Topic: OPEN TO BUY PROJECT – CREATING A FASHION/RETAIL STORE

Paper details: Part A As a buyer for XYZ retail store you will choose a classification of merchandise that you would like to buy. You will decide where your store will be located and what type of store it will be. This information will be backed up by valid research and trend information. Once you have decided on the type of merchandise you want to carry and have developed a name for the store and location you will have $1,430,000 (Retail) to spend to stock your store. This money will be your open-to-buy (OTB) for the season and we will use the Spring/Summer* season which will encompass February, March, April, May, June, and July as there is information that is readily available. You will detail down to the SKU level* what your department will consist of and how you plan your inventory flow. We will discuss this in more detail as the course progresses. The written portion of the project will be a minimum of four typed double spaced pages discussing the process and your research and why you choose the product classification that you did, the balance of the project will be numbers based. Once you determine the product category we will use 50% mark up which you will use to determine the costs of the merchandise that you will need to buy. *When illustrating your SKU’s please be sure this is shown right after the three page discussion portion of the project. Your SKU’s should also be typed. Part B. Using the figures provided you will calculate the following for the XYZ store. 1. Open to buy for each month 2. Average monthly sales 3. Average monthly on order 4. Markdown % for each month Planned sales + Planned reductions +Planned EOM Stock = Total monthly needs -BOM Stock =Planned purchases -Merchandise on order =Open to buy (At Retail) Planned sales On order Employee MD$ Shortages EOM BOM Discount Feb. $300,000 $125,000 2% $8,000 2% $200,000 $160,000 Mar. $200,000 $30,000 3% $12,000 4% $80,000 $40,000 Apr. $300,000 $150,000 4% $4,000 5% $110,000 $90,000 May $200,000 $100,000 0% $3,000 7% $90,000 $60,000 June $400,000 $150,000 5% $18,000 2% $210,000 $150,000 July $200,000 $30,000 7% $25,000 3% $70,000 $30,000 Part C. Solve the following: 1. After careful analysis of the economic data from the U. S. Government the XYZ store set a sales plan increase for the next season (Feb.- July) of 8.2%. Based on this year's sales plan what is the companies new projected sales plan for the next season? 2. In the prior year same sales period the XYZ store had actual sales of $1,850,000.00. What was the increase/decrease for the sales period and suggest reasons for the change from one season to the next. (Parts B and C are worth 40%) This project is due no later than: week 9________. There will be grade penalties for late papers. *In Fashion retailing, the business cycles usually end on July 31 and January 31. Business cycles in retailing (especially for apparel) are generally known as seasons. The February through July business cycle is called the Spring/Summer season, and the August through January business cycle is called the Fall/Winter season.