new venture assignment final

8/9/2019 New Venture Assignment FINAL

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FASH 422 New Venture Development:

Business Plan Simulation Assignment

Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and

Jacqueline Trunks

For Judi Shekter, Tuesday March 4th, 2014 @ 10:50 a.m.

[lùs-so]


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FASH422 Business Plan Simulation Assignment

Table of Contents

STEP 1: CHOOSING A BUSINESS, TARGET CUSTOMER, AND PRODUCT LINE 3-5

PRODUCT LINE AND MERCHANDISE CATEGORIES 3

BRANDS AND KEY RETAIL PRICE POINTS 3

NICHE AND COMPETITIVE ADVANTAGE 4TARGET MARKET 5

STEP 2: LOCATION 6-13

COMMERCIAL LISTING 6

STORE LOCATION FACT LIST 7

LEASE 8-10

MAP 11

DESCRIPTION OF LOCATION 11-12

FLOOR PLAN 13

STEP 3: FINANCIAL AND SALES PLAN 14-17

FIRST-YEAR SALES PLAN 14

SALES PER SQUARE FOOT 14

STATISTICAL RESEARCH 15

FIXED COSTS 16

LONG-TERM GOALS 17

TYPES OF INVESTORS 17

STEP 4: BUSINESS RESUME AND LOGO 18-25

LOGO 18

BUSINESS CARD 18LETTERHEAD 18

BUSINESS RESUME 19-25

STEP 5: PROFIT AND LOSS PLAN 26-30

MONTHLY SALES PLAN 26

MONTHLY FIXED COSTS 27

BREAKEVEN ANALYSIS 28

PROFIT AND LOSS STATEMENT 29-30

STEP 6: MERCHANDISING YOUR STORE 31-32

OPENING INVENTORY PLAN 31

MERCHANDISE MANAGEMENT 32

REFERENCES 33

Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and Jacqueline Trunks 2


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Step 1: Choosing a Business, Target Customer and Product Line

Product Line and Merchandise Categories

Lusso is a luxury women’s footwear and accessories retailer offering a selection of women’s accessory

product categories including:

• Women’s designer shoes

• Women’s luxury handbags

• Women’s jewellery

• Women’s accessories

The aesthetic is urban, edgy, and luxe. The product assortment incorporates colours and silhouettes that

convey a modern, trend-savvy persona in the wearer, while maintaining a look that resists fad culture

and stands the test of time. In selecting merchandise for Lusso, we aim to offer clients a trendy aesthetic

with craftsmanship that is superior to most other fashion forward retailers in the current Canadian

market. In addition, sales associates at Lusso will also serve as stylists for our clients and work to source

outside, coveted items.

Brands and Key Retail Price Points

Brands carried at Lusso are high-end designer labels, known for quality materials and craftsmanship.

Brands carried all have a strong brand image and identity, conveying a sense of exclusivity and being on

the cutting edge of fashion. The brand assortment will come together to create one cohesive identity for

Lusso that appeals to our target market as a whole. Brands carried will include:

• Shoes: Sophia Webster, Givenchy, Saint Laurent, Charlotte Olympia, Chloe, Valentino,Senso, Kenzo, Alexander Wang

• Handbags: Givenchy, 3.1 Phillip Lim, Sophie Hulme, Saint Laurent, Comme des Garcons,

vintage Chanel, vintage Hermes, Proenza Schouler, Alexander Wang• Accessories: Opening Ceremony, Kenzo, Givenchy, Balmain, Prada, Celine, Tom Ford,

Chanel, Karen Walker, Thierry Lasry, Illesteva, Oliver Peoples, Eugenia Kim

• Jewelry: Lanvin, Maison Martin Margiela, Alexander McQueen, Saint Laurent, CC Skye,Pamela Love, Dannijo, Tom Binns

The average price point at Lusso will also convey a sense of exclusivity and superior quality. Since all

brands carried are already established, all products carried in Lusso have a predetermined retail price

point. Price points range from:

• Shoes: $250-$1500

• Handbags: $500-$2500

• Accessories: $50-$1000



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Niche and Competitive Advantage

Lusso aims to fill an existing gap in the Canadian footwear and accessories market by offering product

rarely found in other luxury retailers. Currently, the luxury footwear market in Toronto is dominated by

David’s and Specchio. However, these retailers neglect the more fashion-forward and trend-savvy luxury

shopper. Lusso will maintain a similar price point while introducing a product selection to the Canadian

market that is edgier and more urban than David’s or Specchio.

We will also offer an extensive selection of luxury handbags, accessories, sunglasses, and jewellery,

which will give us a competitive advantage over the competition. Although Holt Renfrew, as a

department store, offers these product categories as well, Lusso will carry a selection of brands that are

not carried at Holts, appealing to the fashion community specifically and elevating our sense of

exclusivity. In further contrast to Holt Renfrew’s business model, the boutique setting of Lusso will offer

a higher degree of customer service and emphasize lasting client relations by offering personal styling

and concierge services that other luxury brand retailers don’t currently have. Because Lusso offers a

selection of vintage merchandise, part of our services will involve sourcing and obtaining specific vintage

items customers are looking for. It will also involve ordering product based on individual customer wants

and needs.



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Target Market

CATEGORIES VARIABLES BREAKDOWN

Geographics Region GTACity or CensusMetropolitan Area Size

250,000-1,000,000+

Density Urban

Climate Any; Cold OR Warm

Demographics Age 30-45Gender Female

Family Size 1-4

Stage in Family Life Cycle • Young single adult

• Young married, w/ or w/o kids

Income $60,000+Occupation • Professional

• Sales

• Managerial

Education College or University graduate

Ethnic Background All ethnic backgrounds

Home Ownership Owns or rents home

Lusso aims to target young adult females in Toronto and surrounding areas. The target market ranges

from age 25-40, an age sector that comprises nearly 60% of Yorkville’s inhabitants (Environic, 2005). The

Lusso customer is a mix of the urban and suburban dweller. She may live and work in the downtowncore or may come to shop in Yorkville from her home in wealthier areas such as Oakville Lakeshore,

Thornhill, or the Bridlepath. 31% of people travelling to Yorkville from surrounding areas come with the

intent of shopping, and 76% of customers make purchases while shopping in Yorkville (Environic, 2005).

She occupies a white-collar profession, an occupational category that comprises 59.6% of Yorkville’s

working population (Environic, 2005). Yorkville’s habitants earn an average yearly household income of

$174,420 (Environic, 2005), ensuring that customers living and working in the area will be able to afford

Lusso’s luxury price point. She likely in the field of business, sales, or managerial in a creative industry

such as fashion or marketing, which speaks to this customer’s edgy and fashion-forward stylistic

preferences.



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Step 2: Location

Commercial Listing



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Store Location Fact List

Cross streets Bloor Street and Bay Street; Bloor Street fronts the property

Dimensions of entire space:

Total square footage

1242 square feet

Dimensions of separate spaces:

Square footage of bathrooms,

square footage of store rooms

Square footage of non-selling space: 642

Square footage of bathroom: 24 sq. ft.

Square footage of store rooms: 500 sq. ft.

Square footage of office: 128 sq. ft.

Square footage of selling space: 600 sq. ft.

Shape of store Rectangular

Location of entrances/exits Street entrance on the front of the store and an entrance at the

back to the retail complex on the main floor

Locations of windows Street-side and open to retail complex.

Monthly rent,

Rental/square foot

Monthly rent: $4337.69

Rental/square foot: $41.91

Terms of lease One-year term, gross lease.

Common area fees:

Maintenance,

marketing, etc

N/A

Security deposit Two months’ rent.

Realtor fees Paid by owner of building.

Expenses incurred by leasee:

Utilities, etc.

Utilities covered by leasee, including hydro, electricity, and gas. Any

future interior renovations to be paid for by lease.

Allowable renovations Minor renovations permitted, but must be approved by landlord.

Landlord

obligation/commitment for

renovations

Landlord has agreed to pay for exterior and retail complex upkeep,

as well as being responsible for the upkeep of any structural

maintenance.

Miscellaneous N/A



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Lease

RETAIL DEED OF LEASE AGREEMENT

THIS DEED OF LEASE AGREEMENT (this “Lease”), is made as of this Day of Month , Year , by and betweenLandlord’s name in ALL CAPS (the “Landlord”), Tenant’s name in ALL CAPS (the “Tenant”), and Thalhimer, a

Virginia corporation (the “Agent”).

WITNESSETH

THAT for and in consideration of the below stated rent and other terms and conditions stipulated in this Lease, Landlorddoes hereby lease to Tenant, and Tenant does hereby rent from Landlord, the following described property located in theCity/County of ____________, State (the “Leased Premises”) and more particularly described on Exhibit A, attachedhereto and by this reference made a part hereof.

TO HAVE AND TO HOLD said Leased Premises and the privileges and appurtenances thereunto belonging unto Tenant,its successors and permitted assigns, for the term hereinafter provided, and upon all of the following terms and conditions,to which Landlord, Tenant and Agent hereby mutually covenant and agree:

1. TERM:

The original term of this Lease (the “Term”) shall be for Number of years - written out ( Number of years -numerical) years and shall commence on the Day of Commencement day of Month of Commencement , Year ofCommencement (the “Commencement Date”) , and shall end on the Day of Expiration day of Month of Expiration ,Year of Expiration (the “Expiration Date”). The twelve-month period following each anniversary of theCommencement Date is referred to herein as a “Lease Year”. Notwithstanding anything contained herein to the contrary,Landlord and Tenant mutually agree that if the Leased Premises cannot be delivered to Tenant on the CommencementDate for any reason, then the Commencement Date shall be adjusted to the date possession is given to Tenant and theExpiration Date shall be adjusted to reflect the Term of this Lease as contemplated herein. Tenant agrees that it shall not

be entitled to any damages, rights or remedies whatsoever which Tenant might otherwise have by reason of possession ofthe Leased Premises not being given on the originally contemplated Commencement Date; provided, however, that ifLandlord is unable to give possession of the Leased Premises to Tenant on the Commencement Date due to workundertaken by Landlord at Tenant’s request, then the Rent (as hereinafter defined) shall nevertheless commence asscheduled on the Commencement Date without abatement or allowance and the Expiration Date and the term of this Leaseshall not be adjusted.

In the event Tenant (i) shall fail to take possession and open for business in the Leased Premises fully fixtured,stocked and staffed on the Commencement Date, or (ii) shall vacate, abandon or desert the Leased Premises, or (iii) shallcease operating Tenant’s business therein, then and in any of such events (hereinafter collectively referred to as “Failure todo Business”) Landlord shall have the right, at its option (i) to collect not only the Rent, but also Additional Rent (ashereinafter defined) equal to one-half (1/2) of the Rent reserved for the period of Tenant’s Failure to do Business,computed at a daily rate for each and every day during such period, and such Additional Rent shall be deemed to be in lieuof any Percentage Rent (as hereinafter defined) that might have been earned by Landlord during such period, or inaddition, at Landlord’s option, (ii) to treat such Failure to do Business as a default under this Lease.

2. RENT:

During the Term of this Lease Tenant covenants to pay a base annual rental to Landlord, without any demand,offset, or reduction whatsoever, the sum of Annual Rental Payment - written out Dollars ($ Annual Rental Payment- numerical ), payable in equal monthly installments in advance on the first day of each month in the amount ofMonthly Rental Payment - written out Dollars ($ Monthly Rental Payment - numerical ) (together with thePercentage Rent and the Renewal Rent, as hereinafter defined, and all additional charges and rental (hereinaftercollectively referred to as “Additional Rent”), the “Rent”); provided, however, that Tenant shall pay the first month’sinstallment of Rent simultaneously with Tenant’s execution of this Lease. In addition, if the Term does not commence onthe first day of the month, Tenant shall pay, simultaneously with Tenant’s execution of this Lease, Rent for the periodfrom the Commencement Date to the last day of the calendar month in which the Commencement Date occurs equal toone-thirtieth of the Rent due hereunder for each day of such period, together with all other sums due under this Lease forsuch period. All Rent thereafter shall be payable in advance on the first day of each month. All Rent due Landlord shall

be paid when due to Agent at P. O. Box 702, Richmond, Virginia 23218-0702 or to such other place as Landlord maydesignate in writing to Tenant.



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A. PERCENTAGE RENT:

Tenant agrees to pay Landlord Percentage Rent % - written out percent ( Percentage Rent % - numerical%) of Tenant’s Gross Sales (as hereinafter defined) in excess of $ Gross Sales Amount per annum - numerical perannum during each Lease Year of the Term and any Renewal Lease Terms of this Lease (the “Percentage Rent”). For anyLease Year longer or shorter than twelve full months, the Percentage Rent shall be proportionately adjusted. ThePercentage Rent shall be determined and payable annually on or before the fifteenth (15th) day following the close of each

Lease Year.On or before the twentieth (20th) day of each month during the Term of this Lease, commencing with the second

full month thereof, Tenant shall deliver to Landlord and Agent a current statement of the Gross Sales made in, upon orfrom the Leased Premises during the calendar month immediately preceding the current month. In addition to suchmonthly statement, Tenant shall, on or before the twentieth (20th) day following each anniversary of the CommencementDate deliver to Landlord a certified statement showing the total Gross Sales made in, upon or from the Leased Premisesfor the preceding Lease Year, and at such time as such certified statement is delivered to Landlord, an adjustment, ifnecessary, between the Rent then in effect, and any Additional Rent due shall immediately be paid by Tenant. The firstsuch payment shall include any Percentage Rent that may be due for any fraction of a month from the CommencementDate to the first day of the first full calendar month.

Tenant further agrees to furnish monthly to Landlord accurate and exact reports of all sales reported to theCommonwealth of Virginia and to permit Landlord, at its expense, at any time and from time to time, to have an auditmade of said books, records and accounts. Upon five (5) days prior written notice to Tenant, Landlord shall have the rightto cause a complete audit to be made of all business affairs conducted at, upon or from the Leased Premises by Tenant(and all assignees, concessionaires, licensees or subtenants of Tenant, as may be permitted under the terms of this Lease)and of all books and records pertaining thereto, and Tenant will make all such books and records available, or cause thesame to be made available, for such examination at the Leased Premises. If the results of such audit shall show thatTenant’s statement of Gross Sales for any period has been understated by two percent (2%) or more, then Tenant agrees to

pay Landlord the cost of such audit and in addition, any deficiency payment required as shown by such audit. A report ofthe findings of Landlord’s accountant shall be binding and conclusive upon Landlord and Tenant. The furnishing byTenant of any grossly inaccurate statement shall constitute a default under this Lease. Any information obtained byLandlord as a result of such audit shall be held in strict confidence by Landlord, except in any action or proceeding torecover



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FIRST LEASE ADDENDUM

GUARANTY

[IF AN INDIVIDUAL]

In consideration of Landlord agreeing to lease to Tenant the Leased Premises, the undersigned, hereby waiving theobligations of the homestead exemption laws as to this Lease, jointly and severally if there be more than one undersigned,guarantee the payment of Rent and the performance of all provisions of this Lease by Tenant, its successors and assigns,and agree that the mere nonpayment of Rent and nonperformance of said provisions by Tenant or its successors andassigns shall create an immediate liability on the part of the undersigned to Landlord and its successors and assigns and toAgent and its successors and assigns. Landlord and Agent need not first exhaust their legal remedies against Tenant or itssuccessors and assigns before proceeding against the undersigned. Neither Landlord nor Agent is required to notify theundersigned of any default of Tenant under the provisions of this Lease. Landlord and Tenant may amend this Lease fromtime to time and may increase the obligations of Tenant hereunder without releasing guarantor from any liability underthis guaranty.

Date:

Name:

Address:

Social Security Number:

[IF A CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP]

In consideration of Landlord agreeing to lease to Tenant the Leased Premises, the undersigned, hereby waiving theobligations of the homestead exemption laws as to this Lease, jointly and severally if there be more than one undersigned,guarantee the payment of Rent and the performance of all provisions of this Lease by Tenant, its successors and assigns,and agree that the mere nonpayment of Rent and nonperformance of said provisions by Tenant or its successors andassigns shall create an immediate liability on the part of the undersigned to Landlord and its successors and assigns and toAgent and its successors and assigns. Landlord and Agent need not first exhaust their legal remedies against Tenant or itssuccessors and assigns before proceeding against the undersigned. Neither Landlord nor Agent is required to notify theundersigned of any default of Tenant under the provisions of this Lease. Landlord and Tenant may amend this Lease fromtime to time and may increase the obligations of Tenant hereunder without releasing guarantor from any liability underthis guaranty.

GUARANTOR:

Date: ,a

By:

Name:

Title:

Address:

Employer Identification Number:



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Map

Decription of Location

How will this location contribute to the success of the business?

Our location in the heart of Yorkville’s shopping district places us in a prime location to draw in foot

traffic from our target market. We will be situated near stores such as Holt Renfrew, David’s Footwear,

and Specchio Shoes, which will give us a high degree of visibility and exposure to our target customers.

The area is a shopping destination for many; 31% of people coming to Yorkville from other areas come

with the intention of shopping which means many potential customers passing or entering the store will

already be in the mindset to spend money and may be seeking specific items.

The intersection of Bloor and Bay is also within close proximity to the workplace of many business

executives, 59.6% of whom occupy white-collar positions with incomes averaging $190,000 per year

(Environic, 2005). This data is significant because it means that the people walking past our store dailywill be in our target income bracket. It also creates the potential of lunch-break shoppers.

What benefits of the location will appeal to the target market?

Lusso occupies a desirable commercial retail space in the heart of Yorkville, a central and frequently

visited shopping destination for luxury customers. The most visited shopping destination in Yorkville is

The Bay (Environic, 2005), located at the intersection of Bloor and Yonge. Lusso, located just one major

city block west of The Bay, will draw in foot traffic from shoppers visiting the Bay, and will offer the



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added benefit of one-on-one personal styling services and a selection of luxury brands not carried at

most luxury footwear or accessories retailers in the area.

What are potential issues with the location and how will we overcome them?

Traffic levels affected by weather

Since our store location is not within an indoor shopping centre, ease and enjoyability of the shopping

experience is largely dependent on weather. During inclement weather conditions, we may find lower

traffic levels. Luckily, our store happens to have an alternate entrance accessible to an indoor

concourse, making us accessible to commuters during winter months and unpleasant weather

conditions, which will hopefully help to improve our business during these times. Furthermore, we

intend to optimize our sales in agreeable weather by increasing floor coverage and adjusting daily sales

plans according to weather conditions, aiming for higher numbers during pleasant weather to make up

for any losses incurred due to inclement weather.

Saturated Market

Although we will be competing with nearby stores for the same customer dollar, we will have theadvantage of offering younger, trendier brands and styles than those typically offered at other shoe

stores with a similar average price point. In this way, we can become known for having the product

shoppers aren’t able to find at other high-end shoe boutiques. Further, we will offer the additional

service of personal styling and concierge services to all customers in our store, which will encourage

customer loyalty and generate positive word of mouth for the business within the Yorkville community.

High Expenses

Rental costs in the Yorkville area are significantly higher than most other areas in Toronto, which raises

our annual fixed expenses. However, according to Fortune magazine, Bloor St. is the seventh most

expensive shopping street in the world, and that retail leases can achieve $1500-$4500 sales per square

foot (Lifestyles and Homes). Thus, although the high rental costs in Yorkville increase our operating

expenses, we feel that the potential for sales in this area will quickly realize profit despite high rental

fees.



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Floor Plan



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Step 3: Financial Sales Plan

First-Year Sales Plan

Estimated buying customers served each day 4

Average price of items in store $400

Dollar value of each day's sales $1,600

Number days open each year 356

Amount of business per year $569,600

Sales Per Square Foot

Total square footage 1242

Selling square footage 600

Amount of business/selling square footage $949.33

Revise sales plan $427,200

Revised Sales Per Square Foot

Total square footage 1242

Selling square footage 600

Amount of business/selling square footage $712.00



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Statistical Research

We have revised our sales plan and lowered our sales per day, thus lowering our annual sales plan. We

have adjusted the number of customers making purchases from four to three, which decreases our sales

per day from $1,600 down to $1,200. This decreases our annual sales plan from $569,600 to $427,200

and gives us a more reasonable sales per square foot of $712.00 compared to $949.33. We decided to

adjust the sales plan to make our profit margin more reasonable and our sales goals more attainable.

We’ve developed the figures for our sales plan based on industry standards for the sale of luxury goods

using average productivity indicator metrics for luxury retailers. The annual sales plan for Lusso was

determined primarily by two key indicators: conversation rates and sales per square foot.

Conversion refers to the number of people making purchases divided by the number of people entering

the store. A typical conversion rate in a luxury bricks and mortar retailer can range from 30% - 60%

(Chevalier, 2012). We have decided to aim for the lower end of the spectrum, with a conversion rate of

30% because our store is located in a busy area populated by tourists, shoppers and business people

alike. A 30% conversation rate accounts for patrons who enter the store to merely check out the new

store and may not necessarily have had the intention of purchasing a luxury good. Thus, our sales plan

accounts for an average of 3 purchases per day with average daily foot traffic of 10 people.

A target sales per square foot measure of $700 was also used to determine our sales plan. Although the

industry standard for sales per square foot is $125 - $250 (Regni, 2009), we strayed from this figure to

accurately depict the selling potential of our particular business. Typically, sales per square foot depends

largely on the environment, brand standing, and type of merchandise (Chevalier, 2012). Fortune

Magazine states that in 2008, stores on Bloor St in Yorkville were achieving sales per square foot of

$1500 - $4500 (Lifestyles and Homes). We have aimed lower than this in the development of Lusso to

account for the fact that the aforementioned numbers are based on already established brands and that

business may be slower in our first year. In terms of brand standing, Lusso will be carrying brands that

have a well developed and highly esteemed brand image and reputation in the fashion community,

justifying higher price points. And finally, we feel that a higher than average sales per square foot is

likely due to the fact that the merchandise carried is footwear, handbags, accessories, and jewellery

which takes up less space than apparel and can be merchandised effectively with little selling space.



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Fixed Costs

Cost Category Annual Expenses % of Sales Plan

Staffing $0.00 0.00%

Payroll Taxes $0.00 0.00%

Rent $52,052.22 12.18%

Utilities $6,835.20 1.60%

Maintenance and Repairs $1,708.80 0.40%

Security $1,281.60 0.30%

Telephone/Fax $2,563.20 0.60%

Internet $640.80 0.15%

POS System Maintenance/Software Updates $1,312.40 0.31%

Insurance $2,563.20 0.60%

Supplies and Postage $2,990.40 0.70%

Marketing/Advertising $17,088.00 4.00%

Travel and Entertainment $6,408.00 1.50%

Accounting/Bookkeeping $569.60 0.13%

Banking Services $2,990.40 0.70%

Miscellaneous $2,990.40 0.70%

TOTAL $101,994.22 23.88%



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Long-Term Goals

Expansion: In three years we would like to open a second location in Yorkdale Mall. In the next five

years we would like to open a third location in Sherway Gardens Mall.

E-commerce: By the end of our first year of business we would like to have a fully operational e-

commerce website that will operate within Canada. By our second year of business we would like it toreach the U.S. and by the third year we would like it to ship and operate globally.

Sales: In our first three years of business, we would like to see a 10% increase in sales each year. From

years three to five we would like to see a 15% increase in sales each year. After year five we would like

to see a 20% increase in sales each year.

Debt: We would like to have our bank loan fully paid off in 10 years.

Staff: In our second year we would like to hire one full-time sales associate. By our third year we would

like to hire two more sales associates and promote or hire a store manager. By year five we would like to

have the store fully run by hired staff.

Vendor Relations: By year five we would like to be established with our vendors and therefore be able

to leverage our buying power to negotiate a higher markup, thus increasing our profit margin.

Salary: By year three we would each like to be able to take an owner’s salary from our annual profit.

Types of Investors

Personal: Each partner will invest $25,000 into the business to demonstrate to lending institutions and

other investors that we are committed to the success of the business. By investing equal amounts each

partner will equally share in profits and risks and will have equal say in business decisions.

Lending Institution – Credit Union and/or Large Bank: Such as Meridian Credit Union or Scotiabank, as

both these lending institutions have received high ratings from small businesses.



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Step 4: Business Resume and Logo

Logo

Business Card

Letterhead

[lùs-so]

[lùs-so]

[lùs-so]416.000.0000

55 Bloor St. West --- Unit 22

www.lusso.ca

FRONT BACK

[lùs-so]

416.000.0000

55 Bloor St. West – Unit 22

Toronto, ON

M6J 3L3

www.lusso.ca

“Procurers of the coveted”



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Business Resume

Mission Statement: To inspire confidence in Canada’s luxury brand market by

combining cutting-edge, luxe brands with personalized styling services in order to

provide a unique fashion experience.Located in the heart of Yorkville, at Bay and Bloor, Lusso is a luxury footwear and accessories retailer

that specializes in edgy, trendy, and urban designers rarely found in other Canadian retailers. Lusso also

offers styling and procurement services for clients by sourcing hard-to-find items around the world, both

vintage and new. Lusso sells shoes, handbags, jewellery, and accessories such as sunglasses, belts,

leather goods, scarves, and hats.

Lusso aims to serve a clientele consisting of females ages 25-40 from Toronto and surrounding areas

who already shop in the Yorkville area. Lusso hopes to fill a gap in the luxury brand market by attracting

customers that prefer trendy, edgy, and fashion-forward designs. The Lusso customer desires high-end,

exclusive brands that showcase her personal taste and unique fashion sensibilities.

Lusso will operate its brick and mortar store in Yorkville in downtown Toronto, but will expand its reach

nationally and internationally via its e-commerce website.

Lusso sells edgy, urban, and fashion-forward luxury brands, many of which are not currently being sold

in Canada by other retailers. Lusso also offers styling and procurement services to its clients and

specializes in attaining hard-to-find new and vintage items. Being a boutique store, Lusso will set itself

apart from other luxury department stores in the area by offering exceptional customer service and

relationship selling. Lusso’s upscale interior creates an enticing and comfortable environment for

customers to shop in.

Lusso owners and employees all have styling capabilities and have worked in the fashion industryforging relationships with various industry professionals for many years.

Lusso will be a partnership between Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and Jacqueline

Trunks. Elizabeth and Jacqueline are primarily responsible for the accounting and bookkeeping, as well

as operational logistics. Andrea and Leanna are responsible for merchandising and marketing aspects of

the business. Combined, these women offer complimentary skillsets that work to form a dynamic and

effective team.

416.000.0000

55 Bloor St. West – Unit 22

Toronto, ON

M6J 3L3www.lusso.ca [lùs-so]

“Procurers of the coveted”



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ANDREA DELLA MATTIA6 Louvre Circle Brampton, ON L6P 1W2 Email: [email protected]

Phone: 416.230.9220 LinkedIn: http://www.linkedin.com/in/andreadellamattia

Education:

Humber College

Now Enrolled in full time Fashion Arts Program

St. Marguerite D’Youville Secondary School

Completed In June 2011

Experience:

Starbucks – Barista May 2013 – Present

Cash Out Customers

Prepare Drinks

Opening/Closing Duties

Rivini Bridal - Intern April 2013 – May 2013

Model Fittings

Steam Dresses

Filing

Fabric Samples

Turtle Jacks – Hostess April 2012 – May 2013

Smart Serve Certified: e130328129612

Educated on Maître D System

Seated guests & Update guests on specials

Sobeys

Cashier July 2009 – October 2009

Customer Service November 2009 – February 2010

Lotto

Returns/Refunds

Customer Complaints

Break Schedules

Cash Office Clerk February 2010 – July 2012

Front End Supervisor

Balanced cashier tills

Balanced Cash OfficeBrinks Deposits



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ELIZABETH KYI12 – 2520 Bloor Street West Toronto, ON M6S 1R8 Email: [email protected]

Phone: 416.333.7240 LinkedIn: http://www.linkedin.com/in/elizabethkyi

Education:

Humber College September 2012 – 2014

Expected: Advanced Diploma in Fashion Arts, Honours

Carleton University September 2010 – 2014

Expected: Bachelor of Arts with a major in English and a minor in Communications

Highlights:

• In depth understanding of fashion retailing obtained through operational experience in the industry

• Strong work ethic and effective time management skills demonstrated by my ability to balanceacademic excellence with full time employment and an unpaid internship

• Software: Microsoft Office: Word, Excel, Powerpoint & Adobe Creative Suites: InDesign, Photoshop,Illustrator

• Web: Hootsuite, WordPress, LinkedIn, Twitter, Facebook, Pinterest,

Professional Experience:

INFUSE Magazine Content Editor December 2013 – Present

• Ensure all written content is free from spelling and grammatical errors, adheres to excellent stylisticstandards, and maintains consistency of voice

• Follow an outlined critical path to produce a quality finished product in an organized and timelyfashion

• Communicate with team of writers to ensure deadlines are met and content quality is up to par

• Reach out to potential contributors to request their participation in feature articles

Club Monaco POS Supervisor October 2012 – Present

• Responsible and accountable for operational accuracy and policy adherence at point of sale

• Regularly honing problem solving skills by finding solutions to customer issues that uphold companypolicy while still leaving customers satisfied

• Exercise time management skills by servicing customers in store, while simultaneously ensuring dailyand weekly operational functions are being completed, upholding asset protection standards on the

floor, and fulfilling customer product orders and monitoring shipment process

• Maintain and exceed 75% email capture rate

• Maintain and exceed SPH of $150/hr.

Rent Frock Repeat Social Media Assistant September 2013 – February 2014

• Worked closely alongside Social Media Coordinator to execute a social media marketing strategythat worked to effectively accomplish set follower and engagement goals

• Managed a team of interns to ensure content posting consistency and quality

• Edit all tweets and blog posts for spelling and grammatical errors, stylistic elements, format, andproper SEO


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LEANNA SILVESTRI 31 Milne Court Ancaster, ON L9G 4T3 Email: [email protected]

Phone: 905.520.6478 LinkedIn: http://www.linkedin.com/in/leannasilvestri

Education:

Humber College 2012 to Present

Toronto, Ontario

Fashion Arts Program

• Participated in semester long simulations, developing a department store buying plan andinternationally importing denim for a department store.

• Forecasted fashion trends for one year in advance.

• Learned features of proper product promotion through various marketing and social media classes.

Related Skills and Experience:

• Interned at Harry Rosen Inc. Head Offices in the Merchandise Control Sector.

• Was on a fashion show committee for three years and was involved in all areas of putting the showtogether as well as being a model and entertainer in the shows.

• Judged a Miss All Canadian Pageant from ages 0-20 years old in the areas of beauty, talent andthemed outfit of choice.

• Backstage crew for the Bishop Tonnos High School fashion show for two years as well as a modeland entertainer in each of the shows.

• Computer skills in Microsoft Word, Excel, and Powerpoint.

Work Experience:

Step N’ Out Dancewear Boutique 2011 to Present

Hamilton, OntarioStore Associate/Assistant Manager

• A small boutique specializing in dancewear offering a wide variety of clothing, shoes, and variousaccessories for dancing, skating and gymnastics.

• Provide superior customer service to store clients

• Responsible for product maintenance and housekeeping

• Sizing all dancers properly and professionally for requested dance shoe

• Travel to various Canadian cities for Rhythm Dance Competition’s vendormerchandise booth

InHayle Dance Studio 2012 to Present

Ancaster, OntarioSubstitute Dance Instructor

• A relatively new small dance studio owned by renowned dancer and choreographer Hayley Paonespecializing in Contemporary, Lyrical, Jazz, Tap, Ballet, Acro, and Hip Hop.

• Responsible for all students in the classes

• Stretching, and warming up students as well as going over theirchoreographed routines and making corrections



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Silvestri Investments 2011 to 2012 (seasonal)

Hamilton, Ontario

Assistant Secretary

• An international family real estate business founded and operated by Frank Slvestri since 1955specializing in Land Development in Canada, USA and Europe.

• Answered business calls and directed them to proper employee• Took notes in meetings

• Completed invoices, received incoming & sent outgoing packages

Urban Behaviour 2008-2009

Hamilton, Ontario

Sales Associate

• A clothing company for the “fashion-minded” at affordable prices.

• Provided superior customer service to store clients

• Responsible for product maintenance and housekeeping



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JACQUELINE TRUNKS1 Donnamora Crescent Thornhill, ON L3T 4K4 Email: [email protected]

Phone: 416.993.0168 LinkedIn: www.linkedin.com/in/jacquelinetrunks

Highlighted Qualifications:

• Advanced computer skills – proficient in Mac and PC operating systems, Microsoft Office, and AdobeCreative Suite.

• Ability to effectively multitask and perform well under pressure as demonstrated by my ability tobalance academic excellence with full time employment.

• Excellent communication and customer service skills developed from over 7 years experience in thehospitality industry.

Education:

Humber College, Advanced Diploma – Fashion Arts 2012 – 2014

Currently in Honour Roll standing with an overall GPA of 4.0 in my previous three semesters. Received

the Fashion Award, donated by the Dean of the Humber Business School, for outstanding academic

achievement, community involvement, and leadership initiative. Studied topics such as:

• Marketing

• Social Media and Fashion Promotion

• Retail Buying

• Global Retail Operations

• Wholesale Sales

• New Venture Development

University of Western Ontario, Honours Specialization Health Sciences (BHSc.) 2005 – 2009

Studied a diversity of topics with an emphasis on research methodology. Completed a minor in

Psychology.

Work Experience: Customer Service

Hospitality Industry 2006 – PresentBier Markt, Server and Supervisor March 2012 – Present

• Enhance customer satisfaction by combining exceptional product knowledge and an understandingof customer wants and needs.

• Certified Training Program – train new hires by promoting brand values and culture in order toenhance brand and employee performance.

• Shift leader and supervisor – manage staff and oversee restaurant operations in the absence of amanager.

• Consistently achieve top sales by utilizing upselling techniques.

• Assist with responsibilities outside the normal expectations of my position, including: managing theservers’ dine and dash fund and occupational health and safety liaison.

Canadian Tire Financial Services, Financial Services Representative April – December 2007

• Generated highest level of new customer acquisition by promoting service strengths.

• Helped company attain high customer service ratings by providing attentive and thorough service.



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Work Experience: Marketing/Administrative

To Be Seen Promotions, Marketing and Administrative Assistant May – September 2006

• Recruited potential customers via phone and email and responded to customer inquiries.

• Developed marketing materials for clients that resulted in improved sales.

• Streamlined company operations by implementing a new and improved filing system.

• Demonstrated ability to take direction and work in a team environment by providing office supportas needed.

Internships and Volunteer Experience:

Infuse Magazine, Editor-in-Chief September 2013 – Present

• Conceptualize innovative and creative editorial and artistic concepts for Infuse, Humber CollegeFashion Arts, Spa and Cosmetic Management Magazine.

• Manage and motivate editorial contributors in meeting deadlines.

• Oversee all editorial content and crosscheck facts, spelling, grammar, and writing style and approvedesign layout and photos.

• Coordinate meetings with editorial sources and amongst team members.

Cascata Blu, Volunteer March 2012 – Present

• Assist swimwear designer Cheryl Gurshue with various company activities, including marketing,product development, merchandising, and administrative duties.

Toronto World MasterCard Fashion Week, Lobby and Fashion Atmosphere Volunteer March 2012

• Maintained a pleasant and clean lobby atmosphere for Toronto World MasterCard Fashion Weekguests, as well as assisted in greeting guests and distributing promotional material.



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Step 5: Profit and Loss Plan

Monthly Sales Plan

Month % of Total

Year Sales

Sales Plan Justification

April 7.0% $29,904.00 16% below average due to store opening.

May 8.3% $35,457.60 Average month.

June 9.0% $38,448.00 8% above average due to warm weather.

July 8.0% $34,176.00 4% below average due to vacation season.

August 9.0% $38,448.00 8% above average due to warm weather and shopping for

fall season.

September 8.3% $35,457.60 Average month.

October 8.3% $35,457.60 Average month.

November 9.5% $40,584.00 14% above average due to start of holiday shopping

season.

December 11.0% $46,992.00 33% above average; busiest shopping month of the year

due to holidays.

January 6.3% $26,913.60 24% below average due to weather and after-Christmas

slump.

February 7.0% $29,904.00 16% below average; slight increase from January due to

Valentine's day, but bad weather is still an issue.

March 8.3% $35,457.60 Average month.

TOTAL 100.0% $427,200.00


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Monthly Fixed Costs

Cost Category Monthly Expenses % of Sales Plan

Staffing $0.00 0.00%

Payroll Taxes $0.00 0.00%

Rent $4,337.69 1.02%

Utilities $569.60 1.60%

Maintenance and Repairs $142.40 0.40%

Security $106.80 0.30%

Telephone/Fax $213.60 0.60%

Internet $53.40 0.15%

POS System Maintenance/Software

Updates

$109.37 0.03%

Insurance $213.60 0.60%

Supplies and Postage $249.20 0.70%

Marketing/Advertising $1,424.00 4.00%

Travel and Entertainment $534.00 1.50%

Accounting/Bookkeeping $47.47 0.01%

Banking Services $249.20 0.70%

Miscellaneous $249.20 0.70%

TOTAL $8,499.52 12.30%



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Breakeven Analysis

Annual Sales $427,200

Annual Fixed Costs $101,994

Gross Profit % 48.70%

Break-even Sales $209,433.26

Sales Over Breakeven $217,766.74

Profit Dollars $106,052.40



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Profit and Loss Statement

Month April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March Total %

Net Sales 29,904 35,458 38,448 34,176 38,448 35,458 35,458 40,584 46,992 26,914 29,904 35,458 427,200 100.0%

Cost of Goods Sold 15,341 18,190 19,724 17,532 19,724 18,190 18,190 20,820 24,107 13,807 15,341 18,190 219,154 51.3%

Gross Profit 14,563 17,268 18,724 16,644 18,724 17,268 17,268 19,764 22,885 13,107 14,563 17,268 208,046 48.7%

Staffing 0 0 0 0 0 0 0 0 0 0 0 0 0 0%

Payroll Taxes 0 0 0 0 0 0 0 0 0 0 0 0 0 0%

Rent 4,338 4,338 4,338 4,338 4,338 4,338 4,338 4,338 4,338 4,338 4,338 4,338 52,052 12.2%

Utilities (Electric, Heating, and Water) 527 527 600 600 600 527 527 600 600 600 600 527 6,835 1.6%

Maintenance 142 142 142 142 142 142 142 142 142 142 142 142 1,709 0.4%

Telephone/Fax 214 214 214 214 214 214 214 214 214 214 214 214 2,563 0.6%

Security 107 107 107 107 107 107 107 107 107 107 107 107 1,282 0.3%

Internet and POS System Maintenance 163 163 163 163 163 163 163 163 163 163 163 163 1,953 0.5%

Insurance 214 214 214 214 214 214 214 214 214 214 214 214 2,563 0.6%

Supplies and Postage 249 249 249 249 249 249 249 249 249 249 249 249 2,990 0.7%

Marketing 1,750 1,261 1,261 1,261 1,750 1,261 1,261 1,750 1,750 1,261 1,261 1,261 17,088 4.0%

Travel and Entertainment 141 141 141 141 2,500 141 141 141 141 141 2,500 141 6,410 1.5%

Accoun tin g 285 0 0 0 0 0 0 0 0 0 0 285 570 0.1%

Banking Services 249 249 249 249 249 249 249 249 249 249 249 249 2,990 0.7%

Miscellaneous 249 249 249 249 249 249 249 249 249 249 249 249 2,990 0.7%

Total Expens es 8,627 7,853 7,926 7,926 10,774 7,853 7,853 8,415 8,415 7,926 10,285 8,138 101,995 23.9%

Net Prof it/Loss 5,936 9,415 10,798 8,717 7,950 9,415 9,415 11,349 14,470 5,181 4,278 9,130 106,051 25%


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Staffing and Payroll Taxes: In our first year of business we will not hire any outside employees as all four

owners will act as sales associates, stylists, and managers. Therefore, staffing costs are zero. This will

also result in no payroll tax expenses. By having the owners run the store, we are controlling our staffing

and associated expenses.

Rent: 1242 square feet X $41.91 per square foot.

Utilities: Natural gas supplied by Enbridge; gas usage goes up in winter months resulting in a higher

utility bill for the months of November to February. Water is supplied through the City of Toronto and

remains constant throughout the year. Toronto Hydro supplies electricity at a standard rate and is

higher for the months of June to August due to air conditioning and therefore increases the utility bill.

Utilities costs will be controlled by closely monitoring usage and keeping it to a minimum.

Maintenance: The lease is a gross lease meaning that the lessee is not responsible for any maintenance

issues associated with the property itself. However, an amount will be saved each month and placed in a

business savings account for emergency maintenance and repair issues associated with store fixture or

computer systems.

Telephone/Fax: Through Bell; quote for business rate monthly service and unlimited long distance.

Higher costs associated with out-of-town vendors and necessary long-distance calls.

Security: Through ADT; monthly fee covers cost for initial alarm system installation, alarm maintenance,

and 24-hour alarm coverage.Internet and POS System Maintenance: Internet through Bell – packaged with telephone services to

control costs. First Data POS program; system maintenance will cover the cost of having a service person

visit the store and service consultation over the phone when system issues arise.

Insurance: Through Desjardins insurance; liability insurance.

Supplies and Postage: Includes stationary, stamps, printer ink and other office supplies, light bulbs,

cleaning supplies, toilet paper, and any other day-to-day necessities. Will be purchased in bulk to control

costs.

Marketing: Expenditures will be highest during the months of April, when the store is first opening,

November, when the holiday shopping season begins and Black Friday sales occur, and December, which

is the peak month for holiday shopping. The business will rely on word-of-mouth marketing and buzz

created by location.Travel and Entertainment: Buying trips to New York City will occur during the months of February and

August when market weeks are held for Fall/Winter and Spring/Summer respectively. Only one owner

will attend each buying trip, which will minimize travel expenses. A monthly expenditure for

entertainment will cover the cost of taking vendors out for lunches and dinners to facilitate relationship

building.

Accounting: Bookkeeping to be done by owners using QuickBooks Canada Small Business; this cost is

divided between the months of April, when the store opens and the program will be purchase, and

March, right before tax season when an updated version will be purchased. Avoiding the use of

professional accountants will reduce costs.

Banking Services: Through Scotiabank, which is located near the business. Monthly fee covers the cost

of the business account including costs for cashier’s cheques, money orders, and credit card processing

charges.

Miscellaneous: Extra money for unforeseen costs.


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Merchandise Management

In order to keep merchandise current and capitalize on market trends, owners will go on buying trips

twice per year, once in February and once in August, to attend market weeks and make new

merchandise selections for the season. To ensure repeat visits from customers, we will introduce new

selections of merchandise to the selling floor monthly, while consistently keeping a basic stock of our

top selling items. In our first year of operation, we will closely monitor product sales to determine our

drivers and communicate with our customers to assess what is in highest demand. Through this method

of primary research, we will determine the best course of action with regards to inventory

replenishment, and likely order replacement stock from vendors monthly along with our new collection

merchandise.

Lusso will place high importance on visual merchandising. Store design, lead by partners, Andrea and

Leanna, will centralize around customer experience. The primary aim is to create an environment that

makes customers feel comfortable to spend time in the store, allowing them to spend more time

browsing our merchandise selection and engaging with our personal stylists. In order to keep customers

in the store, furniture will take the form of large, comfortable couches, soft and aesthetically pleasing

rugs on the floor, and coffee tables reminiscent of a residential space to make customers feel at home.

The store will also feature a free flow layout that keeps sightlines open and encourages shoppers to

wander freely throughout the store. We will model fixtures after this free and open aesthetic, through

the use of transparent glass shelving, white walls, and modern, clean lines on the cash desk and tables.

The layout will encourage customers to touch and try things on without barriers, which will facilitate

purchase decisions. The aesthetic and feel of the store will be designed specifically to make customers

feel welcome and comfortable and eliminate the intimidation factor of shopping in many high-end

retailers.



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References

(2005). Bloor-Yorkville Shopping Traffic Study. Environics Research Group, 1, 4-55.

Chevalier, M., & Gutsatz, M. (2012). Luxury retail management how the world's top brands provide

quality product and service support . Singapore: Wiley.

Lifestyles and Homes. (n.d.). Yorkville. Retrieved March 3, 2014, from

http://lifestylesandhomes.ca/yorkville/

Regni, R. J., & Anderson, J. G. (2009). Entrepreneurship in action: a retail store simulation. New York:

Fairchild ;.

Yorkville Neighbourhood Central Toronto. (n.d.). Jamie Sarner . Retrieved March 3, 2014, from

http://jamiesarner.com/toronto-neighbourhoods/yorkville-real-estate/

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