Bergdorf Goodman Buying Plan

CONTRIBUTORS

Rachel Hickman Seth Mark Grace Rokela Maria Sanchez

Bergdorf Goodman 6 Month Buying Plan M e n ’s C o n t e m p o r a r y Savannah College of Art and Design

TABLE OF CONTENTS

3

H i s t o r y

Identity

5

7

Size & Scope

8

Products

11

SWOT

13

Customer Profiles

15

Competitors • Net-a-Porter • Barneys New York • Saks Fifth Avenue • Neiman Marcus • Nordstrom

21-31

Trends • Lifestyle • Fashion • Tech Fabrics

33-39

Buying Plan

41

Assortment Plan

43

Opportunity Statement

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HISTORY

1899

Herman Bergdorf opened a tailor shop above Union Square

1901

1928

Bergdorf partnered with Edwin Goodman

Moved to its current location at 58th Street and Fifth Avenue

In 1906, Bergdorf Goodman moved to 32nd Street

Throughout the 1930s, Goodman acquired the entire block and his business thrived

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1951

1990

2005

Goodman’s son, Andrew, became head of the company following his father’s death

The Bergdorf Goodman men’s store opened across the street

Texas Pacific Group and Warburg Pincus aquire Neiman Marcus and Bergdorf Goodman

In 1972, Andrew Goodman sold Bergdorf’s to BroadwayHale Stores (CHH) who owned Neiman Marcus

Burt Tansky has a legacy of luxury in the Neiman Marcus company

IDENTITY

7 OUR MISSION Bergdorf Goodman represents the pinnacle of style, service and modern l u x u r y.

It is the leading fashion authroity and a singular destination for the most discerning customers from around the world.

SIZE & SCOPE Company Size Bergdorf Goodman has a single location at Fifth Avenue and 58th S t r e e t i n N e w Yo r k C i t y.

T h e m e n ’s s t o r e i s a c r o s s the street from the main building.

• Bergdorf Goodman occupies approximately 360,000 sqaure feet • Annual sales are $600 million • Ecommerce is 20% of their business

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PRODUCTS

W o m e n ’s

Handbags

M e n ’s

Shoes

11

Jewelry

Home

Beauty

Kids

SWOT

S

W

• InCircle rewards

• Competitive market

• Loyal to NYC roots

• One brick and morter location

• World famous window displays

• Disconnect between instore and virtual

• Consistently renovating • Treats all customers with dig nity • Exclusive brands and products • Store amenities

• Lack of millential men

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O • Technology investments • Deeper global market awareness • Stronger social media presence • Exclusive app • In store garment tracking technology • Men’s store restaurant • Investing in more men’s contemporary collection • Savvy millennial customer

T • Online competitors i.e NetA-Porter • Increased production costs • Rise of outlet stores • The slow-down of the global economy • Development of “Shared” economy • Purchasing apps

Sharona Cohen, 64

15 •Board member •Upper class •Innovator Sharona Cohen is originally from Connecticut and currently lives on the Upper East Side with her husband. She h a s a B F A f r o m N e w Yo r k U n i v e r s i t y i n A r t H i s t o r y, a n d h a s a n u p p e r class income. Besides art, she enjoys musical events like jazz clubs and symphonies. Sharona enjoys the company of her two kids and three grandchildren. She especially loves to stay active and serves on several charities and boards of trustees.

Sharona could be described as an innovator with a high amount of resources. Some of her go-to designers include Oscar de la Renta, Lanvin, and Carolina Herrera.

Heather Johnson, 28

17 •Lawyer • U p p e r- m i d d l e c l a s s •Experiencer Heather Johnson is an outgoing young woman who loves exploring and finding new places to enjoy with her friends. She is originally from Saddle R i v e r, N e w J e r s e y a n d a t t e n d e d George Washington University for undergrad and Princeton for her law degree. Heather currently works at a t o p r a n k e d l a w f i r m i n N e w Yo r k a n d e a r n s a n d u p p e r- m i d d l e c l a s s income. Heather can be described as an experiencer and puts thought into financial purchases. She tends to shop a n d B a r n e y ’s , B e r g d o r f G o o d m a n , a n d N e t - A - P o r t e r. H e r f a v o r i t e d e s i g n e r s a r e G i v e n c h y, A l e x a n d e r M c Q u e e n , and Fendi.

Levi Blake, 26

19 •CFO • U p p e r- m i d d l e c l a s s •Achiever

Levi Blake is a NYC native and g r e w u p i n Tr i B e C a . H e l o v e s t o b e social and attend theater events like Broadway and Shakespeare in the Park. He attended NYU for his undergrad and Brown for his MB in accounting. On the weekends, Levi enjoys spending time at his f a m i l y ’s h o m e i n M o n t a u k . H e c a n b e described as an achiever according to VA L S . H e s t a r t s h i s m o r n i n g s o ff w i t h emails and news and considers himself up-to-date on current trends and events. His favorite brands include To m F o r d , S a i n t L a u r e n t , a n d R a g & Bone.

COMPETITORS Men’s Contemporary Competitors

21 Bergdorf Goodman’s General Competitors

Scope & Size Net-A-Porter Group relies completely on ecommerce with no brick and mortar locations.

• Sales increase of 28% last year • Approximately 2600 employees

Strengths • Strong editorial content and promotional magazine • Luxurious Packaging • Same Day Delivery in NYC

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Threats in Men’s Contemporary • I n d i v i d u a l M e n ’s E c o m m e r c e Site • Focused Contemporary Designer Section • Online Product Selection i.e. 240 jeans offered vs 190 on Bergdorf website • M e n ’s f o c u s e d e d i t o r i a l a n d blog content

Scope & Size B a r n e y s N e w Yo r k o p e r a t e s with 27 locations along with their website.

They also recently opened a new flagship location in Chelsea where the company was originally founded.

Strengths • Most successful luxury department store to reach millineals • Strong social media • Attracts Edgy customer • Innovative advertising

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Threats in Men’s Contemporary • C o m p a n y f o c u s o n e d g y, c o n temporary designers • Exclusive collaborations with contemporary designers like Opening Ceremony

Scope & Size Saks Fifth Avenue has 40 domestic locations, 6 international and 110 outlet stores along with their websites

Strengths • Equally Rich History • Successful outlet chain named Saks Off Fifth • Loyal customer base

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Threats in Men’s Contemporary • They offer similar contempor a r y m e n ’s d e s i g n e r s • These designers are also sold at clearance at Saks Off Fifth

Scope & Size Neiman Marcus has 42 locations. They are opening their first store in Manhattan planned for 2018

Strengths • Extremely loyal customer base • Impressive rewards program • Owner of Bergdorf Goodman • To p l u x u r y c u s t o m e r s e r v i c e

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Threats in Men’s Contemporary • O f f e r s i m i l a r m e n ’s c o n t e m porary designers • Overall, not a significant t h r e a t i n t h e m e n ’s c o n t e m porary department compared to other stores and departments

Scope & Size Nordstrom has 118 locations, Nordstrom Rack, its clearance store has 178 locations. They also operate widely through ecommerce.

• Revenue $13.5 billion

Strengths • Largest in scale of all competitors • Customer base range from middle to upper class • Building a location in Manhattan planned at 285,000 sq feet

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Threats in Men’s Contemporary • Offer mid ranged designers s u c h a s To p m a n • Also feature similar contemporary designers such as Acne • Overall not our biggest competitor as they focus more energy on their wome n ’s d e p a r t m e n t .

TRENDS

LIFESTYLE

FASHION

TECHNOLOGY

W e a r e b u y i n g M e n ’s C o n t e m p o r a r y f o r Bergdorf Goodman. We felt this was an exciting department that showcases innovative i d e a s i n m e n ’s f a s h i o n .

We focused on trends that are appeal to Bergd o r f G o o d m a n ’s n e w e s t t a r g e t c u s t o m e r .

LIFESTYLE

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Active lifestyles such as b i k i n g c u l t u re a n d p e rsonal health Influence contemporary fashion.

Te c h n o l o g y b a s e d n e e d for instant gratification influences how contemporary men shop and what they invest in.

LAYERING

Michael Kors

Coach

Raf Simons

Coach

Public School

• Modern take on casual chic • Suitable for unpredictable F/W weather • Creates opportunity for multiple purchases

BOLD STATEMENT

Paul Smith

Raf Simons

Neil Barret

Christopher Kane

Paul Smith

• Bold addition to everyday outfits • Modern silhouettes in statement colors • High priced item, however transforms basic wardrobes

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BOMBER JACKETS

Burberry

Givenchy

Versace

Jill Sander

Louis Vuitton

• Key layering piece for F/W 16 • Ve r s a t i l e a n d t r a n s i tional jacket • Must-have item that guarantees success in our buying plan c u s t o m e r.

MONOCHROMATIC

Cerruti

Prada

Balmain

Louis Vuitton

Dior Homme

• Gives an elongated effect • Modern idea of a wardrobe uniform • Opportunity to sell monochrome sets to help with styling while also generating sales

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TECH FABRICS

Ermenegildo Zegna is an Italian luxury fashion h o u s e w h o ’s s e t t i n g t r e n d s w i t h t h e i r t e c h f a b r i c s .

Micron-sphere: nanotech fabric that is stain and water resistant Cool effect: the surface of the fabric reflects sunlight, keeping the wearer cooler Ermenegildo Zegna manufactures suits for: • To m F o r d • G u c c i • D u n h i l l • Y S L

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Digital printing influences contemporary designers • Prada • Dries van Noten • Alexander McQueen Brands such as Lanvin experiment with tech fabrics in their designs

BUYING PLAN Project(Model

Fall 2016 Fall 2016 Plan Net Sales, Fall 2016 Plan Net Sales, Fall26750.0 2016 Est. Net Sales, Fall25,000.0 2015 Est. Net Sales, Fall 2015 Plan % Last Year: Plan % Last Year:7.00% Average Stock, Retail: Average Stock, Retail: 12788.5 Inventory Turnover: Inventory Turnover:2.09 Planned Reductions,Planned $: Reductions, 5617.5 $: Reductions % Sales: Reductions % Sales: 21.00% Plan IMU %: 60.33% Plan IMU %:

Project(Model

26750.0 25,000.0 7.00% 12788.5 2.09 5617.5 21.00% 60.33% Project(Model

Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

August 3210.0 12.00% 11877.0 3.7 13963.5 730.3 13.00% 6026.8 2390.8

September 4815.0 18.00% 13963.5 2.9 13268.0 955.0 17.00% 5074.5 2013.0

Fall 2016 6 Month Buying Pla October Novemb 4280.0 5082.5 16.00% 19.00% 13268.0 14231.

3.1 2.8 14231.0 14766.

842.6 1011.2 15.00% 18.00% 6085.6 6628.7 2414.2 2629.6

41 • 7% increase due to growing interest and publicity i n m e n ’s f a s h i o n . A l s o d u e t o c o n t i n u e d r i s e o f m i l l e n n i a l s i n B e r g d o r f G o o d m a n ’s m a r k e t .

• 21% reduction for trend items that possibly don’t sell through • Highest purchasing months are October and November in prep for holiday season

P

Project(Model

2016 6 Month Buying Plan October November 4280.0 5082.5 16.00% 19.00% 13268.0 14231.0 3.1 2.8 14231.0 14766.0 842.6 1011.2 15.00% 18.00% 6085.6 6628.7 2414.2 2629.6

December 6152.5 23.00% 14766.0 2.4 10914.0 1235.9 22.00% 3536.4 1402.9

January 3210.0 12.00% 10914.0 3.4 10500.0 842.6 15.00% 3638.6 1443.4

Fall Fall2016 2016 26750.0 26750.0 100.00% 100.00% 12788.5 12788.5

5617.5 5617.5 100.00% 100.00% 30990.5 30990.5 12293.9 12293.9

ASSORTMENT PLAN Assortment)Plans

Focus Product Category:

Men's Contemporary Assortment)Plans

$30,990,500

Planned Purchases, Retail:

Assortment)Plans

Classification Woven Tops Knitwear T-Shirts Denim Trousers Coats Jackets Other Total

% Total 12% 15% 10% 25% 15% 10% 10% 3% 100%

$ Purchases $3,718,860 $4,648,575 $3,099,050 $7,747,625 $4,648,575 $3,099,050 $3,099,050 $929,715 $30,990,500

43 • To p c a t e g o r y i n v e s t m e n t s a r e K n i t w e a r a n d D e n i m • A % of ‘other’ is left in both category and designers for last minute purchases depending on weather and new exciting designers.

Assortment)Plans

Design Acne Alexander McQueen Christopher Kane Public School Valentino Other Total

% Total 20% 20% 20% 10% 23% 7% 100%

$ Purchases $6,198,100 $6,198,100 $6,198,100 $3,099,050 $7,127,815 $2,169,335 $30,990,500

OPPORTUNITY W i t h t h e g r o w i n g e m p h a s i s o n m e n ’s f a s h i o n , w e s e e a n o p p o r t u n i t y t o i n c r e a s e s a l e s i n t h e m e n ’s contemporary department at Bergdorf Goodman.

Millennials are currently being targeted as a huge profit opportunity and catering to their needs is crucial to improving sales. The millennial generation is currently finishing school, entering the workplace, or establishing careers so a flexible wardrobe that can transition from work to everyday is regarded as a better investment. The best way to meet the profit i n c r e a s e i s t o c u r a t e a m a r k e t a b l e s e l e c t i o n o f m e n ’s contemporary apparel.

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