CORPORAT E BUY IN G PLA N AUTUMN / WINTER 16 / 17
TA BL E O F CO N T EN T S
01
Core Mission
02
Brand Identity
03
Ta r g e t C u s t o m e r
04
Size + Scope
05
Merchandising Venues
06
Core Categories of Business
07
Core Strengths + Competencies
08
Current Strategies for Growth
09
Key Competitors
10
SWOT Analysis
11
Product Category
11
Tr e n d s i n P r o d u c t C a t e g o r y
12
L i f e s t y l e Tr e n d s
13
Corporate Buying Plan
14
Store Buying Plans
15
Assortment Plans
16
Statement of Opportunity
CORE MISSION “Offer the customer the best possible ser vice, selec tion, qualit y and value.”
N O R D S T R O M N O R D S T R O M
TROM
NORDS
NORDSTRO M
BRAND IDENTITY Luxury Timeless Tren d C on s c io u s Customer Focused Experience Driven
TITLE | Father
Mother
NAME | Rupert
Sarah
OCCUPATION | Finance
Stay at Home Mom
CA R | Po r s c h e Ca y e n n e
BMW X5
HOBBIES | Golfs
Shops
Sails
Works Out
Grills
PTA Committee
COCKTAIL | Scotch
Lemon Drop Martini
TITLE | Child
Dog
NAME | Archer
To b y
OCCUPATION | Preschooler
Obedience School
AGE | 4
1
HOBBIES | Soccer
Fetch
Swimming
Running
Arts and Crafts
Sleeping
COCKTAIL | Apple Juice
Water
SIZE + SCOPE
STORES 121 Nords t roms (39 St ates, C anada and Puer to Rico) 194 N ords t rom Rac k s 1 Nordstrom Clearance 2 Jeffrey Boutiques 5 Tr unk C lub s
NUMBER OF EMPLOYEES 73,500
ANNUAL NET SALES $13 Billion (8% G row t h Ra te) $2 Billion from E-Commerce
M O R T S D NOR
NORD S
TROM
MERCHANDISING VENUES
STORES Nordstrom, Nordstrom Rack, Jeffrey Boutique, Tr unk C lub
E-COMMERCE N ord s t rom, N ord s t rom Rac k , J e f f rey N ew Yor k , Tr unk C lub, H au t e L o ok (96 C o un t r ie s S er ve d)
MOBI L E A PPL I C AT I ONS N ord s t rom, N ord s t rom Ra c k , Tr unk C lub, Haute Look
SOCIAL MEDIA I n s t a gr am, Fa c e b o o k , Tw i t t e r, Yo u t ub e, Wan e l o, Blog
COR E C AT EGOR I E S OF BUSI N E SS 31%
Women’s Apparel
23%
Shoes
16%
Men’s Apparel
14%
Women’s Accessories
11%
Cosmetics
3%
Kids’ Apparel
2%
Other
CUSTOMER SERVICE + TECHNOLOGICAL FOCUS
In Stores and Online Free Shipping and Free Returns, Buy Online and Pick up in Store, Nordstrom Rewards, Gift Cards, Free Stylist Services, Gift Boxing, Extended Sizes
In Stores C o n c i e r g e, C e r t i f i e d F i t S p e c i a l i s t s , A l t e r a t i o n s a n d Ta i l o r i n g , Nordstrom Restaurants, Spa Nordstrom, Shoeshine, Free Wi-Fi
Online W i s h L i s t , I n ter na t ional Ship pin g, Tr u e F i t
CORE STRENGTHS + COMPETENCIES
CUR R EN T S T R AT EGIE S FOR GROWTH
MA JOR E XPANSION
TOPSHOP COL L A BOR AT I ON
Nordstrom Rack Store Openings
L aunched in 2012
2016 | 23
New Customer Base
2 017 | 6
New Deliveries Weekly
2018 | 2
Expanding to 28 More Stores
Creating Job Opportunities
OT H ER COL L A BOR AT I ONS ENTERING THE NEW YORK MARKET
Madewell and Olivia Palermo
O p enin g in M id -Tow n in 2018
INVESTING IN TECHNOLOGY 285,000 Square Feet Employee POS Mobile Devices Flagship Nordstrom Innovation Lab 7 Levels Smart Fitting Rooms
NEIMAN MARCUS
BLOOMINGDALES
Luxury Oriented
Leader in Sportswear
Relationship Focused
A p p eal to Yo un g M ar ke t
S er ve To p Two Perc en t S e ll To p -T ier L u x ur y G o o d s
SAKS FIF TH AVENUE
NE T-A- PORTER
Private Label Business
International Appeal
Broad Price Points
G o -To O nlin e Au t h o r i t y
A p p eal to Yo un g M ar ke t
Exclusive Designer Merchandise
KEY COMPETITORS
S WOT A N A LY S I S 01 STRENGTHS Customer Service Te c hn o l o g y Fo c u s Growth Incentives Strong Management
02
03
04
WEAKNESSES
OPPORTUNITIES
T H R E AT S
Better Developed
Reaching Millennials
Fast Fashion
Development of Active
Generation Z
Mens Store Development of Active Sportswear
Sportswear Shared Commerce Marketplace
PRODUC T C AT EGORY Women’s Denim Apparel
TRENDS
01
Dressed-Up Denim
02
Hem Focus
03
Patchwork
04
Embroidery
01
DRESSED-UP DENIM
Everyday items are given a polished makeover with dark indigo finishes. Ta i l o r e d i n f l u e n c e s r e t u r n f o r double-denim styling with simple construction and neat fits, offering a modern take on workwear and retro styles.
02
HEM FOCUS
A clear emphasis is placed on the hem. Popular hem finishes include frayed hem, released hem and exaggerated cuff hem.
03
PATCHWORK
Many in the industry are embracing recycling initiatives due to the evolving importance of sustainabilit y. Recycled materials are us e d to c rea te 1970 ’s ins pire d patchwork, producing new, clean and refined classic denim styles.
04
EMBROIDERY
As the repair movement continues, stitchwork is becoming increasingly decorative and mixed media items are coming to the forefront.
LIFESTYLE TRENDS
01
Activewear Movement
02
Sustainability
01
ACTIVEWEAR
Activewear has penetrated the fashion market due to the prevalence of active lifestyles.
02
SUS TAINABILIT Y
Sustainability presents the denim industry both a challenge and an oppor tunit y. While it is known the production of denim is not a highly sustainable process, companies are aware of the issue and are actively finding ways to reduce their environmental footprint. Many of their efforts are concentrated towards conser ving water, reducing waste,using efficient energy and using eco-friendly fibers.
BUYING PLANS
01
Corporate
02
Seattle
03
Miami
01
COR POR AT E
PL ANNED NE T SALES | $10, 370,0 0 0
T U R NOV ER R AT E | 1.73
I M U | 6 0 .17 %
PERCENT INCREASE TO LAST YEAR |
REDUC TIONS | 18%
8.02%
S E A S O N | A / W 16 /17
(000’s) FOCUS PRODUCT CATEGORY
Women’s Denim Apparel
PLAN NET SALES
10370.0
ESTIMATED NET SALES
9600.0
PLAN % LAST YEAR
8.02%
AVERAGE STOCK, RETAIL
6005.7
INVENTORY TURNOVER
1.73
PLANNED REDUCTIONS $
1866.6
REDUCTIONS % SALES
18.00%
PLAN IMU %
60.17%
AUGUST
SEPTEMBER
OCTOBER
NET SALES
1659.2
2074.0
1451.8
% FALL
16.00%
20.00%
14.00%
PLAN BOM STOCK
6139.0
6636.8
6097.6
STOCK/SALES RATIO
3.7
3.2
4.2
PLAN EOM STOCK
6636.8
6097.6
6139.0
PLAN REDUCTIONS
280.0
280.0
280.0
% FALL
15.00%
15.00%
15.00%
PURCHASES, RETAIL
2437.0
1814.8
1773.
PURCHASES, COST
970.6
722.8
706.3
NOVEMBER
DECEMBER
JANUARY
FALL 2016
1659.2
2074.0
1451.8
10370.0
16.00%
20.00%
14.00%
100.00%
6139.0
6429.4
5516.8
6005.7
3.7
3.1
3.8
6429.4
5516.8
5081.3
336.0
410.7
280.0
1866.6
18.00%
22.00%
15.00%
100.00%
2285.5
1572.1
1296.2
11178.9
910.3
626.2
516.3
4452.5
02
SE AT T L E FL AGSH I P
PLANNED NET SALES | $428,500
T U R NOV ER R AT E | 2.0 4
S Q . F T. | 3 8 3, 0 0 0
LEVELS | 4
COUNTY | King
(000’s) FOCUS PRODUCT CATEGORY
Women’s Denim Apparel
PLAN NET SALES
428.5
ESTIMATED NET SALES
396.7
PLAN % LAST YEAR
8.02%
AVERAGE STOCK, RETAIL
209.8
INVENTORY TURNOVER
2.04
PLANNED REDUCTIONS $
77.13
REDUCTIONS % SALES
18.00%
PLAN IMU %
60.17%
AUGUST
SEPTEMBER
OCTOBER
NET SALES
68.6
85.7
60.0
% FALL
16.00%
20.00%
14.00%
PLAN BOM STOCK
205.7
222.8
198.0
STOCK/SALES RATIO
3.0
2.6
3.3
PLAN EOM STOCK
222.8
198.0
212.5
PLAN REDUCTIONS
11.6
11.6
11.6
% FALL
15.00%
15.00%
15.00%
PURCHASES, RETAIL
97.3
72.4
86.1
PURCHASES, COST
38.7
28.8
34.3
NOVEMBER
DECEMBER
JANUARY
FALL 2016
68.6
85.7
60.0
428.5
16.00%
20.00%
14.00%
100.00%
212.5
231.4
198.0
209.8
3.1
2.7
3.3
231.4
198.0
200.0
13.9
17.0
11.6
77.13
18.00%
22.00%
15.00%
100.00%
101.3
69.2
73.6
500.0
40.3
27.6
29.3
199.1
03
MIAMI DADELAND
P L A N N E D N E T S A L E S | $171, 4 0 0
T U R NOV ER R AT E | 1.71
S Q . F T. | 150, 0 0 0
LEVELS | 2
COUNTY | Miami Dade
(000’s) FOCUS PRODUCT CATEGORY
Women’s Denim Apparel
PLAN NET SALES
171.4
ESTIMATED NET SALES
158.7
PLAN % LAST YEAR
8.00%
AVERAGE STOCK, RETAIL
100.0
INVENTORY TURNOVER
1.71
PLANNED REDUCTIONS $
30.85
REDUCTIONS % SALES
18.00%
PLAN IMU %
60.17%
AUGUST
SEPTEMBER
OCTOBER
NET SALES
27.4
34.3
24.0
% FALL
16.00%
20.00%
14.00%
PLAN BOM STOCK
101.5
109.7
100.8
STOCK/SALES RATIO
3.7
3.2
4.2
PLAN EOM STOCK
109.7
100.8
100.3
PLAN REDUCTIONS
4.6
4.6
4.6
% FALL
15.00%
15.00%
15.00%
PURCHASES, RETAIL
40.3
30.0
28.1
PURCHASES, COST
16.0
11.9
11.2
NOVEMBER
DECEMBER
JANUARY
FALL 2016
25.7
32.6
27.4
171.4
15.00%
19.00%
16.00%
100.00%
100.3
104.2
93.2
100.0
3.9
3.2
3.4
104.2
93.2
90.0
5.6
6.8
4.6
30.9
18.00%
22.00%
15.00%
100.00%
35.2
28.4
28.8
190.8
14.0
11.3
11.5
76.0
ASSORTMENT PLANS
PRODUC T C AT EGORY | Women’s Denim A pparel
P L A N N E D P U R C H A S E S R E TA I L | $11,17 8 ,9 0 0
CL A SSIFIC ATION
% TOTA L
$ PURCHASES
COATS
8%
$894, 312
JACKETS
10%
$1,117, 8 9 0
TOPS
6%
$670,734
JEANS
65%
$ 7, 2 6 6 , 2 8 5
SKIRTS
6%
$670,734
OTHER
5%
$558,945
100%
$11,17 8 ,9 0 0
JEAN SIZES
% TOTA L
$ PURCHASES
24
2%
$145, 326
25
4%
$29 0, 6 51
26
8%
$581,303
27
12%
$871,954
28
16%
$1,16 2, 6 0 6
29
16%
$1,16 2, 6 0 6
30
16%
$1,16 2, 6 0 6
31
14%
$1, 0 17, 2 8 0
32
12%
$871,954
100%
$ 7, 2 6 6 , 2 8 5
JEAN FINISHES
% TOTA L
$ PURCHASES
DARK INDIGO
16%
$1,16 2, 6 0 6
FR AY ED H EM
12%
$871,954
RELEASED HEM
10%
$726,629
CUFFED HEM
8%
$581,303
PATCHWORK
12%
$871,954
EMBROIDERY
12%
$871,954
OTHER
30%
$ 2,179, 8 8 6
100%
$ 7, 2 6 6 , 2 8 5
We believe our buying plan is best described as a plan of oppor tunit y. Not only did we plan our numbers realisticly, the trends presented in women’s denim apparel continue to grow in popularit y. Therefore we believe there is a potential to over-achieve our plan.
S TAT EM EN T O F O PPO R T U N I T Y
Burke Price Elizabeth Fucci Madeline Larrabee Ta t i a n a H u e c k