A Six Month Buying Plan Hannah Pleasant William Fancher Jenna Hutson Janis Shane
Table of Contents Company Profile Mission About History Brand Identity Scope & Size Expansion Omni-Channel Social Media Customer Profile General Jessica Reynolds Isabel Cooper Warren Costello Nina and George Simmons SWOT Strengths Weaknesses Opportunities Threats
Competitors Competitors Strengths Men's Contemporary Trends Fur/Shearling Patterns/Print Athleisure Colors Lifestyle Fashion Conscious Casual Chic Technology Personal Styling Artificial Intelligence Buying Plans Corporate NYC Flagship Bal Harbour Assortment Opportunity
COMPANY PROFILE
MISSION “Provide customers with the finest quality fashion goods that embodies superior taste and elegance, equipped with outstanding customer service to cater to modern consumers“
ABOUT Founders Horace Saks and Bernard Gimbel embarked on their dream to create a unique specialty store that would become famous for its fashionable and gracious living. On September 15,1924 the opening of the first Saks Fifth Avenue store, located between 49th and 50th street on the upper Fifth Avenue in New York was opened. Adam Gimbel, a cousin of Bernard led in establishing the Saks empire expanding store openings in various locations from coast to coast, Saks Fifth Avenue became one of the largest retailers and still holds true to that today. The company’s expansion Online, outlet stores, personal shopping services and exclusive featured products makes Saks Fifth a specialty retailer attracting both loyal and new customers.
Horace Saks
Bernard Gimbel
Adam Gimbel
HISTORY 1924
September 15th first Saks store opening
1926
Adam Gimbel becomes president
1969
1972-1989
Adam Gimbel 20 new stores open up retires, leaving legacy across U.S.
2000 E-commerce becomes available
1995
1996
Outlet store Off Fifth Saks becomes a public company emerges under the NYSE as SKS
2013 Bought by Hudson Bay
BRAND IDENTITY Saks Fifth Avenue is an established department store which embodies the traditions of old New York and combines it with a modern point of view. Three words that exemplify Saks fifth Avenue as a whole are Sophisticated, Contemporary, and Luxury.
Scope and Size $4 Billion Sales Annually 20% E-Commerce 41 Fifth Avenue Stores 71 Off Fifth Locations 2 Canadian Locations
BRICK & MORTAR EXPANSIONS New York City The New York flagship store is currently undergoing a $250 million revamping which will include a face-lift and more amenities.
Examples of these Amenities will be: A new restaurant called l’Avenue A Bar in the Shoe Department A Juice Bar in Contemporary Department Full Service Salon Three new stores will be opening in NYC Including a second 85,000 sq. ft. flagship store opening Summer 2016 A Men’s store opening in Brookfield Place Establishing first Saks Off Fifth in the city
Further Expansion Greenwich, Connecticut: Store exclusive to jewelery Another exclusive to sportswear Other locations planned: Canada Houston, Texas Miami, Florida
OMNICHANNEL RETAILING Saks Fifth Avenue Website Traditional e-commerce site Includes technology developed by SalesFloor Inc which connects sales associates with customers online for a personalized shopping experience
Saks Fifth Avenue App Developing as a part of their omnichannel retailing
An example of the Interface of the Saks Fifth Avenue App
SOCIAL MEDIA
Examples of the Saks Fifth Avenue Twitter, Instagram, Facebook, Tumblr, and Pinterest
CUSTOMER PROFILES
GENERAL CUSTOMER TRAITS Demographics Age range: 25-55 Education: College graduate Income range: $75,000 and up
VALS
Innovators (15%)
Experiencers (22.5%)
Thinkers (22.5%) Achievers (40%)
JESSICA REYNOLDS Jessica Reynolds resides in Greenwich, Connecticut with her husband, Peter, and 3 children, Margaret, Reagan and Paul. Peter and Jessica were college sweethearts that met at UNC Chapel Hill. Jessica loves animals and enjoys volunteering at the local animal shelter on the weekends. Jessica frequently participates in a women’s book club and her favorite author is Jane Austen. She received a Boston Terrier named Gus for her 40th birthday that the whole family adores. Jessica loves to stay active and is an avid runner and is currently training for a marathon. Saks Fifth Avenue and the Off Fifth Outlets are some of her favorite places to shop because she can find a variety of designer goods for her and the whole family.
ISABEL COOPER Isabel Cooper is an eccentric 27 year old woman who lives in Los Angeles, California. She comes from a wealthy upper class family who work in the film industry. She lives an active lifestyle and enjoys hiking and practicing yoga. Isabel is a frequent customer at Clover, a popular juice bar near her gallery. Whenever she has the time she likes to go shopping at local health stores. Despite her healthy lifestyle she cannot resist a freshly baked donut now and again. She only has one tattoo which is of a small butterfly on her ankle. Saks Fifth Avenue in LA is Isabel’s favorite store because of the selection of contemporary clothes .
WARREN COSTELLO Warren Costello is a 32 year old single man currently residing in Chicago, Illinois. Warren is an intellectual who has spent the majority of his young adult life advancing within the publishing world. He graduates from Yale University with a degree in English literature. Recently, Warren has been focused on a promotion and cross-country move to Seattle, Warren attended a Taylor Swift concert with his niece, Avery, for her 12th birthday and he enjoyed it much more than he thought that he would. He has a cat named Ernest. Warren is a stylish man and appreciates that Saks Fifth Avenue offers him the opportunity to indulge in both professional and contemporary men’s fashions. He especially enjoys shopping online at Saks.com.
NINA & GEORGE SIMMONS Nina and George Simmons are a couple who are currently settled in London, England. They met while attending Cambridge University. Nina is 37 years old while George is 34 and they have been married for 12 years. Together they have traveled to three different continents and 17 countries. Some hobbies that they have while traveling are fine dining and attending concerts. Nina is a PR consultant and George works for an Advertising agency. As a result of their double income and both having high profile jobs, they are an upper class couple. Nina and George are both fashionable and enjoy shopping at the Saks Flagship store while in New York for contemporary and high fashion choices.
SWOT ANALYSIS
STRENGTHS Real Estate portfolio Prestigious portfolio of brands High quality of customer service Known for high quality products Men’s store and exclusive products Well known and established brand since 1898 Private labels merchandise across product categories High customer loyalty and established rewards program Strong omni-channel marketing including growing e-commerce Taking steps to become more technologically advanced to cater to customer needs
WEAKNESSES Now opening stores at a rapid pace after Hudson Bay acquisition Under performing stores in portfolio that must be addressed Increasing growth in extremely crowded market Closed almost 20 stores after recession Brand identity is lacking in clarity High turnover at executive level
Jennifer De Winter
Marigay Mckee
Marc Metrick
Chief Merchant at Saks from 2013-2015
President at Saks from 2014-2015
Replaced Mckee at Saks from January 2015-Present
OPPORTUNITIES Saks recent investment in men’s specific stores will give them an advantage in the newly redeveloped men’s fashion market Strength of private product labels, the opportunity to continue developing that market Saks can obtain a younger audience through online based styling, editorial, and shopping Leading position in e-commerce development including obtaining Gilt Group Saks has the opportunity to expand into the Canadian market Building market share with millennial consumers Opening of 2nd flagship store in NY Continued development of omni channel Renovation of NY Flagship store
THREATS Competitor Nordstrom to open flagship store in Manhattan, opening in 2018 Nordstrom also opening a smaller store dedicated to menswear and shoes Decline in luxury market
COMPETITORS
COMPETITOR STRENGTHS
NEIMAN MARCUS Founded in 1907 Customer loyalty Strong luxury brand portfolio
Barneys New York Strong NY Presence Attractive Visual Displays Exclusive Partnerships & Collabs
Bloomingdales Innovation Online Growth Loyal Customers Strong Brand Equity
Farfetch Access to over 1000 labels Merchandise distributed from 400 independent boutiques globally
Nordstrom Strong Customer Service Loyal & knowledgeable Employees Efficient Supply Chain
Mr Porter Weekly online style magazine Products from over 300 brands New Products available every Tuesday & Friday Worldwide express shipping to over 170 countries
Bergdorf Goodman Prime New York Location Incircle rewards program Standalone Men’s Luxury Store
MEN'S CONTEMPORARY As a buying team we chose the product category of Men’s Contemporary clothing. This category is currently experiencing growth within the luxury market and therefore provides Saks Fifth Avenue with the opportunity to strengthen their Men’s department.
TRENDS
FUR/SHEARLING
Opulent fashion has found a home in fashion, once again. Fall 2016, furs made a roaring comeback in coats, tops, pants, and shoes. This particular trend pays homage to fantastical masculinity, providing a sense of luxury and empowerment previously missing from men’s fashion. This trend will have an important impact on the buying team for Fall 2016, as it presents a new understanding of men’s craving for luxury items, as well as textiles, that have not been offered in the Men’s market for many years. Fur will be an important aspect for men’s coats, especially, in the coming Fall 2016 season.
PATTERNS/PRINTS Patterns and prints are presented in a variety of different styles, such as plaids, florals, and other abstract designs. These prints were seen all over the runway and transfer very well into street wear. Bold patterns will bridge the gap between conservative and contemporary menswear, bringing the average man into a more fashion centric mindset. These patterns translate well from the runway as statement tees for casual looks for the Fall 2016 season.
ATHLEISURE Men have always been keen on athletic wear, and with athleisure as a trend, athletic apparel goes beyond the gym. Athleisure allows men to bring the cool comfortable aesthetic of athletic wear in everyday styling. Pieces such as jackets, shirts and pants are cross functional, bringing a business casual vibe to everyday wear. Athleisure clothing is crucial for the Fall 2016 season as men begin to realize that they can maintain comfort while elevating their wardrobe.
KEY COLORS Color is an important aspect when considering buying for Fall 2016. Colors like rust, army green, navy blue, and grey have popped up all over the Fall 2016 runways. These colors exude a sense of rugged masculinity that will have an immediate impact on the way men dress for Fall 2016. While these colors may be popular in this season, many of the colors are also considered staple colors for men, which will impact how men are dressing for Fall 2016. These colors will also assist in fusing the previously conservative nature of men’s clothing with new innovative contemporary design elements. The popular colors of the season are rich in visual flavor and provide simplistic outfits with a bold statement.
LIFESTYLE
FASHION CONSCIOUS Modern men are beginning to leave behind conventional attitudes towards everyday fashion. They are beginning to be aware of changing trends in relation to fashion. Men are beginning to use fashion as a form of self-expression, escaping previous notions that looking good should be left to the women.
CASUAL CHIC As men’s fashion becomes more attainable and casual, the workplace has begun to evolve. Men are leaving the suit-and-tie behind for more contemporary choices. Businesses are embracing a more relaxed dress code in the office, allowing men to take off their ties and look to more casual choices.
TECHNOLOGY
PERSONAL STYLING
Technology is taking away what men hate the most about fashion: shopping. With services like Trunk Club, men have been afforded more opportunities to create a curated wardrobe with the assistance of a styling professional. As Saks Fifth Avenue continues to develop their omni-channel retailing experience, this is a market opportunity that can evolve, changing how men shop for fashion with Saks.
ARTIFICIAL INTELLIGENCE As fashion and technology become more integrated, artificial intelligence development has begun to surface for everyday retailers. These technologies can assist in fine-tuning the omni-channel experience, eliminating all uncertainties for the fashion designer, buyer, and consumer.
BUYING PLANS
CORPORATE BUYING PLAN
NY FLAGSHIP BUYING PLAN
BAL HARBOUR BUYING PLAN
ASSORTMENT PLAN
OPPORTUNITY FOR SAKS Ultimately, we believe this buying plan could be an opportunity for Saks Fifth Avenue. Millennials are a driving force in the marketplace, acting as a main source of fuel to the growth of men’s fashion. Men’s Contemporary is one of the fastest growing markets within the industry as men continue to become more self-aware and fashion conscious. As a buying team we have made conservative growth predictions in regards to expanding men’s contemporary fashion in stores. These factors will greatly impact the pending fall season which is likely to result in further growth than predicted.