Gap Six-Month Buying Plan

Six-Month Buying Plan

Women’s Sweaters

Emily Fayssoux

Shaina Levin

Fall/Winter 2014

FASM 245

Professor Quach

Iconic. Casual. American.

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Table of Contents Gap Analysis

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4-7

Competitors Analysis

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8-15

Perceptual Map

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16-17

Market Trends

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18-27

6-Month Buying Plan

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28-31

Assortment Plan

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32-35

6-Month Store Plans

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36-46

Gap Collage

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47

Sources

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48

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Philosophy: “To seek to make a positive, lasting impact on the people and in the places we operate”

Original Gap in San Francisco, CA

History: Founded in 1969 by Don and Doris Fisher in San Francisco, CA. The retail store represented the “generation gap” between the baby boomers and the silent generation. The company went public in 1976 and opened its first international store in London, England in 1987.

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Before the Fishers knew it, Gap stores were now under Gap, Inc. The corporation grew fast as they expanded toward GapKids and BabyGap as well as owning Banana Republic and Old Navy by 1994. Piperlime, Athleta and INTERMIX joined Gap, Inc. in recent years.

Flourishing for many years, Gap continues to leave an impact using unique promotional efforts. Their holiday commercials, celebrity endorsements and social cause campaigns embody their mission to spread passion and creativity.

Motto: Iconic.

Casual.

American.

Products: Gap is known as an American clothing and accessories retailer offering products for men, women, children, and babies. Brand extensions include GapKids, Baby Gap, Gap Fit, and Gap Maternity, which provides a wide product mix for the needs of a Gap customer.

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Merchandise Analysis The sweater department at Gap consists of a variety of silhouettes, colors, stitches, and yarns that you can purchase at a manageable price point.

Silhouette v-neck crew neck turtleneck mock turtleneck cardigan zip-up

boat neck pullover high-low

Colors cream camel slate gray navy holly green honey gold

dove gray fire red

Stitches cable ric rac pointelle

jersey rib faggot mesh herringbone ladder

Yarns 6

cotton polyester cashmere

acryllic nylon

lambs wool merino wool

Our sweaters can classify as light, medium, or heavy weight. Depending on the weight of each sweater they can be worn on their own or layered for a cold weather appropriate look.

Layering

V-neck sweater Waffle sweater

Cable knit sweater

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Competitors

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LOFT

As an extension of Ann Taylor Inc., LOFT offers more relaxed fashions for at work and at home. It would be classified in the “upper moderate” category. It is used as a way for the parent company to branch out to the younger crowd.

History: History: Loft Loft was was established established in in 1996 1996 under under the the Ann Ann Taylor Taylor brand brand that that started started in in 1954.

1954. The The comcompany pany became became Ann, Ann, Inc. Inc. in in 2011 2011 and and consists consists of of Ann Ann Taylor, Taylor, Loft Loft and and Ann Ann Taylor Taylor Factory.

Factory.

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Customer Profile: The Loft customer is between 25-34 years old and values their relationship with the brand. She enjoys being styled in the store on a more personal level. She shops at the Loft because it is more affordable as well as fashionable, versatile and accessible.

She knows she will not be sacrificing quality for a reasonable price.

Merchandise Analysis: Loft sweaters are carried in XXS through XL. Prices start at $34.50 and go up to $69.50. They offer cotton, acrylic, polyester, wool, dehair angora and modal yarns with cable knit, jersey, ric-rac, rib, faggot and honeycomb stiches.

Silhouettes include cardigan, crew neck, V-neck, boat neck, zip-up, cowl neck and pull over. Many styles are offered in white, grey, black and taupe neutrals as well as light blue, rosy pink and other seasonal hues.

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The Limited A branch of Limited Brands Inc., The Limited is geared toward business women who still want to integrate style into their corporate lives. The garments at The Limited allow a woman to easily transition from day to night.

History: History: The The Limited, Limited, now now owned owned by

by Sun Sun Capital Capital Partners, Partners, Inc., Inc., was was established established in in 1963 1963 in in Columbus, Columbus, OH. OH. The The brand brand was was under under Limited Limited Brands, Brands, Inc. Inc. until until 2007.

2007. The The Limited Limited has has always always been been aa specialty specialty retailer retailer built built among among the the mall mall setting. setting.

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Customer Profile: The customer who shops at The Limited is the working woman ages 27-42. She looks for modern and trendy looks that easily suit business day to dressy night styles. She favors the brand’s American flare as she stays informed in business, media, and retail trends.

Merchandise Analysis: Sweaters are inspired by current trends with prices $39.95 to $59.95 and sizes XS-XL. Yarns include cotton, rayon, nylon, some wool and acrylic with jersey, diamond, moss, and honeycomb stiches. Their sweater department offers cardigans, crew neck, boat neck, and V-neck sweaters in black and white shades as well as bold reds, purples, greens, and blues.

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White House Black Market White House Black Market is most known for its unique focus soley on white, black, and an additional pop of color. It is credited for its sleek lines and sophisticated approach to dressing an older age group.

History: History: White White House House Black Black Market Market was was initially initially The The White White House House boutique boutique in in 1985 1985 in in BaltiBaltimore, more, MD. MD. The The boutique boutique extended extended and and began began Black Black Market Market in in 1995, 1995. In In 1997, 1997, the the stores stores combined combined concepts concepts to to form form White White House House Black Black Market.

Market.

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Customer Profile: WHBM offers women’s clothing and accessories to a customer ages 37-55. She is looking for simple black and white outfits with minimal bright colors that make her feel sophisticated and beautiful. She is more concerned about quality and comfort over price.

The WHBM customer is older and established in the professional world while also having an active, social lifestyle.

Merchandise Analysis: WHBM’s sweaters are offered at prices from $68.00 through $98.00. Their sizes start at XXS and go up to XL. White, black and cream neutrals are mainly displayed with up to two accent colors fit for the season. Cotton, viscose, rayon, polyester and nylon sweaters are provided with stiches, such as pointelle, jersey, shaker, and moss. Boat neck, crew neck, V-neck, cardigan, and turtleneck silhouettes are the most popular for the WHBM customer.

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Perceptual Maps PRICE

Gap The Limited The Loft WHBM

The Limited Gap The Loft

QUALITY

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TRENDY

CLASSIC

WHBM

We place Gap, Loft, The Limited and WHBM’s sweater departments on a scale from classic and trendy versus price and quality. Gap sweaters are made to give customers the best quality sweaters that don’t pill, tear or fade. Speaking with the Gap manager in Downtown, Savannah, we found that customers purchase Gap sweaters with this mindset rather than being focused on price. Loft sweaters hold similar prices to Gap while maintaining a high care in quality. When we asked a woman in the store who was going through the racks of sweaters, she said her favorite sweaters were 100% cotton because they last the longest. The Limited lies in the middle between price and quality because the sweaters contain different blends with quality that satisfies their customer, but do not offer specialty yarns like wools and cashmeres. They are trendier than classic because their bold assortment of color and prints is inspired by current trends. WHBM offers high quality sweaters, but at higher prices, which is why they are placed toward price. They are positioned as trendy because their customer looks for the latest color that will highlight their outfit as well as the current silhouettes and prints. Looking at Gap from this perspective influences our decision to buy an assortment with timeless, and lasting pieces

LIGHTWEIGHT

SILHOUETTES

The Limited

Gap The Limited

WHBM

The Loft The Loft

WHBM YARNS

We compare these brands based on yarns and silhouettes versus bulky and lightweight because it will affect what types of sweaters we choose to buy. Gap sweaters have many more bulky pieces in the fall and have both significance in yarns and silhouettes. The wool, synthetic blends are carried in cowl neck, crew neck and cardigan styles. This variety gives our customers plenty to choose from in order to stay warm and be comfortable. Loft stores offer more lightweight sweaters with more diverse yarns than silhouettes. They have an abundant amount of lighter weight and loosely knitted pieces with yarns, such as cotton, modal, acrylic, wool and dehair angora. The Limited carries a variety of silhouettes rather than diverse yarns in their sweater department. The cardigan, V-neck, crew neck, boat neck and cowl neck styles are lightweight. The sweaters do not typically have a high percentage of wool and the brand does not offer cashmere. WHBM’s sweaters are mostly lightweight with diverse silhouettes and yarns.

Their customer is always ready for work or events, which is why these sweaters contain synthetics or cotton and little cashmere and wool. The sweaters include a range of yarns as well as cardigan, crew neck, boat neck, V-neck, cowl neck and turtleneck styles. Observing these factors, we decided to buy sweaters with additional silhouettes.

Gap

BULKY

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Market Trends

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Updated Cable

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The cable knit is a staple in any Gap customer’s wardrobe. It is a versatile sweater that has enough detail to stand out. The updated cable is perfect for our customer because it shows classic taste with an extra unexpected twist. In-store research has led us to the conclusion that this item would be extremely well received.

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Chunky Knits

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A high priority for the Gap customer is comfort. They wear our sweaters because they are cozy and welcoming. Forecasting has shown us that this will be big this season, which is great for Gap because the chunky knits are perfect for transitioning to a warm night at home or a casual dinner outing with girlfriends.

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The Something Special Cardigan

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This season is calling for a twist on the casual cardigan whether that means lengthened, an extra soft fabric, or fun buttons. The Gap customer wholeheartedly embraces cardigans because they are perfect transition pieces from day to night or business to casual.

From past seasons experience we predict great success for these cardi-

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Color & Pattern Neutral Pointelle Sweater

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The Gap customer relies on consistency. They count on us to provide them with a variety of neutrals that they are able to mix and match throughout the fall and winter seasons. Through analysis and in-store research we have learned the most popular sellers include cream, dove gray, a deeper gray, camel, and navy.

Cream cable knit Sweater

Red crew neck sweater

Striped Sweater

Each season we offer our customer a selection of festive holiday hues, this year is a fire red, a holly green, and a honey gold. We consistently provide our classic stripe option and through research and collection analysis we can see that thick equidistant stripes will be largely popular for the fall/winter season.

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6-month Buying Plan

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FALL

AUG

SALES $

Last Year Plan % Inc/Dec % by Month

STOCK/SALES RATIO

Last Year Plan

BOM STOCK $ (Retail)

Last Year Plan

$ $

MARKDOWNS $

Last Year Plan % to Sales % by Month

$ $

PURCHASES $ (Retail)

Last Year Plan

$ $

SEASON TOTAL Sales $

25,462,000.00 $ 26,215,675.20 $ 2.96% 9.9%

$ $

4,277,616.00 $ 4,089,645.33 $ 15.60% 6.00% 51,127,696.00 49,212,383.25

$ $

LAST YEAR $

$

2.3 2.0

2.4 2.3

16.6 15.8

92,681,680.00 87,067,818.24

$ 84,024,600.00 $ 99,275,319.52

$ 86,570,800.00 $ 102,532,418.56

$ 105,412,680.00 $ 92,152,070.40

$ 81,987,640.00 $ 71,497,296.00

$ 73,330,560.00 $ 70,649,920.64

$ 595,301,560.00 $ 591,335,598.88

6,487,717.60 $ 6,094,747.28 $ 16.80% 7.00% 33,477,437.60 54,580,506.16

58,601,725.93

33.57%

31.75%

Gross Margin %

39.43%

39.43%

Turnover

2.99

SEASON TOTAL

2.3 2.0

Markdown %

$

FEB

2.0 2.2

54.03%

85,043,080.00

JAN

2.2 2.3

54.65%

$

DEC

2.6 2.4

PLAN

254,620,000.00

NOV

35,646,800.00 $ 38,193,000.00 $ 43,285,400.00 $ 45,831,600.00 $ 35,646,800.00 $ 30,554,400.00 $ 254,620,000.00 36,278,257.60 $ 43,163,182.40 $ 46,605,644.80 $ 46,076,035.20 $ 35,748,648.00 $ 30,717,356.80 $ 264,804,800.00 1.77% 13.01% 7.67% 0.53% 0.29% 0.53% 4.0% 13.7% 16.3% 17.6% 17.4% 13.5% 11.6% 100.0%

2.8 2.6 71,293,600.00 68,160,755.52

OCT

Initial Markup %

Average Stock

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$ $

SEPT

84,476,514.13 3.13

8,402,460.00 $ 14,717,036.00 $ 19,501,345.80 $ 15,577,651.60 $ 16,499,376.00 $ 9,927,531.95 $ 17,430,511.16 $ 17,048,133.02 $ 13,584,486.24 $ 15,896,232.14 $ 23.0% 37.40% 37.00% 38.0% 51.75% 10.00% 17.00% 18.50% 19.00% 22.50%

$ 49,141,660.00 $ 56,347,813.39

$ 76,844,316.00 $ 53,655,807.80

$ 41,907,905.80 $ 42,469,393.82

$ 42,567,371.60 $ 48,485,758.88

85,463,203.00 84,071,287.12 31.75% 100.0%

$ 295,066,387.00 $ 304,751,663.30

Justifications S:

Using research on Gap’s annual and interim financials from Reference USA, we calculated $3,789,000 for Gap North America store sales for fiscal year 2013. From observing Gap Savannah, GA stores, we see that 70% of product is women’s and 16% of that merchandise makes up the sweater department. With this information, we have calculated that Gap N.A stores make $424,000 in sweater department sales for 2013. Since fall has the most sales for sweaters, $297,000 counts for 70% of total sales for our 6-month fall plan. Sales for sweaters at Gap are lower in August and September because they are just arriving in stores. Once October arrives, colder weather influences our customer to purchase some sweaters. The months that drive the highest sales for sweaters are November and December. The Thanksgiving holiday, Black Friday sales and Christmas and Hanukkah holidays motivate customers to buy sweaters for the festivities either as gifts or because of the discounted prices. Sales for sweaters slow down in January because Gap begins to move sweaters to the clearance section in order to stock spring styles. These factors affect our decisions when planning for a steady 4% increase in sales, going from a season total of $254,000 to $265,000.

SSR:

Using the average sales to stock ratio of 2.3, we know that August and September will have a higher number due to slower movement of sweaters. As customers start to buy sweaters in October, the sales-to-stock ratio becomes 2.2, which is lower than average and means sweaters will move faster off the floor. The planned SSR needs to improve from last year, which is why we have the lowest SSR from November-January. These numbers are lower due to Black Friday sales and holiday gift shopping.

BOM:

Beginning of month stock equals last year or planned sales-to-stock ratio times last year or planned sales. The lowest dollar amount of stock is in August because our Gap customer is not looking for sweaters. Our highest planned BOM stock is in November while October and December remain close behind. October through December are the months that our customer is truly wanting and needing to buy sweaters.

M:

PP & ST:

Observing markdowns at the Savannah, GA Gap stores help us determine markdowns for the season. Gap stores offer promotions and clearance items throughout the year, but in the fall, markdowns are higher toward the end of the season. In August, Gap will offer lower promotions including 25%-40% off of sweaters to get rid of summer cardigans and pullovers. Markdowns become higher during the holiday season for limited time holiday sales. In order to gain a higher net profit, we are setting our planned markdowns lower than last years markdowns. This is reflected in the decreased amount of markdown percent from last year to this year.

Adding monthly sales, end of month stock and markdowns then subtracting the beginning of month stock counts for our planned purchases. The highest dollar amount we planned to purchase is in October and the lowest is in December. October is when we need to put our best foot forward for the holiday rush. December is when sweaters will start to move in the back of the store towards the clearance section. The initial markup is 54.03%, which is the amount of markup needed to cover expenses and costs while obtaining a substantial profit.

Net sales minus cost of merchandise sold gives us a planned gross margin percent of 39.43%. As we calculate the BOM stock, we can find the average stock and stock turnover. The average stock influences a successful turnover rate of 3.13.

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Assortment Plan

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Yarns

Assortment 22%

Cotton

16%

Cotton, Nylon, Silk Blend

14%

Cotton, Nylon, Wool Blend

13%

Nylon,Wool, Acrylic Blend

12%

Wool, Acrylic, Poly Blend

12%

Wool, Acrylic Blend Cotton, Modal Blend Cashmere

7%

Sizing xs

Gap offers a variety of sizes but when observ- 24% s ing the in-store invenm tory it was obvious 28% that medium was the 26% l largest closely followed by small and large and 12% xl then the outlying extra small and extra large.

4%

After talking to store managers, we discovered that customers favor the more natural blends because of the tendency of synthetics to pill.

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10%

54% 46%

Our customer is on the go and prefers solids or a non-aggressive pattern.

Solids Patterns

Color

Plan

Our customer favors a neutral palette for ease, but is not afraid to experiment with a pop of color.

Silhouettes Cardigans

19% 13%

Boat-neck

13%

Turtleneck

Mock Turtleneck

Bright Hues

32% 28%

Pastels

19%

V-neck

Zip-up

Neutrals

21%

Crew-neck

Cowl neck

40%

9% 5% 1%

From customer feedback, we have discovered versatile silhouettes, such as a cardigan sell better than ones that make a larger statement.

Stitch 21%

Cableknit

16% Jersey Cable knits have been a big trend for 14% Herringbone the season. Stitches, such as jersey are 13% Ric rac great for most sweaters and have proven 13% Rib to be a big hit with 9% Mesh our customer base.

7%

Faggot

7% Ladder

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6-Month Store Plans

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Store A: Fresno, CA Customer Occupation: Student and Hostess at The Cheesecake Factory Education: Fresno Pacific University Geography: Fresno, CA Income: $11,000 Marital Status: Single Home: Dormitory in Fresno, CA Transportation: Jeep Lifestyle: She is a freshman on the Women’s Volleyball Team at Fresno Pacific University. She studies business with hopes of working for a large marketing firm after graduation. She enjoys spending time on campus with friends as well as visiting her family on the weekends. She takes academics seriously and strives for straight A’s.

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Zoe, 19

Hobbies: She is an avid reader and likes to watch the national news. She socializes with friends at restaurants, malls, and spas. She visits the Fresno Art Museum and runs at the local park Favorite Stores: Gap, Dick’s Sporting Goods, Francesca’s Collections Magazines: Elle, Forbes, Cosmopolitan TV: E!, ABC Family, national news Style: Classic, simple outfits mixed with one or two trendy pieces. Values comfort over style, but will put extra effort on the weekends to look fresh and cute. Shops often for necessities, has some money for fun items like jewelry, scarves and dresses, but mostly shops based on affordability.

Store A: Sales Plan FRESNO, CA

AUG

SALES $

Last Year Plan % Inc/Dec % by Month

STOCK/SALES RATIO

Last Year Plan

BOM STOCK $ (Retail)

Last Year Plan

$ $

MARKDOWNS $

Last Year Plan % to Sales % by Month

$ $

PURCHASES $ (Retail)

Last Year Plan

$

SEASON TOTALS Sales $

$ $

SEPT

311,895.4 $ 323,750.85 $ 3.80% 9.07%

$ $

52,398.42 $ 52,447.64 $ 16.20% 6.00% 392,017.81 448,694.40

$

LAST YEAR $

346,550.40 $ 364,085.85 5.06% 10.20%

2.8 2.7 873,307.0 874,127.29

3,465,504.00

OCT

2.0 2.1

901,031.04 946,623.21

$ 1,081,237.25 $ 949,050.45

$ 1,251,393.49 $ 1,326,343.34

$ 1,178,271.36 $ 1,308,031.96

63,072.17 $ 66,263.62 $ 18.20% 7.00% 589,828.78 432,776.71

$

212,736.89 $ 225,478.37 $ 37.40% 17.00%

728,795.49 884,828.56

683,698.89 810,050.32

$

623,790.72 $ 663,921.26 $ 6.43% 18.60%

571,808.16 $ 579,324.84 $ 1.31% 16.23%

2.2 2.0 $ $

217,980.20 $ 241,985.91 $ 38.85% 18.50%

$ 1,001,184.11 884,668.83

FEB

$

1,372,339.58 1,327,842.51

2.3 2.4 $ $

260,744.52 $ 252,290.08 $ 38.0% 19.00% 827,354.42 978,748.43

SEASON TOTAL

1,315,158.77 1,390,379.61

3,465,504.00 3,569,469.12 3.0% 100.00% 16.6 16.3

$ $

295,910.72 $ 312,835.41 $ 54.00% 22.50%

7,972,738.50 8,122,398.37 1,210,966.66 1,246,206.08 34.91% 100.0% 4,222,879.5 4,439,767.3

3,569,469.12

34.94%

34.91%

Gross Margin %

34.54%

34.54%

3.04

$

108,123.72 $ 94,905.04 $ 23.0% 10.00%

JAN

PLAN

Markdown %

Turnover

589,135.68 $ 622,872.36 $ 5.73% 17.45%

2.3 2.2

47.63%

1,138,962.64

544,084.13 $ 602,883.33 $ 10.81% 16.89%

2.4 2.3

47.64%

$

450,515.52 $ 412,630.6 $ -8.41% 11.56%

DEC

2.6 2.6

Initial Markup %

Average Stock

NOV

$

1,160,342.62 3.08

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Store A: Justification

From researching databases, the Gap store in Fresno, CA had total sales of $57,300,000 last year. The women’s department for this store is 70% of their total sales, which equals $40,110,000 and 12% of this makes up the sweater department. We decided based on the needs and wants of our California customer that 72% of the sweater department will count for Q3 and Q4 sales. Q3 and Q4 sales are a total of $3,465,504.

The sales plan for Gap in Fresno, CA is decided according to the regional weather and customer purchasing patterns for the sweater department. Planning for a 3% increase, season planned sales is a total of $3,569,469.12. 6 Since August through January months are still fairly warm in Fresno, the stock-to-sales ratio will be high. November, December and January months are most popular for sweaters and Gap customers will be eager for warmth as the temperature drops to the high 30s.

Young women, like Christina who is represented in the customer profile, will enjoy the lightweight, 100% cotton sweaters so their skin can breath easily in the California sun. When the temperature drops, however, Californians will be prepared as they shop our diverse assortment.

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Fresno, CA Weather Pattern

Store C: Savannah, GA Customer Occupation: Styling Editor at South Magazine Education: Graduated from Tampa University Geography: Downtown, Savannah, GA Income: $40,000

Casey, 25

Hobbies: Spending time with co-workers and friends at the park during the day and at the bars at night. Reading novels, DIY projects, yoga, knitting.

Favorite Stores: Gap, local boutiques, shops online retailers (Hautelook, Gilt, TheOutnet)

Marital Status: Engaged

Magazines: South Magazine, Marie Claire, InStyle

Home: From Tampa, FL; resides in Downtown, Savannah, GA

TV: National news, Bravo, E!, TLC, Lifetime

Transportation: Ford Focus, Bike Lifestyle: Casey has proudly been at South Magazine for a year and a half and loves her job in the styling department. She has been dating her fiancĂŠ for 3 years and they live together in a one-bedroom apartment with 2 cats.

Apparel Style: Depending on her mood and the weather, Casey wears anything from classic, bright southern looks to styles that are edgy and monochromatic. She always goes for the same silhouettes, whether it’s an A-line skirt or skinny jeans with heels, but still looks for anything to stand out in the crowd. She shops based on quality and versatility.

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Store C: Sales Plan SAVANNAH, GA

AUG

SALES $

Last Year Plan % Inc/Dec % by Month

STOCK/SALES RATIO

Last Year Plan

BOM STOCK $ (Retail)

Last Year Plan

$ $

MARKDOWNS $

Last Year Plan % to Sales % by Month

$ $

PURCHASES $ (Retail)

Last Year Plan

$

SEASON TOTAL Sales $

15,892.2 $ 18,312.83 $ 15.23% 8.95% 2.8 2.7 44,498.3 49,444.63

2.6 2.5 $ $

2,669.90 $ 2,966.68 $ 16.20% 6.00% 17,966.18 20,737.28

$

LAST YEAR $

16,885.51 $ 19,560.96 15.84% 9.56%

198,653.00

43,902.31 48,902.41

33,268.42 42,555.33 PLAN

$

204,612.59

47.04%

47.45%

Markdown %

33.41%

34.47%

Gross Margin %

34.54%

34.54%

Turnover

$

61,613.65 3.22

$

66,360.83 3.08

OCT

NOV

DEC

23,838.36 $ 29,771.1 $ 24.89% 14.55%

31,188.52 $ 34,497.68 $ 10.61% 16.86%

31,784.48 $ 34,211.23 $ 7.64% 16.72%

2.4 2.3 $ $

3,073.16 $ 3,423.17 $ 17.50% 7.00%

Initial Markup %

Average Stock

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$ $

SEPT

$

57,212.06 68,473.60

2.3 2.2 $ $

5,721.21 $ 6,847.36 $ 23.0% 10.00% 44,081.10 44,039.79

$

71,733.60 75,894.90

JAN

2.1 2.0 $ $

66,747.41 68,422.45

FEB

35,757.54 $ 36,073.20 $ 0.88% 17.63% 2.2 2.2

$ $

78,666.59 79,361.04

$ $

12,348.27 $ 12,658.15 $ 37.00% 18.50%

14,946.65 $ 15,078.60 $ 41.8% 19.00%

38,397.04 39,927.36

56,051.93 57,807.97

40,572.89 45,817.55

$

29,797.95 $ 32,185.56 $ 8.01% 15.73% 2.3 2.3

12,194.71 $ 12,902.13 $ 37.40% 17.00% $

SEASON TOTAL

68,535.29 74,026.79

198,653.00 204,612.59 3.0% 100.00% 16.7 16.2

$ $

431,295.53 464,525.82

15,420.44 $ 16,656.03 $ 51.75% 22.50%

66,374.34 70,532.12 34.47% 100.0% 230,337.6 250,885.3

Store C: Justification

Downtown, Savannah, GA has a Gap store that made a total of $3,700,000 in sales last year. The women’s department is 70% of total sales, which is $2,590,000. The sweater department in Savannah only comes to 13% of the women’s department. This $336,700 of total sales for the sweater department shows how Savannah is the most popular town for sweater shopping. During the fall season, 59% of the sweater department is sold and collects $198,653 in total sales.

Living in Savannah, we know that the fall seasons are not as cold as most states. However, sweaters will be needed for chilly mornings and nights. Our sales plan shows that January has the highest amount of planned sales. According to the Savannah weather pattern on weather.com, January is the city’s coldest month with a low of 39 degrees. November through January is generally the months that will drive sales for Gap’s sweater department., which is why we still have a 3% increased in last year to planned season sales.

Our Gap customer in Savannah will appreciate the flexibility that our products offer. The sweaters can easily be layered with cardigans, scarves and zip ups. Once the sun comes out, she can simply peel off layers for comfort without leaving style behind.

Savannah, GA Weather Pattern

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Store D: Philadelphia, PA Customer Occupation: Corporate Law Attorney Education: Graduated from Penn State University and Dickinson School of Law Geography: Philadelphia, PA Income: $105,000 Marital Status: Married Home: Originally from Harrisburg, PA, resides in Philadelphia, PA Transportation: Lexus Lifestyle: Liz, her husband and two boys live in Philadelphia with their golden doodle. Her family and professional lives are extremely active. Her week and weekends consist of meetings and appointments with clients, phone calls, picking up kids from school, cooking meals, cleaning the house and much more.

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Liz, 37

Hobbies: Among her busy weekends taking the kids to sports practices and games, she tries to find time to read and catch up with friends. On the weekends, she and her husband go out to dinner at least once.

Favorite Stores: Ann Taylor, The Loft, White House Black Market Magazines: Vogue, Newsweek, Time Apparel Style: Casual, comfortable and trendy pieces for the weekends, professional outfits for work. She is not afraid to try new, fashion forward styles. Finds inspiration from magazines and store catalogues.

Store D: Sales Plan PHILADELPHIA, PA

AUG

SALES $

Last Year Plan % Inc/Dec % by Month

STOCK/SALES RATIO

Last Year Plan

BOM STOCK $ (Retail)

Last Year Plan

$ $

MARKDOWNS $

Last Year Plan % to Sales % by Month

$ $

PURCHASES $ (Retail)

Last Year Plan

$ $

SEASON TOTAL Sales $

$ $

SEPT

28,908.9 $ 29,222.67 $ 1.09% 10.49% 2.6 2.7 75,163.1 78,901.22

2.4 2.5 $ $

4,509.79 $ 4,734.07 $ 16.20% 6.00% 27,636.89 28,599.72

$ $

LAST YEAR $

28,908.88 $ 29,417.68 1.76% 10.56%

262,808.00

69,381.31 73,544.19

$

47.23%

Markdown %

35.70%

33.91%

Gross Margin %

34.54%

34.54%

Turnover

89,212.05 2.95

37,844.35 $ 38,861.4 $ 2.69% 13.95%

43,626.13 $ 44,934.39 $ 3.00% 16.13%

49,933.52 $ 50,561.63 $ 1.26% 18.15%

$ $

$ $

87,042.01 89,381.26

2.1 2.0 $ $

8,704.20 $ 8,938.13 $ 23.0% 10.00% 51,121.41 48,287.05

$ $

91,614.87 89,868.77

JAN

2.0 2.1 $ $

99,867.04 106,179.43

FEB

47,042.63 $ 43,541.50 $ -7.44% 15.63% 2.2 2.1

$ $

103,493.79 91,437.16

$ $

18,475.40 $ 19,643.19 $ 38.85% 18.50%

19,663.82 $ 17,373.06 $ 39.9% 19.00%

67,452.83 76,522.73

72,035.67 55,462.56

61,134.92 73,308.43

$ $

42,574.90 $ 43,262.93 $ 1.62% 15.53% 2.3 2.4

15,574.53 $ 15,277.69 $ 34.00% 17.00% $ $

SEASON TOTAL

97,922.26 103,831.03

262,808.00 278,576.48 6.0% 100.44% 15.9 16.1

$ $

624,484.37 633,143.05

22,032.51 $ 23,361.98 $ 54.00% 22.50%

93,816.94 94,476.22 33.91% 100.0%

$ $

330,807.99 332,583.34

276,576.48

47.93%

$

DEC

PLAN

Initial Markup %

Average Stock

NOV

2.3 2.3

4,856.69 $ 5,148.09 $ 17.50% 7.00% 51,426.27 50,402.84

OCT

$

90,449.01 3.08

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Store D: Justification

The Gap store in the city of Philadelphia made $2,600,000 in sales last year according to their annual financial record seen in ReferenceUSA. The women’s department is 70% of this number, which equals $1,820,000. We decided that since this city experiences an extremely cold fall, the sweater department would count for 19% of their women’s entire department. This would mean that the sweater department has a total of $345,00 in sales. For Q3 and Q4, the sweaters that sold are 76% of the sweater department, which leaves a total of $262,808 in sales for the season.

The weather pattern on weather.com shows that their fall season ranges from 65-24 degrees. This huge range means that Gap customers will be flocking toward the sweater department during the colder months, which are October through January. The holidays will impact the purchases of sweaters and that is why we planned a 6% increase. In this particular store, we will make sure the bulkier sweaters are being restocked and maintained in the store longer than most other stores.

The Philadelphia Gap customer will return during the cold months because of our strategic assortment plan. We keep the shelves fresh while also staying within the needs and lifestyle of the customer. She will rely on the loyalty of our

store as well as the quality of the product.

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Philadelphia, PA Weather Pattern

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2, 2014.

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