Anthro buying plan by dbrenn22

Six Month Buying Plan

HISTORY....

MISSION, VISION, AND VALUES...

When Urban Outfitters first opened in 1970 in Pennsylvania, it was actually named Free People. A few years later the name was changed to the popular Urban Outfitters. The brand was very “seventies boho” inspired with a target market ranging from eighteen to thirty. Though they had very loyal customers, the company realized that around age thirty consumers were out growing the brand. URBN wanted to make sure their devoted Urban Outfitters customer was a lifelong customer, in 1984 URBN created the store Free People. With a higher target market, when the URBN customer out grew Urban Outfitters they could move to Free People. After realizing their plan was working, Glen Senk created Anthropologie in 1992. Not only are Urban Outfitters and Free People sisters stores of Anthropologie, so are Terrian (home-furnishing company created in 2008) and BHLDN (bridal company created in Feb. 2012).

Anthropologie is very committed to offering signature products and top-notch service to their customers. Their mission statement demonstrates their passion for their consumer: “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.” Their goal is to maintain a sense of beauty, optimism, and discovery throughout their products and their brand.

Welcome Anthropologie... Glen Senk started out his career working for Bloomingdales, and then went out to manage the mail-order division of William-Sonoma. Though he enjoyed working for those companies, he wanted to create the ultimate shopping experience for his customers, and thus Anthropologie was born. The store is comprised of women’s clothing and accessories, home furnishings, found objects, gifts and decor. The First Anthropologie opened in Wayne, Pennsylvania in 1992. By 1998 the company started shipping their merchandise all over the world and in 2009 opened their first international store in Canada and then in the United Kingdom. They refer to their customers as their “soul mates” and deep and spiritual bond acts as a catalyst for motivating the designers and everyone involved in continuing the brand’s success.

SCOPE AND SIZE...

To stick with the “boutique feel”, Anthropologie has very few brick and mortar stores. There are only 160 stores in the United States, and eight between Canada and the United Kingdom. It seems to be working for them though, because the Urban Outfitters company has had a steady increase in net sales from 2008 to the present day. Yet interestingly enough, their gross profit does not have the same pattern. The profits of the company have actually gone up and down over the past few years. In 2010, the gross profit was $786,145, in 2011 $936,620, and in 2012 it was $860,536. Meanwhile the net sales have gone from $1,937,815 in 2010, to $2,274,102 in 2011, increasing all the way up to $2,473,801 in 2012.

THE TARGET CONSUMER...

CORE PRODUCT CATEGORIES...

Anthropologie carries more than simply clothing. The brand extends to accessories, shoes, beauty products, home furnishings, found object pieces, gifts, and decor. They also carry international, designer, and vintage products. When you walk into an Anthropologie store, it seems like a big chunk of their merchandise is home goods and decor. About ten percent of the floor space is taken up by their home goods, although this isn’t their main revenue source. Instead, it is used to attract their creative consumers into the store. While the consumer gawks at all the visual merchandise, thinking about how they can create it for cheaper in their own home, they browse through the dresses and end up purchasing some apparel. Anthropologie knows this about their customers and uses it to their advantage.

The Anthropologie customer is generally around the age range 28-45, female, and probably in a committed relationship. She has a stable life, is well-read and well-traveled. Anthro says, “She is very aware – she gets our references, whether it’s a town in Europe or to a book or a movie. She’s urban minded. She’s into cooking, gardening, and wine. She has a natural curiosity about the world, she loves learning new trades and isn’t scared to ask questions. She is relatively fit.” The Anthropologie consumer is creative and inventive. She likes DIY crafts with a rustic, but still sophisticated, feel. Her appearance isn’t number one but it is really important and she doesn’t mind spending money on her wardrobe.

SWOT ANALYSIS...

Strengths:

Considering how successful Anthropologie has become, there are many specific strengths that the company has mastered. One thing they have mastered is that they’ve created a lifestyle brand. Anthropologie is not just a random boutique you bought a cute top from one time. It represents a lifestyle through their ad campaigns, window displays, and their wide range of products. One of the most important strengths of Anthropologie is that they have nailed the aesthetic for their target consumer. Although Anthropologie is targeted towards an older and more sophisticated consumer than Urban Outfitters, many consumers shop at both places. Because their products appeal to such a wide range of women, they have been able to sell so much more. The aesthetic appeals to a young, trendy girl and also a grown, sophisticated woman.

Weaknesses:

Like any brand, Anthro also has weaknesses. One of them being their limited sizes, which range only from extra small to extra large and 24 to 32 in pants. Clearly they are targeting a thinner woman. Another weakness is their limited use of fibers. So much of their clothing is simply made from cotton, which would be fine if it weren’t for the prices. For a basic cotton tee it costs $68. One thing that could be considered a weakness or a strength is their limited marketing. Anthopologie doesn’t do much in the way of television, magazine, and other media advertisement and that could be considered a set back, but because their loyal customers already know so much about their store they don’t need those ads. It makes the consumer feel like they shop at a more exclusive brand rather than something commercialized.

Opportunities: Anthropologie has seized some excellent opportunities as well, which contributes to their strengths. They have jumped on the bandwagon to expand and grow the brand by not stopping with everyday clothing. Recently the brand has come out with wedding dresses from a line called BHLDN. Of course they have also expanded from clothing and accessories to home goods and décor. Globalization is another opportunity they’ve seen and chosen to take. What once was a US only store has now began opening locations in Canada and the UK as well. A major reason they have been able to expand and globalize is because of their website. They’ve taken advantage of the internet and have created an aesthetically pleasing and user friendly site which ships to over 180 countries worldwide.

Threats:

On the other side, there are a few threats against the brand. A big threat is lower cost competitors. Department stores like Macy’s and Dillard’s carry similar brands like Kensie, which portray that similar femininity at a cheaper price. Another threat is the economic downturn. It’s no secret that people are having to cut back on their purchases, and for most people Anthropologie is a want, not a need.

CURRENT TRENDS IN THE MARKETPLACE...

Everything that goes on in the world affects current fashion trends. One trend in the marketplace that has impacted Anthropologie is the boho-chic trend. Boho has been coming and going since the 60s but has most recently surfaced around 2005. Celebs like the Olsen twins, Nicole Richie, Kate Moss, and Sienna Miller helped renew its popularity. Anthropologie has been using bohemian influences in its designs for several years now, but as the boho-chic trend begins to decline so will boho inspiration in Anthopologie. Vintage clothing and thifting are some other current trends which inspire Anthro. The current shopper loves a good thrift store find and Anthropologie has worked to bring that vintage element into their own products. Beautiful vintage looking clothing without the aged stains and smells. A growing trend in society is education, especially for women. More and more people are headed to college and currently 57.5% of those college students are women. Since more women are being educated than ever before, there is a need for more sophisticated clothing. Another way people are being educated is through traveling, which is much more accessible than it once was. Because more people are getting out of their backyard to see the world, inspiration from dozens of countries and cultures could make its way into Anthropologie’s designs.

Anthropologie is a brand that brings nostalgia and vintage into their pieces and steers away from modern looks, but that doesn’t mean that the fast growing trend of technology won’t affect the brand. While they will most likely keep their products care-free and feminine looking, technology will affect how they run the business. Maybe they’ll start using iPads in the store or virtual models on their website. However they choose to, technology will continue to grow with the brand in order for them to stay on top. Another trend that we think Anthropologie should take advantage of that would generate a high profit margin is the 70’s trend. When the Urban name first came to be in the early 70’s, the company was automatically associated with the term bohemian. The 70’s style goes hand in hand with the bohemian style that the brand has developed over the last few decades. This trend includes flare pants, oversized clothing, hair wraps and bands, patterns, long skirts, long dresses, and wide brimmed hats.

COMPETITORS... The Gap: In an interview Glen Senk, CEO of Anthropologie, discussed how he thought that the Gap is one of Anthropologies biggest competitors. When he described the “Anthropologie woman”, he stated that she would buy her basic tees and tops from the Gap. This hurts Anthropolgie’s net sales because they also sell basic tees and tops, but at a higher price. Though the Gap on average sells more basic attire than Anthropologie, there is always a chance and an opportunity for them to expand. For example, if the Gap decides to cater to the 70’s trend for this fall they could be taking away more of Anthropologie’s business. If a woman is shopping for basic tanks this fall and spots 70’s flare jeans which she saw are “in style” for the season; there is a chance she will purchase them at the Gap rather than Anthropologie. One of the Gap’s strengths over Anthropologie’s is their men and children clothing, which makes their brand more “family oriented”. Anthropologie does sell children’s clothing, but it very limited and mainly online. There is a huge opportunity for Anthropologie in children’s and men’s clothing departments, they just haven’t taken advantage of it yet; same goes for Gap with home decor. Obviously Anthropologie’s visual merchandising over the Gap’s is stronger because that is what they are known for, but their website is also stronger. The Gap is a sister store to Banana Republic, Old Navy, Piperlime, and Athleta, so the company tried to make all of their websites somewhat related. The marketing strategy is that there is a better chance a customer will check out the other companies when on the Gap website, but it just doesn’t seem special. The Gap website is a little overwhelming and resembles the Old Navy website too much. Both businesses are very strong and with their own target market and niche, but there are opportunities apparent for both Anthropologie and the Gap.

ModCloth: ModCloth is an Ametican online retailer founded by Susan Gregg-Koger and Eric Koger. It specializes in vintage, vintage inspired, and indie clothing, accessories, and décor. It is a lifestyle brand because the website covers fashion trends, cooking, green living, and music. Their main weakness is that they are an online only store, so it’s hard for them to be seen as a lifestyle brand. Their main strength is their unique vintage style and how they add one vintage item every day for members only, so the consumer can always purchase something different. Another main strength is their customer service and website. Their site has various unique and helpful features for customers. One of these features is “live support” which is an instant messaging form of communication where you can chat with representatives if you have any questions. Another feature is “be the buyer” where customers can vote for sample items they would like ModCloth to sell. ModCloth’s target customer is millennial women, which are people between the ages 18 to 31 who have grown up in the age of technology. ModCloth has a similar aesthetic to Anthropologie but different target consumers, still some women would still shop at both. ModCloth’s website is a little stronger than Anthropologie’s, but considering they are an online only retailer this is necessary for them.

J. Crew: Another key competitor of Anthropologie is J.Crew. They share many strengths and weaknesses. Some strengths that J. Crew has in common with Anthropologie is that it is also a lifestyle brand. The Company seeks to find a balance between creativity and commerciality. J. Crew also has very loyal customers, typically they only shop at one or two stores, which is much like Anthropologie’s customer. A strength that J. Crew has over Anthropologie is that they have a website that is more of an invitation to follow a story. They also offer specialty items as well as menswear and children’s wear, which Anthropologie lacks in. Some weaknesses of J. Crew would be that they don’t necessarily aim to beat competitor’s prices, similar to Anthropologie. Like Anthropologie, they also do not rely as highly as they could, on social media, to boost sales. Finally, J. Crew can be seen as Anthropologie’s competitor because they have very similar visions for their company. The creative director of J. Crew, Jenna Lyons, says that her philosophy on retail is, “Making people feel special. Making people [realize] you’re paying attention to them is going to be increasingly important, because I don’t think people feel very special anymore.” This sounds like something someone could have said about Anthropologie.

Boutiques: A boutique is a term that caught on in the 60’s as London became the center of the fashion trade. In the 90’s the idea of a boutique began changing as mass market stores began taking inspiration from boutiques and applying it to their brands. Some of these brands took the boutique idea of creating these unique lifestyle stores. One of the first to actually do this was Urban Outfitters, the mother store to Anthropologie. Anthropologie was literally created to be like a boutique, which is why boutiques are a major competitor. Some advantages that boutiques have over Anthropologie is they are local, and many people would rather support a local company than a chain. Most boutiques also only have one location and unique pieces, so shoppers literally can find one of a kind items. Some disadvantages of boutiques is they don’t have the resources that a larger company, like Anthropologie, would have. A boutique does not have as many funds and therefore cannot put a lot of money into marketing, like ad campaigns and web-sites. There also is a greater competition for boutiques. Just is downtown Savannah there are dozens of different boutiques. What would make a consumer go into one over another? It’s much harder for a boutique to create name recognition.

TECHNOLOGY IN RETAIL... This past season Urban Outfitters announced that they would be getting rid of all cash registers and switching over to iPads. Not only is this a great marketing technique because of the “cool” factor it will add to the store, but it will also save them thousands of dollars. A cash register costs $5,000 to set up as opposed to $1,000 for an iPad. It’s also much more efficient for customer service. A sales associate can ring a customer up, search for merchandise, and order products from other store locations from anywhere in the store. Employees are used to the I-pad technology already so training most of the time is also easier.

SIX-MONTH BUYING PLAN: Anthropologie Outerwear Fall 2013 Our six month buying plan is based off of our previous sales history; we have been in business since 1992 so we understand the buying patterns of our customers. We are looking to increase our revenue by nine percent overall this fall. We know we are more than capable of doing this, based off of the trends that have been shown for this fall season. We understand that location is a key when understanding a business, not every location is going to have the same results. With that being said, we created not only an overall six month buying plan, but a six month buying plan for a small, medium, and large sized store.

Entire Anthropologie Buying Plan:

SIX MONTH BUYING PLAN FOCUS PRODUCT CATEGORY : OUTERWEAR

Another company that has embraced technology is Brazilian retailer C&A. They have linked their Facebook page to high-tech hangers in their store. The hangers display the live number of “likes” that a garment has recieved. This could be a great marketing tool if a garment has a lot of “likes”, but it could also backfire if the garment is unpopular. While Anthropologie is not the most tech-savy company, they will have to think about some of these new trends as the fashion industry moves forward with technology.

($)

RETAIL STOCK (BOM)

RETAIL STOCK (EOM)

SEPT

Plan % of Season Plan

$1,000,000 10% $2,899,000

$2,149,000 21.6% $5,717,000

$1,699,000 17% $4,928,000

$2,099,000 21.1% $6,087,000

$2,199,999 22.1% $4,838,000

$800,000 8% $2,719,000

$9,995,000 100% N/A

% of Season

10.7%

21%

18.1%

22.4%

17.8%

10%

100%

$5,717,000

$4,928,000

$6,087,000

$4,838,000

$2,719,000

$2,600,000

N/A

21.2%

18.3%

22.6%

18%

10.1%

9.7%

100%

$144,000 8%

$270,000 15%

$396,000 22%

$450,000 25%

$270,000 15%

$1,799,000 100%

$1,783,000 34.4% $3,962,000 34.4%

$756,000 14.6% $1,679,000 14.6%

$1,408,000 27.2% $3,128,000 27.2%

$560,000 10.8% $1,245,000 10.8%

$238,000 4.6% $530,000 4.6%

$428,000 8.4% $951,000 8.4%

$5,173,000 100% $11,496,000 100%

Plan % of Season

REDUCTIONS Plan ($)

% of Season

Plan % of Season PURCHASES Plan AT COST % of Season PURCHASES AT RETAIL

$9,170,000 9% $9,995,000 $4,531,000 2.21 $1,799,000 18% 55% JAN

AUG

FALL 2013

SALES

FALL 2013 Last Year Sales (2012) % Planned Increase Planned Sales for 2013 Average Retail Stock Inventory Turnover Planned Reduction ($) Reduction % of Sales Initial Markup % OCT NOV DEC

SEASON TTL

In order to raise last year’s net sales by our goal of 9% our planned net sales is $9,995,000.

Outerwear sales begin somewhat slowly in the majority of our stores due mainly to the weather; temperatures are still high and people aren’t thinking about jackets just yet.

The planned sales slowly increase as the holiday shopping season approaches, and then quickly decrease

in January as the season comes to a close.

Mark downs begin lightly but increase as back to school sales hit. By November there is a jump in reductions for Black Friday sales and the start of holiday shopping. Mark downs decrease in January at the end of the holiday shopping season.

Large Store Buying Plan - Manhattan, NY:

SIX MONTH BUYING PLAN : MANHATTAN STORE FOCUS PRODUCT CATEGORY : OUTERWEAR

$115,800 9% $126,400 $48,800 2.76 $22,800 18% 55% JAN

AUG

SEP

Plan % of Season Plan

$17,700 14% $51,320

$18,960 15% $49,300

$21,490 17% $62,320

$25,280 20% $73,310

$27,810 22% $61,180

$15,170 12% $51,570

$126,400 100% N/A

% of Season

14.7%

14.1%

17.7%

21.1%

17.6%

14.8%

100%

$49,300

$62,320

$73,310

$61,180

$51,570

$40,000

N/A

14.6%

18.5%

21.7%

18.1%

15.3%

11.8%

100%

% of Season

$1,820 8%

$3,410 15%

$4,990 22%

$5,680 25%

$3,410 15%

$22,700 100%

Plan % of Season PURCHASES Plan AT COST % of Season

$17,490 12.7% $7,870 12.7%

$35,380 25.7% $15,920 25.7%

$35,890 26% $16,150 26.1%

$18,140 13.2% $8,160 13.2%

$23,880 17.3% $10,740 17.3%

$7,000 5% $3,150 5%

$137,780 100% $61,990 100%

FALL 2013

SALES ($)

RETAIL STOCK (BOM)

RETAIL STOCK (EOM)

Plan % of Season

REDUCTIONS Plan ($)

PURCHASES AT RETAIL

FALL 2013 Last Year Sales (2012) % Planned Increase Planned Sales for 2013 Average Retail Stock Inventory Turnover Planned Reduction ($) Reduction % of Sales Initial Markup % OCT NOV DEC

SEASON TTL

Medium Store Buying Plan - Scottsdale, AZ:

SIX MONTH BUYING PLAN : SCOTTSDALE STORE FOCUS PRODUCT CATEGORY : OUTERWEAR

SALES ($)

Outerwear sales begin strong in New York due to back to school shoppers, early chills in the weather, and fashion forward consumers following the latest fall trends.

RETAIL STOCK

The planned sales slowly increase as the holiday shopping season approaches, and then quickly decrease

in January as the season comes to a close.

(BOM)

(EOM)

SEP

Plan % of Season

$2,870 5%

$3,440 6%

$12,050 21%

$13,780 24%

$14,350 25%

$10,910 19%

$57,400 100%

Plan

$8,320

$8,950

$34,950

$39,950

$31,570

$37,080

N/A

5.1%

5.7%

21.7%

24.8%

19.6%

23.1%

100%

$8,950

$34,960

$39,950

$31,570

$37,080

$40,000

N/A

4.7%

18.3%

20.2%

16.5%

19.4%

20.9%

100%

$830 8%

$1,560 15%

$2,290 22%

$2,600 25%

$1,560 15%

$10,400 100%

$4,330 4% $1,950 4%

$31,010 31.2% $13,950 31.2%

$18,610 18.7% $8,370 18.7%

$7,680 8% $3,460 8%

$22,460 22.7% $10,110 22.7%

$15,390 15.4% $6,920 15.4%

$99,480 100% $44,760 100%

% of Season Plan % of Season

REDUCTIONS Plan ($)

% of Season

Plan % of Season PURCHASES Plan AT COST % of Season PURCHASES AT RETAIL

$52,700 9% $57,400 $45,900 1.25 $10,300 18% 55% JAN

AUG

FALL 2013

In order to raise last yearâ&#x20AC;&#x2122;s net sales by our goal of 9% our planned net sales is $126.4k.

FALL 2013 Last Year Sales (2012) % Planned Increase Planned Sales for 2013 Average Retail Stock Inventory Turnover Planned Reduction ($) Reduction % of Sales Initial Markup % OCT NOV DEC

SEASON TTL

To complete the goal of raising net sales by 9%, the planned net sales for this average store is $57.4k. Outerwear sales start out very slow in Arizona, due to record heat at that time.

Sales scarcely move until the jump in October when it finally begins to cool off. Sales pick up in November and December for the holidays. January has a slight decrease, but sales are still fairly high because February is the coldest month here.

Small Store Buying Plan- Huntsville, AL:

SIX MONTH BUYING PLAN : HUNTSVILLE STORE FOCUS PRODUCT CATEGORY : OUTERWEAR

($)

RETAIL STOCK (BOM)

RETAIL STOCK (EOM)

SEP

Plan % of Season

$3,270 10%

$4,910 15%

$6,540 20%

$7,190 22%

$7,850 24%

$2,940 9%

$32,700 100%

Plan

$9,480

$12,750

$18,970

$20,860

$17,270

$10,010

N/A

% of Season

10.6%

14.3%

21.2%

23.3%

19.3%

11.3%

100%

$12,750

$18,970

$20,860

$17,270

$10,010

$40,000

N/A

10.6%

15.8%

17.4%

14.4%

8.3%

33.5%

100%

$470 8%

$890 15%

$1,300 22%

$1,480 25%

$890 15%

$5,900 100%

$7,001 19.1% $3,160 19.1%

$12,000 33% $5,400 33%

$9,320 25.5% $4,190 25.5%

$4,900 13.4% $2,200 13.4%

$2,060 6% $930 6%

$920 3% $506 3%

$36,201 100% $16,386 100%

Plan % of Season

REDUCTIONS Plan ($)

% of Season

Plan % of Season PURCHASES Plan AT COST % of Season PURCHASES AT RETAIL

$30,000 9% $32,700 $45,900 .71 $5,900 18% 55% JAN

AUG

FALL 2013

SALES

FALL 2013 Last Year Sales (2012) % Planned Increase Planned Sales for 2013 Average Retail Stock Inventory Turnover Planned Reduction ($) Reduction % of Sales Initial Markup % OCT NOV DEC

SEASON TTL

Anthropologie Entire Assortment:

FOCUS PRODUCT CATEGORY : FALL 2013 OUTERWEAR PLANNED PURCHASES, RETAIL : $8,769,000 AVERAGE RETAIL PRICE : $107

SIZES

In order to raise last year’s net sales by our goal of 9% our planned net sales is $32.7k.

Outerwear sales begin somewhat slowly in Huntsville due to the weather; the average temperature being in the eighties.

The planned sales slowly increase as the holiday shopping season approaches, and then quickly decrease in January as the season comes to a close.

Mark downs begin lightly but increase as back to school sales hit. By November there is a jump in reductions for Black Friday sales and the start of holiday shopping.

TOTAL (%) PURCHASES

PURCHASES (UNITS)

CLASSIFICATION TOTAL (%) PURCHASES PURCHASES AVG. RETAIL (UNITS)

2 4 6

12% 18% 25%

$1,052,280 $1,578,420 $2,192,250

9,841 14,761 20,502

Jackets Sweaters Blazers

25% 45% 10%

$2,192,250 $3,946,050 $876,900

20,500 36,900 8,200

$198 $98 $128

8 10

18% 15%

$1,578,420 $1,315,350

14,761 12,301

Vests Hoodies

5% 15%

$438,450 $1,315,350

4,100 12,300

$98 $68

12 Total

12% 100%

$1,052,280 $8,769,000

9,841 82,007

Total

100%

$8,769,000

82,000

Anthropologie’s target market is 28 to 45. Though she is generally fit, we believe that the average size for our target market is a size six.

Sparrow, Moth, and Elevenses are the main distributors for the store, which is why each brand holds 25 to 30 percent of the total outerwear section.

Dolan and t.la are feature brands for the store; therefore they only fill 10 percent each of the outerwear section.

Sweaters take up 45% of our outerwear category; you can wear them all year round.

VENDORS Sparrow Elevenses Moth Dolan tla Total

30% 25% 25% 10% 10% 100%