Six Month Buying PlanJennifer Piff & Kelsey Wittman

Retailer: BloomingdalesCompany History

Bloomingdale’s was founded by two broth-ers, Joseph and Lyman Bloomingdale in New York’s Lower East Side. In the late 1800’s most fashion retailers special-ized in just one type of garment but the Bloomingdale brothers were the first to sell a wide variety of European fashion. It was the beginning of what would become a department store. In 1886, Bloomingdale’s moved to 59th street and Lexington Ave-nue and eventually took up an entire city block. By the 70’s, the department store had become synonymous with cutting edge fashion and was the place where design-ers such as Ralph Lauren, Perry Ellis, and Norma Kamali got their first big opportuni-ties.

Retailing Venues• Brick and mortar• Online• Outlets

Brand IdentityMission Statement

“Bloomingdale’s is committed to once again lead the way with exclusive merchandise, customized services, and alternative shopping venues. Car-rying on the Bloomingdale’s brothers’ dream, we’re always finding ways to set our stores apart. That’s both the legacy and the promise of Bloomingdale’s.”

Values• Originality• Fashion leadership• Contemporary feel• Separate from the mainstream

Scope & Size

• Annual sales volume: $2.317 billion• 41 stores, 7 outlets, & online• Key markets: New York, California, Florida• International Presence: Dubai• 10,500 employees

Core Product Categories

• Contemporary• Women’s apparel• Men’s Apparel• Accessories• Home• Beauty & Cosmetics• Kids

Target Customers

• Sophisticated• Disposable income• Cutting edge of fashion and unique sense of style• Something for everyone• Educated about the world of fashion and designers

Competitors

• Belk• Dillard’s• Kmart• Neiman Marcus• Saks Fifth Avenue

Key Strengths

Bloomingdales is committed to separating itself from mainstream and reinforcing its position as an authority for upscale, contemporary fashion. Bloomingdales always has the newest looks from estab-lished brands as well as unique products from rising designers. They are constantly delivering amazing service and an overall luxurious atmosphere. Over the years, Bloomingdales has managed to build a na-tionwide presence, gained market share, strengthened its customer loyalty, and maintained efficient operations through-out economic decline. In addition, both its online and in-store sales have steadily increased. Perhaps one of the most import-ant strengths of Bloomingdales is their sense of timelessness, which can be seen in their flagship store on 59th and Lexington that has stood in the same spot for over a century.

Product Category: Advanced Contemporary

Bloomingdale’s strives to be a leader in fashion and provide the most up-to-date collections for their fashion-foreward customers. Bloomingdales advanced contemporary collection contains trendy collections from the latest designers and is aimed at young, sophisticated individuals on the cutting edge of fashion. Three of Bloomingdales top competitors include: Nasty Gal, Polyvore, and Nordstrom.

Competitive Market Analysis

Nasty Gal

Nasty Gal is a global online destination for fashion-fore-ward, free thinking girls. In 2006, founder Sophia Amoru-so started an eBay store selling a highly curated selec-tion of vintage pieces. In just five short years, the shop has grown to become an interna-tional style source offering both new and vintage cloth-ing, shoes, and acccessories. This super-trendy website has stimulated a cult follwing and the shop is stocked weekely-with both hand-picked vintage and a highly curated selection of up-and-coming designers giving its customers truly unique items that can’t be found elsewhere.

Polyvore

Polyvore is a technology compa-ny pioneering social commerce. Over 20 million unique visitors go to the site every month to create, share, discover, and shop. The site allows custom-ers to search for a particular product and then offers a large variety of styles at many differ-ent price points. The customer is then taken to the original re-tailer of the product and is able to buy directly from that web-site. Its key strength is its abili-ty to cater to the exact needs of every customer and provide af-forable style for everyone. The platform allows people to mix and match products they love in unique, creative ways, while offering brands deep insight into their customers.

Nordstrom

Nordstrom is a competing department store with an unerring eye for what is next in fashion. For more than 100 years, Nordstrom has worked to deliver the best possible shopping experience, helping customers possess style, not just fashion. It offers com-pelling clothing, shoes, and accessories for men, women, and children. Its greatest competitve advantage is its commitment to customer service by offering free ship-ping, free returns, and mobile shopping. They also offer new, exciting retail partnerships in order to provide customers with a fresh, relevant shop-ping experience and inspiring style.

Trends

The Bloomingdales advanced contemporary collection is selected based on key trends in the marketplace that promise to provide compelling fashion in order to drive sales. Because our target customer is on the cutting edge of fashion, the following trends provide compelling evidence for expected growth in Fall 2013.

Athlete Inspired

A key look for Fall is sporty and casual yet chic. The aesthetic employs active wear as everyday wear. The trends stems from a 90’s hip hop revival and utilizes baseball, basketball, hockey, and football style tops, oversized propor-tions, and active-authentic details, which include sporty stripes, team logos, and player numbers. Trend setters are seen pairing thier casual sneakers or sweat pants with higher-end items to create an effortless look.

Peer-to-Peer E-commerceA new wave of internet start ups are re-creating the social aspects of shopping with friends for an online community. It allows shoppers to build a virtual clos-et, ask friends for advice, and rate thier look. One example is Go Try It On, which was launched in 2010. It allows useres to upload photos of themselves, add descriptions of brands, and the context of the outfit chosen. The photo can then be commented on or users can simply click “wear it” or “change it”.You can also add inatagram-like filters, create collag-es and discover on-trend items and add them to a shopping list. It has also part-nered with high-profile retailers such as Barney’s New York, Net-A-Porter, and a network of over 40 fashion bloggers whose looks users will be able to shop. Apps like these allow users to communi-cate their unique personal style and con-nect with retailers via mobile shopping.

Grunge

The grunge aesthetic started as a style based on functional layering and well-worn comfort. Rock bands like Nirvanna inspired a deliberately disheveled image mirrored by the aggression behend the music. To-day, the look has been updated by a slew of influential designers such as Phillip Lim and Givenchy. The Belgian designer Dries Van Noten revived grunge style in an ele-gant way and created a neo-grunge reviv-al that showcased fresh plaids and floral prints on chiffon, merging the casualness of grunge with ladylike femininity. Layering, distressed denim, mismatched pattern, and unbrushed hair are key for this unkempt look. The look is kept fresh by updating flannel shirts to sheer materials with plaid variations, sweaters are layered over long slip dresses worn over pants, and colors are slightly muted with a palette of midtones and rich darks.

Corporate Buying Plan Sales by Store LocationProject Model

Page 1

Focus Product Category: Advanced Contemporary Collection

80,000.00 72,290.00

11%36,451.00

2.1919,200.00

24.055.0

August September October November December January Fall 201311,200.00 14,400.00 12,800.00 14,400.00 17,600.00 9,600.00 80,000.00

14% 18% 16% 18% 22% 12% 100%32,480.00 37,440.00 37,120.00 41,760.00 38,720.00 32,640.00 36,693.33

2.9 2.6 2.9 2.9 2.2 3.437,440.00 37,120.00 41,760.00 38,720.00 32,640.00 35,000.00

1,536.00 2,880.00 2,880.00 4,224.00 4,800.00 2,880.00 19,200.00 8% 15% 15% 22% 25% 15% 100%

17,696.00 16,960.00 20,320.00 15,584.00 16,320.00 14,840.00 101,720.00 7,963.20 7,632.00 9,144.00 7,012.80 7,344.00 6,678.00 45,774.00

Fall 2013Plan Net Sales, Fall 2013:

Purchases, Cost

Fall 2013 6 Month Buying Plan

Net Sales% Fall

Plan BOM StockStock / Sales Ratio

(000's)

Plan EOM StockPlan Reductions

% FallPurchases, Retail

Average Stock, Retail:Inventory Turnover:

Planned Reductions, $:Reductions % Sales:

Plan IMU %:

Est. Net Sales, Fall 2012:Plan % Last Year:

Project Model

Page 1

August September October November December January Fall 2013480.00 640.00 640.00 720.00 880.00 640.00 4,000.00

12% 16% 16% 18% 22% 16% 100%1,488.00 1,600.00 1,728.00 1,944.00 1,936.00 1,920.00 1,802.29

3.1 2.5 2.7 2.7 2.2 31,600.00 1,728.00 1,944.00 1,936.00 1,920.00 2,000.00

76.80 144.00 144.00 211.20 240.00 144.00 960.00 8% 15% 15% 22% 25% 15% 100%668.80 912.00 1,000.00 923.20 1,104.00 864.00 5,472.00 300.96 410.40 450.00 415.44 496.80 388.80 2,462.40

August September October November December January Fall 20132,100.00 2,700.00 2,400.00 2,700.00 3,300.00 1,800.00 15,000.00 14% 18% 16% 18% 22% 12% 100%

6,090 7,020 6,960 6,750 7,260 5,400 5,654 2.9 2.6 2.9 2.5 2.2 3

7,020.00 6,960.00 6,750.00 7,260.00 5,400.00 5,500.00 288.00 540.00 540.00 792.00 900.00 540.00 3,600.00 8% 15% 15% 22% 25% 15% 100%

3,318.00 3,180.00 2,730.00 4,002.00 2,340.00 2,440.00 18,010.00 1,493.10 1,431.00 1,228.50 1,800.90 1,053.00 1,098.00 8,104.50 Purchases, Cost

Stock / Sales RatioPlan EOM StockPlan Reductions

% FallPurchases, Retail

(000's) Fall 2013 6 Month Buying Plan-59th & Lexington NY

Net Sales% Fall

Plan BOM Stock

(000's) Fall 2013 6 Month Buying Plan- Miami FL

Net Sales% Fall

Plan BOM Stock

Purchases, Cost

Stock / Sales RatioPlan EOM StockPlan Reductions

% FallPurchases, Retail

Assortment Plan ConclusionThe corporate buying plan takes into account all Bloomingdale’s locations. At the beginning of the Fall season, inventory is low in order to compensate for relatively warm temperatures in Au-gust. As the season progresses, inventory is gradually increased to prepare for the holiday sea-son. The last markdowns of the season are taken in January in order to prepare for new Spring inventory.

The Fall climate in Miami, Florida is drastically different than the climate of New York City. Over-all, the Miami location accounts for a little more than the average Bloomingdale’s store, around 2 million, so sales were increased to 4 million. In order to compensate for the difference in tem-perature, percent of sales for August were decreased because the extreme heat prevents custom-ers from buying warm Fall pieces. In addition, the percent of sales for January were increased in order to prepare for new Spring inventory. The Bloomingdale’s located at 59th and Lexington Avenue makes up the largest proportion of corporate sales, around 20 percent, so sales were in-creased to 15 million. The climate in New York City is much colder in relation to that of Miami so the division of sales remained similar to that of the corporate buying plan.

The advanced contemporary collection assortment features Wildfox, Mara Hoffman, and Free People. These vendors represent designers whose collections showcase modern design at price points that are appropriate for our target customer. The assortment was then further segement-ed by classifications including: jackets, coats, pants, skirts, knitwear, and tops in order to ensure an even ditribution of vaious categories of merchandise.

Fall trends include imporant advances in technology as well as fresh fashion innovation, which indicates that the Bloomingdales advanced contemporary collection can plan for an overall growth from its previous season.

Assortment Plans

Page 1

Focus Product Category: Advanced Contemporary Collections

Planned Purchases, Retail: $80,000,000Average Retail Price: $250

% $ Unit Avg.Total Purchases Purchases Retail15% $12,000,000 48000 $25020% $16,000,000 106667 $15015% $12,000,000 120000 $10015% $12,000,000 80000 $15020% $16,000,000 66667 $24015% $12,000,000 26667 $450

100%

%Total Purchases30% $24,000,00035% $28,000,00035% $28,000,000

100% $80,000,000

ClassificationJackets

KnitwearTops

Skirts

Free People

PantsCoats

VendorMara Hoffman

Wildfox

FASM 245Retail Buying SimulationProfessor Daniel GreenSix Month Buying PlanSpring 2013SCAD- Savannah

Retailer: BloomingdalesFocus Product Category: Advanced Contemporary CollectionVendors:WildfoxMara HoffmanFree People

Credit: Jennifer PiffKelsey Wittman