThere are changes in the % increase/decrease and % by month, according to specific holidays, such as Christmas and Thanksgiving Day. Also, back to school happens during August and September, so that is taken in consideration. The same applies to stock to sales ratio and markdowns, but we wanted to keep the 8% increase and 18% markdowns overall. In reality, what changes is the percentage per month.
C Store One of Anthropologie’s average stores is located in Savannah, GA. They have placed the store in the downtown area of a highly tourist city, where the majority of people are between 25 and 75 years old. Anthropologie is targeting a more mature woman from the city and tourist. If she lives in the city, she will know and be loyal to the brand, and if she is a tourist, she would be a person who knows about the brand but wants to experience a new store in a different city. This will help the store to have more sales and attractiveness.
- 6 month planFor the Savannah store, we took in consideration when tourists like to travel to the city, and also when SCAD students return to the city. With that said, the main difference between the Los Angeles store and the Savannah store is that there is a little more focus on September, which is when the students are coming back and their parents often accompany them, which makes them potential customers.
D Store After researching about Anthropologie stores, we decided that one of the smallest stores is in Orlando, FL. It is well known that Orlando is a city where tourism drives its economy. We believe this store is for those who come from different countries and are looking for something different. Anthropologie
48
D Store cont. We are targeting a woman who is stylish and knows what she wants. With time, she’ll become loyal to Anthropologie, and since it is likely the city where she is from there is not a store nearby, she knows she will be the envy of her friends
- 6 month planBeing that Orlando is a tourist hotspot, we chose to focus on August, November and December, since it is when people are more likely to travel because of of the end of summer and the holidays. The changes are similar to those from Savannah since it is also a city driven by tourism.
Trend Report For every segment of the department we chose the best trends, color and styling for Anthropologies customer. We have seen Anthropologies best seller has been statement jewelry, therefore we chose oversized necklaces, earrings and bracelets for this coming fall. The different options for each segment varies depending on Anthropologies style; it depends in material, color, form, size. We found the color trend for accessories in general for this coming fall 2014, we ended up choosing the eight most neutral shades that will fit perfectly for the Anthropologie customer.
Material, Color and Gems Assortment We decided to divide the assortment into the three categories, which are the most predominant features that are seen in Anthropologies jewelry. Each material, color, gems and percentage has been taken from the physical store and the online web page.
Price Assortment For the price assortment we decided to divide it into price ranges from the lowest price to the highest of the entire jewelry department. We ended up with seven price categories, each category as a whole has its own percentage of the entire store, and subsequently into each category, all the price points and its percentage are demonstrated. We believe this is the most organized way to understand the price categories within the entire department.
Anthropologie
49
WORKS CITED
OneSource. (2014). Chico’s fas, inc.. Retrieved from http://globalbb.onesource.com/web/Reports/ReportMain.aspx?KeyID=163796&Process=CP&FtrID=UNIFIEDSUMMARY OneSource. (2014). Fifth & pacific companies inc . Retrieved from http://globalbb.onesource.com/web/Reports/ReportMain.aspx?KeyID=L17613&Process=CP&FtrID=UNIFIEDSUMMARY OneSource. (n.d.). Report urbn. Retrieved from http://globalbb.onesource.com/web/Reports/ReportMain.aspx?KeyID=178635&Process=CP&FtrID=UNIFIEDSUMMARY Reference for Business. (n.d.). Banana republic inc.. Retrieved from http://www.referenceforbusiness.com/history2/44/Banana-Republic-Inc.html RIS. (4, 7 13). Urban outfitters omnichannel inventory supports store-based fulfillment. Retrieved from http://risnews.edgl.com/retail-best-practices\Urban-Outfitters-Omnichannel-Inventory-Supports-Store-Based-Fulfillment85736 URBN. (n.d.). Urban outfitters inc. investor relations. Retrieved from http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome WGSN. (2014). The dramatic earring. Retrieved from www.wgsn.com WGSN. (2014). The statement necklace. Retrieved from www.wgsn.com WGSN. (2014). The cocktail ring. Retrieved from www.wgsn.com WGSN. (2014). The holliday statement necklace. Retrieved from www.wgsn.com WGSN. (2014). key items: jewellery. Retrieved from www.wgsn.com WHBM. (n.d.). Our story. Retrieved from http://www.whitehouseblackmarket.com/store/page.jsp?id=24 Anthropologie
51
“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.�
Retail Buying Simulation FASM-245 Buying 6 Month Plan Ximena Marquez Carolina Viteri