6 Month Buying Plan Hayley Larson
FASM 245 - Spring 2014 Professor Alessandro Cannata
Paficic sunwear santa monica, CA. St. Augustine, FL. Middletown, NY. Objective Pacific Sunwear is a fast growing specialty retailer that sells casual apparel, footwear, and accessories designed for teenagers and young adults. The objective of this book was to think as a pacific sunwear buyer and create three buying plans for three seperate pacsun locations, i chose santa Monica, cA., St. Augustine, FL., and Middletown, NY. This plan was created by analyzing target markets, customer profiles, demographics, competitive shopping analysis, trend forecasts and estimated merchandise and financial plans.
FASM 245 - Pacific Sunwear - Street Fashion - 6 Month Buying Plan
Table of Contents 04 06 08 10 12 14 17 21 24 29 32 35 42 43 44
History philosophy and mission scope and size strengths products Brands merchandising strategy and pricing customer profile competition analysis market trends entire 6 month plan assortment plan santa monica plan st. augustine plan middletown plan
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history
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Pacific Sunwear began in 1979. we started as a surf shop, broadened our merchandise to include casual young men’s apparel in August 1982, and began retailing young women’s apparel and footwear in 1995. the company expanded vigorously and now includes a combination of branded and proprietary casual apparel, accessories and footwear designed to appeal to teens and young adults. We now have over 600 stores across the country.
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philosophy and mission
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We are dedicated to embracing the amazing diversity and unique sense of adventure that California offers at every turn based on this vast, yet attainable state. For over 30 years we’ve called California our home, with our offices located in the sundrenched heart of Orange County. With over 600 stores across the country, we strive to embrace and deliver all aspects of the California lifestyle to our customers, leaving the possibilities limitless. We are Pacsun, and we are you. Our mission is to provide our customers with a compelling product assortment and great shopping experience that together highlight a premium mix of both branded and proprietary merchandise that speak to the action sports, fashion and music influences of the California lifestyle.
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scope and size
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As of February 1, 2014, we leased and operated 618 stores in each of the 50 states and Puerto Rico, comprised of 2.4 million total square feet. Nearly all the company’s stores are located in regional malls. Our executive offices are located at: 3450 East Miraloma Avenue, Anaheim, California, 92806 our telephone number is:( 714) 414-4000 our website address is: www.pacsun.com.
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strengths
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strengths cost advantage online growth loyal customers strong brand equity pricing strong emphasis on pacsun brands
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products
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Womens:
mens:
Dresses and rompers skirts shorts swimwear tees and tanks shirts and blouses sweatshirts and hoodies sweaters jackets jeans pants activewear shoes jewelry accessories
t-shirts tank tops shirts board shorts shorts joggers jeans pants jerseys long sleeve shirts polo shirts hoodies crew fleece jackets Shoes accessories
Mens accessories: shoes and sneakers sandals hats sunglasses watches socks and boxers backpacks and bags belts and wallets outdoors and tech cologne
woMens accessories: hats beanies sunglasses hair accessories handbags and backpacks tech accessories scarves tights and socks
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brands
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MEns BRands AsAP Rocky AsAP Worldwide Adidas Afends altamont aMBIG AMBSN Arbor Arnette Ashbury Bad Acid Beats by Dre Been Trill Billabong Bioworld Black Scale Brixton Brothers Marshall Bullhead Denim Co. Burton California Love Civil Converse Crooks Castles
culpo DC Shoes Diamond Supply Co. Electric Emerica Etnies Ezekiel Famous S/S FIFTH SUN Fourstar Fox Fyasko Globe Hobie House of Marley Hurley Issue No.1 Junk Food JUS LIV Katin Kennedy LATHC Levi’s Lifetime
lira Lost Matix MAUI & SONS Mishka Modern Amusement Moskova Native Neff New Balance Nike SB O’Neill Oakley Odd Future On The Byas Original Chuck PacSun Poler Proof Quiksilver Reef Rhythm Riot Society Rip Curl
Ripple Junction Rook Rusty RVCA Sabre Sanuk SLC Los Angeles Spy Stance SUPERbrand Tailgate Clothing Tavik The Hundreds The Mountain Us Vs.Them Vanguard Vans Vestal Visual by Van Styles Volcom Wellen WeSC Young & Reckless
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woMEns BRands Afends Beach Riot Been Trill Billabong Black Poppy Body Glove Bullhead Denim Co. Burton Cameo Cheap Monday Civil Converse Dakine Diamond Supply Co. Doe Eidon Element Evil Twin
Finders Keepers Fox Hips and Hair Hurley Insight JanSport Kandy Wrappers Kendall & Kylie Kim & Zozi Kirra LA Hearts Lilu Lira Local Celebrity Lush Mandalynn Married to the Mob
Me To We Mia MinkPink Morning Warrior Naven Neff Nollie O’Neill Odd Future Petals and Peacocks Quiksilver Qupid Reason Reef Rehab Riot Society Rip Curl
Roxy RVCA Saltwater Gypsy Some Days Lovin StyleStalker Tavik This is a Love Song Understar United Couture Us Vs.Them Vans Volcom With Love from California Workshop Young & Reckless Young Romantics Zero Gravity
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merchandising strategy and pricing
18 Our stores offer an assortment of casual apparel, footwear and related accessories for young men and women, with the goal of being viewed by our customers as the most desired retailer for their lifestyle. Out of our competitiors we price higher on the price/Quality matrix, we carry 73 women’s Brands and 95 men’s brands. We have 15 women’s categories and 14 men’s clothing categories and 10 men’s accessories categories. The following tables set forth our merchandise assortment as a percentage of net sales for 2013: 1. Denim represents a significant percentage of our total sales, accounting for 13% 17% and 18% of total sales in fiscal 2013, Denim sales were partially offset by sales in casual pants and other bottoms categories. 2. While non-apparel now represents 15% of net sales for fiscal 2013, footwear sales, particularly in men’s, continued to expand, increasing 18%. while women’s decreased 14% as compared to fiscal 2012. 3. Branded merchandise accounted for approximately 51% of total net sales in fiscal 2013. 4. Our proprietary brand merchandise accounted for approximately 49% of total net sales in fiscal 2013.
FASM 245 - Pacific Sunwear - Street Fashion - 6 Month Buying Plan
19 Women’s clothing categories include:
Men’s Clothing and Accessories categories Include:
Dresses and rompers skirts shorts swimwear tees and tanks shirts and blouses sweatshirts and hoodies sweaters jackets jeans pants activewear shoes jewlery accessories
t-shirts tank tops shirts board shorts shorts joggers jeans pants jerseys long sleeve shirts polo shirts hoodies crew fleece jackets shoes and sneakers sandals hats sunglasses watches socks and boxers backpacks and bags belts and wallets outdoors and tech cologne
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Fiscal Years 2013 2012 2011 Men’s apparel 46% 48% 49% women’s apparel 39% 37% 37% footwear and accessories 15% 15% 14% total 100% 100% 100%
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customer profiles
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Kelley Johnson is a 20 year old college student that was raised in and still lives in Santa Monica and lives a typical college lifestyle and spends much of her time on the beach and hanging out with friends. She is a surfer and skater and spends all of her free time on the beach. She lives off campus, with her parents, but is studying at Santa Monica College and is studying graphic design. Tuition for two semesters is $7,800 and then you add roughly $828 on textbooks a year. She has a part time job working as a waitress on the boardwalk so during tourist seasons she is making decent tips and even when tourist season dies down she gets local customers. She frequently shops online but enjoys shopping at the mall when she has the time. The stores she shops at are stores like Zumies, American Eagle, Journeys, PacSun, and Tilly’s.
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Sarah Marbles is a 24-year-old college graduate who runs a street fashion blog and is a manager at a retail store and works weekends as a waitress in St. Augustine, Florida. She enjoys spending time outside running, surfing, shopping, hanging out with friends and searching the streets for hot, new trends. She lives in a two bedroom apartment with a roommate and the rent is $900 a month plus utilities. She has a loan payment from school that is $200 a month. Her budget is limited but she still keeps up with the latest trends because she shops at stores such as PacSun and Tilly’s that are high quality goods that come in a variety of price ranges. She is more of a brick-and-mortar shopper because she likes to be able to try the items on in the store and see how an outfit would look together. She keeps an eye on what goes down the runway to influence her blog but she also looks at what other street style bloggers are wearing and what is seen on the streets of fashion weeks and looks for these trends in the stores that she frequents.
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competition analysis
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Philosophy zumiez loves and supports the skate and snow industries that their customers live and ride for. With the success of their retail Zumiez shops, Zumiez has opened our online store for the world to experience, ZUMIEZ.COM! We want our customers to seek us, either shopping from their recliner at home or roaming through their favorite Zumiez store location. So shop, download and explore the world of Zumiez! Zumiez’s young customers like to zoom. The fast-growing retailer outfits action sports enthusiasts, offering apparel, footwear, accessories, and sports equipment for 12-to-24-year-olds who enjoy board sports, BMX biking, and surfing. It stocks such brands as Billabong, Burton, Quiksilver, Vans, and Spy Optic, as well as private-label goods. Zumiez was founded in 1978 by chairman Thomas Campion. history zumiez made their debut in the Seattle area in 1978, with a single store location at Northgate Mall. Now zumiez has grown, and currently has over 400 retail stores that reach across the United States. zumiez provides you with cutting edge clothing, footwear, accessories, DVDs, hard goods for skate and snow for active lifestyles. Everything zumiez does revolves around the customer—you are the heart of their company. Mission zumiez is a leading multi-channel specialty retailer of action sports related apparel, footwear, accessories and hardgoods, focusing on skateboarding, snowboarding, surfing, motocross and BMX for young men and women. At February 1, 2014, they operated 551 stores; 511 in the United States, 28 in Canada and 12 in Europe. they operate under the names Zumiez and Blue Tomato. Additionally, we operate ecommerce websites at www.zumiez.com and www.blue-tomato.com. zumiez supports the action sports lifestyle and promote our brand through a multi-faceted marketing approach that is designed to integrate their brand image with their customers’ activities and interests. This approach, combined with their differentiated merchandising strategy, store design, comprehensive training programs and passionate employees, allows zumiez to provide an experience for their customers that they believe is consistent with their attitudes, fashion tastes and identities.
FASM 245 - Pacific Sunwear - Street Fashion - 6 Month Buying Plan
26 Phiilosophy Amrecian Eagle Outfitters has a wide range of target market. Their target market ranges from children all the way to adults based upon the fact that customers like to stay trendy in their own ways. history It was once a purveyor of outdoor gear, but American Eagle Outfitters now feathers its nest with jeans and polos. The mall-based retailer sells denim and other casual apparel and accessories (top categories include jeans, t-shirts, bras, and panties) aimed at young men and women ages 1525. American Eagle Outfitters only carreis the American Eagle brand and Aerie which is still an american eagle brand. however American Eagle outfitters carries each of the clothing items that I am choosing to carry. American Eagle is positioned in the middle of the price/quality matrix and is below zumiez and pacsun, but is above tilly’s. american eagle typically prices their items at a reasonable price range and doesn’t frequently take markdowns.
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Phiilosophy Mission Tilly’s is a leading specialty retailer in the action sports industry selling Tilly’s is a fast-growing destination specialty retailer of West Coast inspired clothing, shoes, and accessories. they opened their first store in Southern apparel, footwear and accessories. Tilly’s believes they bring together an California in 1982 and have grown to 198 stores in 32 states. Tilly’s offers one unparalleled selection of the most sought-after brands rooted in action sports, of the largest assortments of brands and merchandise from the top players in music, art and fashion. their stores are designed to be a seamless extension of the surf, skate, motocross and lifestyle apparel industries available both in their teen and young adult consumers’ lifestyles with a balance of guys and stores and online at tillys.com. their knowledge of ever-evolving trends and juniors merchandise in a stimulating environment. they believe their success their access to the most popular brands allows them to have an unparalleled across a variety of real estate venues and geographies in the United States assortment of merchandise. their selection and the look and feel of their stores demonstrates Tilly’s portability. their motto “If it’s not here…it’s not happening” are distinct and create a shopping experience that is unique, creative and fun. exemplifies their goal to serve as a destination for the latest, most relevant merchandise and brands important to their customers. they also sell their history products through their e-commerce website, www.tillys. their West Coast heritage dates back to 1982 when our founders, Hezy Shaked and Tilly Levine, opened their first store in Orange County, California. Over the last few years, they have demonstrated an ability to grow rapidly, having more than doubled their store count while entering many new markets. During this time they have made significant investments in infrastructure and systems to support their recent and long-term growth. they believe their team’s passion for the West Coast inspired and action sports lifestyle, sense of urgency and pursuit of excellence enables Tilly’s to consistently deliver a superior customer experience and positions them to successfully execute their long-term growth strategy..
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Price/Quality Matrix
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Trend MoodBoard
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Crop tops are here to stay, taking over runway collections and are being seen all over street style fashion blogs. Because they are so versitile with dressy, lacey, t-shirt, and bralette crop tops available there is a crop top for everyone. High rise shorts have been on the rise as well, what used to be seen as the “mom� style of bottoms is now everywhere you look. because they cinch in at the natural waist they give a more flattering silhouette to almost every woman.
Rompers are a street style that seems to have become popular over night but has taken the street fashion world by storm. there are rompers for every occasion and are easy to style. It offers the ease of wearing bottoms without the hassle of needing to pick out a whole outfit. Maxi dresses are perfect for every body type, they elongate the body and hide trouble areas. Maxi dresses are easy to style and provide an easy cover up to wear to the beach and can be transformed into eveningwear.
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Whole 6 Month Buying Plan
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Spring/Summer 2014
For this buying plan, the focus is on women’s street fashion clothing due to the bottom up megatrend. The majority of purchases will be made in the beginning of the season because our customers want the newest trends and will be innovators. Our sales have had an average yearly increase of 3% so we have predicted our next years sales based on this information. Reductions are rarely taken in our stores and usually happen at the end of a season so the majority of planned markdowns are planned for the end of the season.
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Assortment Plan- whole
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For my assortment plan, i chose to stick with brands that the company already deals with, I chose a combination of branded brands and proprietary brands. the branded merchandise sells 2% better than the proprietary brands and is priced a little bit higher, this means they got a bit more budget. my price points are high but stick to what the brands are currently priced at and my sizing is focused on small, medium, and large. I focused on what is currently trending in street fashion for spring and summer.
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Rompers
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crop tops
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maxi dress
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high rise shorts
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6 month Buying plan-Select Stores
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Middletown, NY In spring/summer 2014 in our middletown, New York store we plan to see 11% of our total sales, roughly $6,648,918. Our planned reductions will be 18% and our stock turnover rate will be 2.2. with a planned initial markup of 75.02%. the majority of our sales will take place early on in the season because our new york consumers are trend setters and want new fashions as soon as they hit the market. this means most of our markdowns need to be taken at the end of the season to move left over merchandise. our new york store does very well and we hope to see sales keep increasing.
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St. Augustine, fl In spring/summer 2014 in our ST. Augustine, Florida store we plan to see 8% of our total sales, roughly $4,835,576.87. Our planned reductions will be 18% and our stock turnover rate will be 2.2 with a planned initial markup of 75.02%. for our st. augustine store the trends will follow the majority of the overall market sales and reductions because we don’t rely on tourist sales and our st. augustine customers will buy more with the change of the seasons. the majority of our reductions will take place in july because our customers in this area don’t buy at the end of the season they prefer to buy at the peak of the season.
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santa monica, ca In spring/summer 2014 in our santa Monica, California store we plan to see 9% of our total sales, roughly $5,440,023.98. Our planned reductions will be 18% and our stock turnover rate will be 2.2. with a planned initial markup of 75.02%. the majority of our sales will be mid-summer due to tourist activity and the weather will encourage young adults to purchse clothing fitting for the weather. the majority of our markdowns take place at the end of the season to move out old merchandise to bring in new exciting merchandise.
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sources pacsun.com zumiez.com americaneagle.com tillys.com hoovers.com FASM 245 - Pacific Sunwear - Street Fashion - 6 Month Buying Plan
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