fashion merchandising buying and planning

fashion merchandising buying and planning

OPEN TO BUY PROJECT – CREATING A FASHION/RETAIL STORE

Part A (60%)
As a buyer for XYZ retail store you will choose a classification of merchandise that you would like to buy. You will decide where your store will be located and what

type of store it will be.  This information will be backed up by valid research and trend information.  Once you have decided on the type of merchandise you want to

carry and have developed a name for the store and location (city and state), you will have $1,236,000 (Retail) and $618,000 (Cost) to spend to stock your store.

This money will be your open-to-buy (OTB) for the season and we will use the Spring/Summer* season which will encompass February, March, April, May, June, and July as

there is information that is readily available.  You will detail down to the SKU level* what your department will consist of and how you plan your inventory flow.  We

will discuss this in more detail as the course progresses.  The written portion of the project will be a minimum of four typed double spaced pages discussing the

process and your research and why you choose the product classification that you did, the balance of the project will be numbers based.  Once you determine the product

category we will use 50% mark up which you will use to determine the costs of the merchandise that you will need to buy.

*When illustrating your SKUs please be sure this is shown right after the four page discussion portion of the project.  Your SKUs should also be typed.  You should

have approximately 3 to 4 pages of SKUs for each month (you may decide to have more based on the merchandise mix for your store).

Part B.
Using the figures provided you will calculate the following for the XYZ store.
B1.  Open to buy for each month
B2.  Average monthly sales
B3.  Average monthly on order
B4.  Markdown % for each month

Planned sales
+ Planned reductions
+Planned EOM Stock
= Total monthly needs
-BOM Stock
=Planned purchases
-Merchandise on order
=Open to buy (At Retail)

Planned sales    On order     Employee        MD$        Shortages    EOM            BOM
Discount
Feb.        $300,000    $125,000        2%        $8,000    2%      $200,000    $160,000
Mar.        $200,000    $15,000                3%        $12,000    4%      $80,000      $200,000
Apr.        $300,000    $145,000        4%        $4,000    5%      $110,000    $80,000
May        $200,000    $35,000                0%        $3,000    7%      $90,000      $110,000
June        $400,000    $170,000        5%        $18,000    2%      $210,000    $90,000
July        $250,000    $24,000                7%        $25,000    3%      $70,000      $210,000

Part C.  Solve the following:

C1. After careful analysis of the economic data from the U. S. Government the XYZ store set a sales plan increase for the next season (Feb.- July) of 6.2%.  Based on

this year’s sales plan what is the company’s new projected sales plan for the next season?

C2. In the prior year same sales period the XYZ store had actual sales of $1,820,000.00.  What was the increase/decrease for the sales period and suggest reasons for

the change from one season to the next.

(Parts B and C are worth 40%)

This project is due no later than:_3/16_.  There will be grade penalties for late papers.

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