This presentation highlights the key points in creating a 6 month plan for Nordstrom's Men's Dept. Fall 2013 season. Key learning points include: retail & merchandise math, market trend analysis, fashion trend forecasting, analyzing the target market, creating a private label, and promotional campaign.
2. Company Overview
• 1901 John W. Nordstrom & Carl
Wallin opened a small shoe store in
Seattle, WA
• Corporate Headquarters: Seattle, WA
• Annual Sales Fiscal 2013: $12.15B
• 1 year growth +11.69%
• Q2 ‘13 Highlights
• Total company net sales $3.1B –
+6.4%
• Same store increase of 4.4%
• Top performing merch. categories
3. • Men’s Contemporary Dept.:
‘The Rail’
• Downtown San Francisco, CA
• Westfield Mall
• Fall 2013
5. Target Customer #1
• Jason
• 17 years old
• Applied to UCLA
• Lives in Noe Valley
• Supported by HSL income of
$200,000
• Plays fantasy football, brand
conscious, enjoys video games and
hanging with friends
6. Target Customer #2
• Zack
• 28 years old
• Bachelors Degree from UCSF
• Creative Technical Consultant for Google
• Income $75,000
• Lives in Russian Hill
• Enjoys bike riding, alternative music,
drinks local coffee and loves the SF
Giants
7. Strengths
• Men’s shoes and apparel top
performing category’s – Q2
’13 Disciplined execution of
expenses and inventory
• Strong communication with
customer – lifestyle blog,
social media, and online
store
Opportunities
• Expand outdoor and active
lifestyle merchandise
category – more styles, more
colors
• Marketing strategy – create
exciting events that are dept.
specific to drive traffic
Weaknesses
• Merchandise mix weighted to
fashion items – not enough
basics
• Appeal overall to younger
demographic with styles and
colors
• Weak execution of
promotional strategy –
Anniversary Sale under-
delivered
Threats
• Weak economy may result in
inability to make sales plan
• Store expansion will create
higher operating expenses
8. • Market Trends
• Political Factors: -3%
• Internet tax bill may threaten online sales
• Newly appointed International Trade Representative –
affecting cost of foreign labor and imported goods
• Economic: -2%
• SF Bay Area one of lowest unemployment rates in CA 7.4%
• Inflation projected 2% - up .3% from 2012
• Retail Industry hopes to see increase in employment
opportunities – expansion in domestic manufacturing
9. •
Market Trends
• Social Factors: - +3%
• Consumer Price Index is up +1.5%
• Consumer Credit is up +1.9%
• SF Tourism is up +1% and spending +5.5%
• Marketing & Promotional Plans - +5%
• Private Holiday Shopping events for Fashion
Rewards Holders
• Customers earn reward points and enjoy free
holiday treats, music and exclusive offers
10. Nordstrom’s Current Sales - visual
• Sales to date for 2013 $5.7 B
• Year to date same store sales increase of +6.2%
• Plan to open 3 full line stores in 2014, and flagship
in Manhattan by 2018
6 Month Plan
• Projected Sales Plan: +7.2%
• Plan Turnover of 1.7
• Total Markup Percent: 55%
Current Sales
• Sales to date for 2013 $5.7 B
• Year to date same store sales increase
+6.2%
• Plan to open over 25 stores in 2013, and
flagship in Manhattan by 2018
6 Month Plan
• Projected Sales Plan: +7.2%
• Plan Turnover of 1.7
• Total Markup Percent: 55%
11. Merchandise Mix Modifications
Tanks
15%
T-Shirts
35%
SS Button
Ups
30%
Shorts
20%
Summer ’13 Assortment Mix
Denim
30%
LS Button
Ups
25%
Sweaters
25%
Jackets
20%
Fall ’13 Assortment Mix
• Added 30% denim for back to school and fall
• Sweaters included for fall fashion trends - 25%
• Jackets introduced for colder weather – 20%
13. Fashion Trend Forecast
• Upcoming fall trends show
neutral earthtone color palates
• Rugged and outdoorsman
inspired – megatrend ‘Migration’
• Incorporate floral, plaid and
tapestry accents
• Well tailored pieces and layers
are key – fit is everything
14. Private Label Program: RailExclusive
• Department was saturated with trendy colors and
fashion prints and graphics, need for basic
styles/colors
• Introducing 2 key basic essentials:
• Crew neck T-shirts w/ printed pocket for August
• Zip- Up Hoodies w/ printed lining for September
• Launch for back to school, beginning of Fall season
• Apply additional 2% MU to overall plan of 55%
Private Label Program: RailExclusive
• Department saturated with trendy colors and
fashion prints
• Need for basic styles/colors
• Introducing 2 key basic essentials:
• Crew neck T-shirts w/ printed pocket for August
• Zip- Up Hoodies w/ printed lining for September
• Launch for back to school, beginning of Fall
season
• Apply additional 2% MU to overall plan of 55%
15. • Men’s Basic V-Neck T Shirt
• Budget: 30% of LS Shirts
Purchases for August -
$23,700
• Price: $28.00/845 Units
• Opportunity
• Basic neutral colored T shirts in
White, brown and army with
graphic print pocket and sleeve
lining
• Great opportunity to increase
markup and profit margin
16. • Men’s Zip-Up Hoodie
• Budget: 50% of Sweater
Purchases of Sept - $20,200
• Price $42.00/480 Units
• Opportunity
• Solid color options of dark
gray, maroon and black with hoodie
printed hoodie lining and cuffs
17. • Promotional Event: Fashion Show Event
Fall ‘13 collection
• Hosted and DJ’ed by Joshua Kissi and Travis
Gumbs of Street Etiquette - -successful men’s
fashion/lifestyle blog
• First 100 guests will receive free Jack
Spade iPhone case
• 20% discount on Jack Spade collection and
RailExclusive
• Music, beverage and snacks
• Styling tips from hosts Joshua and Travis
• 10% of proceeds go to Project Open Hand
18. Marketing Calendar:
August 5th send out postcard
mailers to customers w/in 50 mile
radius
August 12th email blasts
August 19th announce event
details on
Facebook, Twitter, YouTube, Insta
gram, Tumblr and post on Men’s
Shop Blog
September 9th repeat social
media announcements
August 14th -September 14th
promote w/in store hand out
flyers/display invitation
September 14 Fashion Show
September 14-15 20% discount
on Jack Spade and RailExclusive
