TABLE OF CONTENTS 1. OBJECTIVE 3. BRAND IDENTITY 9. SIZE AND SCOPE 13. TARGET CONSUMER 21. KEY COMPETITORS 31. FASHION TRENDS 39. 6 MONTH BUYING PLAN 43. STORE BUYING PLANS 49. ASSORTMENT PLAN 53. STATEMENT OF OPPORTUNITY
OBJECTIVE TO DEVELOP AN ACHIEVABLE, YET PROFITABLE BUYING PLAN FOR THE WOMEN’S SHOE DEPARTMENT OF BARNEY’S NEW YORK THAT FULLY MEETS THE NEEDS AND EXPECTATIONS OF AN URBAN, LUXURY CONSUMER.
3
BRAND IDENTITY
CORE MISSION To provide sophisticated and urban luxury customers with curated stores that provide innovative shopping experiences and a unique and exclusive presentation.
BARNEYS NEW YORK IS A LUXURY SPECIALTY STORE WITH DEPARTMENTS IN DESIGNER APPAREL FOR MEN, WOMEN, AND CHILDREN, AS WELL AS SHOES, ACCESSORIES, FRAGRANCE, AND HOME FURNISHINGS.
TASTEFUL WITTY LUXURIOUS URBAN MINIMALISTIC
SWOT STRENGTHS
WEAKNESSES
LONG HISTORY
PRIMARILY US MARKETS
CLEAR PRICE POSITION ICONIC WINDOW DISPLAYS
NOT COHESIVE ON SOCIAL MEDIA
THE WINDOW (BLOG) INNOVATIVE USE OF TECHNOLOGY
OPPORTUNITIES
THREATS
GROWING TREND OF E-COMMERCE
RISE OF FAST FASHION
INNOVATIVE APP DESIGN
GLOBAL FINANCE CRISIS
TECHNOLOGY ADVANCEMENT
BOOTLEG FASHION
ASIAN INFLUENCE IN MARKETPLACE
NORDSTROM FLAGSHIP
MILLENNIALS ACQUIRING DISPOSABLE INCOME
9
SIZE AND SCOPE
“BEST CURATORS OF PRODUCTS IN THE MARKET” MARK LEE
MERCHANDISING VENUES
E-COMMERCE SITE
14 FLAGSHIP STORES
3 FREDS RESTAURANTS
12 WAREHOUSE STORES
13
TARGET CONSUMER
GENERAL DEMOGRAPHICS - MEN AND WOMEN - AGES 25-60 - HIGHER END OF MIDDLE - UPPER CLASS - TRENDY - INTELLIGENT - MINIMAL - URBAN LIFESTYLE
Meet Caroline. - 27 years old - Located in Soho, New York - Successful vegan cafe owner - Approx. $150,000 annual income - Artistic, cultured, and intelligent - Runs a vegan food blog on the side - Timeless, elegant aesthetic with a modern twist - Frequents Whole Foods and Fred’s at Barney’s - Enjoys seeing local alternative bands
Meet Diane. - 52 years old - Located in Los Angeles, CA - Works as a Plastic Surgeon - Approx. $350,000 annual income - Sophisticated, fun, and young at heart - Travels frequently for client meetings - Well cultured with a love of fine dining - Married with 2 children out of the house - Favorite brands include Gucci and Prada
Meet Clarisse. - 35 years old - Located in Paris, France - Executive Editor for Elle magazine - Approx. $225,000 annual income - Well traveled, chic, and independent - Modern, sleek aesthetic - Travels between New York and Paris frequently for work - Loves procuring items that are unique and individual
21
KEY COMPETITORS
“WE DEFINE OURSELVES AS A MODERN LUXURY SPECIALTY STORE” MARK LEE
BUSINESS MODEL: “Nordstrom, Inc. is a leading fashion specialty retailer offering compelling clothing, shoes and accessories for men, women and children. Since 1901, we’ve been committed to providing our customers with the best possible service—and to improving it every day.”
STRENGTHS: - Strong customer service - Takes pride in company values
SCOPE/SIZE: - 123 US Nordstrom Flagships
- Stays up to date with customer needs
- 215 US Nordstrom Racks
- 2.3 million Instagram followers
- 2 US Jeffery Boutiques
- Worldwide service to 96 countries - 14.1 billion dollars in profits for 2015
- 2 US Clearance Racks
BUSINESS MODEL: “By offering the finest quality men’s and women’s fashions, as well as an extraordinary program of customer services, Saks Fifth Avenue has become the byword for taste and elegance.”
STRENGTHS:
SCOPE/SIZE:
- Well known and established company - Dedicated to customer service
- 41 US Flagship Stores
- Luxurious, refined product selection - Nearly 1 million Instagram followers - Nationally recognized company - Multi-channel
- 11 US Saks Off Fifth Locations
BUSINESS MODEL: “Bloomingdale’s is committed to once again lead the way with exclusive merchandise, customized services, and alternative shopping venues. Carrying on the Bloomingdale’s brothers’ dream, we’re always finding ways to set our stores apart. That’s both the legacy and the promise of Bloomingdale’s.”
STRENGTHS:
SCOPE/SIZE:
- Classic company with iconic taste - Affordable designer product selection - Strong Instagram following - Brand dates back to late 1800’s - Strong E-Commerce Site
- 38 US Flagship Stores
BUSINESS MODEL: “Dover Street Market is a multilevel fashion retail store with a market and art gallery spirit.”
STRENGTHS:
SCOPE/SIZE:
- Founded by owners of Comme des Garçons - Creative marketplace store layout - Trendy, urban product selection - Internationally recognized company - Strong E-Commerce site
- 1 US Flagship Store
31
FASHION TRENDS
ATHLETICS EMBROIDERY HARDWARE ANIMAL PRINT VELVET FUR
ATHLETICS
“Protective and receptive surfaces continue to offer customized comfort and fits, and luxury materials and details create smart styling� Plastic creates a contemporary look Rubber protects from heavy-impact activities Knits are breathable and odor resistant Gender neutral by masculine influences on womens footwear
EMBROIDERY
A leading execution for footwear and accessories Floral motifs are trans-seasonal and can be used year round Additional embellishments make this trend stand out
HARDWARE
Maximalist designs Zips, Buckles, Eyelets, Bondage style straps Industrial components Boots are gender neutral as well
ANIMAL PRINT
Classic that never goes out of style Exotic Neutrals- black, beige, brown Season-less
VELVET
Key transitional story Saturated colors create a dramatic look to any ensemble Added bows or hardware increase aesthetic impact
FUR
Uptrend for transitional footwear and accessories Varying textures such as curly or straight and smooth “The bolder the better� Can sell as luxury or comfort
39
6 MONTH BUYING PLAN
“
“THE FOCUS, FOR US, IS LUXURY AND SURPRISE.” MARK LEE
6 Month Buying Plan Fall 2017 6 Month Buying Plan Barneys Fall 2017 New York Barneys York Focus New Product Category: Focus Product Category: Fall 2017
Women's Shoes
Women's Shoes 59940.0 55500.0 59940.0 8% 55500.0 28186.5 8% 2.13 28186.5 11988.0 2.13 20% 11988.0 60% 20% 60% Fall 2017 6 Month Buying Plan August September October November December January Fall 2017 Fall 2017 6 Month10789.2 Buying Plan13186.8 (000's) Net Sales 8391.6 10789.2 9590.4 7192.8 59940.0 Fall 2017 August September October November December January % Fall 14.00% 18.00% 16.00% 18.00% 22.00% 12.00% 100.00% Net Sales 8391.6 10789.2 9590.4 10789.2 13186.8 7192.8 59940.0 Plan BOM Stock 27692.3 31288.7 29730.2 30209.8 31648.3 23736.2 28186.5 % Fall 18.00%2.9 16.00%3.1 18.00%2.8 22.00%2.4 12.00%3.3100.00% Stock / Sales Ratio 14.00%3.3 Plan Plan BOMEOM StockStock 27692.3 30209.8 31648.3 23736.2 28186.5 31288.7 31288.7 29730.2 29730.2 30209.8 31648.3 23736.2 23000.0 Stock /Plan Sales Ratio 3.3 2.9 3.1 2.8 2.4 3.3 Reductions 959.0 1798.2 1798.2 2637.4 2997 1798.2 11988.0 Plan EOM%Stock 31288.7 29730.2 30209.8 31648.3 23736.2 23000.0 Fall 8% 15% 15% 22% 25% 15% 100% PlanPurchases, ReductionsRetail 959.0 2637.4 11988.0 12947.0 1798.2 11029.0 1798.2 11868.1 14865.1 2997 8271.71798.2 8254.8 67235.7 % Fall 8%5178.8 15% 15% Purchases, Cost 4411.6 4747.2 22% 5946.0 25% 3308.7 15% 3301.9100% 26894.3 Purchases, Retail 12947.0 11029.0 11868.1 14865.1 8271.7 8254.8 67235.7 Purchases, Cost 5178.8 4411.6 4747.2 5946.0 3308.7 3301.9 26894.3 Plan Net Sales, Fall 2017 Est.Fall Net2017 Sales, Fall 2016 Plan Net Plan Sales, % Fall Last2017 Year: Est. Net Sales, Fall 2016 Average Stock, Retail: PlanInventory % Last Year: Turnover: Average Stock, Retail: $: Planned Reductions, Inventory Turnover: Reductions % Sales: Planned Reductions, $: Plan IMU %: Reductions % Sales: Plan IMU %: (000's)
For the Barneys New York corporate buying plan, we based our values off of the types of products we were carrying and their performance in the industry. Since we are focusing our buying on women’s shoes, specifically in brands that have a high performance in today’s market, we decided to plan an 8% increase in sales to last year, confident that we will be able to reach this goal. Shoes sales and trends are constantly changing, so a quick turnover of 2.13 is the most logical route. The Barneys customer appreciates quality and luxury, and is willing to pay more to ensure she is getting the best, which is why our IMU is at a higher rate of 60%. Our planned reduction rate is at 20%, which corresponds to the fast turnover rate, and the consumers’ perceived utility of the products we plan to purchase. Finally, our stock per month has increases in September for the beginning of fall, as well as November and December for holiday, and drops again in January.
43
STORE BUYING PLANS
“BARNEYS DOESN’T BELONG EVERYWHERE. IT BELONGS IN URBAN, SOPHISTICATED MARKETS.” MARK LEE
The two markets we chose to plan for are the brand new Chelsea flagship store, as well as the Los Angeles store. For the Chelsea location, we have planned sales of over 5 million, which is about 25% more sales than the average store, due to its position in the marketplace and traffic. The customers that come into this location are also more likely to have more disposable income, seeing as this flagship is in close proximity to major corporations, such as Google. Our planned turnover rate of 2.26 is in response to the amount of traffic and location, since it would be expected that this location turns faster than average. Besides these two adjustments, the buying plan for Chelsea remains fairly similar to the corporate buying plan structure.
6 Month Buying Plan Fall 2017 Store: Chelsea Women's Shoes
Focus Product Category:
Fall 2017 Fall 2017 Est. Net Sales, Fall 2016 Focus Product Category: Plan % Last Year:Women's Shoes Average Fall 2017 Stock, Retail: Plan Net Sales, Fall 2017 5350.0 Inventory Turnover: Est. Net Sales, Fall 2016 4953.7 Planned Reductions, $: Plan % Last Year: 8% Average Stock, Retail: 2371.7 Reductions % Sales: Inventory Turnover: 2.26 Plan IMU Planned Reductions, $: %: 1070.0 6 Month Buying Plan Fall 2017 Plan Net Sales, Store: Chelsea
Reductions % Sales: Plan IMU %:
(000's)
(000's)
August Net Sales Net Sales 749.0 %% FallFall 14.00% Plan BOM Stock Plan BOM Stock2321.9 Stock / Sales Ratio 3.1 Plan EOM Stock Ratio 2600.1 Stock / Sales Plan Reductions Plan EOM Stock 85.6 % Fall 8% Purchases, Retail 1112.8 Plan Reductions Purchases, Cost 445.1 % Fall
Purchases, Retail Purchases, Cost
5350.0 4953.7 8% 2371.7 2.26 1070.0 20% 60%
20% 60%
August September 749.0 963.0 18.00% 14.00% 2600.1 2321.9 2.7 2482.4 3.1 160.5 2600.1 15% 1005.8 85.6 8%402.3 1112.8 445.1
Fall 2017 6 Month Buying Plan November Decem January Fall 2017 963.0 1177 642.0 5350.0 12.00%18.00% 100.00% 22.00 1990.2 2371.7 2600.1 2707 3.1 1900.0 2.7 2.3 160.5 1070.0 2707.1 1990 15% 100% 712.3 235.4 5998.1 267. 284.9 15% 22%2399.2 25% 1134.2 1305.4 727. 453.7 522.2 291.
Fall 2017 6 Month Buying Plan September October October November December 963.0 856.0 856.0 963.0 1177.0 16.00% 22.00% 18.00% 18.00% 16.00% 2482.4 2600.1 2707.1 2600.1 2482.4 2.9 2.7 2.3 2600.1 2707.1 1990.2 2.7 2.9 160.5 235.4 267.5 2482.4 2600.1 15% 22% 25% 1134.2 1305.4 727.6 160.5 160.5 453.7 522.2 291.0
15% 1005.8 402.3
6 Month Buying Plan Fall 2017 Store: Los Angeles Women's Shoes
Focus Product Category: 6 Month Buying Plan Fall 2017 Fall 2017 Store: Los Angeles Plan Net Sales, Fall
2017 Est. Net Sales, Fall 2016 Focus Product Category: Women's Shoes Plan % Last Year: Fall 2017 Stock, Retail: 6420.0 Plan NetAverage Sales, Fall 2017 Est. Net Sales, Fall 2016 5944.4 Inventory Turnover: Plan % Last Year: 8% Planned Reductions, $: Average Stock, Retail: 2746.3 Reductions Inventory Turnover: % Sales: 2.34 Planned Reductions, $: 963 Plan IMU %: Reductions % Sales: Plan IMU %:
(000's)
(000's)
Net Sales August Net Sales 898.8 % Fall 14.00% % Fall PlanStock BOM Stock Plan BOM 2606.5 StockStock / Sales/Ratio 2.9 Sales Ratio Plan EOM Stock 2889.0 Plan EOM Stock Plan Reductions 77.0 Plan % Fall Reductions 8% Purchases, Retail % Fall 1258.3 Purchases, Cost 503.3
Purchases, Retail Purchases, Cost
15% 60%
August September 898.8 1155.6 14.00% 18.00% 2606.5 2889.0 2.5 2.9 2773.4 2889.0 144.5 77.0 15% 1184.5 8% 473.8 1258.3 503.3
6420.0 5944.4 8% 2746.3 2.34 963 15% 60% Fall 2017 6 Month Buying Plan 2.34 September October November December Fall 2017 6 Month Buying Plan October December January 1155.6 November1027.2 1091.4Fall 2017 1348.2 1027.2 1091.4 1348.2 898.8 6420.0 18.00% 17.00% 16.00% 17.00% 21.00% 16.00% 21.00% 14.00% 100.00% 2889.0 2837.6 2773.4 2837.6 2746.33100.9 2773.4 3100.9 2516.6 2.7 2.6 2.82.6 2.5 2.72.3 2.3 2837.6 3100.9 2516.6 2500.0 2773.4 211.9 2837.6 3100.9 963 2516.6 144.5 240.8 144.5 144.5 144.5 211.9 100% 240.8 15% 22% 25% 15% 1235.9 1004.7 1026.6 15% 1566.5 15% 22% 7276.5 25% 494.3 626.6 401.9 410.6 1184.5 1235.9 1566.5 2910.61004.7 473.8 494.3 626.6 401.9
Our second location is the beautiful Los Angeles flagship store, located in the heart of Beverly Hills. Due to the warmer weather and fast paced buying culture of Los Angeles, the Los Angeles store would have a higher planned net sales of over 6 million, lower reduction percentage of sales, and a higher turnover rate of 2.34 than the Chelsea store, as well as the average stores. We also evened out our sales a little more towards the end of the season in comparison to our corporate and Chelsea buying plans, since the buying culture of LA and the weather would allow for a bit more traffic and spending than in the Northern stores.
49
ASSORTMENT PLAN
“
“A MIX OF BRANDS, A MIX OF
DIFFERENT AESTHETICS; WE WANT THERE TO BE SOME MEASURE OF
DISCOVERY. WE’VE TRIED TO CREATE A DYNAMIC ASSORTMENT, NOT TO CREATE THREE-WALL SHOPS.”
DANIELLA VITALE
For our assortment plans, we chose to focus on six luxury European brands that represent Barneys and their consumer. The designers chosen are some of the most successful in the luxury industry. Out of those six, the brands with the most forward and innovative aesthetics have been given higher percentages in the assortment plan. The size range follows the bell curve based off of the average women’s shoe sizes. Our assortment plan represents the upcoming progressive trends that we believe the Barneys consumer would want to buy into.
ry:
il:
Assortment Plans Fall 2017
Barneys New York Women's Footwear
Focus Product Category: $67,235,700 Planned Purchases, Retail:
$ Purchases Sizes $2,689,428 $2,689,4285 5.5 $4,034,142 $4,034,1426 6.5 $6,051,213 $6,051,2137 7.5 $8,068,284 $8,068,2848 8.5 $9,412,998 $8,740,6419 9.5 $4,034,142 10 $3,361,785 10.5 $67,235,700
% Total 4% 4% 6% 6% 9% 9% 12% 12% 14% 13% 6% 5% 100%
$ Purchases $2,689,428 $2,689,428 $4,034,142 $4,034,142 $6,051,213 $6,051,213 $8,068,284 $8,068,284 $9,412,998 $8,740,641 $4,034,142 $3,361,785 $67,235,700
Women's Footwear $67,235,700
Vendor Prada Gucci Louboutin Giuseppe Zanotti Givenchy Fendi Others
% Total 15% 20% 10% 6% 8% 8% 33% 100%
$ Purchases Vendor $10,085,355 Prada $13,447,140 Gucci $6,723,570 Louboutin $4,034,142 Giuseppe Zanotti $5,378,856 Givenchy $5,378,856 Fendi $22,187,781 Others $67,235,700
% Tota 15% 20% 10% 6% 8% 8% 33% 100%
53
OPPORTUNITY STATEMENT
“
With the recent growth of
exclusive products within the
Barneys New York selection, we
believe the buying plan introduced serves as an opportunity for the
brand, and could bring forward an innovative set of products for a competitive marketplace.