Applied Buying: 6 Month Plan Presentation: Nordstrom Men's Department
- 1. Men’s Dept. ‘The Rail’ Applied Buying By Quinn Nevares
- 2. Company Overview • 1901 John W. Nordstrom & Carl Wallin opened a small shoe store in Seattle, WA • Corporate Headquarters: Seattle, WA • Annual Sales Fiscal 2013: $12.15B • 1 year growth +11.69% • Q2 ‘13 Highlights • Total company net sales $3.1B – +6.4% • Same store increase of 4.4% • Top performing merch. categories
- 3. • Men’s Contemporary Dept.: ‘The Rail’ • Downtown San Francisco, CA • Westfield Mall • Fall 2013
- 5. Target Customer #1 • Jason • 17 years old • Applied to UCLA • Lives in Noe Valley • Supported by HSL income of $200,000 • Plays fantasy football, brand conscious, enjoys video games and hanging with friends
- 6. Target Customer #2 • Zack • 28 years old • Bachelors Degree from UCSF • Creative Technical Consultant for Google • Income $75,000 • Lives in Russian Hill • Enjoys bike riding, alternative music, drinks local coffee and loves the SF Giants
- 7. Strengths • Men’s shoes and apparel top performing category’s – Q2 ’13 Disciplined execution of expenses and inventory • Strong communication with customer – lifestyle blog, social media, and online store Opportunities • Expand outdoor and active lifestyle merchandise category – more styles, more colors • Marketing strategy – create exciting events that are dept. specific to drive traffic Weaknesses • Merchandise mix weighted to fashion items – not enough basics • Appeal overall to younger demographic with styles and colors • Weak execution of promotional strategy – Anniversary Sale under- delivered Threats • Weak economy may result in inability to make sales plan • Store expansion will create higher operating expenses
- 8. • Market Trends • Political Factors: -3% • Internet tax bill may threaten online sales • Newly appointed International Trade Representative – affecting cost of foreign labor and imported goods • Economic: -2% • SF Bay Area one of lowest unemployment rates in CA 7.4% • Inflation projected 2% - up .3% from 2012 • Retail Industry hopes to see increase in employment opportunities – expansion in domestic manufacturing
- 9. • Market Trends • Social Factors: - +3% • Consumer Price Index is up +1.5% • Consumer Credit is up +1.9% • SF Tourism is up +1% and spending +5.5% • Marketing & Promotional Plans - +5% • Private Holiday Shopping events for Fashion Rewards Holders • Customers earn reward points and enjoy free holiday treats, music and exclusive offers
- 10. Nordstrom’s Current Sales - visual • Sales to date for 2013 $5.7 B • Year to date same store sales increase of +6.2% • Plan to open 3 full line stores in 2014, and flagship in Manhattan by 2018 6 Month Plan • Projected Sales Plan: +7.2% • Plan Turnover of 1.7 • Total Markup Percent: 55% Current Sales • Sales to date for 2013 $5.7 B • Year to date same store sales increase +6.2% • Plan to open over 25 stores in 2013, and flagship in Manhattan by 2018 6 Month Plan • Projected Sales Plan: +7.2% • Plan Turnover of 1.7 • Total Markup Percent: 55%
- 11. Merchandise Mix Modifications Tanks 15% T-Shirts 35% SS Button Ups 30% Shorts 20% Summer ’13 Assortment Mix Denim 30% LS Button Ups 25% Sweaters 25% Jackets 20% Fall ’13 Assortment Mix • Added 30% denim for back to school and fall • Sweaters included for fall fashion trends - 25% • Jackets introduced for colder weather – 20%
- 12. Merchandise Mix Modifications Blue/Gree n 30% Red/Oran ge 35% Graphics 35% Summer ‘13 Color Mix Dark Red 28% Olive Green 22% Grey/Neu tral 30% Black 20% Fall ‘13 Color Mix • Modified graphics to gray tones – decrease 5% • Incorporated basic black into 20% of color mix • Dark red and olive green reflect fall color trends
- 13. Fashion Trend Forecast • Upcoming fall trends show neutral earthtone color palates • Rugged and outdoorsman inspired – megatrend ‘Migration’ • Incorporate floral, plaid and tapestry accents • Well tailored pieces and layers are key – fit is everything
- 14. Private Label Program: RailExclusive • Department was saturated with trendy colors and fashion prints and graphics, need for basic styles/colors • Introducing 2 key basic essentials: • Crew neck T-shirts w/ printed pocket for August • Zip- Up Hoodies w/ printed lining for September • Launch for back to school, beginning of Fall season • Apply additional 2% MU to overall plan of 55% Private Label Program: RailExclusive • Department saturated with trendy colors and fashion prints • Need for basic styles/colors • Introducing 2 key basic essentials: • Crew neck T-shirts w/ printed pocket for August • Zip- Up Hoodies w/ printed lining for September • Launch for back to school, beginning of Fall season • Apply additional 2% MU to overall plan of 55%
- 15. • Men’s Basic V-Neck T Shirt • Budget: 30% of LS Shirts Purchases for August - $23,700 • Price: $28.00/845 Units • Opportunity • Basic neutral colored T shirts in White, brown and army with graphic print pocket and sleeve lining • Great opportunity to increase markup and profit margin
- 16. • Men’s Zip-Up Hoodie • Budget: 50% of Sweater Purchases of Sept - $20,200 • Price $42.00/480 Units • Opportunity • Solid color options of dark gray, maroon and black with hoodie printed hoodie lining and cuffs
- 17. • Promotional Event: Fashion Show Event Fall ‘13 collection • Hosted and DJ’ed by Joshua Kissi and Travis Gumbs of Street Etiquette - -successful men’s fashion/lifestyle blog • First 100 guests will receive free Jack Spade iPhone case • 20% discount on Jack Spade collection and RailExclusive • Music, beverage and snacks • Styling tips from hosts Joshua and Travis • 10% of proceeds go to Project Open Hand
- 18. Marketing Calendar: August 5th send out postcard mailers to customers w/in 50 mile radius August 12th email blasts August 19th announce event details on Facebook, Twitter, YouTube, Insta gram, Tumblr and post on Men’s Shop Blog September 9th repeat social media announcements August 14th -September 14th promote w/in store hand out flyers/display invitation September 14 Fashion Show September 14-15 20% discount on Jack Spade and RailExclusive