PERRY'S MERCHANDISE OPERATING RESULTS

$ in millions
Sales Data Total Store Children's Group 2
This Year Sales $ 894.0 $ 26.8 Group 3
Previous Year Sales $ 864.5 $ 26.2 Group 8
Net Sales % Change from Previous Year 3.4% 2.3%
Net Sales % of Total Store 100% 3%

Merchandising & Inventory

Cumulative Markup % 53.6% 52.3%
Markdown % 27.0% 30%
Gross Margin %%w/ Workroom Cost & Cash
Stock Shortage 2.2% 1.9%
Discount 39.2% 38.2%

Inventory Productivity
Stock Turnover 3.0 2.9

IMU 55.0%

Children's Monthly Sales Distribution %

FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBEOCTOBER NOVEMBE DECEMBERJANUARY TOTAL
6.4% 8.2% 7.9% 7.6% 7.7% 6.7% 9.0% 8.0% 8.3% 9.0% 15.6% 5.6% 100.0%
$ 1.7 $ 2.2 $ 2.0 $ 2.0 $ 2.1 $ 1.8 $ 2.6 $ 2.1 $ 2.2 $ 2.4 $ 4.2 $ 1.5 $ 26.8

Children's Monthly Markdowns % To Sales, Markdown $, Markdown $ % to Total

FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBEOCTOBER NOVEMBE DECEMBERJANUARY TOTAL
35.3% 27.3% 25.0% 25.0% 28.6% 38.9% 26.9% 28.6% 27.3% 29.2% 26.2% 53.3%
$ 0.6 $ 0.6 $ 0.5 $ 0.5 $ 0.6 $ 0.7 $ 0.7 $ 0.6 $ 0.6 $ 0.7 $ 1.1 $ 0.8 $ 8.0
7.0% 8.1% 6.7% 5.9% 8.1% 8.2% 8.5% 7.2% 7.8% 8.5% 14.0% 10.0% 100.0%

Children's Stock to Sales Ratio, $ Stock by Month, Monthly Stock % to Total Stock
FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBEOCTOBER NOVEMBE DECEMBERJANUARY TOTAL
5.1 4.2 4.5 4.4 4.2 4.9 4 4.3 4.4 3.6 2.1 5.2
$ 9.0 $ 9.5 $ 9.2 $ 9.2 $ 8.9 $ 9.1 $ 9.0 $ 9.5 $ 10.1 $ 10.2 $ 9.0 $ 8.0 9.2 AVG.
8.1% 8.6% 8.3% 8.3% 8.1% 8.2% 8.2% 8.6% 9.1% 9.2% 8.2% 7.3% 100.0%

14.4% 18.4% 17.8% 17.1% 17.3% 15.1% <LY SALES 44.5%

15.9% 18.4% 15.2% 13.4% 18.4% 18.6% <MARKDOWN 44.0%
14.0% 14.9% 14.4% 14.4% 14.0% 14.2% 14.1% <BOM
57.7%
 FASH 420
Assortment Planning and Buying
Develop Six-month Dollar/Purchases Plan

Plan for a specific product category, a specific store rank, a specific area.
A dollar purchase plan is required for assortment planning because:
An assortment refers to inventory.
Inventory is the largest financial investment for a retailer.
A plan is required to determine the amount of inventory needed to meet sales goals.
The cost that a retailer must invest to purchase inventory is required as one means of controlling inventory investment.
The inventory investment must be controlled by planning specific amounts to purchase for specific time periods.

The dollar buying plan determines the specific amounts to invest in inventory

Assignment
Each student will complete a Spring/Summer 2020 purchase plan for their assigned product category. Sample
worksheets will be completed in-class. However, your completed project sheets will be done independently with the
numbers specified on Canvas. This file must be saved as an EXCEL file and be submitted in Canvas by the specified due
date.

The following worksheets will be completed based on industry stats for your specific category:
FIG 4.4 FIG 4.7
FIG 4.5 FIG 4.8
FIG 4.6 FIG 4.1

Excel formula and retail math will be used to develop the following components of a dollar/purchase plan.
Plan total sales for category
Distribute sales by month
Plan inventory using average inventory value or Stk/Sls ratios
Plan markdown
Distribute markdown by month
Plan purchases retail
Plan purchases cost
GM
Industry statistics for your category are available in your Group and Individual Project file located on Sakai.
Justifications will be required for several components of your plan. In developing justifications, you will need incorporate info from your
Economic and demographic reports
Trends/market report
Consumer profile and store ranking assignment
 PLAN SALES INCREASE / DECREASE
MERCHANDISE GROUP Girls CATEGORY Bottoms
Your TOTAL SEASON'S SALES Plan $ 820,800
Percentage increase or decrease 2.6%
Dollar increase or decrease $ 20,800
Last Season's Sales $ 800,000

Justification for your increase or decrease- based on your economic forecast, specific area
information, product, trend or additional information obtained in your research. Include
documentation of your research sources.

I planned an increase of 2.6% which is .3% up from last years increase of 2.3%. Based on my
trend analysis, the childrenswear category is growing due to the increase in social media and
the rise of the "mommy and me" trend. Celebrities and bloggers post photos of their daughters
in fashion forward outfits which leaves moms feeling inspired to dress their daughters the
same way. In addition, parents tend to have children later in life, therefore having larger
purchasing power to spend on their children. Specifically, within the Washington DC
metropolitan area, households have higher income and higher disposable income than the
average US household. Specifically, households in the Washington DC MSA spend 3.3% of their
income on apparel and services, whereas the average US household only spends 3.1% on
apparel and services. This proves that the childrenswear category has a high opportunity to
grow. The bottoms category will contribute to this overall growth within the childrenswear
department. With all this being said, I didn't make this increase too drastic as the economy is
predicted to go into a recession, which might have a negative impact on sales.
Sources: https://mi9retail.com/top-4-reasons-explosive-growth-childrenswear-industry/,
American Fact Finder, Bureau of Labor Statistics
 MONTHLY SALES PLAN
MERCANDISE GROUP CATEGORY
SPRING/SUMMER 2020
Planned monthly sales by percentage of season sales volume

SEASON MONTHLY
MONTH PERCENT X SALES $ = SALES $

FEB 14.2% $ 820,800 $116,554

MAR 18.2% $ 820,800 $149,386

APR 18.0% $ 820,800 $147,744

MAY 17.4% $ 820,800 $142,819

JUNE 17.4% $ 820,800 $142,819

JULY 14.8% $ 820,800 $121,478

Totals 100.0% $820,800

 LY Sales

LY monthly sales by percentage of season sales volume

SEASON MONTHLY
MONTH PERCENT × SALES $ = SALES $

FEB 14.4% $ 800,000 $115,056

MAR 18.4% $ 800,000 $147,416

APR 17.8% $ 800,000 $142,022

MAY 17.1% $ 800,000 $136,629

JUNE 17.3% $ 800,000 $138,427

JULY 15.1% $ 800,000 $120,449

100.0% $800,000
 PLAN MONTHLY SALES INCREASE/DECREASE
MERCHANDISE GROUP Girls CATEGORY Bottoms Planned Sales $820,800
FEB MAR APR MAY JUN JUL
PL Sales $ $116,554 $149,386 $147,744 $142,819 $142,819 $121,478
LY Sales $115,056 $147,416 $142,022 $136,629 $138,427 $120,449
$ Increase/Decrease $1,497 $1,970 $5,722 $6,190 $4,392 $1,029
% Increase/Decrease 1.3% 1.3% 4.0% 4.5% 3.2% 0.9%
Develop justification for your planned sales increase or decrease by month. Write justifications in the space below each month. Expand rows if needed.

FEB
February is a slower month for sales as it is right after the holidays and customers are satisfied with their winter bottoms. Since we are growing in overall sales from
last year, there will still be a 1.3% increase for February from last year, however it still will be our slowest month for the Spring/Summer season.

MAR
March has the highest number in planned sales for this season, up 1.3% from last year. March does not have that much room for growth as it is already our highest
sales month. However, sales are still predicted to increase 1.3% of the total planned sales as March is always our highest sales month.

APR
April will begin a drastic increase in sales, up 4% from last year, as our customer is prepping for the Spring months. They will be drawn to the exciting assortment of
warm weather clothing, including woven pants and skirts. These garments will be trending for the Spring months, and that's why we are predicting such a high
growth.

MAY
I am predicting May to have the highest growth in bottoms, up 4.5% from last year. May has a lot of potential for growth as customers will be getting excited about the
warmer weather and want to invest in clothing for the Spring and Summer. Our customer will be investing in quality shorts, skirts, and woven pants in preparation for
the warmer months. In addition, May weather incorporates all bottoms as long pants and denim jeans are always still a staple for cooler nights.

JUN
June sales will stay pretty consistent with May's, showing a 3.2% increase from last year's June sales. I predict that customers will still be purchasing skirts and shorts
especially for vacations and other Summer festivities. Maxi skirts and woven shorts will be popular during this time according to my trend analysis.

JUL
July is typically a slower month for sales as our customer is satisfied with their warm weather clothing and is saving their money for the fall back to school season
where they will splurge in denim jeans, leggings, and other pants. Therefore, there will only be a .9% increase from last year, making July the second lowest sales
month of the Spring/Summer season.
 PLAN STOCK and STOCK/SALES RATIOS LY Stock to Sales Ratios
MERCHANDISE GROUP Girls
CATEGORY Bottoms Stockturn 3.10 Avg. Stock $264,774 Stockturn 2.9 AVG Stock $275,862
FEB MAR APR MAY JUN JUL AUG Total FEB MAR APR MAY JUN JUL AUG Total

PL Sales $ $116,554 $149,386 $147,744 $142,819 $142,819 $121,478 $820,800 LY Sales $ $115,056 $147,416 $142,022 $136,629 $138,427 $120,449 $800,000
Stk/Sls Ratio ### ### ### ### ### ### Stk/Sls Ratio ### ### ### ### ### ###
BOM Stock $ $259,479 $276,159 $266,892 $266,892 $259,479 $263,186 $261,332 $1,853,419 BOM Stock $ $270,345 $287,724 $278,069 $278,069 $270,345 $274,207 $272,276 $1,931,034
BOM Stock % 14.0% 14.9% 14.4% 14.4% 14.0% 14.2% 14.1% 100.0% BOM Stock % 14.0% 14.9% 14.4% 14.4% 14.0% 14.2% 14.1% 100.0%
Develop justifications for your planned inventory levels by month. Write justifications in the space below each month. Expand rows if needed.
FEB
February will have the lowest inventory level as it will also be our lowest planned sales. We will be buying the least this month as we will be trying to turn over the last of the
cold weather assortment from the previous Winter months.

MAR
March will have the highest amount of inventory as that is our highest month for sales. Our March assortment will be the largest due to the fact that the weather is starting to
change so we will have high volumes of both long and short bottoms in stock at the same time. Our fashion forward transition item will the cargo pant and will be a key driver
of our March sales.

APR
We will buy a steady amount of inventory in April with 14.4% of the total stock for the season. Our April sales are planned to increase drastically so we need to plan enough
inventory to allow this. We will bring in a lot of the warm weather assortment during this month in preparation for the Spring, which includes shorts, skirts, and printed woven
pants.

MAY
Like April, May will also have a generous amount of inventory with 14.4% of the total season. Sales are planned to decrease slightly in May, however we will increase our
fashion forward buys in this month, such as the midi skirt and loose metallic shorts for our trendy customer in our A stores. We will start to introduce our summer prints and
fabrications in this month to ease into the summer months.

JUN
June will go back down to a bit lower inventory level at 14.0% as we are buying less and pushing out our inventory from previous months and selling all of the summer
essentials that were bought in April and May. We are still buying into the summer assortment but not as much as we will have a lot in inventory already from previous months.

JUL
July will have lower planned sales, and the BOM stock percent is lower at 14.2%. We are buying the very last of the Spring/Summer assortment before we transition out for
Fall/Winter. In this month, we will buy more denim and leggings for the moms that want to start their back to school shopping early.
 PLAN MARKDOWN LY Markdown
MERCHANDISE GROUP Girls
CATEGORY Bottoms Markdown % 28.0% Markdown % 30.0%
FEB MAR APR MAY JUN JUL TOTAL FEB MAR APR MAY JUN JUL TOTAL

PL Sales $ $116,554 $149,386 $147,744 $142,819 $142,819 $121,478 $820,800 LY Sales $ $115,056 $147,416 $142,022 $136,629 $138,427 $120,449 $800,000

MD $ $36,563 $42,309 $34,996 $30,817 $42,309 $42,831 $229,824 MD $ $38,182 $44,182 $36,545 $32,182 $44,182 $44,727 $240,000

MD % of Sales 31.4% 28.3% 23.7% 21.6% 29.6% 35.3% 28.0% MD % of Sales 33.2% 30.0% 25.7% 23.6% 31.9% 37.1% 30.0%

MD Distrib. % 15.9% 18.4% 15.2% 13.4% 18.4% 18.6% 100.0% MD Distrib. % 15.9% 18.4% 15.2% 13.4% 18.4% 18.6% 100.0%

Justification for total change in markdowns (overall, NOT month by month):

I am decreasing planned markdowns by 2% from last years markdown percent of 30%. Our total markdown dollars are
planned to decrease from $240,000 last year to $229,824 this year. With our increase in planned sales, we are confident
that we have a strong assortment with a healthy amount of fashion forward and key drivers that will fit the needs of our
customer. We are taking into account our slow sellers from last year and making sure to reduce our reorder sizes for
those items. In addition, with increased demographic research, we are making sure that the right assortment goes into
each store to cater to those customers and reduce the need for markdowns. Finally, every year, our relationship with
vendors is getting stronger, allowing us to adjust the monthly assortment if certain items are not selling like we had
predicted. This will also allow us to plan for a lower markdown percent.
 SIX-MONTH DOLLAR PLAN / PURCHASES PLAN
MERCHANDISE GROUP Girls CATEGORY Bottoms
STORE LEVEL(S) A, B and C STORE LOCATIONS Washington D.C. MSA
BUYER Abby Edge
SEASON
SPRING/SUMMER 2020 FEB MAR APR MAY JUN JUL AUG TOTAL
Last Year $115,056 $147,416 $142,022 $136,629 $138,427 $120,449 $800,000
Plan $ $116,554 $149,386 $147,744 $142,819 $142,819 $121,478 $820,800
SALES $ Sales % 14.2% 18.2% 18.0% 17.4% 17.4% 14.8% 100.0%
Revised
Actual

Stk/Sls RATIO Last Year 2.3 2.0 2.0 2.0 2.0 2.3
Plan 2.2 1.8 1.8 1.9 1.8 2.2

Last Year $270,345 $287,724 $278,069 $278,069 $270,345 $274,207 $272,276 $1,931,034
Plan $ $259,479 $276,159 $266,892 $266,892 $259,479 $263,186 $261,332 $1,853,419
BOM STOCK $ BOM % 14.0% 14.9% 14.4% 14.4% 14.0% 14.2% 14.1% 100.0%
Revised
Actual

Last Year $38,182 $44,182 $36,545 $32,182 $44,182 $44,727 $240,000

Plan $ $36,563 $42,309 $34,996 $30,817 $42,309 $42,831 $229,824
MARKDOWN $ MD % of Sales 31.4% 28.3% 23.7% 21.6% 29.6% 35.3% 28%
MD Distrib. % 15.9% 18.4% 15.2% 13.4% 18.4% 18.6% 100.0%
Revised
Actual

Last Year $170,617 $181,942 $178,568 $161,087 $186,471 $163,246 $1,041,931

PURCHASES $ (Retail) Plan $ $169,797 $182,427 $182,740 $166,223 $188,835 $162,456 $1,052,477
Revised
Actual

Last Year $76,778 $81,874 $80,356 $72,489 $83,912 $73,461 $468,869

PURCHASES $ (Cost) Plan $ $73,013 $78,444 $78,578 $71,476 $81,199 $69,856 $452,565
Revised
Actual

SEASON TOTAL LAST YEAR PLAN ACTUAL

$800,000
Sales $820,800.00

Markup % 55% 57%

Markdown % 30% 28%

Gross Margin % 41.5% 45%

Average Inv. $275,862 $264,774

Turnover 2.90 3.1

Discuss your Planned Mark-Up

I feel confident that we can increase our planned markup by 2% in the
bottoms category. As stated in fig 4.4, disposable income in the
Washington DC MSA is higher than the national average, allowing
households to spend more on clothing. In addition, with the rise of trendy
childrenswear thanks to celebrities and influencers, I feel that parents
will be willing to splurge a tad bit more on their daughters. A 2% increase
in planned markup should be a perfect justification for these factors.