Retail Buying Plan

fall 2013 buying plan - women’s outerwear

ashima chauhan

table of contents

Store Profile

3

Customer Profile

7

Demographics/ Psychographics

8

Six-month Business Plan

11

Stock Assortment Plans

12

Market Purchases and Justifications

15

Sales/ Marketing/ Training/ Promotion

74

store profile Barneys New York is an American chain of luxury department stores spread out across more than 40 locations in the United States, including ten full-size flagship stores. Its headquarters in Manhattan, New York.

It was founded in 1923 by Barney Pressman, and was recently acquired by Perry Capital, which is a private hedge fund firm. The store sells designer apparel for men, women, and children; as well as shoes; accessories; and home furnishings. It mainly caters to an upscale clientele and is perceived as a prestigious shopping destination for the affluent.

Its competitors include Bloomingdale’s, Brooks Brothers, SAKS Fifth Avenue, to name a few.

chicago store The Barneys in Chicago was opened up in 1992. It is located on Oak Street. It includes services such as: Bridal/Gift Registry, the Personal shopping service, as well as Fred’s Restaurant, which is a signature restaurant to certain Barneys stores; Chicago being one of them. The store itself is located in downtown Chicago among a lot of high-end designer labels and restaurants, and therefore, expects an upscale clientele.

new york store Â

The New York store is located in

Manhattan and has the same services provided by the Chicago store with the addition of a few more services like: Studio service, which is a sort of discreet shopping service mainly available for stylists, designers, and celebrities; Concierge service providing, restaurant reservations, tickets, car services, etc.; they also have Make-up Artists in residence; and a Completely Bare, Hi-Tech Spa for luxury spa services. These services draw the attention of the likes of various celebrities.

In addition to these services, the store incorporated a 22,000 square-feet section recently dedicated to women’s shoes, in July.

Due to the enormity and location of this store, along with the fact that it is the flagship store, the New York Barneys has the highest amount of importance.

boston store The Boston store is located at Copley Place, which is a mall in Boston and was opened in 2004. Its structure emulates a store-within-a-mall layout. The mall itself carries a variety of high-end luxury brands. The Barneys includes services such as the Concierge Service, Personal Shopping service, and Make up Artists in Residence.

customer profile Â

Our customer is a young professional

woman who lives in the city, has a challenging job in a higher level profession, with a high income and household size of around 1-3.

Despite her hectic job, she still goes out, spends time with her friends and family, dresses up when she feels like and is open to changing her look everyday. Her income lies in the six figures bracket. She is well educated and has a good sense of high-fashion brands and relies on them for their quality and unconventional designs, especially outerwear.

demographics/ psychographics When we go into the Demographics/Psychographics of each city, we can see a lot of similarities in all three cities. Race, for example, there are predominantly white people in all of these areas. New York has a higher number of Hispanic/Latino population, which we need to keep in mind when buying different colors of the same product. While Chicago has a higher number of Asian demographics, which could impact sizing decisions.

They are mainly between the ages of 30-49, which includes new families as well as established families with a discretionary income of about 20-30%. Their incomes are higher especially in between the $75,000-$200,000 bracket, which means that the people living in these areas are quite well off and are more likely to be able afford expensive products.

Most of these people are employed in the Management and Professional sectors in all three cities. Most of the people in New York and Boston are single, however, more people are married in the area in Chicago, which makes spending less conservative in NY and Boston, while people in Chicago might spend more conservatively due to other family expenses they incur. Most of these people are educated and have either a Bachelor’s degree or Graduate degree. This ups their chances of being aware about luxury brands, drawing them to the store even more.

demographics/ psychographics Income

Age

0 to 9 10 to 19 20 to 29 30-49 50-79

80+

Race 100.0% 80.0% 60.0%

Chicago

40.0%

Boston

20.0%

New York

H

O th er

ia n As

Bl ac k

te

W hi

is p

an i

c

0.0%

0+

00 0, 20

00 ,0 $7 5

-3 4, 9

$1 0

,0

0%

00

<1 0

10%

99

,0 00

20%

,0

30%

$3 5

40%

00 -

35% 30% 25% 20% 15% 10% 5% 0%

50%

demographics/ psychographics Educational Achievement

Marital Status 60% 50%

50% 40% 30% 20% 10% 0%

40% 30% 20%

<9 th

gr ad e 912 H .S th .G

ra du So at m e eC ol leg e As so cia te 's Ba ch elo r's

G ra du at e

10% 0%

Never Married Separated Widowed Divorced Married

Occupation 80% 70% 60% 50% 40% 30% 20% 10% 0%

Chicago

M

an ag em

en Se t Sa rv les ice /O ffi ce

Fa C on r str m uc Pr tio od n uc tio n

Boston New York

stock assortment plan Product: Women’s Outerwear Classification

August

Trench coats & Rainwear

30%

35%

30%

23%

20%

20%

Leather, Suede & Shearling

30%

40%

23%

17%

12%

5%

Down/Puffer

10%

3%

17%

40%

32%

30%

Wool & Cashmere

15%

17%

13%

13%

23%

25%

Fur & Faux Fur

15%

5%

17%

7%

13%

20%

100%

100%

100%

100%

100%

100%

Total

September October November December January

stock assortment plan

45% 40% 35%

Trench coats & Rainwear

30%

Leather, Suede & Shearling Down/Puffer

25% 20%

Wool & Cashmere

15% 10% 5%

Se p

A ug

us t&

te m be r& O ct ob er & N ov em be r& D ec em be r& Ja nu ar y&

0%

market purchases

august purchases

Class

Planned

Actual

Trench coats & Rainwear

$118,000

$117,600

Leather, Suede & Shearling

$118,500

$118,395

Down/ PuďŹ&#x20AC;er

$39,500

$39,390

Wool & Cashmere

$59,200

$57,130

Fur & Faux Fur

$59,200

$58,550

Total

$395,000

$391,065

september purchases

Class

Planned

Actual

Trench coats & Rainwear

$242,100

$240,155

Leather, Suede & Shearling

$276,700

$272,025

Down/ PuďŹ&#x20AC;er

$20,700

$20,680

Wool & Cashmere

$117,600

$116,875

Fur & Faux Fur

$34,600

$34,063

Total

$691,700

$683,798

november purchases

Class

Planned

Actual

Trench coats & Rainwear

$18,700

$17,920

Leather, Suede & Shearling

$13,800

$13,200

Down/ PuďŹ&#x20AC;er

$32,500

$32,265

Wool & Cashmere

$10,600

$10,320

Fur & Faux Fur

$5,700

$5,670

Total

$81,300

$79,375

january purchases

Class

Planned

Actual

Trench coats & Rainwear

$63,900

$63,085

Leather, Suede & Shearling

$16,000

$15,520

Down/ PuďŹ&#x20AC;er

$95,900

$94,925

Wool & Cashmere

$79,900

$79,330

Fur & Faux Fur

$63,900

$63,105

Total

$319,700

$315,965

sales, marketing, training & promotion

august 2013

S

M

T

W

T

F

S

4 Window Display Contest

5 Email blasts

6

7

8

9

10

11

12

13

14

15

16

17

18 Window Display Contest winner announced

19

20 Customer Review

21

22

23

24

25

26

27

28

29

30

31

Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Window Display Contest - Most Innovative idea by any employee is given a free ticket to watch Broadway play in October (inclusive of travel and lodging expenses)

s eptember 2013

S

M

T

W

T

F

S

1

2 Labor Day Sale

3

4

5 Email blasts

6

7

8 Moda Operandi Partnership

9

10

11

12

13

14

15

16

17

18 Customer Review

19

20

21 Moda Operandi Partnership concludes

22

23

24

25

26

27

28

29

30

1

2

3

4

5 Email blasts

Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Labor Day Sale - Offers a one day sale of upto 20-30% Moda Operandi Partnership - Barneys partners w/ Moda Operandi for the â&#x20AC;&#x2DC;Moda Operandi Collection - Exclusively at Barneysâ&#x20AC;&#x2122; campaign, whereby customers can actually view and buy runway garments from Fashion Week, as opposed to online.

october 2013 S

M

T

W

T

F

S

6

7

8

9

10 Augmented Reality installation promotions begin

11

12

13

14

15

16

17

18

19

20 Augmented Reality Party

21

22

23

24 Customer Review

25

26

27

28

29

30

31

1

2

Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Augmented Reality installation - Customers download an app on their phone through which a storefront is brought to life right before them. They can immediately buy the products from where they are.

Augmented Reality Promotional Party - Customers are greeted with champagne and hors dâ&#x20AC;&#x2122;oeuvres while they shop, prepared at Fredâ&#x20AC;&#x2122;s Restaurant (exclusive to Chicago & New York), while the app and details are explained.

november 2013

S

M

T

W

T

F

S

3

4

5 Email blasts

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25 Customer Review

26

27

28 Thanksgiving Sale

29

30

Email blasts - Every 5th day of the month.

Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products.

Thanksgiving/ Black Friday Sale - Select items offered at 30-35% discount.

december 2013

S

M

T

W

T

F

S

1

2

3

4

5 Email blasts

6

7 Holiday Season Employee Workshop

8 Holiday Season Employee Workshop

9 Private Sales begins

10

11

12

13

14

15

16

17 Customer Review

18

19

20

21 Private Sales concluded

22

23

24

25

26

27

28

29

30

31

1

2

3

4

Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Private Sales - to exclusive Barneysâ&#x20AC;&#x2122; preferred customers.

Holiday Season Employee Workshop Program - Seasonal + regular employees are trained and given one-on-one education about what is to be expected during the holiday season, etc.

j anuary 2013

S

M

T

W

T

F

S

5 Email blasts

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26 Employee Appreciation

27 Employee Appreciation

28 Employee Appreciation

29 Employee Appreciation

30 Employee Appreciation

31 Employee Appreciation

1 Employee Appreciation

Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Employee Appreciation Month - Employee of the Month winner is announced at the end of the month, while employees compete to have highest number of sales. Last week includes different, innovative challenges headed by the department manager. Winner is given a $5,000 bonus.