CORPORAT E BUY IN G PLA N AUTUMN / WINTER 16 / 17
TA BL E O F CO N T EN T S
01
Core Mission
02
Brand Identity
03
Ta r g e t C u s t o m e r
04
Size + Scope
05
Merchandising Venues
06
Core Categories of Business
07
Core Strengths + Competencies
08
Current Strategies for Growth
09
Key Competitors
10
SWOT Analysis
11
Product Category
11
Tr e n d s i n P r o d u c t C a t e g o r y
12
L i f e s t y l e Tr e n d s
13
Corporate Buying Plan
14
Store Buying Plans
15
Assortment Plans
16
Statement of Opportunity
CORE MISSION “Offer the customer the best possible ser vice, selec tion, qualit y and value.”
BRAND IDENTITY Luxury Timeless Tren d C on s c io u s Customer Focused Experience Driven
T I T L E | F a t h e r M o t h e r
T I T L E | C h i l d D o g
N A M E | R u p e r t S a r a h
N A M E | A r c h e r T o b y
O C C U P A T I O N | F i n a n c e
Stay at Home Mom
O C C U P A T I O N | P r e s c h o o l e r
C A R | P o r s c h e C a y e n n e
BMW X5
A G E | 4 1
Obedience School
H O B B I E S | G o l f s S h o p s
H O B B I E S | S o c c e r
Fetch
S w i m m i n g
R u n n i n g
A r t s a n d C r a f t s
Sleeping
S a i l s
W o r k s O u t
G r i l l s
PTA Committee
Lemon Drop Martini
C O C K T A I L | A p p l e J u i c e
C O C K T A I L | S c o t c h N e a t
Water
SIZE + SCOPE
STORES 121 Nords t roms (39 St ates, C anada and Puer to Rico) 194 N ords t rom Rac k s 1 Nordstrom Clearance 2 Jeffrey Boutiques 5 Tr unk C lub s
EMPLOY 73,500
ANNUAL NET SALES $13 Billion (8% Grow t h Ra te) $2 Billion from E-Commerce
MERCHANDISING VENUES
STORES Nordstrom, Nordstrom Rack, Jeffrey Boutique, Tr unk C lub
E-COMMERCE N ord s t rom, N ord s t rom Rac k , J e f f rey N ew Yor k , Tr unk C lub, H au t e L o ok (96 C o un t r ie s S er ve d)
MOBI L E A PPL I C AT I ONS N ord s t rom, N ord s t rom Ra c k , Tr unk C lub, Haute Look
SOCIAL MEDIA I n s t a gr am, Fa c e b o o k , Tw i t t e r, Yo u t ub e, Wan e l o, Blog
COR E C AT EGOR I E S OF BUSI N E SS 31% Women’s A pparel 23% Shoes 16% Men’s A pparel 14% Women’s Acce s s or ie s 11% C o s m e t i c s 3%
Kids’ Apparel
2% Other
CUSTOMER SERVICE + TECHNOLOGICAL FOCUS
In Stores and Online Free Shipping and Free Returns, Buy Online and Pick up in
Store, Nordstrom Rewards, Gift Cards, Free Stylist Services, Gift Boxing, Extended Sizes
In Stores C o n c i e r g e, C e r t i f i e d F i t S p e c i a l i s t s , A l t e r a t i o n s a n d Ta i l o r i n g , Nordstrom Restaurants, Spa Nordstrom, Shoeshine, Free Wi-Fi
Online W i s h L i s t , I n t er na t ional S hip pin g, Tr u e F i t
CORE STRENGTHS + COMPETENCIES
MA JOR E XPANSION
TOPSHOP COL L A BOR AT I ON
Nordstrom Rack Store Openings
L aunc hed in 2012
2016 | 23
New Customer Base
2 017 | 6
New Deliveries Weekly
2018 | 2
Expanding to 28 More Stores
CU R R EN T S T R AT EGI E S FOR GROWTH
Creating Job Opportunities
ENTERING THE NEW YORK MARKET O p e nin g in M id -Tow n in 2018 285,000 Square Feet Flagship 7 Levels
OT H ER COL L A BOR AT I ONS Madewell and Olivia Palermo
INVESTING IN TECHNOLOGY Nordstrom Innovation Lab POS System Updates Smart Fitting Rooms
NEIMAN MARCUS
BLOOMINGDALES
Luxury Oriented
Leader in Sportswear
Relationship Focused
A p p eal to Yo un g M ar ke t
S e r ve To p Two Pe rc e n t
S e ll To p -T ie r L u x ur y G o o d s
KEY COMPETITORS
SAKS FIF TH AVENUE
NE T-A- PORTER
Private Label Business
International Appeal
Broad Price Points
G o -To O nlin e Au t h or i t y
A p p eal to Yo un g M ar ke t
Exclusive Designer Merchandise
S WOT A N A LY S I S 01
02
03
04
STRENGTHS
WEAKNESSES
OPPORTUNITIES
T H R E AT S
Customer Service
Better Developed
Reaching Millennials
Fast Fashion
Development of Active
Generation Z
Te c hn o l o g y Fo c u s Growth Incentives Strong Management
Mens Store
Development of Active Sportswear
Sportswear
Shared Commerce Marketplace
PRODUC T C AT EGORY Women’s Denim Apparel
TRENDS
01
Dressed-Up Denim
02
Hem Focus
03
Patchwork
04
Embroidery
01
DRESSED-UP DENIM
Everyday items are given a polished makeover with dark indigo finishes. Ta i l o r e d i n f l u e n c e s r e t u r n f o r double-denim styling with simple construction and neat fits, offering a modern take on workwear and retro styles.
02
HEM FOCUS
A clear emphasis is placed on the hem. Popular hem finishes include frayed hem, released hem and exaggerated cuff hem.
03
PATCHWORK
Many in the industry are embracing recycling initiatives due to the evolving importance of sustainabilit y. Recycled materials are us e d to c rea te 1970 ’s ins pire d patchwork, producing new, clean and refined classic denim styles.
04
EMBROIDERY
As the repair movement continues, stitchwork is becoming increasingly decorative and mixed media items are coming to the forefront.
LIFESTYLE TRENDS
01
Activewear Movement
02
Sustainability
01
ACTIVEWEAR
Activewear has penetrated the fashion market due to the prevalence of active lifestyles.
02
SUS TAINABILIT Y
Sustainability presents the denim industry both a challenge and an oppor tunit y. While it is known the production of denim is not a highly sustainable process, companies are aware of the issue and are actively finding ways to reduce their environmental footprint. Many of their efforts are concentrated towards conser ving water, reducing waste,using efficient energy and using eco-friendly fibers.
BUYING PLANS
01
Corporate
02
Seattle
03
Miami
01
COR POR AT E
PL ANNED NE T SALES | $10, 370,0 0 0
T U R NOV ER R AT E | 1.73
I M U | 6 0 .17 %
PERCENT INCREASE TO LAST YEAR |
REDUC TIONS | 18%
8.02%
S E A S O N | A / W 16 /17
(000’s) F O C U S P R O D U C T C A T E G O R Y
Women’s Denim Apparel
P L A N N E T S A L E S 1 0 3 7 0 . 0 E S T I M A T E D N E T S A L E S
9600.0
P L A N % L A S T Y E A R
8.02%
A V E R A G E S T O C K , R E T A I L
6005.7
I N V E N T O R Y T U R N O V E R 1 . 7 3 P L A N N E D R E D U C T I O N S $
1866.6
R E D U C T I O N S % S A L E S
18.00%
P L A N I M U % 6 0 . 1 7 %
AUGUST
SEPTEMBER
OCTOBER
N E T S A L E S
1659.2
2 0 7 4 . 0
% F A L L
16.00%
P L A N B O M S T O C K
NOVEMBER
DECEMBER
JANUARY
FALL 2016
1 4 5 1 . 8
1 6 5 9 . 2
2 0 7 4 . 0
1 4 5 1 . 8
10370.0
2 0 . 0 0 %
14.00%
1 6 . 0 0 %
2 0 . 0 0 %
1 4 . 0 0 %
100.00%
6139.0
6 6 3 6 . 8
6 0 9 7 . 6
6 1 3 9 . 0
6 4 2 9 . 4
5 5 1 6 . 8
6005.7
S T O C K / S A L E S R A T I O
3 . 7
3 . 2
4 . 2
3 . 7
3 . 1
3.8
P L A N E O M S T O C K
6636.8
6 0 9 7 . 6
6 1 3 9 . 0
6 4 2 9 . 4
5 5 1 6 . 8
5081.3
P L A N R E D U C T I O N S
2 8 0 . 0
2 8 0 . 0
2 8 0 . 0
3 3 6 . 0
4 1 0 . 7
2 8 0 . 0
1866.6
% F A L L
15.00%
15.00%
1 5 . 0 0 %
1 8 . 0 0 %
2 2 . 0 0 %
1 5 . 0 0 %
100.00%
P U R C H A S E S , R E T A I L
2437.0
1 8 1 4 . 8
1 7 7 3 .
2 2 8 5 . 5
1 5 7 2 . 1
1 2 9 6 . 2
11178.9
P U R C H A S E S , C O S T
9 7 0 . 6
7 2 2 . 8
7 0 6 . 3
9 1 0 . 3
6 2 6 . 2
5 1 6 . 3
4452.5
02
SE AT T L E FL AGSH I P
PLANNED NET SALES | $428,500
T U R NOV ER R AT E | 2.0 4
S Q . F T. | 3 8 3, 0 0 0
LEVELS | 4
COUNTY | King
(000’s) F O C U S P R O D U C T C A T E G O R Y
Women’s Denim Apparel
P L A N N E T S A L E S 4 2 8 . 5 E S T I M A T E D N E T S A L E S
396.7
P L A N % L A S T Y E A R
8.02%
A V E R A G E S T O C K , R E T A I L
209.8
I N V E N T O R Y T U R N O V E R 2 . 0 4 P L A N N E D R E D U C T I O N S $
77.13
R E D U C T I O N S % S A L E S
18.00%
P L A N I M U % 6 0 . 1 7 %
AUGUST
SEPTEMBER
N E T S A L E S
6 8 . 6
8 5 . 7
% F A L L
16.00%
P L A N B O M S T O C K
OCTOBER
NOVEMBER
DECEMBER
JANUARY
6 0 . 0
6 8 . 6
8 5 . 7
60.0
2 0 . 0 0 %
1 4 . 0 0 %
1 6 . 0 0 %
2 0 . 0 0 %
14.00%
2 0 5 . 7
2 2 2 . 8
1 9 8 . 0
2 1 2 . 5
2 3 1 . 4
198.0
S T O C K / S A L E S R A T I O
3.0
2 . 6
3 . 3
3 . 1
2 . 7
3.3
P L A N E O M S T O C K
2 2 2 . 8
1 9 8 . 0
2 1 2 . 5
2 3 1 . 4
1 9 8 . 0
200.0
P L A N R E D U C T I O N S
1 1 . 6
1 1 . 6
1 1 . 6
1 3 . 9
1 7 . 0
1 1 . 6
77.13
% F A L L
15.00%
1 5 . 0 0 %
1 5 . 0 0 %
1 8 . 0 0 %
2 2 . 0 0 %
1 5 . 0 0 %
100.00%
P U R C H A S E S , R E T A I L
9 7 . 3
7 2 . 4
8 6 . 1
1 0 1 . 3
6 9 . 2
7 3 . 6
500.0
P U R C H A S E S , C O S T
3 8 . 7
2 8 . 8
3 4 . 3
4 0 . 3
2 7 . 6
2 9 . 3
199.1
FALL 2016
428.5
100.00%
209.8
03
MIAMI DADELAND
P L A N N E D N E T S A L E S | $171, 4 0 0
T U R NOV ER R AT E | 1.71
S Q . F T. | 150, 0 0 0
LEVELS | 2
COUNTY | Miami Dade
(000’s) F O C U S P R O D U C T C A T E G O R Y
Women’s Denim Apparel
P L A N N E T S A L E S 1 7 1 . 4 E S T I M A T E D N E T S A L E S
158.7
P L A N % L A S T Y E A R
8.00%
A V E R A G E S T O C K , R E T A I L
100.0
I N V E N T O R Y T U R N O V E R 1 . 7 1 P L A N N E D R E D U C T I O N S $
30.85
R E D U C T I O N S % S A L E S
18.00%
P L A N I M U % 6 0 . 1 7 %
AUGUST
SEPTEMBER
N E T S A L E S
2 7 . 4
3 4 . 3
% F A L L
16.00%
P L A N B O M S T O C K
OCTOBER
NOVEMBER
DECEMBER
JANUARY
2 4 . 0
2 5 . 7
3 2 . 6
27.4
2 0 . 0 0 %
1 4 . 0 0 %
1 5 . 0 0 %
1 9 . 0 0 %
16.00%
1 0 1 . 5
1 0 9 . 7
1 0 0 . 8
1 0 0 . 3
1 0 4 . 2
93.2
S T O C K / S A L E S R A T I O
3 . 7
3 . 2
4 . 2
3 . 9
3 . 2
3.4
P L A N E O M S T O C K
1 0 9 . 7
1 0 0 . 8
1 0 0 . 3
1 0 4 . 2
9 3 . 2
90.0
P L A N R E D U C T I O N S
4 . 6
4 . 6
4 . 6
5 . 6
6 . 8
4 . 6
30.9
% F A L L
15.00%
1 5 . 0 0 %
1 5 . 0 0 %
1 8 . 0 0 %
2 2 . 0 0 %
1 5 . 0 0 %
100.00%
P U R C H A S E S , R E T A I L
4 0 . 3
3 0 . 0
2 8 . 1
3 5 . 2
2 8 . 4
2 8 . 8
190.8
P U R C H A S E S , C O S T
1 6 . 0
1 1 . 9
1 1 . 2
1 4 . 0
1 1 . 3
1 1 . 5
76.0
FALL 2016
171.4
100.00%
100.0
CL A SSIFIC ATION
% T O T A L
$ PURCHASES
C O A T S
0 . 0 8
894, 312
T O P S
0 . 0 6
670,734
J A C K E T S
0 . 1 0
J E A N S
0 . 6 5
S K I R T S
0 . 0 6
O T H E R
0 . 0 5
100.00
1,117, 8 9 0 7, 2 6 6 , 2 8 5 670,734
558,945
11,17 8 ,9 0 0
JEAN SIZES
ASSORTMENT PLANS
% T O T A L
$ PURCHASES
2 4
0 . 0 2
145, 326
2 6
0 . 0 8
581, 303
2 5
PRODUC T C AT EGORY | Women’s Denim A pparel
P L A N N E D P U R C H A S E S R E TA I L | $11,17 8 ,9 0 0
0 . 0 4
2 7
0 . 1 2
2 8
0 . 1 6
2 9
0 . 1 6
3 0
0 . 1 6
3 1
0 . 1 4
3 2
0 . 1 2
100.00
29 0, 6 51 871,954
1,16 2, 6 0 6 1,16 2, 6 0 6
1,16 2, 6 0 6 1, 0 17, 2 8 0 871,954
7, 2 6 6 , 2 8 5
JEAN FINISHES
% T O T A L
$ PURCHASES
DARK INDIGO
1,16 2, 6 0 5
FR AY ED H EM
0 . 1 6 0 . 1 2
R E L E A S E D H E M 0 . 1 0 CUFFED HEM
0 . 0 8
EMBROIDERY
0 . 1 2
PATCHWORK O T H E R
0 . 1 2 0 . 3 0
100.00
871,954
726,628 581, 302 871,954
871,954
2 ,179, 8 8 5
7, 2 6 6 , 2 8 5
We believe our buying plan is best described as a plan of oppor tunit y. We believe there is a potential to over-achieve our sales plan due to the growing popularity of new and innovative trends presented in women’s denim apparel.
S TAT EM EN T O F O PPO R T U N I T Y