OVER THE MOON

MY STORE

Kate Campbell
Fall 2016
CADS 5500
Company Buying Plan

TABLE OF CONTENTS
Slide #

1.

Company Analysis

3-7

2.

Retail Strategy Analysis

8-15

3.

Market Research: Trend Forecasting S/S 2017

16-21

4.

Buying Plan

22-25

5.

Merchandise Plan

26-29

6.

Visual Merchandise Plan

30-33

7.

Executive Summary

34-36

1. COMPANY ANALYSIS

1.1 Store History + Logo

1.2 Store + Brand Image
1.3 Type of Merchandise

1.1 OVER THE MOON: STORE HISTORY + LOGO

Over the Moon (OTM) opens in

January 2017 as an eclectic
boutique downtown in the heart of
Austin, TX. The owners, Kate and
Rachel, graduated from the
Auburn University merchandising
program. With a focus on
customer service, everlasting
styles, and a positive environment,
the store seeks to fill a gap in
stores by catering to sizes XS-3XL!

1.2 BRAND + STORE IMAGE

Store:

Eclectic, bohemian, rustic

Bricks, woods, finished cement,
glass elements throughout
Up to date register technology
+ RFID implementation
Dressing rooms, door sensors,
and stockroom benefit from
RFID

Company culture
Customer service focused,
empowerment at every level

Initial brands
Mink Pink, JOA, Glamorous, Blank
NYC, Lucky Brand

Goal brands
Free People, Johnny Was, Rag &
Bone, Keepsake, Ella Moss

1.3 TYPE OF MERCHANDISE

The boutique will offer
womenswear broken down into
the following main apparel
merchandise classifications:

Apparel
Merchandise

Price Points

Tops

$58, $88, $108, $148, $228, $208

Bottoms

$58, $68, $98, $168, $198, $228

Price points based on competitors

pricing within Austin, such as
Anthropologie, as well as brands
pricing, such as Free People

Dresses

$58, $68, $98, $128, $168, $228

Dresses:

Outerwear

$48, $78, $98, $148, $228, $208

Tops
Bottoms
Dresses
Outerwear

Over the Moon (OTM) will focus on

dresses, as Austins demographic heavily
relies on this key fashion item

1.3 TYPE OF
MERCHANDISE
OTM is size inclusive
for various reasons:
Untapped market for
inclusive boutiques and
stores that do not
separate their plus-size
division
America's average size is
actually a size 16
(Christel + Dunn)
Sizing varies by brands
and girls will be likely to
find the right size

2. RETAIL STRATEGY ANALYSIS

2.1Target Market
2.2 Competitors
2.3 SWOT Analysis

2.1 TARGET MARKET:

GEOGRAPHIC + DEMOGRAPHIC INFORMATION

Geographic: Austin, TX
Downtown environment
growing rapidly
Growing job market leads
to more qualified applicants
in the area
Demographic:
Age 18-50
Female
Middle to Upper-Middle
Class
Competitors, location, and
desired brands helped
determine the
demographics desired

2.1 TARGET MARKET:

PSYCHOGRAPHIC INFORMATION
Psychographic:
Preferred styles:
eclectic, layered, hippie styles, casual but attentiongrabbing, quality fabrics and manufacturing, modern
elements, but nothing too extreme

Preferences + Shopping Habits:

Needs latest trends + higher quality goods
Wants brands she knows and trusts
Pays more, but for increased quality + novelty

Uses more discretion in shopping than an average

consumer
Seeks uniqueness but only within their style niche
Shops often (possibly multiple times a week)
Keen eye + knows preferred brands and styles

2.1 TARGET MARKET:

PSYCHOGRAPHIC INFORMATION + STRATEGY ANALYSIS
Haute

Olive
Boutique
Anthropologie
Urban Outfitters
Over the
Moon
francescas

Low Price

Over the Moon plans to

offer similar pricing to
Anthropologie to attract
similar consumers, yet
higher than francescas
fast fashion price points.
High Price

Forever 21

Basse

2.2 COMPETITOR #1: ANTHROPOLOGIE

Store Information: boho-chic
womenswear, similar target customer
Anthropologie Price Points
Tops

$68, $78, $88, $98,

$118, 128, $288, $368

Bottoms

$78, $98, $128, $148,

$168, $198, $218, $258

Dresses

$128, $138, $158,

$178, $258, $398

Outerwear

$118, $128, $138,

$188, $268, $298

2.2 COMPETITOR #2: OLIVE BOUTIQUE

Store Information: local boutique located downtown, strong following,
quality, chic items with similar target consumer as OTM

Olive

Price Points

Tops

$64, $110, $158, $168, $286

Bottoms

$110, 176, $198, $240, $260

Dresses

$154, $185, $208, $258, $288, $298

Outerwear

$60, $176, $220, $330

2.2 COMPETITOR #3: FRANCESCAS

Store Description: womenswear chain,
includes plus online, lower price
points
francescas

Price Points

Tops

$28, $34, $38, $44, $48

Bottoms

$34, $38, 44, $79.50,

$89.50

Dresses

$38, $44, $48, $52, $54

Outerwear

$38, $44, $48, $54, $58

2.3 SWOT ANALYSIS

Strengths

Carrying more sizes allows for friends to shop

together in a close proximity, unlike most stores
Store style suits Austin consumer who
appreciates unique, free-flowing, and quality
design
Technology in store, specifically RFID, benefits
inventory, shrinkage, and informative buying

Weaknesses

Opportunities

Highly trafficked area

Marketing will be essential
Social media is thriving in Austin and could be
beneficial
Austin has thriving business, affecting growth of
consumers discretionary income
Growth in population opens up more potential
customers

Will require more work to spread store

information initially
Will take time to build relationships with buyers
for better product
RFID technology, while beneficial long term, will
be a large expense early on

Threats

Competitors with established customer base of

similar target customers
Growing downtown area can affect costs of
taxes and land over time
Difficulty with brick and mortar stores achieving
business over online shopping

3. MARKET RESEARCH

3.1 Trend Forecasting

3.2 S/S 2017 Trends

3.1 S/S 2017 TREND FORECASTING

Megatrends:

Retro + Nostalgia

Fashion Trends
Colors: Cool colors
Fabrics: Bleached/ black
torn denim, lace, velvet,
metals, leather
Styles: Jeans, bomber
jackets, leather jackets, offthe-shoulder tops, cropped
pants, longer tailored coats,
jumpsuits and rompers, suits
Looks:
1. Night to Day
2. Tailored 90s
3. Soft Boho
4. Hard Edges
http://wwd.com/fashion-news/trends/spring-2017-women-trends-from-las-vegas-trade-shows-10511392/
http://pantone.com

3.2 S/S 2017 TREND FORECAST #1:

NIGHT TO DAY

Lingerie, lounge, and bedtime inspired looks

Inspired from lingerie and loungewear

Key items include billowing pants, satin textiles,

soft suiting, and simple makeup and hair
https://wwd.com/runway/spring-ready-to-wear-2017/paris/vetements/review/

3.2 S/S 2017 TREND FORECAST #2:

TAILORED 90S

Streetwear, grunge, and

tailored 90s looks

Inspired by 90s trends and

modern streetwear

Key items include leather

jackets, cropped pants or
denim, and booties

3.2 S/S 2017 TREND FORECAST #3:

SOFT BOHO

Floral,
bohemian, with
70s influence

Inspired by
past 70s
counterculture
styles and
modern prints
and florals

Key items and

details include
flounces or
trims, flowing
fabrics, and
cold-shoulder
styles

3.2 S/S 2017 TREND FORECAST #4:

HARD EDGES

Hard, edgy, leather, metals,

straight lines, and shine

Inspired by future-like metals

and minimal lines

Key materials include

leathers, metallic

Key colors are dark, such as

black or navy

4. BUYING PLAN

4.1 Financial Goals 2017

4.2 Sales Plan 2017
4.3 Suggested Price
Points 2017

4.1 FINANCIAL GOALS FOR 2017

OTM NET SALES IN FIRST MONTH + PLANNED SALES FOR 2017

OTM Planned Sales for 2017
PLANNED SALES FOR 2017

GM%

37.0%

Turnover

3.45

Planned Net Sales

$300,000

Hoovers benchmarks (based

on retail industry means) for
small businesses indicate for
small companies sized by
revenue (under $5 million)
Gross Margin benchmark
at 37.1%
Turnover at 3.44
GMROI at $3.02

Planned GMROI

3.00

SOURCES:
https://www.sec.gov/Archives/edgar/data/912615/000119312515116065/d840497d10k.htm
http://www.sba.gov/
http://smallbusiness.chron.com/things-need-start-clothing-boutique-16600.html
http://smallbusiness.chron.com/much-revenue-average-clothing-company-make-30775.html
http://subscriber.hoovers.com/H/industry360/financials.html?industryId=1519

Store size determined Planned Net

Sales
Average clothing stores start
at $200,000 for a 1,2001,500 sqft. size space

4.2 TOTAL, CLASSIFICATION, + SUBCLASSIFICATION SALES PLAN FOR 2017

OTM PLANNED SALES 2017 (BY CLASSIFICATIONS)

Classification: Womens Apparel

Sub-Classification

% of Sales

2017 Sales Plan ($)

Tops

30%

$90,000

Bottoms

25%

$75,000

Dresses

35%

$105,000

Outerwear

10%

$30,000

= 100% of
Apparel Sales

= $300,000

Planned Sales, estimated

to be $300,000 for
2017
Sub-Classifications
planned sales are based
on the initially found
value

4.3 SUGGESTED PRICE POINTS OF SUBCLASSIFICATIONS FOR 2017

OTM PLANNED SALES FOR 2017 (BY CLASSIFICATIONS)

Dresses will be a target

item for female shoppers
in Austin

While popular,
Jumpsuits + Rompers
are trendier and will
be predicted to be less
for planned sales than
normal dress styles
Lots of maxis and midis
on runways and
trending
Short dresses important
for hot weather in
Texas

Outerwear will be limited

but still seen in the ways
of vests, leather jackets,
and sweaters

Classification: Womens Apparel

Sub% of Sales
Classification

Suggested Price Points

Tops

30%

$58, $88, $108, $148,

$228, $208

Bottoms

25%

$58, $68, $98, $168,

$198, $228

Dresses

35%

$58, $68, $98, $128,

$168, $228

Outerwear

10%

$48, $78, $98, $148,

$228, $208

= 100% of
Apparel Sales

5. MERCHANDISE PLAN

5.1 6-Month Budget

5.2 6-Month
Merchandise Plan
5.3 Assortment Plan

5.1 6-MONTH BUDGET PLAN

FOR S/S 2017 + PRICING
PLANS
OTMS 6-MONTH BUDGET PLAN FOR 2017

MD of 30% will likely

move older product
Shortage should be
low % due to RFID
Sales discounts for
employees included at
a reasonably small %
At $300 roughly
per sqft and 1000
sqft = $300,000 in
net sales

Seasonal Sales ($)

$150,000

Reductions (% of Sales):

37.0%

MD %

30.0%

Shortage %

2.0%

Sales Discounts %

5.0%

GM %

37.0%

Inventory Turnover Plan

3.45

GMROI

3.00

Average Inventory (R) Planned

$43,478

Average Inventory (C) Planned

$27,391

Actual Average Inventory (R)

$35,036

Actual Inventory Turnover

1.50

Initial MU%

54%

5.2 6-MONTH
MERCHANDISE
BUDGET PLAN
FOR S/S 2017
OTM expects weaker
initial sales that will grow
as Austin customer
develops relationship
with store
Net Sales will also grow
in Summer, as the hot
weather leads many to
find cool, leisure
activities, + tourism
downtown

FEB

MAR

APR

MAY

JUN

JUL

TOTAL

Net Sales
Distribution
(%) by
Month

11%

12%

14%

18%

22%

23%

100%

Net Sales
($) by
Month

$16,500

$18,000

$21,000

$27,000

$33,000

$34,500

$150,000

Reductions
Distribution
(%) by
Month

12%

15%

16%

22%

17%

18%

100%

Reductions
($) by
Month

$6,660

$8,325

$8,880

$12,210

$9,435

$9,990

$55,500

BOM
StockSales Ratio

1.28

1.28

1.30

1.32

1.35

1.35

1.32

BOM Stock

$21,120

$23,040

$27,300

$35,640

$44,550

$46,575

$198,000

EOM Stock

$23,040

$27,300

$35,640

$44,550

$46,575

$47,250

$224,355

Purchases
(R):
Monthly
Addition to
Stock

$25,080

$30,585

$38,220

$48,120

$44,460

$45,165

$231,630

Purchases
(C):
Monthly
Addition to
Stock

$11,537

$14,069

$17,581

$22,135

$20,452

$20,777

$106,551

5.3 ASSORTMENT
PLAN FOR DRESSES,
FEBRUARY 2017

ASSORTMENT
FACTOR

ELEMENTS

% DISTR.
($)

BOM
STOCK ($)

% DISTR.
(UNITS)

BOM STOCK
(UNITS)

Style

Short dresses

30%

$2,218

30%

21

Midi Dress

30%

$2,218

30%

21

Maxi Dress

30%

$2,218

30%

21

Jumpsuit +
Rompers

10%

$738

10%

White

12%

$887

12%

Multi

20%

$1,478

20%

14

Blue

20%

$1,478

20%

14

Green

15%

$1,109

15%

11

Purple

15%

$1,109

15%

11

Black

18%

$1,331

18%

12

XS

12%

$887

12%

15%

$1,109

15%

11

20%

$1,478

20%

14

18%

$1,331

18%

12

XL

15%

$1,109

15%

11

2XL

10%

$739

10%

3XL

10%

$739

10%

$68

22%

$1,626

34%

24

$98

28%

$2,070

30%

21

$128

25%

$1,848

20%

14

$168

15%

$1,109

10%

$228

10%

$739

6%

100%

$7,392

100%

70

Color

Determined by price
points (higher price point
brands are earned so
many less units for when
the boutique is starting
out)
Colors chosen based on
trending colors/forecasts
Styles based on variety of
hemlines and styles for
this season (versus having
just the mini or maxi take
hold of customers)
Sizes inclusive of our plus
and non-plus consumers
Found total from price
point units (done by BOM
stock per price point /
element price point)

Size

Price Points

TOTAL

6. VISUAL MERCHANDISING
PLAN

6.1 In-Store Display

6.2 Window Display

6.1 IN STORE
Interior is bohemian
and cozy

70s throwback
Bohemian
Retro
Nostalgia
Cool colors
Textures wood, metals, warmth using layered fabrics

6.1 IN STORE
Interior is
bohemian and
cozy
Textures
include brick
walls, concrete
cash wrap
area, and iron
and wood
apparel
fixtures
Lounge area
near cash
wrap and
fitting rooms
for homey feel

6.2 WINDOW DISPLAY

Bohemian
Cool colors
Textures wood,
metals, warmth
using layered
fabrics

7. EXECUTIVE SUMMARY

7.1 Executive Summary

7.1 EXECUTIVE SUMMARY

Over the Moon (OTM) enters the Austin,
TX market as the missing puzzle piece
amongst downtown boutiques catering
to limited sizes only. Based on the
growing trend of body acceptance,
OTM encourages shopping to be an
inclusive experience. Expanding the
quantity of sizes affects buying, but
over time the store seeks relationships
with buyers to better accommodate our
expanded size runs. The store front
captures Austins quirky aesthetic with a
glamorous, eclectic, and at home feel.
Located in an growing city, the market is
prime for the opening of this boutique.

REFERENCES
Anthropologie (2016). Retrieved from http://www.anthropologie.com/anthro/index.jsp

Francescas (2016). Retrieved from http://francescas.com/

Hoovers (2016). Retrieved from http://www.hoovers.com/
Olive (2016). Retrieved from http://oliveaustin.com/
Pantone (2016). Retrieved from http://pantone.com/

SBA (2016). Retrieved from http://sba.gov

T & F (2016) Retrieved from "http://dx.doi.org/10.1080/17543266.2016.1214291"
WWD (2016). Retrieved from http://wwd.com/