Financial Budget Goals

Pre-Market

Merchandizing Plan

In-Market Business Reviews

Post-Market

Cut&Sold

Managing In Season

Sales

In Season Ad-Hoc Analysis

Annual Closing

IT & Other Projects

Retail Planning and Merchandize Analytics Department

Cycle Process & Responsibilities

Review LY Financial Results & This Year

Financial Goals

Agree on TY Top

financial #s

(Sales $, Profit Margins)

Sales Channel

(Retail, Dep.Stores, Incentive Markets, E-

Commerce)

Any new Opportunities?

Cost and time frame

Customer in each Sales Channel

Risks to:

Existing Customers? Door Exits? Margin Drains?

Product Classification

Silhouette, Style & SKU

(includes LDP, Gross Price, MSRP, Units)

Injected New Opportunities

Market Research on: Competition, Innovations,

Risks & Opportunities

Phase 1: Set Up TY Financial Budget GoalsCollaboration with: Finance, Design, Merchandizing, Sales, Marketing

Present In Depth Financial Budget Goals to: Top Management, Finance, Sales, Merchandize Planning, DesignProject Next 3-5 Years: Sales Growth and Profits

% out by:

Bottom UP: Silhouette, Class, Style, SKU Levels

Market Seasonal Fashion Trends and Basic

Programs

Fashion Injections, Exit Programs

% & $ by:

Season, Qtrs., Fashion & Basic Programs

Factory capacity and delivery risks?

Pricing Review

Anticipates Customer Negotiations?

Marketing Initiatives and costs

Current and Future inventory Levels

Projections

Phase 2: Pre-Market Merchandizing PlanCollaboration with: Design, Merchandizing, Marketing, Sales

Present Merchandizing Plans to: Design and Merchandizing teams. Open table conversations & revisions

Based on:

Business Reviews & Market Negotiations

Business Review with Customers:

Where we’ve been and where we are going

TY vs Plan and LY: Financials, Opportunities

& Risks

Proposals by:

Each Region, Door, Classification, Delivery

New Territories to Explore? New Programs

to roll out

OTB Roll-up

Set up TY Annual & 2 year forward projected OTB by

each customer

On Going Roll-Ups of Customer Commitments: Projecting Market Success

Market last Minute Ad-Hoc Analysis

Phase 3: In-MarketCollaboration with: Sales

Prepare market Exit Results: financial and product commitments, injections, drops

Tasks:

Cut & Sold Roll-Up (style/sku level

purchasing)

Roll Up all Style & Sku commitments

Get ready to pass them to production team

Review Commitments vs Financial Plans

Sales $, Class %, Margin $

Current and Future inventory impacts

What is the new inventory WOS? New Cost

log

Propose Style & Fabric Commitments

Production conversations and outstanding issues

Phase 4: Post-Market Cut&Sold (global)Collaboration with: Sales and Production

PASS Collection to Production Team

Based on:

Weekly + Monthly + QTR Reports

Style/SKU Weekly Selling reports

Sell-thru, units, WOS, rolling profit margins

Monthly Review of Best and Worst in Season

Sellers

Meetings with Design to set up future design

guide

Monthly Regional & by Door Sales – what works

where

Is there regionality effect – need to transfer inventory between

stores?

Weekly Inventory Track & Review

Recommend Inventory transfers, markdowns,

clearances

Weekly Managing OTB financials

Current Sales, Margins, Markdowns Projections

& Financial Impacts

Phase 5: Managing In Season SalesCollaboration with: Sales, Finance, Design

Live Financial Forecasting: monthly business review and 12 months forward sales/profit forecast update

Other Reports

Monthly Production Issues

Delivery issues, unit fall-outs

Raw goods inventory issues

Tracking costs & forward factory negotiation

based on need

Market Research

Opportunities and innovations. Working with outside market

reports. Upper management Presentations

Long-term strategies

Quarterly board meetings & financial

markets guidance

Customer Map

In depth knowledge of our customer.

Aspirational vs Actual

Phase 6: In Season Ad-Hoc AnalysisCollaboration with: Sales, Production, Finance

Managing in-season business & supporting analytical needed of other department for smarter decisions making

Review Annual Results

(Sales $, Profit Margins)

Sales Channel Review

& Company SWOT

Qtr. & Annual

Customer Review

Top 20% of Customers bring in 80% Profits: who are the top 10?

Merchandizing Opportunities

Emerging Silhouettes and New Programs

Pricing Strategies –what worked what

didn’t

Customer & Competition Maps

Combine internal NPD data and research with the

accounts market research to get a better understanding of the market place and the

consumer

Phase 7: Annual ClosingCollaboration with: Finance, Design, Merchandizing, Sales, Marketing

End of Quarter and EOY Presentations

IT Initiatives

Preview, Test, Launch IT systems

Work with vendors on company’s analytical and

buying IT needs

(i.e. Microstrategy)

Create New Retail Reports

For Sales and Finance use

Department Knowledge Sessions

Introduce other departments to:

what we do and how we can help you

Employee Educational Programs

Shadow the Supervisor & Reviews of professional

opportunities

IT & Other ProjectsCollaboration with: IT and Finance

Collaborating with other departments: doing a better job with better systems & education