EXPRESS
MISSION
“
Express is committed to offering captivating customer experiences that drive long term loyalty and deliver sustainable growth for our shareholders.
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TABLE OF CONTENTS Company History.....................................................4 Merchandise Offered....................................................6 Competitors ....................................................10 Perceptual Maps....................................................24 Overall 6 Month Plan....................................................30 Store A....................................................36 Store B....................................................42 Store C....................................................48 Trend Booklet....................................................54 Assortment Planning....................................................56 Sources....................................................64
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600stores
20,000 employees
$1,800,000,000 in annual sales
EXPRESS, was established in 1980 by the Limited Brands and is headquartered in Columbus, OH. Express carries clothing, outerwear, and accessories that target the 20-30 year old fashion-forward men and women from across the United States and around the world, through our e-commerce website, express.com. The specialty retailer was sold in 2007 from Limited Brands and operates over 600 stores to this date. CEO Michael Weiss has been with the brand since it’s formation more than 30 years ago.
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MERCHANDISE OFFERED 1. 2. 3. 4.
5. 6. 7. 8.
6.
TRENCH COAT MILITARY JACKET LEATHER MOTO JACKET FIELD JACKET DENIM JACKET BASEBALL JACKET TRACK JACKET PARKA 7
TOP COMPETITORS:
Urban Outfitters Pacsun Gap
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URBAN OUTFITTERS
THE BRAND Urban Outfitters Inc is a specialty retailer, offering an eclectic variety of mens and womenswear, accessories, beauty, and home products. Urban Outfitters often cross-merchandises their products in unique product displays in order to entice and draw in their core customer base of 18+ year olds. The emphasis always remains on creativity and innovation.
CUSTOMER PROFILE
Zane Johnson Age: 22 Single Lives in: Montclair, NJ Occupation: Graphic Designer Salary: 32K/yr. Shops for quality jackets, that fit his trendy lifestyle. Zane loves to find patterns and prints that make him stand out from everyone else. He really isn’t looking for an ordinary jacket to wear with everything, he prefers to buy an assortment of different styles.
TRENDS Street influenced classics, texture, and 90’s silhouettes
Oversized tailoring at Marc by Marc Jacobs F/W 2014; Monochromatic texture and 90’s influence at Alexander Wang F/W 2014
style.com
MERCHANDISE ANALYSIS SILHOUETTE > Vest > Moto Jacket > Winter Parka > Varsity Jacket > Denim Jacket > Blazer > Field Jacket > Baseball Jacket
FABRIC > Nylon > Faux Leather > Denim > Twill > Flannel > Wool > Leather > Cotton
Color > Black > Olive Green > Brown > Burgandy > Navy > Red > Oversized Floral > Camo
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A PEAK INTO URBAN OUTFITTERS WINTER LOOKBOOK URBANOUTFITTERS.COM
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PACSUN
THE BRAND Pacsun is a specialty retailer that is dedicated to embracing the adventure and diversity of an authentic California lifestyle. They currently operate over 600 stores across the US, and carry a large assortment of both established and up and coming brands. Both their store layout and e-commerce reflect a modern, laidback vibe.
CUSTOMER PROFILE
Bryan Wilkerson Age: 18 Single Lives in: Newport Beach, CA Occupation: Student Salary: $350 per month allowance Bryan is the “Jock” of his highschool. He rides his skateboard to school each day, he’s an avid surfer, and in the winter time his parent’s rent a condo in the mountain where he enjoys snowboarding. Bryan loves Pacsun because he can find everything he needs to outfit the different sports he participates in, in decent quality, that lasts him all year round. He doesn’t really care about trendy things, he just wants his outerwear to be comfortable, durable, and represent the culture that surrounds him.
TRENDS Innovative use of fabrics; mixed media and color-blocking
Mixed media prints at Marc by Marc Jacobs; Sporty neoprene fabrics at Acne; Performance wear at Moncler Grenoble
style.com style.com
Pacsun’s trends for fall lean more towards the performance aspect of outerwear. Transitional jackets and coats that take you through season to season in various colorways and textures.
MERCHANDISE ANALYSIS SILHOUETTE > Bomber > Ski Jacket > Vest > Denim Jacket > Field Jacket
FABRICS > Nylon > Denim > Twill > Cotton > Flannel
COLORS > Olive Green > Camo > Red > Navy > Brown > Grey > Oversized Prints
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A PEAK INTO PACSUN’S WINTER LOOKBOOK PACSUN.COM
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GAP
THE BRAND
Gap is a leading international specialty retailer, with six brands under it’s ownerships and more than 3,500 stores worldwide. Founded in San Francisco, CA in 1969; Gap carried kids, maternity, body, women’s, and men’s clothing under the Gap private label. They are known for their iconic, modern clothing and accessories that give their customer the freedom to express their own unique sense of style. .
CUSTOMER PROFILE
Harold Smith Age: 31 Engaged Lives in: Raleigh,NC Occupation: Elementary school teacher Salary: 42K/yr. Harold is a very classic kind of guy, not very into bold prints, or patterns besides the occasional stripe or flannel. He likes to keep things pretty simple, and has a growing collection of the classic Gap denim jacket. The way he layers things, is what makes him look different from the rest. He likes outerwear that he can wear in his personal life, and to school as well.
TRENDS Classic silhouettes, warm neutrals, and dependable textiles Clean lines and warm textiles at J.Crew Collection; Sporty nylon in a classic longline silhouette at Rag & Bone; Timeless navy at DKNY
style.com
Not a brand to be boldly influenced by trends, Gap’s assortment for Fall will mostly consist of the tried and true classics in relaxed silhouettes. Navy toggle coats, distressed denim jackets, parkas in primary hues and trench coats in easy to wear neutrals will be promoted throughout the store.
MERCHANDISE ANALYSIS SILHOUETTE > Denim Jacket > Military Jacket > Parka > Shirt Jacket > Trench Coat > Blazer
FABRIC > Nylon > Denim > Twill > Cotton
COLOR > Olive Green > Navy > Red > Camel > Camo
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A PEAK INTO GAP’S HOLIDAY CAMPAIGN GAP.COM
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PERCEPTUAL MAPS:
High Assortment/Low Assortment Patterns/Solids Classic/Trendy High Retail Price/Low Retail Price
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PERCEPTUAL MAP #1
Patterns
High Assortment
Low Assortment
Express
Urban Outfitters
Gap
Solids Pacsun
JUSTIFICATION Based on the merchandise we observed in the store, as well as the merchandise we observed online, we came to the conclusion that Express has relatively low assortment with a larger array of solid color options as opposed to patterns. Urban Outfitters has a slightly larger selection with more options in patterns. Due to their target marketing, appealing to mostly college students & graduates, bolder patterns and colors are available to this fashion-forward and risk-taking market. Gap, being a conservative brand, carries more solids than patterned outerwear. Their typical customer tends to draw towards solids, a safer choice that goes with more of their everyday outfits. Pacsun, we have placed in the middle with a mid-range assortment, offering both solids and patterned outerwear.
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PERCEPTUAL MAP #2
High Retail Price
Trendy
Classic
Express
Urban Outfitters
Gap
Low Retail Price Pacsun
JUSTIFICATION Express falls more towards the classic end of the map with a mid-level price range. Customers that shop at Express are open to patterns and other bold colors but in subtle ways, they are not your extremely fashion-forward and trendy gentlemen. Urban Outfitters, is placed on the trendy side of the spectrum with a lower price range than Express & Gap making it more affordable for their target market of college students and graduates. Gap, is without a doubt the conservative and classic brand with a higher price range because of their quality and brand image. Lastly, Pacsun caters to relatively the same consumer as Urban only their consumer is typically more active and enjoys sportswear-like outerwear. We placed them towards trendy at a slightly higher price range than Urban Outfitters. Â
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SIX MONTH BUYING PLAN:
Men’s Outerwear FW/2014: A Store B Store C Store
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6 MONTH BUYING PLAN
Department: Men’s Outerwear FW/14
SALES: We estimated as buyers for Express, mens outerwear would total 10% of the overall sales for the store. Based upon this assumption, we came to the conclusion that most of the sales are made during the colder months of November, December and January, also referred to as the fourth quarter. November (28%) is the month with the largest sales, people are beginning to shop for warmer wear and new arrivals for the season. December (27%) are the late bloomers in need of some warmer clothes but may be in search of a bargain. In the final month of January(7%) the sales continue to decrease, due to the lack of demand for outerwear. On the other hand, you have third quarter which is made up of August, September & October, the warmer months where people are not shopping for warm clothing or outerwear. August(4%) is what we consider the slowest month due to the warm climate and lack of demand for the product. September (8%) begins Fall where the weather slightly begins to change but heavy coats and jackets aren’t quite necessary yet. In October (26%) people begin wearing warmer clothing but aren’t completely investing in outerwear yet.
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STOCK TO SALES: Based on the sales we determined for each month we were able to then determine which months we would require more stock. Hence, the months with higher sales, the lower the ratio becomes. Months with colder temperatures and holidays require the most stock in order to meet the demand of our consumers, generating more sales. We also looked at the size of the store and the target markets to determine how much inventory we would really need.
BOM STOCK: Based on the sales for each month we multiplied the planned sales by the stock to sales ratio to determine the amount of stock in dollars we would need in order to meet the demand of our consumers.
MARKDOWNS:
You begin to notice towards November markdowns are beginning to take place in order to have the upper hand against other competitors. The most markdowns are taken in this month to catch the eye of the consumer, ultimately making them feel they are receiving the best deal.
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ALBANY, NEW YORK
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ALBANY, NY A STORE
SALES:
In upstate New York, there is a significant change in temperature in lifestyle than that of the B and C stores, therefore sales are dramatically higher. In this case, sales begin to increase in the month of October because of the temperature dropping and the need to stay warm is more adamant. Even though we set the % of month to 12% for October, sales begin at a whopping $102k(+) and almost triple in the month of November with a percent of 35%. Ultimately, proving why this store for this particular department is our “A� store.
STOCK TO SALES:
Based on the sales, we were able to then determine which months would require more stock than another. Hence, the months with higher sales, the lower the ratio becomes. Months with colder temperatures and holidays require the most stock in order to meet the demand of our consumers, generating more sales. As stated earlier, October begins the brutal cold for NY ultimately resulting in the need for more stock than the other stores in Savannah and Charleston.
BOM STOCK: Based on the sales for each month, we multiplied the planned sales by the stock to sales ratio to determine the amount of stock in dollars we would need in order to meet the demand of our consumers.
MARKDOWNS: You begin to notice towards November markdowns are beginning to take place in order to have the upper hand against other competitors. The most markdowns are taken in this month to catch the eye of the consumer, ultimately making them feel they are receiving the best deal.
> Capital city of New York > Located 135mi from New York City > Population of 97,856 (US Census) > Fourth largest urban area in New York > Climate is mostly cold and snowy in the winter with temperatures reaching as low as 0째F COLONIE CENTER 131 COLONIE CENTER, ALBANY, NY (518) 458-7999
Colonie Center
Albany, NY
37 Albany, NY in the winter
CUSTOMER PROFILE: Peter Taylor Age: 26 Newlywed Lives in: Albany, NY Occupation: Salary: 95K/yr. Peter has a definite love for style and keeping up with the newest trends. He sees Express alot during the week, and on the weekends. He shops mostly in-store for purchases, but he also is a huge ecommerce shopper as well. Sometimes he does not have enough time to go in- store, since he & his wife travels alot during the year. He is a big impulse shopper, and often buys items in bulk. Peter is certainly one who follows fashion sites on social media, and recreates what is trending into his own style. He loves Express for the classic everyday wear, but also for the different trends they offer every year. He looks for new and exciting pieces, but still loves a great price, and quality. He has a disposible income of $600 a month.
ALBANY, NY 12202 MEDIAN AGE: 31.9 MEDIAN INCOME: $30,100 CONSUMERS SPEND: 182MM
US Census
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CHARLESTON, SOUTH CAROLINA
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CHARLESTON, SC B STORE
SALES: In terms of sales for outerwear in Charleston they are a little higher than Savannah due to Charleston being further north and the climate changing sooner/colder than Savannah. Yet, the months of November (37%) and December (32%) are still the strongest in sales for this department.
STOCK TO SALES:
Based on the sales we determined for each month we were able to then determine which months we would require more stock. Hence, the months with higher sales, the lower the ratio becomes. Months with colder temperatures and holidays require the most stock in order to meet the demand of our consumers, generating more sales.
BOM STOCK:
Based on the sales for each month we multiplied the planned sales by the stock to sales ratio to determine the amount of stock in dollars we would need in order to meet the demand of our consumers.
MARKDOWNS:
You begin to notice towards November markdowns are beginning to take place in order to have the upper hand against other competitors. The most markdowns are taken in this month to catch the eye of the consumer, ultimately making them feel they are receiving the best deal.
> Oldest and 2nd largest city in South Carolina > Population of 125, 583 > Unemployment rate of 6.3% > Humid, subtropical climate with mild winters, hot summers, and significant rainfall all year long
2070 SAM RITTENBERG BLVD CHARLESTON, SC (843) 766-8288
Express storefront
43 Charleston in the winter
CUSTOMER PROFILE: Derrick Fisher Age: 28 Single Lives in: Charleston, SC Occupation:Nightclub Owner Salary:70K/yr. Derrick loves to be seen. He loves anything different and fashionable. At least 3 to 4 times a week Derrick is in Express looking to see if they have anything new. Because he is a nightclub owner, he must be trendy and fashion forward at all times. He doesn’t mind mixing prints and patterns to create his look for the night. He does not mind spending money at Express for his outerwear, because he knows it will be great quality and last him for awhile. He has a disposable income of: $400 a month.
CHARLESTON, SC 29401 MEDIAN AGE: 29.9 MEDIAN INCOME: $46,500 CONSUMERS SPEND: $327 MM
US Census
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SAVANNAH, GEORGIA
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SAVANNAH, GA C STORE
SALES:
The same rule applies for sales when it comes to the Savannah store. Granted the weather in Savannah stays warmer longer than most stores further north, so the results are going to be somewhat different. However, we have again determined that the months in fourth quarter with the largest sales are November (37%) and December (32%) due to the holidays and seasonal changes.
STOCK TO SALES: Based on the sales we determined for each month we were able to then determine which months we would require more stock. Hence, the months with higher sales, the lower the ratio becomes. Months with colder temperatures and holidays require the most stock in order to meet the demand of our consumers, generating more sales.
US Census
BOM STOCK:
MARKDOWNS:
Based on the sales for each month we multiplied the planned sales by the stock to sales ratio to determine the amount of stock in dollars we would need in order to meet the demand of our consumers.
You begin to notice towards November markdowns are beginning to take place in order to have the upper hand against other competitors. The most markdowns are taken in this month to catch the eye of the consumer, ultimately making them feel they are receiving the best deal.
> Oldest city in the state of Georgia > Area of 108.7 square miles > Population of 142,022 > Climate is classified as humid subtropical with long summers and brief mild winters
River St. in Savannah
7804 ABERCORN ST SAVANNAH, GA 31406 (912) 355-5044
Oglethorpe Mall
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CUSTOMER PROFILE: Michael Smith Age: 31 Engaged Lives in:Savannah, GA Occupation:Photographer for South Magazine Salary:22K/yr. Michael is a very concious shopper, always looking for a bargain. When he shops, it is always when Express has a big promotion going on. He still loves quality, but will wait until something goes on sale before he buys it. He is the shopper that Express sees every now and then, because he believes that he should save his money more than spending it every chance he gets. When he does shop, he buys everything that he needs at one time, and has a coupon handy to use. Michael buys solids, he really isn’t into the trends, so he appreciates that Express keeps certain silhoulettes around. He has a disposible income of: $250 a month
SAVANNAH, GA 31401 MEDIAN AGE: 29 MEDIAN INCOME: $20,000 CONSUMER SPEND: $458 MM
US Census
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ASSORTMENT PLANNING:
Silhouette Size Color/Print Price
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SILHOUETTE ANALYSIS
Express’s top selling item is consistantly the Leather Moto Jacket. Our biggest purchase will continue with the top seller. Followed by the classic Trench Coat, and the Military Jacket, which is on trend for Fall 2014. Our smallest buy will be the track jacket, which has been a consistent but smaller seller for Express stores. Because our top seller is also the most expensive, for Fall/Winter we decided to add aspects of our popular Leather Moto Jacket to some of our other styles of outerwear. For example, our classic trench will be offered in a traditional camel and navy fabric, as well as an offering with leather sleeve detail.
The Trench Coat
The Field Jacket
The Denim Jacket
The Military Jacket The Leather Moto Jacket
The Baseball Jacket
The Track Jacket
The Winter Parka
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SIZE ANALYSIS
Express carries sizes XS-XL. For the new season, we chose to continue the same sizing, but carry more of a selection of larger sizes, due to the shortage of these sizes we saw in the stores. From our in store observation, we saw that the sale rack was ridden with an excess of XS-S sizes, therefore currently Express is buying too many quantities of smaller sizes, and not enough of the larger sizes which suits their average customer. To prevent the excess of merchandise on the sale racks in the future, we as buyers decided to have a higher percentage of medium-extra large sizes.
PRICE ANALYSIS
For the Fall/Winter season, our pricing will remain the same as seasons’ past. Our least expensive item will be the track jacket, at a price of $88.00. These will come in two color combinations. Our next item, the denim jacket, will be priced at $98.00, and $128.00 respectively, which is priced lower than Gap’s offering. The basic denim jacket will be priced at $98.00, while our offering with the wool sleeve and leather trim will be priced higher. Our colorblocked baseball jackets will be priced at our popular median prices of $128.00; as well as the olive field jacket and winter parka at $168. Our military jacket will come in at a pricier $198.00 because of the many pockets and details. Finally, the classic trench coat will be priced at $228.00-$248.00 depending on the leather trim; and our trendy leather moto jacket will come in at a price of $248.00. The pricing strategy Express will follow for Fall/Winter is competitively priced with other like stores, but maintains an edge by offering both classic and trendy pieces at moderate prices. 57
COLOR ANALYSIS
Express carries a classic range of colors in-store & online. For Fall 2014, olive green & grey are two major color trends. We chose to keep the classic colors at a high assortment, and slowly introduce the new Fall 2014 trends to our consumers, in order to give them a fresh update to their wardrobe. Our one print choice for fall is an on trend Camo print which we bought 5% of in order to satisfy the more trendy customer.
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THE LINEUP FALL/WINTER 2014
The Baseball Jacket
Black Wool/Black Leather Grey Wool/Black Leather $168
The Denim Jacket
Blue Denim Blue Denim/Grey Wool/Black Leather $98-$128
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The Leather Moto Jacket Black Leather $248
The Winter Parka Black Nylon $168
The Track Jacket
Cobalt Blue/White Jersey Knit Red/Black/White Jersey Knit $88
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The Field Jacket Olive Suiting $168
The Military Jacket Camo Suiting $198
The Trench Coat
Navy Suiting Navy Suiting/Black Leather Camel Suiting Camel Suiting/Black Leather $228-$248 65
SOURCES Company History, Info from Express.com Merchandise Offered, Flats from stylesight.com Competitors, Runway images from style.com, Customer images from facebook.com & collegefashionista.com Perceptual Maps, Images from gap.com, pacsun.com, express.com, urbanoutfitters.com Store A, Customer image from pinterest.com, all other images from tumblr.com, State info from US Census, Store info from express.com Store B, Customer image from pinterest.com, all other images from tumblr.com, State info from US Census, Store info from express.com Store C, Customer image from pinterest.com, all other images from tumblr.com, State info from US Census, Store info from express.com Assortment Planning, Flats from stylesight
LILY MARSHALL SAMANTHA MARTI BRIANA YOUNG 67
EXPRESSMENSOUTERWEARFW/2014