retail management
DESCRIPTION
This project shows how to develop a retail operation, analyze business situations and apply solutions based on sound management theory, and examine the processes involved in maintaining a successful retail establishment.TRANSCRIPT
Molly ChanthavongVictoria AdenijiEmma O’Connor
Vision StatementWe will be selling luxurious fashion merchandise to women. Our store will
be the center of fashion and culture to tourists and locals. It will be the most talked about place in Chicago for carrying trendy and luxurious clothing, shoes, handbags, and accessories. We hope that our business can be featured in top fashion magazines, television, and other advertisements. Our goal is to run a successful store and to open a chain store somewhere else in the future. We hope to generate the most sale revenue as well as promote the different cultures through our use of merchandise.
Mission StatementIn our store, De Luxe Joli, we will work
together with a level of passion to reach our goals offering the highest level of customer services that provides our customers with a taste of luxurious and trendy garments, shoes, and handbags.
We will be selling our luxury items especially designed by talented international designers to satisfy the needs of our target market. Our associates will connect with the customers at a more personal level to form loyal clients.
Company/Concept StatementOur company will provide our customers
with garments and accessories exclusively sold at our store. We only sell luxury items to our customers because we want them to have the best. Our handbags, clothing, and shoes are the products of international designers and come equipped with culture and diversity.
CompanyOur company is a luxury American specialty
store that features some of the most exclusive international designers from around the world.
The boutique key products include ready to wear clothes, handbags accessories, and shoes. What makes this store special is that it has exclusive collection pieces from up and coming international designers that may not be in other specialty department stores. It also has a sleek, chic, upscale sense walking into the store that is pleasing to the eye. The store niche is our unique brands that differ from others. Though it differs, it is unique and is accepted by many different women here in Chicago.
De Luxe Joli is known throughout the city of Chicago to find looks by mixing and matching clothes you may never consider putting together, and not from ordinary name brands.
Culture The culture of the store is very friendly
oriented. Inside you will find stylists building wardrobes for their clients, while offering them bottles of waters to make sure they are being well taken care of.
We follow up with almost every single customer not only to tell our clients about our sales, events, but we want to know how they are.
We also care about appearance as much as our customers so everyone is dressed professionally looking their best with silk tops and high waist black bottoms with a flare at the bottom of the pants to show a sense of style.
We do this so we can be more related to the client/customers. We want to show them that we too love the fashion world, and we appreciated by telling it through our clothes.
CustomerOur average customer is a woman who is on
the go. She loves to have experiences (traveling etc), diligent, headstrong, knows what she wants, and not afraid to take risk.
The age can range form 25-45 years old and they are a mix of different races. The customer has an unlimited income, which makes her, at times, and impulse buyer.
She may come in to the store looking for a black tie event dress and leave with buying a clutch, a piece of jewelry and maybe even a second dress.
Customer ProfileAthena Rossi
Geographic: Region: West loop (west side)
City Size: 2884305Urban/rural: Urban
Climate: Four Seasons Demographics:
Age: 27Sex: Female
Family Life Cycle: EngageIncome: 59,000
Education: University GraduateOccupation: Associates buyer for Prada stores
Religion: SpiritualEthnic Background: Greek and Italian
Psychographics:Social Class: Upper middle class
Personality: adventurous (travel), outgoing, high maintenance, and achiever.
Life Style: Loves yoga, shopping, blogging, social beautiful, loves to meet people,
Consumer behavior:Benefits Desire: Location in the city, trendy
eclectic style,Usage Rate: Medium
CompetitionDe Luxe Joli biggest competitor today is
Intermix. Intermix has excellent customer service and have a strong clientele following.
Both companies do offer most well known brands so many customers favor them because they are oppose to change.
Also they do have mark down deals on designer clothes that can be more than what De Luxe Joli offers.
They have big events as well; Intermix, for FNO, has a fashion show showing its latest brands new collections.
SWOT ANALYSISStrengths:•Customer’s high income, disposable, and established career•Located in diverse city, Chicago•Hold exclusive flash sales for clienteles•Promotion through social media, events, print ads•Personal shoppers•Exclusive up and coming international designers•Small staff and management makes it feel like friends and family working together
Weaknesses:•Luxury items that many people can’t afford•Fewer sales because of high priced garments•New business=unknown•Only one location in Chicago land area•Small staff can be overwhelming on busy days
Opportunities:•Smaller and intimate, personal relationship with clients•Chicago is a growing fashion industry•ADT security, and new check out technology
Threats:•Competitors are already well established with a loyal customer base•Don’t have the financial stability compared to competitors•Technology can back fire and make use do things manually
Branding
De Luxe Joli means “Lovely Luxury” in French
Product/Service/Merchandise Assortment
De Luxe Joli will have exclusive pieces from up and coming designers from across the globe. They consist of handbags, shoes, accessories, and clothes. Our main type of clothing will consist of dresses, tops (blouses, shirts, tank tops, etc.), bottoms (pants, shorts, skirts), and outerwear (jackets, coats, sweaters).
Guido Maria KrestchmerMichael Van Der HamChristopher RaeburnEmilio de la Morena
David Koma
Crisian and McCaffrey
Benson Chen
Dion Lee
Felicity Brown
Location
Location Fact SheetCross Streets 651 W. Armitage Ave, west of Orchard
Dimensions of entire space; Total square footage
1,250 square feet
Dimensions of separate spaces: square footage of bathrooms, square footage of store rooms
N/A
Shape of store Rectangular
Location of entrances/exits Entrance in front
Location of windows Main front windows
Monthly rent, rental/square foot $3,125; $30/SF/year
Terms of Lease Modified Gross
Common area fees: Maintenance, marketing, etc
N/A
Security Deposit N/A
Realtor fees N/A
Expenses incurred by lease: Utilities, etc.
N/A
Allowable renovations Yes
Landlord obligation/commitment for renovations
N/A
Store Décor and Visuals
Planogram
E-Business
• De Luxe Joli believes in connecting with customers and keeping them up to date about our merchandise, events, and boutique.
• There is no better way than using the World Wide Web. We will have a website, blog (tumblr), and twitter that will be updated continuously.
• Clients and new potential customers will receive news faster through our twitter feed and know when our special events will take place.
• De Luxe Joli Tumblr
• De Luxe Joli Website
MarketingDe Luxe Joli offers clothing and accessories in our Chicago store only.
PricesOur prices are premium. The price point varies between each category. Dresses: $299 - $899Tops: $89 – $599Bottoms: $199 - $599Outwear: $399 - $999Accessories: $79 - $499Shoes: $299 - $799
Promotions and EventsDe Luxe Joli does not offer seasonal
sales, however we will have flash sales that will last for two weeks clearing out the end of season merchandises. We will offer them 40% off from the selling price.
For our grand opening we will take to Twitter, CS magazine, and TCW magazine to inform potential customer to come into our stores in celebration. We will offer them free styling tips, introductions to the newest collections, and special guest (future designers).
Other in store events will be sent electronically via email, twitter, tumblr and our website. Each season we will have a introduction to the new collection. For FNO we will host an event for everyone to join us in celebration of fashion today.
Advertising and PublicityAdvertising
The message that we are trying to send out is about our new boutique featuring up and coming international designers. We will pick top magazines throughout the Chicago area: CS, Chicago Fashion, Today Chicago Women, Michigan Avenue, etc.
PublicityFor PR, we will write a press release informing local television news shows that we are having a FNO event welcoming everyone to our store. We will also take care of videotaping and photography to post on our social network pages.
Advertising Calendar & BudgetPromotional Event Month Estimated Sales for
EventTotal Costs of Event
Flash Sale for Fall/Winter
March $2,887.5 $1,250
Flash Sale for Spring/Summer
August $2,887.5 $1,250
Fashion Night Out September $2,887.5 $1,250
Black Friday Event November $2,887.5 $1,250
Total $11,550 $5,000
Management & Leadership StyleEmployee Motivation
Meetings will take place on the first Sunday of each month welcoming employees to a special brunch on the management team for thanking them for their hard work in sales the last month. This will also prep them for what is to come this month.
There will be a chart showing sales of each week by each associate, associates with the highest goal will have a yellow highlight showing their achievements.
Each associates with will have their on personal mail box which will be use for clients information and also sale charts which will have a personal thank you signature from supervisors.
Employee Bonuses and IncentivesVouchers, or gift cards, can be given to
employees if they have a multi-sale of $1000 or more in one purchase. The amount will be $50 for employees to use in the store.
During sales, employees who have sold the most items of sale items in a week will have their pick of a sale item worth $200 to have.
Selling ProgramsFor our VIP clients, after spending $5000 or more in one year we can offer them 50% off our special collections from new season. Price points between $89 - $599.
Employee Goal SheetAssociate Week 1 Week 2 Week 3 Week 4 Total
Lauren $4,000 $4,500 $5,000 $4,000 $12,500
Serena $3,500 $3,000 $2,500 $3,500 $12,500
Nate $1,000 $900 $1,000 $1,000 $3,900
Olivia $562.5 $662.5 $562.5 $562.5 $2,350
Shannon $562.5 $562.5 $562.5 $562.5 $2,250
Totals by Week
$9,625 $9,625 $9,625 $9,625 $38,500
Store Goal $38,500
Management Structure
Ethics• Sexual Harassment is unlawful. Any
employee involved in such an act, will be terminated immediately. Employees that are involved should close their relationships immediately at an appropriate setting.
• De Luxe Joli is an equal opportunity
fashion boutique. We do not discriminate on race, ethnicity, sexuality, and gender.
• De Luxe Joli does not tolerate theft. When an employee is caught stealing it will result into an immediate termination. They will also be prosecuted under the Chicago police force and law.
• Employee discounts are for
employees only. Employees getting caught using their discounts for others will be terminated immediately.
Employee Rates, Bonuses, & Discounts
Employee Rates•Managers at De Lux Joli will receive a competitive compensation salary including health benefits and paid vacations. •Part-timers will receive $9 an hour and may be eligible to receive a raise after 6 months upon a good review by store supervisors.
Bonuses•If the store has exceeded their goal plan we can offer them a 10% bonus on each paycheck.
Discounts•Employees will receive a 30% discount with each purchase. De Luxe Joli will also have a family/friend night, where friends and family of employees may receive a 10% discount on purchases.
Training & Employee ManualsTraining
•Training will start shortly after the new hire is informed. Training is a two-week process that the new hire must commit to.
•They will learn cash register duties, how to fill out a charge-send form when clients order on the phone, and how to correctly stock new products upon arrival.
•New hire will also go through the process of understanding our garments, and how to style clients. They will try on selected pieces by the management team and understand the fit of each garment.
Employee manualsEmployee manuals will be distributed
upon hire to the new stylist. This will include all HR policies, training procedures, hourly rates, discounts, and training style.
• They will also understand the feel of the different fabrics, so they can better describe it to new customers.
• They must shadow current employees with 5 or more clients for two days to understand client and stylist relationships.
Employee Schedule Sheet
Merchandise Classification SheetCategory Feb. March April May June July Total
3% 9% 13% 16% 13% 9%
Dresses $2,310 $6,930 $10,010 $12,320 $10,010 $6,930 $38,500
7% 10% 9% 10% 9% 9%
Tops $5,794.25 $8,277.5 $7,449.75 $8,277.5 $7,449.75 $7,449.75 $41,387.5
4% 10% 11% 11% 9% 4%
Bottoms $3,080 $7,700 $8,470 $8,470 $6,930 $3,080 $38,500
9% 14% 7% 5% 4% 3%
Outerwear $6,930 $10,780 $5,390 $3,850 $3,080 $2,310 $38,500
4% 9% 12% 10% 8% 7%
Accessories $770 $1,732.5 $2,310 $1,925 $1,540 $1,347.5 $9,625
11% 4% 7% 12% 11% 9%
Shoes $519.75 $2,079 $3,638.25 $6,237 $5,717.25 $4,677.75 $25,987.5
Catergory Aug. Sept. Oct. Nov. Dec. Jan. Total
2% 6% 6% 9% 8% 6%
Dresses $1,540 $4,620 $4,620 $6,930 $6,160 $4,620 $38,500
9% 8% 7% 11% 7% 5%
Tops $7,449.75 $6,622 $5,794.25 $9,105.25 $5,794.25 $4,138.75 $41,387.5
5% 10% 10% 12% 10% 4%
Bottoms $3,850 $7,700 $7,700 $9,240 $7,700 $3,080 $38,500
4% 10% 12% 18% 7% 7%
Outerwear $3,080 $7,700 $9,240 $13,860 $5,390 $5,390 $38,500
8% 9% 7% 12% 10% 4%
Accessories $1,540 $1,732.5 $1,347.5 $2,310 $1,925 $770 $9,625
2% 4% 14% 16% 11% 9%
Shoes $1,039.5 $2,079 $7,276.5 $8,316 $5,717.25 $4,677.75 $25,987.5
Monthly Sales PlanMonth % of Total Year Sales Sales Plan Justification
January 5% $19,250 Lowest sale after holidays
February 5% $19,250 Continue low sales due to weather
March 10% $38,500 Flash sale for Fall/Winter
April 10% $38,500 New Spring/Summer Collection
May 9% $34,650 Continue Spring/Summer Collection
June 8% $30,800 Prices may effect consumers decisions
July 6% $23,100 Client’s vacation
August 8% $30,800 Increase due to new styles
September 10% $38,500 Fashion Night Out event
October 7% $26,950 More outside events
November 13% $50,050 Black Friday, Holiday Sales
December 9% $34,650 Holiday pruchases
Total 100% $385,000
Sales Plan by CategoryCategory % of Total Year Sales $$ Justification
Dresses 20% $77,000 Dresses are for going out and special events
Tops 22% $82,775 Tops are a big seller because they are everyday wear items.
Bottoms 20% $77,000 Bottoms need to match tops
Outerwear 20% $77,000 Consists of sweaters, coats, jackets, and blazers that is a necessity.
Accessories 5% $19,250 Need accessories to compliment and add to outfits.
Shoes 15% $51,975 Needs shoes to compliment outfit.
OperationsBusiness Hours of Operations: Mon-Sat 10:00 – 7:00 pm Sunday 12:00 – 6:00 pm Loss Prevention and Security:
De Luxe Joli will have top-notch security cameras around the inside of the boutique followed by homeland security provided by ADT.
Clients will have to check in their shopping bags from other stores during the boutique’s busy hours (Friday-Sunday).
All employees will have bag checks during breaks, closing time, and every time each one visits the stock room while not scheduled to work.
Exchange/Returns• De Luxe Joli offers merchandise
holds for 24 hours (special clients may have an extended hold up to 3 days).
• Returns may be made within 14 days if unworn with a valid receipt and tag attached.
• Within 30 days, purchase may be returned if unworn, has a receipt, and tag attached for store credit only.
• De Luxe Joli will not accept purchases that are longer than 30 days.
Customer Service/ClientellingClientelling
•Each stylist must have a client book that will be provided by the boutique. •Inside they will find a VIP client section, which will keep record of the names of their clients and notes. •The book will also have calendars for the stylist to schedule appointments with their clients.
Customer ServicesDe Luxe Joli will offer the
highest quality of customer service to our clients. We believe in the “customers are always right” method. During regular business hours we will offer bottle of sparkling water while they try on clothing. We will also send thank you cards after big purchase or VIP clients. And for special events we will extend invitation to all customers, welcoming them into our fashion world.