Bare Sole Pop-up Shop Bare Sole Inc. 5667 South St. Miami, FL 30485 BareSole@bare.com May, 25 2015 Javay Tucker Retail Management
Bob Kline 123 Doe Street Atlanta GA, 30309
Dear Mr. Kline Attached is the business plan for a pop-up retailer, the Bare Sole boutique. Bare Sole is a shoe boutique that specializes in larger shoe sizes for women. Bare Sole is interested in the Atlanta market with a temporary location. If the pop-up shop is a success Bare Sole will be relocating to a brick-and-mortar. I would like for you to consider Bare Sole for your shopping center, as we see it as a great fit.
We offer a variety of brands that can cater to any woman. The company’s mission is to offer the best quality shoes, at reasonable prices. We want to make every woman feel great, no matter what size shoe she is!
Thank you for your time and consideration. If you have any questions or wish to discuss this business plan further, please feel free to contact me. Cheers! Javay tucker
Executive Summary Business overview Bare Sole was incorporated by, Javay Tucker in the year 2015. Bare Sole is a 4- week long pop up retail shop in Atlanta, Ga. We offer select brands of shoes that range from sizes 9-12. The company will be located in Atlantic Station, and will be a stand-alone store. The store will be transportable and easy to assemble. Store hours will be between times of 10am-7pm. The Bare Sole customer will be women between ages 24-45, She is a working professional, who agrees that a great pair of shoes are a necessity, and can bring any outfit to life. Her style is simplistic, while letting her shoes do the talking. The company’s mission is to offer quality shoes, at reasonable prices. What sets Bare Sole apart from its competition are the wide range of shoe sizes we carry, specializing in sizes 9-12 and in larger quantities. Our job is to make every woman feel her absolute best by expressing herself through bare sole. Critical Success Factors ● Location is key in order for the business to succeed, certain goals and objectives must be met to run a well-oiled business. ● The company must understand our customer and what they want, this will determine inventory purchases. ● Creative usage of space is necessary as the company only has 300 sq. ft. we want our store to not feel cluttered. ● Keeping inventory neat and clean is a must to keep the store tidy and we must be aware of our usage of space. ● Hiring knowledgeable sales associates who understand the target market and are familiar with customer service and shoe sales.
The Management Team Bare Sole will be managed by one owner, Javay Tucker. Javay has been in retail for over 5 years and she is very knowledgeable about the retail/sales industry. She will also be obtaining a bachelor's degree in Fashion Marketing and Management. Bare Sole will also employ 2 part time associates to help with day- to- day operations of the pop-up shop. The Market I have seen success in many shoe retailers. If the store is well thought out and brought together appropriately, there should be no reason for failure. Working at a shoe retailer I have realized how difficult it is for customers to find their shoe size when they have very small feet or larger feet. Because Bare Sole sells sizes 9-12 they are able to find variety, style, and size they need when they come to us. The Bare Sole merchandise mix will be unique in that there are no retailers that offer the variety of shoe sizes, unique looks, at a great price. The company will be reaching its market through a targeted campaign using social media, web, and promotional events. This is explained in further detail in the Marketing Plan section below.
Management Plan Business Structure Bare Sole was incorporated in 2015 as a sole proprietorship. The company will be an unincorporated business owned and run by one individual, Javay Tucker, with no distinction between the owner and the business. I am entitled to all profits and am responsible for all business debts, losses, and liabilities. I must obtain the necessary licenses by the state for my pop up shop. Because myself and the business are one and the same, the business itself is not taxed separately- the sole proprietorship income is my income. Management Team The key personnel at Bare Sole are: Javay Tucker the owner/CEO, and 2 part- time sales representatives. Owner/CEO Javay tucker holds a Bachelor of Arts in fashion marketing and management from Savannah College of Art & Design. She possesses at least 5 years of retail/wholesale experience. She is responsible for a team of employees that ensure both the products and company marketing are in line with the brand message. Her education and background provide her with the skills needed to guide this company to success. Javay Tucker will be involved in overseeing all areas of forecasting and day -to-day operations. Sales Associates Bare Sole will employ two part-time sales associates at our Atlantic Station location. Sales associates will have a minimum of 1 years experience and will participate in a 3 day training program to become familiar with merchandise and company values/ policies. Their responsibilities will include displaying merchandise, maintaining the sales floor,
outstanding customer service, restocking merchandise, opening and closing procedures, and meeting sales goals. Each sales associate will work 15 hours per week. Advertisements will be placed on school job portals to locate candidates for these positions. Management Compensation The owner will receive no wages and will instead gain from net profits. Personnel Compensation Part-time sales associates will earn $9.00 per hour for 15 hours per week.
Key Advisors/Directors Bare Sole presently has no outside members on its board of directors. Communication Communication is key to the success of Bare Sole. We will provide written policies and procedures, as well as updates on marketing activities and new receipts of merchandise will be posted for all employees to review at work. Day to day the owner and associates will gather to discuss any issues, exciting news, sales goals, etc. Local Licenses and Permits Bare Sole will obtain the licensing needed for the pop-up shop in the state of Georgia. Merchandising/ Product Plan Merchandise and Product Plan
Bare Sole will carry an assortment of shoes. We will provide our customers with a one on one experience to help them find the right shoes to cater to their personal needs. We will supply our customers with hard to find merchandise that is exclusive to our pop-up shop. Unique Characteristics Bare Sole will carry unique shoes with quality styles. We offer a wider variety of sizes than most stores carry. We also will focus on providing a number of sizes for women sizes 9-12 to ensure they are always willing to find the shoe they want at our store. Bare sole merchandise assortment has a competitive edge because we pair higher end shoes with a reasonable price point shoes as well. Proposed Lines Bare Sole will carry 8 different product lines in one pop-up shop. Jeffrey Campbell, Dolce Vita, Steve Madden, Sam Edelman, Jessica Simpson, Seychelles, BC Footwear, and Via Spiga will be in our merchandise assortment. Proprietary Aspects Bare Sole proprietary aspects will be based off our merchandise carried in the store. The store will receive 100% of the selling price. Bare Sole has observed its location and surrounding retailers and no other retailer in our area carries the assortment that we have on hand. Four-Week Plan See Appendix. Merchandise Assortment
The merchandise classification breakdown will be as follows: SHOES
100%
Jeffrey Campbell
(12.5%)
Dolce Vita
(12.5%)
Steve Madden
(12.5%)
Sam Edelman
(12.5%)
Jessica Simpson
(12.5%)
Seychelles
(12.5%)
BC Footwear
(12.5%)
Via Spiga
(12.5%)
Vendors will include: Jeffrey Campbell Dolce Vita Steve Madden Sam Edelman Jessica Simpson Seychelles BC Footwear Via Spiga Markup/Markdown Policies When considering markdowns timing is everything for us. Our markdowns will be based on the rate of sale. There will be no markdowns, we plan to sell out of inventory at retail price. We will mark all of our merchandise up 60%. Our goal is to make a nice profit while still having reasonable prices for our customers. Brick and Mortar Location Plan
Physical Location Bare Sole physical location will be in Atlantic Station, 1380 Atlantic Dr. NW, Atlanta, GA 30363. It will be located in the center of Central Park.
Our location is key, and the
location that we have chosen to be in is in the center of Atlantic Station where there is foot traffic. Look of Pop-Up-Shop Bare Sole will be a portable pop-up shop. It will be made from wood and will imitate the look of a storage container. The store will be approximately 300 square feet. There will be no windows for the pop up shop, only an entrance. Bare Sole colors will be a cool blue and tan. Our objective is to keep the look of the pop-up shop simple, but interesting enough that customers are intrigued to come inside. Location Features The location that Bare Sole will be in is Atlantic Station. Atlantic Station is a shopping plaza with many different retailers. Atlantic Station also has restaurants and a movie theatre. All of these amenities will attract customers for Bare Sole. Target Market Consideration Bare Sole target market are women ages 24-45. She is a career driven woman. Our target market woman has an income of approximately $30,000-$55,000 annually. Bare Sole targets women of all cultures. She is single or married and with or without children. Leasehold Bare Sole have been in contact with the leasing team at Atlantic Station. We will be located in the Central Park area of Atlantic Station. All areas are prepared and cleaned upon our pop-up shop arrival. The pop-up shop is transportable so the efforts in setting it up and taking it down will be minimal. Signage
Bare Sole signage will be simple and clean. It will represent our brand by having our store’s logo. We will post a sign on the outside of our pop-up shop, as well as inside. Our signs colors will be a cool blue and tan colors. Web Plan Summary Web/Social Media For The 5 Weeks Over the course of 5 weeks Bare Sole will post 4 times a day. We will post between the times of 8:00am and 9:00pm. Our post will be separated throughout the day just as a reminder to our customers. Our post will contain images of our shoes and pop-up shop. We will also post quotes, travel pictures, behind the scene pictures to give our customers an insider view of what we do at Bare Sole.
Advertisements of the pop-up will also be
on the Bare Sole website. Internet Strategies Bare Sole will create a lookbook for the assortment of shoes we will carry in store. We will have a brand presence online, but we will not have an e-commerce site. Web Development and Hosting Web development and hosting will be supported by GoDaddy.com. We will own our domain and the owner of the store will be responsible for all web posting. This site has
already been developed in full. This site will only function as a blog and purchase point for our customers. Viewers will be able to view our full assortment before we launch the physical pop-up shop. Marketing Plan Industry Profile The shoe business is a huge pool with many retailers that provide customers with their needs and wants. Bare Sole plan is to separate ourselves by providing excellent customer service, appropriate shoe measuring, and extended sizes that most retailers can only provide upon requests. We will also give our customers that personable experience by taking them behind the scenes with us on social media. Now more than ever social media is a platform for growing a business and an excellent marketing strategy. We not only post and take customers behind the scenes, we will also interact with our customers. We plan to communicate with them by allowing them to tell us at Bare Sole what style of shoe they would like to see in our pop-up shop. Market Economics Factors According to Bizjournals.com more business are relocating to midtown Atlanta in and Around Atlantic Station, which is the destination point for Bare Sole’s pop-up shop. This relocation of businesses will help pave the way for more purchasing power to move to Atlantic Station. Bare Sole will be in the center of our direct market segment and this will drive sales exponentially. In and Around the Atlantic Station location 29% of
population are the “American Dream” families, this includes the upper middle age family mix. 16% of the population is made up of the “Bohemian Mix”, these customers are upper mid- middle age families. The “Urban Achievers” make up 31% of the population, these are the people we label young professionals. The remaining population is made up of wealthy older families at 7% and younger families at 4%. Market Analysis Summary Bare Sole will target young professionals, upper middle age women, and upper midmiddle age women. The Bare Sole woman will be between the ages of 24-45. Our woman enjoys shopping, but likes to buy quality pieces that she knows will last her a while. The woman that we seek likes to find a retailer that she loves and stick to it by being a loyal returning customer. The team at Bare Sole will provide our customer with the best service to keep her coming back. Customer Profile As mentioned before, The Bare Sole customer will be women between ages 24-45, She is a working professional, who agrees that a great pair of shoes are a necessity, and can bring any outfit to life. Her style is simplistic, while letting her shoes do the talking. The company’s mission is to offer the best quality shoes, at reasonable prices. What sets Bare Sole apart from its competition are the wide range of shoe sizes we carry, specializing in sizes 9-12 and in larger quantities. Our job is to make every woman feel her absolute best by expressing herself through bare sole. Competitive Analysis Bare Sole carries a specialty size shoe that most retailers only carry one unit of or none. We specifically cater to that woman with larger size feet. Women of larger size shoes almost always have to special order their shoes. Now with Bare Sole they do not have to.
Publicity & Promotional Events Before the opening of Bare sole we will host a launch party for all of our customers. Customers will be able to come inside the pop-up shop and preview our merchandise assortment but will not be able to purchase until the actual opening of the store. This will serve as a teaser for our customers, engage them, and entice them to come back. Our popup shop will be heavily promoted on the current website BareSole.com, as well as the social media pages. Financial Plan Pricing: Wholesale: Jeffrey Campbell
$70
Dolce Vita
$35
$60
$55
$45
Steve Madden Sam Edelman Jessica Simpson Seychelles
$30
BC Footwear
$30
Via Spiga
$75
Retail: Jeffrey Campbell
$112
Dolce Vita
$56
Steve Madden
$96
Sam Edelman
$88
Jessica Simpson
$72
Seychelles
$48
BC Footwear
$48
Via Spiga
$120
Price List Rent & design of pop-up shop
$1,500
4 week rental space in Atlantic Station
$1200
In store fixtures
$200
Payroll-2 employees for 4 weeks @ $9 hr 30 hrs a week
$1,080
Insurance
$175
Utilities
$150
Office Expenses: 2 ipads used for checkout
$400
Permits/Business license
$125
Total: $4,830 Cash Requirements All funds will be sponsored by the owner from her savings for the business. Break-Even Analysis Bare Sole will break even at $3,090
Projected Financials With a markup of 60%, and bringing in two shipments, one shipment the week of the launch, with 22units of each brand, and the second shipment week 2, with 11units of each brand well will break even at $3090. Our total expenses were $4,830. Over the course of 4 weeks we made $7,920. Bare Sole did not take out any loans, all funds were provided by the owner. Great way to jump-start the business. Retail Operations Market Penetration Customers will be reached through social media. Bare sole will post updates, promotions, images, behind the scenes, to ensure our customers that they are appreciated. We want them to feel as if they are apart of the team. In the pop-up shop sales associates
will cater to our customers every need and be sure that they are satisfied with their purchases. All sales associates will be knowledgeable and well trained. We will provide an exciting and seamless experience for our customers. Brand Strategy Bare Sole will be heavily promoted through social media and our blog. Closer to the time of the pop-up shop we will be in local newspapers and magazines. We will directly engage with our customers on a personal level and this will make them loyal customers. Advertising and Promotion Advertising will be done through social media and our online blog. We will promote through social media weekly and post frequently throughout the day, but not enough to bombard our customers timeline. We want to remind them of our brand, but not overload them with unnecessary posts. We will also be featured in Atlanta Magazine and Jezebel magazine. Upon our arrival Creative Loafing will feature Bare Sole in their newspaper. Sales Strategy At Bare Sole our goal is to be persistent with our selling, but not pushy. We will set weekly sales goals and aim to try to reach them. We will tend to our customers regularly and continue to post via social media and on our blog. Bibliography http://retail.about.com/library/bl_markup_calc.htm http://www.claritas.com/MyBestSegments/Default.jsp https://www.sba.gov/