final presentation 11.30.14 v4
TRANSCRIPT
New York & Company
Management Team
Marissa SiuDave Marsh
Alexis GriecoJames Harrity
Anthony Parascondola
Professor LutzowDecember 1, 2014
2
• Company Overview
• Vision & Values
• Financial Analysis
• Long Term Objectives
• Main Challenges
• Short Objectives
• 3 Point Strategic Plan
• Evaluation & Control
• Conclusion
• Questions & Answers
AGENDA
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• Retail Women’s Apparel & Accessories• 507 Locations, 43 States
• “Wear-to-Work”
• Target Market• 25 yrs. – 45 yrs.
• Three Main Brands• 7th Avenue Collection
• Love NY&C
• Eva Mendez Collection
COMPANY OVERVIEW
4
Focus on RESULTS
Know our CUSTOMERS and WHAT THEY WANT
Demonstrate INTEGRITY & RESPECT in our interactions
IDENTIFY and QUICKLY RESPOND to changes in fashion and business trends
Embrace TEAMWORK & COLLABORATION
Provide our associates with the OPPORTUNITY TO HAVE AN IMPACT on our business
and to ADVANCE THEIR CAREERS
VISION & VALUES
“
”
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KEY TRENDS
• Flat-Lining Sales
• YoY Decrease in COGS- 14% in 3 Years
• Poor Investment
INTERNAL ANALYSIS
2010 2011 2012 2013
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Horizontal Analysis2010-2013
Total RevenueCost of Goods SoldGross ProfitSales, General, & Admin.Operating IncomeNet Income
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EXTERNAL ANALYSIS
$(40,000.00)
$(20,000.00)
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
$160,000.00
ANNEXPRNWY
YEARS
DOLLARAMOUNT(in millions)
Net Income Among Top Competitors2011-2013
2011 2012 2013
• Huge Competitive Disadvantage
• Poor Efficiency
• High Costs
• Lack of Capital to Invest in the Company’s Future
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LONG-TERM OBJECTIVES
MARKET POSITION
EMPLOYEES
• The Premier Retailer for Latin American Women’s Apparel and Accessories
• Rank among the Best Workplaces in the Industry
• Expand into a Higher-End Retail Market
MARKET POSITION
1
2
3
MAIN CHALLENGES
• Low Market Share
• Struggling Brand Perceptiono Low Customer Satisfaction
o Common Complaints1. Declining Quality of Clothing
2. Underperforming Customer Service
3. Lack of Trendiness
44%
39%
17%
2013 Market Share
Ann TaylorExpressNew York & Company
*Market Share based on Total Sales
• Low Employee Satisfaction (2.4 / 5.0)
o Declining Corporate Culture
o Lack of Opportunities for Growth in Employees’ Careers
o Average Compensation & Benefits
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SHORT TERM OBJECTIVES
GROWTH
Increase Sales
by 30%
Break 7% on Net
Profit Margin
Obtain a 10%
Market Share of the
Latina Market
MARKET POSITION
PROFITABILITY
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THREE STRATEGIES
Enhancing Company
Image
Creating a New Brand
Expanding Niche
Market
2015 2016 2017 2018 2019
2
1
3
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ENHANCING COMPANY IMAGE
STRATEGY #1
Reinvigorating In-Store Experience
Implementing PERCH Technology
Advanced Employee Training Programs
• Concrete Hiring Process
• Innovative Fashion Courses
• Valuable Employee Compensation Plans• Highest Monthly Sales
• In-Store Skills Competition Reinventing Store Atmosphere
IMPLEMENTATION
• Reduce Clutter on Displays
• Re-organize Store Layout
• Customer Serviceo Scenario-Case Training
Advanced Employee Training Programs
Reinvigorating In-Store Experience
2015 2016 2017
Increase of Revenue (per employee) $4,426 $10,636 $16,258
Cost (per employee) $1,500 $1,800 $2,160
Net Profit (per employee) $2,926 $8,836 $14,098
• Dynamic & Interactive Display Technology
• “Bringing Content to Life” - Women’s Wear Daily
IMPLEMENTATION
13Content sourced from Perch Technology
• Increasing Volume
o Sales
o Social Media
• Perch Analytics
o Touching Surface
o Touching Products
o Picking-Up Products
Implementing PERCH Technology
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EXPANDING NICHE MARKET
STRATEGY #2
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*Data provided by Mintel Group
RESEARCH & DATA
Breakdown on Hispanic Population in the United States
State # of NWY Stores
% of the Hispanics in the US
California 47 28.0%
Texas 45 19.1%
New York 45 6.8%
New Jersey 31 3.1%
Florida 29 8.6%
TOTAL 197 65.5%• Among the 507 NWY locations, 38.8% of stores are located in these selected states
• Expected Population Growth for Latin Women – 8.7 %
• Expected Purchasing Power Growth for Latino Market – 42%
• Distinguish Eva Mendes Line in Stores
• Store Signage
• Impulse Buy
IMPLEMENTATION
• Style Preference
• Style > Comfort
• Price > Quality
• Spanish Advertising Campaigns
• GPS and Mobile Tracking
• Hispanic Heritage Month
In-Store Awareness
Marketing Initiatives In Hispanic Market
Specialized Products
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CREATING A NEW BRAND
STRATEGY #3
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• Target Marketo 25 – 34 Years Old
o Household Income of $75K-180K
• Main Competitors:o Ralph Lauren Corp.
o Michael Kors
• Store Placements:o New York City
o Philadelphia
o Washington D.C.
IMPLEMENTATION Avenir
“The Weekender”Profession
alLine
New Designs Once a Month
Loyalty Programs
Teaming-up with Bobbi Brown
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EVALUATION & CONTROL
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BALANCED SCORECARD
Financial Perspective• Increase Investment to Stabilize Company• Improve Net Profit Margin
Customer Perspective• Remodel Store Layout• More interactive In-Store Experience
Internal Perspective• Enhance Employee Training Programs• More rigorous hiring process
Learning & Growth Perspective
• Perch Technology• Hispanic Market
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CONCLUSION
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SUMMARY
Focusing Company’s Future
on Unsaturated and Growing
Markets
Re-Defining Customer
Experience Through
Innovative Discoverability
Metrics
Empowering Employees
Through Strong Leadership and Encouragement
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QUESTIONS?
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• Bloomberg L.P. "Market Share 2013." (2013). Bloomberg database. Saint Joseph’s University, Philadelphia, PA. 1 November, 2014.
• "Newswire ." Now You're Speaking My Language. N.p., 04 July 2009. Web. 10 Nov. 2014.
• "Reports ." Latina Power Shift. N.p., 01 Aug. 2013. Web. 5 Nov. 2014.
• Smith, Cooper. "How Retailers And E-Commerce Sites Are Driving Sales By Getting More Social ." Business Insider. Business Insider, Inc,
25 Mar. 2014. Web. 5 Nov. 2014.
• "THE SOCIAL-COMMERCE REPORT: Social Networks Are Driving More Online Sales And Influencing Offline Purchases." Business Insider
Australia. N.p., 6 Nov. 2014. Web. 6 Nov. 2014.
BIBLIOGRAPHY
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APPENDIX
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STRATEGY #1 PRO FORMA
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STRATEGY #1 PRO FORMA
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STRATEGY #2 PROJECTIONS
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STRATEGY #2 PRO FORMA
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STRATEGY #3 PRO FORMA
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CONSOLIDATED PRO FORMA
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STRATEGY #3 PRO FORMA
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STRATEGY #1 - RESEARCH & DATA
• 39% of Employees Feel Underappreciated at Work
• 5% Increase in Employee Retention can Generate 25% to 85% Increase in Profitability
• 90% of Business Leaders Believe that an Engagement Strategy could Positively Impact their Business
• 41% of Customers are Loyal to a Brand Because They Consistently Notice a Positive Employee Attitude
*Data provided by Mintel Group
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*Data provided by Mintel Group
STRATEGY #2 - RESEARCH & DATAPopulation of Hispanic Women in the United States
Year 2008 2013 2018
Population (000s)
3,727 4,156 4,519
Growth Rate N/A 11.51% 8.73%
Purchasing Power by Race in the United States
2010 2012 2017 2010-2012 2012-2017
$bn $bn $bn % Change % Change
White 9,390 10,177 12,361 8.4 21.5
Black 947 1,038 1,307 9.6 25.9
Asian 609 718 1,023 17.9 42.5
Hispanic 1,014 1,179 1,677 16.3 42.2
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STRATEGY 3 - RESEARCH & DATA
Amount Spent on Women’s Clothing, By Household Income, July 2012 – March 2013
Based on Women Aged
18+
5,694 876 1,277 1,030 776 867 868
All <$25K $25K-49.9K $50K-$74.9 $75K-99.9K $100K-149.9 $150K+
$1,000> 4 1 3 3 3 5 12
$500-$999 8 3 4 7 8 11 17
$300-$499 18 10 13 18 20 21 32
$100-$299 40 39 42 42 47 40 30
Less than $100 30 47 38 30 23 23 11
Mean $267.53 $174.24 $216.05 $256.43 $270.65 $305.56 $431.57
*Data provided by Mintel Group
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•
STRATEGY #3 - RESEARCH & DATA
Population Growth for 25-34 Years Old
Expected to Grow by 6% from 2015-2020
Northeast Region has Highest Density of High-
Income Householdso NYC (#1)
o Philadelphia (#6)
o D.C. (#7)
Designer Clothing Expected to Grow by 21% from 2013-2018
Designer Apparelo $132.9 Billion
Luxury Accessorieso $51.3 Billion
*Data provided by Mintel Group
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NPV
Enhance Brand Image Strategy $53,746.52
Hispanic Market Strategy $61,124.34
Avenir Strategy $177,383.11
NPV