retail management

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Molly Chanthavong Victoria Adeniji Emma O’Connor

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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.

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Page 1: Retail Management

Molly ChanthavongVictoria AdenijiEmma O’Connor

Page 2: Retail Management

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.

Page 3: Retail Management

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.

Page 4: Retail Management

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.

Page 5: Retail Management

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.

Page 6: Retail Management

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.

Page 7: Retail Management

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.

Page 8: Retail Management

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

Page 9: Retail Management

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.

Page 10: Retail Management

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

Page 11: Retail Management

Branding

De Luxe Joli means “Lovely Luxury” in French

Page 12: Retail Management

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

Page 13: Retail Management

David Koma

Crisian and McCaffrey

Benson Chen

Dion Lee

Felicity Brown

Page 14: Retail Management

Location

Page 15: Retail Management

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

Page 16: Retail Management

Store Décor and Visuals

Page 17: Retail Management
Page 18: Retail Management

Planogram

Page 19: Retail Management

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

Page 20: Retail Management

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.

Page 21: Retail Management
Page 22: Retail Management

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.

Page 23: Retail Management

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

Page 24: Retail Management

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.

Page 25: Retail Management

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

Page 26: Retail Management

Management Structure

Page 27: Retail Management

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.

Page 28: Retail Management

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.

Page 29: Retail Management

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.

Page 30: Retail Management

Employee Schedule Sheet

Page 31: Retail Management

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

Page 32: Retail Management

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

Page 33: Retail Management

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

Page 34: Retail Management

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.

Page 35: Retail Management

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.

Page 36: Retail Management

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.

Page 37: Retail Management

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.