1. Merchandising Portfolio
Caroline Templeton
Fall 2016
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2. Table of Contents Company Analysis Retail Strategy Analysis
Company History (slide 3)
Store Image (slide 4)
Type of Merchandise (slide 5)
Retail Strategy Analysis
Target Market (slide 6)
Competitor analysis (slide 7)
Positioning Map (slide 8)
SWOT analysis (slide 9)
Trend Forecasting
Style trends (slide 10)
Color Trends(slide 11)
Buying Plan
Financial Goals (slide 12)
Total, Classification, and Sub-classifications (slide 13)
Total, Classification, and Sub-classification sales plan (slide 14)
Suggested price points (slide 15)
Merchandise Plan
6 month plan for active & workout (slide 16)
6 month budget and pricing plans (slide 17)
Assortment Plan for February 2017 (slide 18)
Visual Merchandise Plan
Slide 19
References
Slide 20

3. Company Analysis Began in 19th century Hoop Skirt Fad
First department store in 1872
Moved to current location in 1929 (59th Street)
Bloomingdale’s works to be the first to carry the newest styles and trends
Beginning in 1949, Bloomingdale’s opened a store outside of Manhattan and continued to grow and spread all over the nation.
They are a division of the Macy’s Corporation and are in 40 stores all over the US.
Bloomingdale’s also does a large portion of their business worldwide through e-commerce.

4. Brand & Store Image Basically invented the department store
Strive to be the first to carry new and unique things.
High-end department store that focuses on the nicest and most luxurious items.
Brown bags are a big icon for the store
Lifestyle associated with Bloomingdales is one of luxury and high class.
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5. Type of Merchandise Bloomingdale’s Women Merchandise Categories
Price Points
Active & Workout
$24.00, $56.00, $119.00, $160.00,…, $340.00
Dresses
$48.00, $63.00, $80.00, $102.00, $128.00,…$
Jackets
$68.00, $120.00, $168.00, $198.00…$979.00
Bottoms
$68.00, $103.00, $134.00, $189.00, $239.00…$979.00
Jumpsuits & Rompers
$68.00, $100.00, $168.00, $298.00…$
Skirts
$44.00, $108.00, $115.00, $218.00…$
Sleepwear & Lounge
$13.00, $38.00, $54.00, $68.00, $128.00…$484.00
Swimsuits
$36.00, $44.00, $57.00, $73.00, $96.00,…$348.00
Tops & Tees
$21.00, $38.00, $59.00, $68.00, $100.00, $128.00, $158.00…$

6. Target Market Geographic: Demographic/Psychographic:
Bloomingdale’s has stores all across the US and has a store in Dubai under an agreement. Bloomingdale’s has many locations in California, New York, and Florida. There are also various locations in other states.
Demographic/Psychographic:
The typical Bloomingdale’s customer is a young-middle age male or female. They typically are part of the upper-middle class or upper class and are fashion forward. They are concerned with the latest trends and only want what is in style. These consumers are brand and store loyal. They also expect extremely good customer service.
Is this right?????
Source:

7. Competitor Analysis
Saks Fifth Avenue Merchandise Categories
Price Points
Active & Workout
$58.00, $94.00…$715.00
Dresses
$90.00, $195.00, $238.00…$795.00
Jackets
$78.00, $270.00, $338.00, $45,000…
Jumpsuits & Rompers
$128.00, $$275.00, $895.00…
Pants
$98.00, $250.00, $695.00…
Skirts
$160.00, $395.00, $ …
Sleepwear & Lounge
$60.00, $135.00, $ …
Swimsuits
$68.00, $110.00, $215.00…
Tops & Tees
$58.00, $148.00, $350.00…$ …
Neiman Marcus Merchandise Categories
Price Points
Active & Workout
$75.00, $109.00, $275.00
Dresses
$186.00, $380.00, $660.00…
Jackets
$125.00, $328.00, $995.00, $$28,000…
Jumpsuits
$118.00, $398.00, $528.00, $
Pants
$158.00, $208.00, $595.00…
Skirts
$138.00, $395.00, $795.00…
Sleepwear & Loungewear
$98.00, $180.00, $610.00
Swimsuits
$152.00, $345.00, $$500.00…
Tops & Tees
$178.00, $225.00, $560.00, $25,000
Based on the Hoover’s website, Saks and Neiman Marcus are two of Bloomingdale’s top competitors. In comparison with both of these companies, Bloomingdales has much less variety and assortment of merchandise online. Their price points are significantly lower than Saks and they are lower than Neiman Marcus price points but are still comparable.

8. Retail Strategy Analysis
High Price
Mass Market
Luxury
Low Price
Bloomingdale’s competes more directly with Bergdorf’s, Barney’s, Neiman Marcus, Saks, Nordstrom, and Lord and Taylor. They care many of the same brands and have similar price points. Bloomingdale’s targets a more luxury market than Macy’s Dillard’s, Belk, and Kohl’s and they provide merchandise at higher price points.

9. SWOT Analysis Strengths: First Department Store in US
Quality Customer Service
Well Designed Store Layout
Loyal Customer
Respected Brand Image
Weaknesses:
High Prices – limited customer range
Lack of younger customer
Limited geographic coverage
Recent recession w/I corporation (Macy’s)
Opportunities:
Infiltrate more into the youth market
Develop a more diverse price range
Develop better advertisements to reach more markets
Bring in more new/unique brands
Threats:
High-end competitors: more attractive to prestige customers
Low-end competitors: offer similar brands at lower price points
Growth of E-commerce competitors (i.e. Amazon)
Economic crises

10. Trend forecasting SS 17 - styles
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This year, the utilitarian look is still going to be extremely strong. This look has been in style for a few seasons now and is basically like a neutral. This look can give off an edgy but feminine vibe.
Stripes are going to be very in style for the upcoming S/S 2017 season. They are very beachy and remind you of the upcoming vacation season.

11. Trend Forecasting SS 17 - Color
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Yellow is going to be a huge color for S/S 17. This color is a very bright and happy color that gives off positive energy.

12. Financial goals for 2017 Planned Net Sales $1083.16 Million Turnover
3.4
GM %
39.08%
Planned GMROI
2.18
Since Bloomingdale’s does not release financial reports to the public I scaled down Macy’s 2015 financial reports. Based on Macy’s Annual reports, I found that Bloomingdale’s accounted for 4% of their the Macy’s Corporation. According to Retail Owner’s Institute, the average Turnover for Apparel Stores was around 3.4. I found that Bloomingdale’s Sales were 4% of the total Macy’s sales. I used the scaled down numbers to calculate gross margin and GMROI.

13. Department: Bloomingdale’s Woman
Classification: Active & Workout
Classification: Sleepwear & Lounge
Sub-classification:
Jackets
Leggings
Pants
Shorts
Sports Bras
Sweaters
Sweatshirts
Tanks
Tops & Tees
I chose to focus on Active & Workout for merchandise and budget planning for Spring/Summer Athleisure is very in style right now and will continue to be popular in 2017, so I decided that it was very important to focus on this category.

14. Active & Workout Planned Sales for 2017
Sales Plans of Bloomingdale’s Woman for S/S 17
$ million
Class/Sub-classes
% of Sales
Sales Plan ($)
Women’s Active & Workout
2% of department sales
$10.83 million
Jackets
11% of Dept Sales
$1.19 million
Leggings
39% of Dept Sales
$4.21 million
Pants
1% of Dept Sales
$0.11 million
Shorts
2% of Dept Sales
$0.22 million
Sports Bras
20% of Dept Sales
$2.17 million
Sweaters
6% of Dept Sales
$0.65 million
Sweatshirts
2% of Det Sales
Tanks
13% of Dept Sales
$1.41 million
Tops & Tees
=100% of Dept. Sales

15. Suggested price points
Planned Sales Cont.
I expect for there to be an increase in shorts, sports bras, and tanks price points for Spring/Summer 2017 because it will be hotter outside and people will be looking to purchase lighter clothing to wear to workout in. I expect jackets, pants, sweaters, and sweatshirts prices to decrease because people are not going to be buying warm items when the temperature is higher. I expect leggings and tops and tees to stay around the same price because people typically purchase these items year round.
Bloomingdale’s Woman Planned Sales for Spring/Summer 2017 (by classification)
Classification: Active & Workout
Sub-classes
% of Sales
Suggested price points
Jackets
11% of class sales
$70.00, $90.00, $106.00, $118.00, $152.00… (decrease)
Leggings
39% of class sales
$30.00, $35.00, $52.00, $64.00, $70.00, $88.00…(stable)
Pants
1% of class sales
$69.50, $95.00, $98.00…(decrease)
Shorts
2% of class sales
$28.00, $35.00, $40.00, $85.00 (increase)
Sports Bras
20% of class sales
$24.00, $26.00, $34.00, $40.00, $48.00, $54.00…(increase)
Sweaters
6% of class sales
$54.00, $60.00, $75.00, $98.00, $108.00, $118.00, $128.00…(decrease)
Sweatshirts
$54.00, $70.00, $98.00, $108.00, $148.00, $158.00…(decrease)
Tanks
13% of class sales
$34.99, $38.00, $42.00, 48.00, $54.00, $60.00…(increase)
Tops & Tees
$40.00, $48.00, $50.00, $64.00, $95.00…(stable)
= 100% of dept. sales

16. 6 Month Plan for active and workout: Spring & Summer 2017
6 Month Plan: Active & Workout
february
march
april
may
june
july
total
Net Sales distribution (%) by month
19%
16%
17%
12%
100%
Net Sales ($) by month
$2.06
$1.73
$1.84
$1.30
$10.83
Reduction distribution (%) by month
15%
18%
Reductions ($) by month
$0.35
$0.32
$0.37
$0.41
$0.39
$2.17
BOM SSR (estimate)
4.17
3.8
4.03
4.83
BOM Stock
$8.58
$7.23
$7.00
$5.24
$9.94
EOM Stock
$7.88
Purchases (retail)
$1.05
$1.83
$0.45
$6.41
Purchase (cost)
$0.55
$0.97
$1.15
$0.23
$3.28
$0.20
*numbers are in millions
I distributed my sales pretty evenly across the 6 months but expect a higher sales volume in February and July because February indicates a season change coming up so people will begin shopping and July indicates back to school shopping so that will also affect sales. June is typically very slow in the retail world because it is summer and people typically have the clothing they want or need for this season. I predict the highest reductions in June and July. Since June is such a dead month, it is important to have sales to move merchandise. July will also have high reductions because of holiday sales such as Fourth of July and back-to-school sales. In regards to BOM SSR, I estimated a higher volume of inventory for each month because department stores are very large and require much more inventory that other retail stores. I planned to have the highest inventory levels in February, March, and July because these are the most popular selling months.

17. Planned Sales plan for S & S 2017 Active & Workout
Seasonal Sales for Bloomingdale's Woman
$10.83
Reductions (% of Sales)
17%
Markdown %
11%
Shortages % 3%
Sales Discounts %
GM %
39.08%
Inventory Turnover Plan
3.4
GMROI
2.18
Avg. Inventory (retail) Planned
$3.19
Avg. Inventory (cost) Planned
$1.94
Actual Average Inventory (retail)
$7.55
Actual Inventory Turnover
$1.43
Initial MU %
47.93%
Because Bloomingdale’s does not release financial data, I estimated a reductions percentage of 17%. I estimated that the majority of reductions will be from markdowns such as sales, promotions, etc. I then split the remainder of 6% between shortages and sales discounts. I used formulas in calculating the rest of the numbers.
No explanations about how did you come up with numbers? Provide a brief explanation of your thinking process.
*numbers are in millions

18. Assortment Plan for February 2017 Jackets
Assortment Factor
Elements
% Distr. ($)
BOM Stock($)
% Distr. (units)
BOM Stock (units)
Style
Vest
40.00%
$3,960,000
170
Wind Breaker
Fleece Jacket
20.00%
$1,980,000 85
Color
White
30.00%
$2,970,000
127.5
Light gray
$3,9600,000
Dark gray
10.00%
$990,000
42.5
Black
Size XS
15.00%
$1,485,000
63.75 S
35.00%
$3,465,000
148.75 M L
Price points
$69.99
$79.99
$94.99
$118.99
TOTAL
100.00%
$9,900,000
425
My assortment plan for February 2017 Jackets includes 3 different styles, 4 colors, 4 sizes, and 4 major price points. I decided to focus on vests, windbreakers, and fleece jackets with the majority of the jacket styles being vest and windbreakers since the weather will be getting warmer. I decided to only include neutral colors because the majority of women wear these colors when working out as opposed to bright and multicolored clothing. Sizing will be XS-L with more smalls and mediums than XS and large. People typically wear athleisure clothing very fitted instead of baggy like t-shirts. I chose price points of $69.99, $79.99, $94.99, and $ I plan for most of them to be around $69.99 and $79.99 because it is getting warmer and there will be less demand for jackets as we approach spring and summer.

19. Visual Merchandising Plan
Bloomingdale’s typically creates window displays based on upcoming movie themes. In March 2017, Beauty and the Beast will be in theaters so for S/S window display I would create one based on Beauty and the Beast. One of the main pantone colors for Spring is Primrose yellow. This is perfect for Beauty and the Beast since Belle’s dress is yellow.
Redo mood board….maybe make window

20. Executive Summary
Bloomingdale’s was founded in It is under the Macy’s Corporation Umbrella. Bloomingdale’s brought the meaning behind department stores. They focus to be the trendiest and most fashion forward department store. Bloomingdale’s strives to offer the best and most unique products and travels to other countries for new product inspiration. The department store is located in various places all over the United States with a higher concentration of stores in California, Florida, and New York. The target market of Bloomingdale’s is a young to middle age consumer that makes $150,000 or more per year. This consumer is very fashion forward and expects high quality and unique items. Bloomingdale’s has a very diverse set of product categories. My main focus was Bloomingdale’s women’s department, and within this department I researched and planned for the active and workout category. Athleisure is a very hot trend right now and is a very important part of the financial plans. I am planning for $21.66 million dollars in net sales for the active/workout category with a large majority of these sales coming from leggings and sports bras. I only planned for 17% of overall reductions. Athletic wear is used year round so I do not expect to have many markdowns in this category. I planned a turnover of 3.4 based on information found on retail owners institute website. I expect a Gross Margin percent of and a GMROI of Some of the big style trends for S/S 2017 are utilitarian and stripes and the color yellow. I plan on creating window displays based on the release of Beauty and the Beast in May Bloomingdale’s typically creates displays based on animated movies. Additionally, Primrose yellow is one of the number one Pantone colors for Spring 2016 which will be perfect for Belle’s dress.

21. Reference list
Adams, Brittany. (2016). Thirteen Top Trends from Paris Fashion Week. Retrieved from Carreon, Justine & Ogunnaike, Nikki. (2016). The Top Trends From Spring 2017 New York Fashion Week. Retrieved from trends/?slide=1. Hoovers. (2016). Bloomingdale’s Inc. Retrieved from Retail Owner. (2016). Women’s Apparel Stores. Retrieved from Stores/Womens-Apparel-Stores. ks+fifth&gclid=Cj0KEQjwvve_BRDmg9Kt9ufO15EBEiQAKoc6qgj1SIRby3ThU BYdulGqHI_46vfMVlO_KYB- 29YhsjcaAnbS8P8HAQ&gclid=Cj0KEQjwvve_BRDmg9Kt9ufO15EBEiQAKoc6 qgj1SIRby3ThUBYdulGqHI_46vfMVlO_KYB-29YhsjcaAnbS8P8HAQ 15EBEiQAKoc6qq1lxAIpNmBXv7o6n6zvArkLztI- b7yX3iazGRHaZ4QaAme18P8HAQ&ecid=NMPT__XX&gclsrc=aw.ds Image URLS:
Align them better.