perry's home dept. buying assortment
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PERRY’S HOME FASHION & GIFTWARE
DEPARTMENT
Elizabeth Burdman, Dolores Cortez Kristen Goodreau, Adriana Lopez
Introduction
¨ This report refers to Perry’s dollar and assortment plan for the home fashion & giftware department.
¨ Competitors: Macy’s home goods department, TJ Maxx Home Goods, and Pier One Imports. ¤ similar merchandise assortment: Artwork, frames, bowls,
vases, candles
Perry’s Plan to Increase 4% for Autumn/Winter Season
¨ Plan: 4% sales increase (+342,000) ¨ Total Dollar Plan: $8,892,000 ¨ The National Retail Federation is
projecting holiday retail sales will increase 4.1% to $586.1 billion this year.
¨ The 2012 Holiday Consumer Spending Survey, found the average holiday shopper will spend $749.51 on gifts & décor compared to the $740.57 they actually spent last year.
Actual LY Plan TY8,550,000.00$ 8,892,000.00$
6-Month Dollar Merchandise Plan
Monthly Projections & Rationale
¨ August: + 1.47% ¤ Macy’s CEO cited a 5.7% sales increase for home goods
¨ September: -1.28% ¤ Labor Day savings apply to major home appliances
(not within Perry’s classifications)
¨ October: -2.08% ¤ The Daily Finance: “stores could face an even rockier
October.”
Monthly Projections & Rationale (cont.)
¨ November: +.95% ¤ 28 million shoppers on Thanksgiving Day ¤ Black Friday shopping increase of 4.1%
¨ December: -1.08% ¤ 34% of sales ¤ Average holiday shopper spends $749 on giftware/décor
¨ January: + 1.97% ¤ Macy’s home goods: 8% increase ¤ T.J. Maxx home goods: 7% increase
Markdowns
¨ Total MD = $2,845,440.00 ¤ 2% increase from last year ¤ 32% of Net Sales
¨ Based on overall market trends and research of competitors figures from last year.
¨ Labor day, Black Friday, After Christmas Sale
Classification Sales by Month
Fabrication Justifications
¨ Candles: Yankee Candles assortment: primarily glass, then silver, gold and plastic.
¨ Collectibles: Macy’s: glass and sterling silver frames. Pier One Imports: wooden frames.
¨ Clocks: Wood: main material. The target market prefers classic materials.
¨ Ceramics: Primary material: ceramic. Other materials: porcelain and lucite.
¨ Textiles: Throws main material: cotton. Followed by fleece and silk.
Color Justifications
¨ Candles: Yankee Candle: mostly white candles and even mix of other colors.
¨ Collectibles: Wood frames: mostly brown. Glass: clear. Holiday cards: grey, red and white.
¨ Clocks: Wood : black and brown. Metal: gold, white and silver. Plastic: red and blue.
¨ Ceramics: WGSN trend report: monochromatic bowls: black, brown, blue white and gold.
¨ Textiles: Solid pillows: white. Decorative: black. Prints: green, blue, red and pink.
Colors
Purchases by Classification
Sourcing Strategy
¨ In the Home ware department we work with Vendors like Yankee candle, Pacific Rim, Crazy Mountain, and Clayworks.
¨ 20% is used in our open to buy for promotional merchandise.
¨ We work with public and private vendors.
Perry’s Terms of Sales
¨ Payment terms: must be made within 18 days of invoice.
¨ Delivery terms: delivery note must be enclosed with each shipment.
¨ Copyright terms: Perry’s has sole copyright privileges.
¨ Quality terms: Shape, size, width and design variations are not grounds for complaint.
¨ Ownership terms: goods are property of vendor until paid.
Perry’s Negotiation Terms with Vendors
¨ Quantity Discount Perry’s receives 3% discount on large quantity orders
¨ Pre-selling-period-Discount Reduces Perry’s cost of goods
¨ Return Allowances A negotiated % is deducted from vendors invoice
¨ Shipping Terms Delivery cost is added to the invoice and is paid by Letter of Credit
Plan for the Future
¨ New advertising techniques ¤ “How To” decorating tips
¨ Focus on private and exclusive branding ¤ Macy’s: “reduced cycle times and more frequent line
creation”
THANK YOU!
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