6 Month Buying Plan
Case Study
The Ask
Create a six-month merchandise plan for the children’s department, applying merchandising math to project sales, markdowns, inventory, purchases, turnover, and gross margin. The goal is to achieve a 5.5% sales increase, a turnover of 1.75, and a 42.0% gross margin, as set by the Divisional Merchandise Manager.
The Process
Create the Excel Plan: Apply a 5.5% sales increase and use the monthly distribution to calculate sales, sales increases, and sales dollar increases. Calculate Beginning of Month (BOM) stock with provided ratios and compute the average inventory for the season. Plan and calculate markdowns as 52% of sales, breaking them down by month, and use sales/markdown data to calculate purchases, turnover, and total purchases. Calculate Gross Margin (GM%) using the provided formula and ensure alignment with the 42% GM goal.
Written Analysis: Identify three strategies that will help achieve the 5.5% sales increase.Evaluate whether the planned GM goal of 42% is met and suggest adjustments if necessary. Additionally, calculate the markup (MU%) required to achieve a 46% GM if necessary.Assess whether the turnover (TO) goal of 1.75 is met, and propose adjustments if it is not.
Skills
Retail Math | Excel Proficiency
Business Strategy | Problem-Solving | Analytical Thinking
The Outcome
By completing this assignment, I was able to gain hands-on experience in creating a comprehensive merchandise plan for a retail business. Providing me with practical skills in merchandising math, Excel, and business strategy—skills that are crucial for a career in fashion merchandising.
