PILAR’S BOUTIQUE BUSINESS PLAN
Contents ITEM
PAGE Contents
2
Overview & Legal
3
Banking
3
Business Description
4
Our Market
5
Major Suppliers
6
Pricing
6
Primary Merchandise Categories and Pricepoints
7
Services
8
Competition
9
SWOT Situation Analysis
10
Marketing & Communications
12
Office and Warehouse
13
The Store
14
Lease Arrangements
15
Equipment & Fixtures
16
Merchandise Presentation
16
Human Resources
17
Financial Summary
19
Appendices
Pilar’s
I
Capital Expense Plan
II
Operating Budget
III
Merchandising Plan
IV
Architectural perspective
V
Store Design Interior perspectives
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08/02/2013
Overview & Legal Legal Name: Trading Name (DBA): Business Address:
Chicas Wear Ltd. Pilar’s 1836 Lonsdale Ave.
Phone/Fax: e-mail:
North Vancouver, BC, V7M 2J9 604-922-1204 cell: 604-780-8631 pilarreca@shaw.ca
Business Number Business License PST # GST # Importer # COST + TAXES + PERMIT + CARGO CA # needed (Identifies the manufacturer). Industry Canada Export License from Peru. Copy not accepted, must be original document which should include quota to export. Customs: Duty Rate: 17% GST on clothes: 7% Value + 17% Total x 7% Under $500.00 or 16 pieces permits are not needed. Up to $1,000 = $10.00 flat fee + completing application of $10.00 $1,000 to $5,000 = $14.00 + completing application of $10.00
Banking Our bank of record is:
Pilar’s
Scotiabank West Vancouver Branch
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Business Description Pilar’s is an independent retailer of women casual apparel. It is a new store serving contemporary, style conscious and ‘fun / social’ women … the young and the young at heart. It will be a great place to find new, unique fashions as well as wanted fashion brands for a fun evening out or to express their fashion savvy with new, unique and interesting clothing before ‘everyone’ is wearing them. They that will lead without being too ‘far out’ ... the latest trends from fashion markets around the world at modest pricepoints. We envision being the primary source for unique dressy casual fashions for women on the North Shore of Vancouver. Serving a young 15-24 year old and young thinking 2544 year old market with designs that reflect a spice for life and a socially active lifestyle. From our first store on Lonsdale, in North Vancouver, our mission is to bring our young and young thinking customers a number of niche labels from Europe, San Paulo and California (among others), before they are on the mainstream fashion radar. Initially, we plan to serve to the Vancouver market; targeting the North Shore and women with sizes focused in the small to medium size range. We will look to expand with an electronic presence in year 2 and address the central Vancouver market within the first 5 years. As business develops, the company plans to launch its own exclusive in-house private label brand: “Divine Soul” We also plan to encourage a ‘gift’ business with the friends, families and significant others in their relationships.
Management & Support Principal Maria del Pilar Buse – Director and Owner Support Services Roger Griffin – Griffin & Associates, Retail Marketing & Strategic Planning Heddy Bing – Visual Display Services, Merchandising & Fixturing Ron Bruce – BC Logic, POS systems and technical support Tom Orange – Elite Retail Solutions, Security Systems Marcelo Caula - Architect Tom Russell – Pryke, Lambert, Heathley & Russell, Legal ?? - Accounting & Financial services
Pilar’s
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Our Market Clothing is a basic need. Fashion is changing rapidly and our customers want to be updated all the time on new trends and new looks that will fit their dynamic lifestyles. Our niche is directed to medium and high end household incomes which abound on the North Shore. To start the company plans to try the market by offering just a few of the high end products and with sales history will adjust the offered merchandise, depending on how our customers respond. The North Shore, our primary target market area is made up of some 56,000 households in North Vancouver and West Vancouver. Based on 2001 Demographics (which we note will be lower in absolute and relative values and numbers), the area is made up of: Total Population Females 15 - 44 Education 19 yrs + Median Family Income Average Dwelling Value
124,000 36,000 65% post secondary education NV > $76,500 WV > $94,900 NV > $450,000 WV > $750,000
Note: North Shore 25-60 Year old women spend an average of $3,384 per year on women’s and girls fashions.
Our store is located on Lonsdale Avenue, a changing commercial area. At the moment its active daily traffic is driven by restaurants, several banks, London Drugs, Blockbuster Video, Extra Foods and a variety of coffee shops are located in this strip, as well as a couple of clothing boutiques. Our primary target market includes younger women and students living at home and studying at high school, college and university in the 15-30 age group and those newly in the work force. Typically, they are living at home and have fairly high disposable incomes from allowances or part time jobs. They are looking to express themselves through stylish fun clothing, are fashion oriented, physically fit and mentally enjoy a healthy orientation. We are also targeting the changing population that is moving in to the many new buildings in the area range in age from 25 and 44, with relatively good household incomes. These are often young working women (many professional) and non- working women / housewives who enjoy expressing their leisure and fun times in distinctive and stylish clothing. They are frequently co-habiting or married and are very social ‌ formal and informally.
Major Suppliers Pilar’s
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Suppliers Pilar’s will work with a broad range of suppliers and niche labels who focus on new and leading edge fashions at moderate pricepoints including: Brand Name Bottoms: Miss Me, Fornarina, Miss Sixty, J & Co., Seven for all mankind Brand Name Tops: Miss Me, Fornarina, Miss Sixty, J & Co, For Love and Liberty, USA Sledge, Sacred Blue, Divine Soul Bathing Suits: Beach Blue and Aguaclara Underwear: Commando, Hanky Panky Accessories: Belts: Brave Shoes: Jewellry: Different suppliers from South America and Mexico Divine Soul: Divine Soul is a proprietary brand will be slowly introduce in the market and distributed initially through a sales representative and later passed on to an agent to grow it nationally. Clients for Divine Soul will include Women’s casual wear boutiques
Pricing Pricing will be competitive with similar medium to high end retailers. Lower than the exclusive (i.e. Holt Renfrew) yet above the low end retail boutique. Our prices will be kept in line with our competitors where they sell equivalent quality and style. Because we will focus on new niche labels that are not common in the trade area, we will be mostly governed by customer sensitivity to pricing rather than price comparisons.
Primary Merchandise Categories & Pricepoints Pilar’s
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Sizes will be targeted to fit: XS, S, M, L generally with waists 25 – 32, and limited shoe sizes of 6 – 10. Neither the brands nor our sizing will target large women. Category Bottoms Pants & Denim
Key Brands •
Price-Points
Fornarina (not too expensive, jeans and tops) Miss Me (whole collection, a bit more affordable) J & Co. (denim and tops) Seven (jeans) 1921 Jeans Plastic
Med
Hi
• • • •
Miss Sixty (more dressy, more expensive tops) Sledge USA (T-shirts) Fredrick Ian Miss Me Custos Barcelona
Outerwear
• • • •
Doll House Miss Me Fornarina J & Co
Med Med Med Med
Underwear & Leggings
• •
Hanky Panky Commando
Hi Hi
Bikinis
• •
Aguaclara (Bikinis) Beach Blue (Bikinis)
Hi Med
Accessories
• • • •
Belts Shoes Bags Jewellery
Med
• • • • •
Tops
•
Med Hi Hi Med Med
Med Med Med Med
Services Pilar’s will focus on providing both excellent customer service and a range of service options that our busy, active and fashion conscious customers will enjoy. Services Pilar’s
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Hours
Mon. -Thurs. 10 AM – 7 PM Fri. 10 AM – 9 PM Sat. 9:30 AM – 6 PM Sun. 11 AM – 5 PM
Credit
Visa / MC / Interact
Lay-a-way
Non-refundable Deposit – Max 30 days on in-season mdse. No lay-a-way on clearance, end of lines etc.
Delivery
UPS (or customer selected alternative) Charged to customers as used
Alterations
Alterations will be arranged with an outside resource with a standard fee for normal type alterations
Exchanges
15 Days with Bill - Money Back No Bill or after 15 Days – Store Credit
Gift Card / Gift Certificates
Cards will be available with membership in Retail BC
Gift Wrapping
If requested, at $ modest charge
Personal Shopping
By appointment only
Wardrobe Styling
Yes. 20% charge for re-stocking Or 20% charge on wholesale.
Customer Opt-in Newsletter
Offered to all, wardrobe tips, new season advance notices, celebrity visits, fashion shows
Fashion Shows
Yes, high school and college shows will be pursued
Pilar’s
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Competition Pilar’s competition will be more indirect than direct as most stores appealing to our same target customer will not be carrying our merchandise lines. Orange County: Vivid: Plum: Oliver Barrett: Mini and Me: Aritzia: Hana Ray Marilyn’s:
North Shore North Shore, Lonsdale North Shore, Lonsdale Park Royal Village, West Vancouver Park Royal Mall, West Vancouver Park Royal Mall and Capilano Mall Edgemont Village Caulfield Village
These stores on the north shore that appeal to our fashion sensitive 15 - 45 year old customer, we consider to be primarily indirect competition as they will competing for the same clothing dollar, but will not be carrying the same merchandise assortments as Pilar’s.
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SWOT Analysis Strengths
Weaknesses
Owner’s dedication and enthusiasm for the job
Management’s specific lack of retail knowledge
New unique brands that have not been exposed to the marketplace
Limited personal financial resources
Utilization of professional resources for marketing, design and development of the business model Owners experience in running a profitable and successful courier / delivery business for the past 10 years with sales close to $1,000,000. The Company was rated between #1 and # 2 best delivery company across Canada for Future Shop for many years . Also, two years of experience as the Executive Director of the Richmond Arts Council acting as the Liaison between Board Members and City Council
No prior local sales history for the primary brands being sold No current customer awareness or knowledge of the store in the marketplace … starting from a zero point Location is untried for a fashion store of this type and quality meaning it will need to be treated more as a destination store and marketed accordingly
A unique new store design that looks hot Superior customer service
Opportunities
Threats
A healthy personal and business growth among the potential clients
Slowing economy
Expansion into a website which offers an e-retailing experience for the greater Vancouver and North American Marketplace
A new competitor that targets the same customer with similar merchandise lines and pricepoints.
To look to franchising at a later date To expand the Divine Soul merchandise line and channel into other markets through a sales representative and later agents.
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Marketing & Communications Plans Marketing Strategies Word of mouth will be extremely important to Pilar’s in their first season and first year. To facilitate this, we plan to explore potential give aways to models ad appropriate opinion leaders in the community. We will look to focus much of this effort on the girls ‘ women in the high school and colleges that surround us on the north shore. We will also look to offer pants to party hosts, participate actively in local fashion shows and encourage agents to communicate our offerings.
Advertising Editorially, we will be exploring the use of fashion magazines as well as local newspapers for editorial coverage and marketing including Public Relations efforts directed at:
Vancouver Sun and The Province North Shore News Special editions of the NS News North Shore Outlook Fashion Magazine NS Magazine Georgia Straight Newsmagazine
Advertising will focus on:
North Shore News North Shore Outlook Fashion Magazine NS Magazine Direct Mail (as our customer base expands) Flyer Distribution (TBD to primary census tracts on the North Shore)
Direct Marketing to customers and potential customers will be a key strategy over time. This will be developed and expanded as our database grows and as our web site and e-retailing efforts evolve.
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Office and Warehouse There will be a small operating office in the store, however the main Office and Warehouse will be located at: 1296 Clyde Avenue West Vancouver, BC V7T 2V6 We chose this facility as it will be very convenient for the daily movement of merchandise between the warehouse and the store. This property is leased by Pilar Buse as a personal residence and will limit the need for additional warehouse expenses. The facility provides plenty of room, is very central to transportation and access to the airport and customs and just 10 minutes to the store. There is extra capacity to expand to meet any anticipated needs with the current Lonsdale store.
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The Store This store is a totally new renovation of the 1091 Sq ft format at 1836 Lonsdale Avenue.
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Lease Arrangements
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Equipment & Fixtures Standard store equipment and fixtures will include: Racks and wall hanging systems Mannequins & bust forms Cash desk and enclosed case for small valuable items Scanner cash register and point of sale system for inventory control Database for customer records held in compliance with PIPEDA Steamer and Pressing equipment Dressing rooms Security System Fire alarms
Merchandise Presentation Display and merchandise presentation will be designed to showcase the merchandise with several mannequins of contemporary design featuring the latest in fashions and trends at Pilar’s.
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Human Resources Owner / Operator Pilar Buse Will function as owner operator and be responsible for all day to day operations for the business. Pilar has strong management experience both with Above the World Transport where she was responsible of the day to day operations of a 10 vehicle courier / transport company; with Fantastique Events, her own event management company; and the Richmond Arts Council where she presided for 3 years, creating new programs that built traffic and revenue for the organization. Pilar will oversee daily operations and function in the key roles of:
CEO Buyer Sales and Marketing manager Financial
Support Staff Full time Permanent Sales Associate / Assistant Manager Reporting to the owner operator will be one full time Sales Associate. This individual will be selected with a strong retail background including previous experience in a store management role. Salary will be $12.00/hour based on a 40 hour week plus benefits after a 3 month probationary period. This individual will be expected to function independently and focus on the development and management of the floor operations including training of staff in their service roles. This individual will fulfil the role as manager in the absence of the owner operator. Following the probationary period, the Assistant Manager will be considered for a salary + commission or bonus arrangement based on achieving and exceeding sales plans.
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Part time Sales Associates Working approximately 20 hours per week, these part time associates will work under the direction of the Owner Operator and/or Assistant Manager focusing on delivering a superior quality of customer service experience to our customer. Part time Sales Associates will be selected to reflect the style and ambiance of the store and mirror the customer that we are striving to serve and most importantly their ability and willingness to deliver outstanding customer centric service. Salary will be $9.00/hour and no benefits will be paid until they reach an equivalent period of hours employed (est. 6-8 mo.). Other Benefits Both Full and Part time associates will enjoy a 25% discount on Pilar’s fashions which they will be expected to wear as part of their Customer Service experience.
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Financial Summary
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Appendices
Pilar’s
I
Capital Expense Plan
II
Operating Budget
III
Merchandising Plan
IV
Architectural perspectives
V
Store Design Interior perspectives
19
08/02/2013