Fashion Merchandising and Trading, and assignment will need excel sheets.
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Week3WC8thOctoberLectureandSeminar-20190120.zipwk 3 allocation seminar Answers.pptx
Answers to Scenarios
Answers to scenarios.
Scenario 1:
Allocate 2440 units 69.8%
Extra question – what is the size buy ratio in units and do you have enough of every size to go to each store?
Size 18 is the issue with 5% of the buy units = 175units vs 153stores, so if we send out 153units we are allocating 87% of the buy, so this leaves only 13% replen. Is this what the Merchandiser planned?
Scenario 2:
Send to the Webs – 250 units
Send tight – 5 units to Northern and Scottish stores and Oxford Street/city centre department stores
Scenario 3:
Allocate to Next – 300 units
Send 12 units to stores – 300 units
Send tighter depth to Web sites – 200 units
wk 3 Grading Allocation lecture.pptx
Principles of
Fashion Grading & Allocation
London College Of Fashion
9th October 2018
Branch Merchandising
Optimising stock levels & sell through
Grading
Allocations
Capacity & Ideal Minimum Stocks
Replenishment
INTRODUCTION
Space Management
Location Strategy
Optimising sales/profit density and brand space
Density analysis
Linear audit
Ad Hoc
Logistics Forecasting
International
Partner Relationships
Projects
Gary
Head of Branch
Merchandising
We are always looking for methods to achieve the
highest sales with the least amount of markdown spend.
Grading and Allocation help to do this by assigning the stock to the best location, where it is most likely to sell, for the highest profit.
Right Stock – Right Place – Right Time
GRADE & ALLOCATION PURPOSE
GRADING
Grading is a location hierarchy. Individual grades are groups of stores (including web stores) with a similar profile
All the stores within that grade are sent the same same product range and stock quantities
The criteria used varies across brands but these are some of the choices:
Sales Space
Demographics End-use
Profile Fashion-ability
Location type Region/Geography
Selling Channel
GRADE DEFINITION
GRADE DEFINITION
Grades should support the merchandising and ranging strategy:
Facilitate stock management
just the right amount in every location
big chains have too many stores to buy for every store individually
It’s used by B&M for Assortment planning to
range build options
determine buying volumes
It’s used as the allocation template
Consistency of approach across the business
Potentially multiple different Gradings by selling channel
Uk & Eire Own Buy
International Own Buy
Franchisee/Wholesale
Website
Outlet
The level in the product hierarchy of Grading
Total company
Department
Category
Sub-Category
GRADE CHANNEL & PRODUCT HIERARCHY
7
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
Profiling/Demographics
Retailers Review
Retailers Review
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
Profiling/Demographics
Apply Retail Feedback
Retailers Review
Retailers Review
Grading Issued To B&M
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
Grading on Allocation System
Profiling/Demographics
Apply Retail Feedback
Retailers Review
Retailers Review
Grading Issued To B&M
Update Grading with changes
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
Grading on Allocation System
Profiling/Demographics
Apply Retail Feedback
Retailers Review
Retailers Review
Grading Issued To B&M
Update Grading with changes
TRADE
GRADE OVER-ARCHING STEPS
Data Capture
Store Level
Planning
Create Data Based Grading
Grading on Allocation System
Profiling/Demographics
In-Season
Re-Grade
Apply Retail Feedback
Retailers Review
Retailers Review
Grading Issued To B&M
Update Grading with changes
TRADE
TYPICAL GRADING APPROACHES
SALES
Most traditional approach
Simple straight ranking on turnover
Shop floor linear ignored
SPACE
Simple straight ranking on linear
Sales ignored
Approach more suitable for very high ROS
Fixed kit
Supermarkets
SALES & SPACE
Dual ranking using both parameters
Sales first
Space is the moderator
Sales Grading is easy and straight for forward
Sales determine the width, the depth and the replenishment
The big disadvantage: all stores in the same grade get the same options irrespective of size
SALES GRADING
Sales & Space Grading allows for more option control and a better to fit the space:
Linear is used to determine the range width
IAQ is either minimum display quantity/size break or calculated from other KPI’s
Sales determine the replenishment
Accurate linear counts from the shops make or break this grading
SALE & SPACE GRADING: OPTION MANAGEMENT
Sales Sequence: stores are ranked by turnover and assigned a Sales banding
Space Sequence: each store is then resorted by it’s linear WITHIN it’s Sales band
This combination of Sales and Space create a new grade
ROS, line life and space help the amount of options required for this grade
Grades with a similar option requirement can be banded together
How To Grade
Example Of The Sort
GRADING LCF GDM
The Grading (UK ONLY)
16+ separated grades of options is a lot to manage
Rate of Sale, planned life of a line and linear mean some grades have the same option requirement for a whole season. In this example 6 option grades
The 16+ grades help manage initial allocation depth and replenishment
THAT’S A LOT OF GRADES!
Improved visual presentation & better usage of stock
Better depth management within the option grade.
Stores of the same size can get the same options but different levels of volume, either in initial or through replenishment
In other words, less overstocking, less under-stocking
Better sell through of stocks overall
Reduced markdown
GOALS
Selected high density stores are graded higher than the space dictates eg John Lewis stores, Lakeside Deb
extra distribution team action requited to manage stock levels by adjusting replenishment minimums, rotating capsules and IBTs
High Profile Stores/Spotlight stores
Consignment stores
your stock/their staff
The web is not constrained by physical space
EXCEPTION MANAGEMENT & SPECIAL GRADES
Increased focus on detailed profiling, creating grades and store clusters around KPI’s and demographics to support locations where the customer really wants your brand.
Outside inputs: Kantar, Javelin, Pragma
Good, Better, Best, Aspiration
Broad-appeal, Trend, Directional
Premium vs mainstream vs discount
Find the unique customer proposition for
that location
FUTURE DEVELOPEMENTS
GRADING LCF GDM
PROFILE GRADING OUTPUTS – QUICK SNAP SHOT
Multi-input approach considering both traditional data and market demographics
Demographic/Fashionability provides insight into locations where your brand is most relevant
Formal/Occasion brands tend to polarise around high turnover locations and high mix of affluent consumers
Casual high street brands have a broader appeal
In both groups the Low Demographic/Low Turnover stores will become low priority
ALLOCATION
Sending the stock/intake from the warehouse to: stores, websites, wholesale customers, franchisee partners…
The allocator sets the required parameters, and the system spreads the stock across the grades
Allocation operates at the lowest level of the product hierarchy
SKU: Stock Keeping Unit
Style, Colour, Size
ALLOCATION DEFINTION
Five Main Types:
Initial Allocation (pre-allocation): first time a style has arrived
Replenishment: system generated allocation based on sales
Stock Builds: allocation of more stock than sales dictate
Manual Allocation: the allocator overrides the system
New Location Openings: cherry-picked stock package
ALLOCATION TYPES
INITIAL ALLOCATION
FAR EAST SUPPLIER
EUROPEAN SUPPLIER
MERCHANDISER PERMISSION TO SHIP
ALLOCATOR CREATES PRE-ALLOCATION
INITIAL ALLOCTION
Initial allocation is set by SKU based on the range plan and Grading
Most initial allocations are created whilst the stock is still in-transit
Some questions the allocator has to consider:
How many stores is the style ranged to?
Is it a web exclusive?
What has the merchandiser planned on the range plan?
When is the next drop due?
Is the style from a current collection/story/there or does it need to be held for launch?
Do we have any over stocked stores that need excluding?
Do we have any events coming up that stores need building for?
INITIAL DROP: IN-TRANSIT
11,000 Units Delivery
Pre- Allocation
Stores = 55%
6,000 Units
Warehouse = 18%
2,000 Units
Web = 18%
2,000 Units
Franchisee = 9%
1,000 Units
INITIAL DROP: ALLOCATION PLAN
STORES
55%
WEB
18%
REPLEN
18%
FRANCHISEE 9%
INITIAL ALLOCATION
FAR EAST SUPPLIER
EUROPEAN SUPPLIER
MERCHANDISER PERMISSION TO SHIP
ALLOCATOR CREATES PRE-ALLOCATION
STOCK ARRIVES IN THE
WAREHOUSE
STOCK IS DESPATCHED & INVOICED
INITIAL ALLOCATION
FAR EAST SUPPLIER
EUROPEAN SUPPLIER
MERCHANDISER PERMISSION TO SHIP
ALLOCATOR CREATES PRE-ALLOCATION
WAREHOUSE PICKS
PRE-ALLOCATION
QC PASS TRIGGERS THE PRE-ALLOCATION AND CREATES PICK NOTE
STOCK ARRIVES IN THE
WAREHOUSE
STORE RECEIPTS STOCK-IN & IT BECOME BRANCH STOCK
CUSTOMER BUYS PRODUCT
REPLENISHMENT
REPLENISHMENT
Initial allocation sets an ideal stock holding by SKU
Each night the system looks at which stores have sold a SKU
If warehouse stock is available, replenishment is generated for that SKU, to a maximum of the ideal level
Replenishment is typically 1:1
Once the replenishment algorithm is executed, the systems sends a picking list to the warehouse: pick, pack, invoice & send
REPLENISHMENT
Once a week the system will re-calculate the ideal stock holding for every SKU, by location, based on sales, cover (and other parameters the allocator sets):
fastest selling stores ideal stock holding increases = more replenishment
slowest selling stores ideal stock holding decreases = reduced or no replenishment
If warehouse stock is limited (always!) and there is not enough of a size to replenish every store the system will ration the stock:
by Grade
then cover within grade
TRADING AND REVIEW
How many weeks cover of stock do we have in the warehouse?
When is the next intake due?
How long to sale?
Any promotional events coming up?
Which stores are turning the fastest?
What is the weather like this week?
Does the style need extending to more stores?
Are the web stores fully available?
Which Grade is selling best?
Do we have enough to replenish all stores or do we need to cut some stores?
Is it a continuity style like a vest or a jean - availability?
Is a store over-stocked?
THE END!
FUTURE DEVELOPEMENTS
Store£SalesStoreSalesLinearStoreSalesSpace£Linear
B567 - Debs Birmingham202,17206 TopB593 - Debs Foyleside06 Top160B593 - Debs Foyleside06 TopLarge135,748160
B532 - Debs White Rose197,93606 TopB486 - Debs Cork Centre06 Top141B486 - Debs Cork Centre06 TopMedium159,273141
B529 - Debs Trafford Park176,89206 TopB567 - Debs Birmingham06 Top138B567 - Debs Birmingham06 TopMedium202,172138
B486 - Debs Cork Centre159,27306 TopB532 - Debs White Rose06 Top91B532 - Debs White Rose06 TopEdit197,93691
B448 - Debs Bath158,02806 TopB529 - Debs Trafford Park06 Top85B529 - Debs Trafford Park06 TopEdit176,89285
B593 - Debs Foyleside135,74806 TopB448 - Debs Bath06 Top80B448 - Debs Bath06 TopEdit158,02880
B538 - Debs Plymouth98,44707 MidB510 - Debs Colchester07 Mid134B510 - Debs Colchester07 MidLarge84,731134
B581 - Debs Portsmouth94,71107 MidB520 - Debs Crawley07 Mid134B520 - Debs Crawley07 MidLarge91,199134
B465 - Debs Blackpool94,60507 MidB771 - HOF Cardiff07 Mid131B771 - HOF Cardiff07 MidLarge87,067131
B750 - HOF Cheltenham94,25807 MidB711 - IND Northallerton07 Mid118B711 - IND Northallerton07 MidMedium93,473118
B711 - IND Northallerton93,47307 MidB538 - Debs Plymouth07 Mid116B538 - Debs Plymouth07 MidMedium98,447116
B520 - Debs Crawley91,19907 MidB581 - Debs Portsmouth07 Mid116B581 - Debs Portsmouth07 MidMedium94,711116
B562 - Debs Inverness89,84507 MidB750 - HOF Cheltenham07 Mid81B750 - HOF Cheltenham07 MidEdit94,25881
B771 - HOF Cardiff87,06707 MidB562 - Debs Inverness07 Mid78B562 - Debs Inverness07 MidEdit89,84578
B510 - Debs Colchester84,73107 MidB465 - Debs Blackpool07 Mid55B465 - Debs Blackpool07 MidEdit94,60555
STEP ONE: SALESSTEP TWO: SPACESTEP THREE: SALES & SPACE
JV- GRADING
GRADE
New GradeCountSales %Ave SalesMD %Margin %Linear
Ave
Space
Linear
DensitySpace %
OSV
AVERAGE
SALES
Opts Per
Ft
INTAKE
ASPStk Opts
Density
ROSLine Life
Sales
Options
Branch
Qty
Cum
Buy
Sales
Options
01 Web 512%498,49454%60%9501901013%1,092,3231.01351901.62024733164
02 Mega Large25%530,17044%68%3731861091%951,0321.01351861.52024229222WEB
03 Stand Alone Large86%161,93058%57%1,422178355%387,2380.91351600.72020814332
06 Top Large21%121,42257%57%328164281%284,3440.91351480.52019211354
04 Sportlight Large42%128,44644%68%620155322%227,8481.01351550.4202028388SPECIAL
06 Top Medium117%143,50955%60%1,389126445%318,7701.01351260.72016414546
04 Sportlight Medium85%144,50645%67%1,014127444%262,0251.01351270.62016512640TOP
06 Top Edit1811%134,66955%60%1,71695546%297,7561.11351050.82013616931
03 Stand Alone Edit21%121,61956%59%210105451%278,2541.01351050.82013715962
07 Mid Medium239%80,30955%60%2,439106298%178,0121.01351060.520138101,182
07 Mid Large93%77,73852%62%1,210134224%162,9400.81351010.52013191,265
04 Sportlight Edit62%84,03843%68%633105312%147,7881.01351050.42013781,312MID
07 Mid Edit104%76,27656%59%72572403%172,8991.1135800.620104121,436
08 All Large5812%43,16755%59%6,4851121523%95,3240.8135890.32011661,788
08 All Medium407%38,68257%58%3,469871712%90,1771.0135870.32011362,025STANDARD
08 All Edit183%37,67153%61%1,11362234%79,9751.1135680.3208872,14688EDIT
Option Frame Work
245
200
165
138
111
FORMAL / OCCASION BRAND Profile Grading
£
STORE GRADING (No. Of Locations)
A B C D % OF SHOPS
HIGH 40 25 21 10 38%
MEDIUM 17 16 26 - 23%
LOW - - - 91 36%
HIGH T/O LOW T/O
D EM
O G R A P H IC /F A SH
IO N A B IL IT Y
% OF £
65%
21%
14%
CASUAL Profile Grading
£
STORE GRADING (No. Of Locations)
A B C D % OF SHOPS
HIGH 26 22 12 4 32%
MEDIUM 29 16 21 - 33%
LOW - - - 68 34%
HIGH T/O LOW T/O
D EM
O G R A P H IC /F A SH
IO N A B IL IT Y
% OF £
46%
35%
19%
wk3 Allocation Seminar Questions.pptx
INITIAL DROP: IN-TRANSIT
11,000 Units Delivery
Pre- Allocation
Stores = 55%
6,000 Units
Warehouse = 18%
2,000 Units
Web = 18%
2,000 Units
Franchisee = 9%
1,000 Units
INITIAL DROP: ALLOCATION PLAN
STORES
55%
WEB
18%
REPLEN
18%
FRANCHISEE 9%
Allocation Scenario 1:
Style 1 is a brand new knitwear style , in a new colour.
3500 unit drop ranged to go to all store
Ratio: 8 – 18 , split 10% 20% 25% 25% 15% 5%
We have :
3 Web sites who need a total of 600 units.
40 stores who need 16 units each.
50 stores who need 12 units each.
60 stores who need 10 units.
How much stock do we allocate , what % is left for replenishment
Allocation Scenario 2
Style 2 is a new style of padded Parka. We have a drop of 1200 units and the next drop is due in 6 weeks time.
It is ranged for 60 stores and the 3 new Websites.
Initial Allocation Quantities are tighter on Parkas as they are bulkier and take up more space.
It is August and we are in the middle of a heat wave.
Allocation Plan is :
100 units each to the our website and the Amazon web, 50 units to House of Fraser web.
8 units each to 40 Solus stores.
6 units each to 30 Department stores.
What would you suggest we do today with the stock?
Allocation Scenario 3 :
Style 3 is a brand new dress, 1000 unit drop.
It is ranged to go to the top 25 Dresses stores who need 14 units each.
The Web sites need 300 units in total.
Next have bought 300 units.
The next delivery is 200 units in 7 days time.
But :
The supplier under delivered by 150 units.
The deadline for delivering to Next is in 4 days time otherwise they will cancel the order.
So:
How many units short are we?
What would you do?
wk3 Grading Seminar Questions With Answers.xlsx
Activities
| Create A Simple Sales and Space Grading | ||||
| Sort the stores into grading bands | ||||
| Think about where the natural brakes in data are between the stores | ||||
| Use the exact format of the labels below to make the summary table work | ||||
| STEP 1 | Sales Sequence | |||
| Create the sales grades by sorting the stores by descending turnover. | ||||
| Assign each store one of the following labels to give it a sales grade: | ||||
| 01 Web | ||||
| 02 Top Store | ||||
| 03 Mid Store | ||||
| 04 Standard Store | ||||
| STEP 2 | Space Sequence | |||
| WITHIN each of the sales banding you have assigned above, | ||||
| re-sort the store by their linear space largest to smallest | ||||
| Assign each store one of these following space labels: | ||||
| Large | ||||
| Small | ||||
| STEP 3 | Sales & Space Sequence | |||
| The sales and space grade should have concatentated to create the final grade | ||||
| If the labels are in the correct format, it will update the grade summary table below | ||||
| Are the stores spread evenly through the grade, and should they be? | ||||
| Are there to many stores in one grade? | ||||
| What is the mix of sales to space at top and bottom of the chain | ||||
| How does density peformance through the chain? | ||||
| STEP 4 | A Few Questions On Profiling - What Makes A "GOOD" Store | |||
| In this list identify the best 2 locations for the brand | ||||
| In this list identify the worst 3 locations for the brand | ||||
| As well as the sales line consider the stores profiles: | ||||
| Is the average selling price high? | ||||
| Is the margin performance better than other stores? | ||||
| Is the customer only interested in the discount? | ||||
| Is there growth potential based on the Good, Better, Best Mix? | ||||
| Is there a lot of the right customers in the market (the higher the Market Index number the better!)? |
Grading Exercise COMPLETED
| Store Grading Exercise | |||||||||||||||||||
| HOST | STORE NAME | Sales | Space Grade | Sales & Space Grade | Store Count | Planned Sales £ | Linear | Linear Density | ACHIEVED ASP | Margin % | Markdown % | GOOD | BETTER | BEST | Market Customer Index | MARKET PROFILE EXTERNAL RESEARCH | |||
| WEB | JLP Website | 01 Web | 01 Web | 1 | 731,639 | 139 | 202.45 | 75.02 | 72.4% | 22.2% | 45% | 31% | 24% | n/a | 0. Web | ||||
| WEB | Inhouse Websites | 01 Web | 01 Web | 1 | 397,231 | 139 | 109.91 | 65.55 | 69.2% | 30.7% | 41% | 29% | 30% | n/a | 0. Web | ||||
| WEB | Debs Website | 01 Web | 01 Web | 1 | 307,552 | 139 | 85.10 | 66.60 | 69.6% | 29.2% | 43% | 22% | 35% | n/a | 0. Web | ||||
| WEB | HOF Website | 01 Web | 01 Web | 1 | 305,322 | 139 | 84.48 | 66.06 | 68.5% | 32.0% | 44% | 27% | 29% | n/a | 0. Web | ||||
| HOF | HOF Birmingham | 02 Top Store | Large | 02 Top Store Large | 1 | 82,672 | 133 | 23.91 | 69.71 | 71.4% | 25.1% | 60% | 32% | 8% | 75 | 1. Major Regional Centre | |||
| DEB | Debs Glasgow | 02 Top Store | Large | 02 Top Store Large | 1 | 78,539 | 119 | 25.38 | 65.67 | 70.7% | 26.9% | 48% | 18% | 34% | 82 | 1. Major Regional Centre | |||
| DEB | Debs Guildford | 02 Top Store | Large | 02 Top Store Large | 1 | 65,610 | 118 | 21.39 | 69.21 | 71.9% | 24.3% | 51% | 14% | 35% | 157 | 5. Town Large Premium | |||
| DEB | Debs Oxford Street | 02 Top Store | Small | 02 Top Store Small | 1 | 271,473 | 102 | 102.37 | 76.43 | 71.7% | 23.8% | 57% | 18% | 25% | 64 | 1. Major Regional Centre | |||
| HOF | HOF Oxford Street | 02 Top Store | Small | 02 Top Store Small | 1 | 101,159 | 95 | 40.96 | 75.72 | 72.2% | 22.8% | 57% | 18% | 25% | 64 | 1. Major Regional Centre | |||
| DEB | Debs Merryhill | 02 Top Store | Small | 02 Top Store Small | 1 | 51,343 | 89 | 22.19 | 60.40 | 69.2% | 30.7% | 49% | 29% | 22% | 88 | 2. Destination Retail Park | |||
| HOF | HOF Darlington | 03 Mid Store | Large | 03 Mid Store Large | 1 | 43,492 | 139 | 12.03 | 60.41 | 68.9% | 31.7% | 41% | 19% | 40% | 94 | 4. Town Large | |||
| HOF | HOF Exeter | 03 Mid Store | Large | 03 Mid Store Large | 1 | 30,200 | 120 | 9.68 | 61.38 | 70.5% | 27.5% | 68% | 20% | 12% | 117 | 3. City Centre | |||
| IND | IND Wimbledon | 03 Mid Store | Large | 03 Mid Store Large | 1 | 31,912 | 103 | 11.92 | 64.34 | 71.7% | 23.1% | 53% | 21% | 26% | 79 | 6. City Centre Suburb | |||
| DEB | Debs Canterbury | 03 Mid Store | Large | 03 Mid Store Large | 1 | 36,475 | 95 | 14.77 | 67.05 | 72.3% | 24.4% | 72% | 14% | 14% | 121 | 4. Town Large | |||
| DEB | Debs Wigan | 03 Mid Store | Small | 03 Mid Store Small | 1 | 27,231 | 80 | 13.09 | 55.57 | 68.3% | 31.5% | 14% | 0% | 86% | 76 | 4. Town Large | |||
| DEB | Debs Newcastle | 03 Mid Store | Small | 03 Mid Store Small | 1 | 39,524 | 77 | 19.74 | 61.95 | 69.7% | 29.2% | 51% | 23% | 27% | 79 | 3. City Centre | |||
| DEB | Debs Southampton | 03 Mid Store | Small | 03 Mid Store Small | 1 | 48,082 | 74 | 24.99 | 64.98 | 68.8% | 30.9% | 65% | 29% | 6% | 109 | 3. City Centre | |||
| HOF | HOF Carlisle | 04 Standard Store | Large | 04 Standard Store Large | 1 | 23,473 | 127 | 7.11 | 59.58 | 69.1% | 31.0% | 77% | 0% | 23% | 108 | 4. Town Large | |||
| DEB | Debs Hull | 04 Standard Store | Large | 04 Standard Store Large | 1 | 19,992 | 117 | 6.57 | 59.50 | 67.1% | 35.0% | 72% | 7% | 22% | 82 | 3. City Centre | |||
| IND | IND Truro | 04 Standard Store | Small | 04 Standard Store Small | 1 | 21,953 | 73 | 11.57 | 57.77 | 69.9% | 28.2% | 61% | 17% | 22% | 123 | 7. Town Small | |||
| DEB | Debs Romford | 04 Standard Store | Small | 04 Standard Store Small | 1 | 20,150 | 71 | 10.92 | 52.75 | 65.7% | 37.0% | 77% | 0% | 23% | 83 | 6. City Centre Suburb | |||
| HOF | HOF Lincoln | 04 Standard Store | Small | 04 Standard Store Small | 1 | 23,385 | 69 | 13.04 | 56.76 | 68.9% | 30.7% | 66% | 13% | 21% | 117 | 4. Town Large | |||
| DEB | Debs Livingston | 04 Standard Store | Small | 04 Standard Store Small | 1 | 21,022 | 60 | 13.48 | 57.44 | 67.6% | 34.0% | 78% | 18% | 4% | 78 | 4. Town Large | |||
| DEB | Debs Dundee | 04 Standard Store | Small | 04 Standard Store Small | 1 | 21,777 | 59 | 14.20 | 49.72 | 66.0% | 37.4% | 50% | 27% | 23% | 89 | 3. City Centre | |||
| SALES AND SPACE GRADE SUMMARY TABLE | |||||||||||||||||||
| SALES LABEL | SPACE LABEL | Grade Name | Store Count | Planned Sales £ | Linear | Linear Density | Average Sales £ | Average Linear | Store % | Planned Sales % | Linear % | ||||||||
| 01 Web | Large | 01 Web | 4 | 1,741,745 | 556 | 120.49 | 435,436 | 139 | 17% | 62% | 22% | ||||||||
| 02 Top Store | Small | 02 Top Store Large | 3 | 226,821 | 370 | 23.58 | 75,607 | 123 | 13% | 8% | 15% | ||||||||
| 03 Mid Store | 02 Top Store Small | 3 | 423,975 | 286 | 57.02 | 141,325 | 95 | 13% | 15% | 12% | |||||||||
| 04 Standard Store | 03 Mid Store Large | 4 | 142,080 | 457 | 11.96 | 35,520 | 114 | 17% | 5% | 18% | |||||||||
| 03 Mid Store Small | 3 | 114,836 | 231 | 19.12 | 38,279 | 77 | 13% | 4% | 9% | ||||||||||
| 04 Standard Store Large | 2 | 43,465 | 244 | 6.85 | 21,733 | 122 | 8% | 2% | 10% | ||||||||||
| 04 Standard Store Small | 5 | 108,287 | 332 | 12.54 | 21,657 | 66 | 21% | 4% | 13% | ||||||||||
| Total Brand | 24 | 2,801,210 | 2,476 | 43.51 | 116,717 | 103 | 100% | 100% | 100% | ||||||||||
wk3 Grading Seminar Without Answers.xlsx
Activities
| Create A Simple Sales and Space Grading | ||||
| Sort the stores into grading bands | ||||
| Think about where the natural brakes in data are between the stores | ||||
| Use the exact format of the labels below to make the summary table work | ||||
| STEP 1 | Sales Sequence | |||
| Create the sales grades by sorting the stores by descending turnover. | ||||
| Assign each store one of the following labels to give it a sales grade: | ||||
| 01 Web | ||||
| 02 Top Store | ||||
| 03 Mid Store | ||||
| 04 Standard Store | ||||
| STEP 2 | Space Sequence | |||
| WITHIN each of the sales banding you have assigned above, | ||||
| re-sort the store by their linear space largest to smallest | ||||
| Assign each store one of these following space labels: | ||||
| Large | ||||
| Small | ||||
| STEP 3 | Sales & Space Sequence | |||
| The sales and space grade should have concatentated to create the final grade | ||||
| If the labels are in the correct format, it will update the grade summary table below | ||||
| Are the stores spread evenly through the grade, and should they be? | ||||
| Are there to many stores in one grade? | ||||
| What is the mix of sales to space at top and bottom of the chain | ||||
| How does density peformance through the chain? | ||||
| STEP 4 | A Few Questions On Profiling - What Makes A "GOOD" Store | |||
| In this list identify the best 2 locations for the brand | ||||
| In this list identify the worst 3 locations for the brand | ||||
| As well as the sales line consider the stores profiles: | ||||
| Is the average selling price high? | ||||
| Is the margin performance better than other stores? | ||||
| Is the customer only interested in the discount? | ||||
| Is there growth potential based on the Good, Better, Best Mix? | ||||
| Is there a lot of the right customers in the market (the higher the Market Index number the better!)? |
Grading Exercise
| Store Grading Exercise | |||||||||||||||||||
| HOST | STORE NAME | Sales | Space Grade | Sales & Space Grade | Store Count | Planned Sales £ | Linear | Linear Density | ACHIEVED ASP | Margin % | Markdown % | GOOD | BETTER | BEST | Market Customer Index | MARKET PROFILE EXTERNAL RESEARCH | |||
| DEB | Debs Canterbury | 1 | 36,475 | 95 | 14.77 | 67.05 | 72.3% | 24.4% | 72% | 14% | 14% | 121 | 4. Town Large | ||||||
| DEB | Debs Dundee | 1 | 21,777 | 59 | 14.20 | 49.72 | 66.0% | 37.4% | 50% | 27% | 23% | 89 | 3. City Centre | ||||||
| DEB | Debs Glasgow | 1 | 78,539 | 119 | 25.38 | 65.67 | 70.7% | 26.9% | 48% | 18% | 34% | 82 | 1. Major Regional Centre | ||||||
| DEB | Debs Guildford | 1 | 65,610 | 118 | 21.39 | 69.21 | 71.9% | 24.3% | 51% | 14% | 35% | 157 | 5. Town Large Premium | ||||||
| DEB | Debs Hull | 1 | 19,992 | 117 | 6.57 | 59.50 | 67.1% | 35.0% | 72% | 7% | 22% | 82 | 3. City Centre | ||||||
| DEB | Debs Livingston | 1 | 21,022 | 60 | 13.48 | 57.44 | 67.6% | 34.0% | 78% | 18% | 4% | 78 | 4. Town Large | ||||||
| DEB | Debs Merryhill | 1 | 51,343 | 89 | 22.19 | 60.40 | 69.2% | 30.7% | 49% | 29% | 22% | 88 | 2. Destination Retail Park | ||||||
| DEB | Debs Newcastle | 1 | 39,524 | 77 | 19.74 | 61.95 | 69.7% | 29.2% | 51% | 23% | 27% | 79 | 3. City Centre | ||||||
| DEB | Debs Oxford Street | 1 | 271,473 | 102 | 102.37 | 76.43 | 71.7% | 23.8% | 57% | 18% | 25% | 64 | 1. Major Regional Centre | ||||||
| DEB | Debs Romford | 1 | 20,150 | 71 | 10.92 | 52.75 | 65.7% | 37.0% | 77% | 0% | 23% | 83 | 6. City Centre Suburb | ||||||
| DEB | Debs Southampton | 1 | 48,082 | 74 | 24.99 | 64.98 | 68.8% | 30.9% | 65% | 29% | 6% | 109 | 3. City Centre | ||||||
| WEB | Debs Website | 1 | 307,552 | 139 | 85.10 | 66.60 | 69.6% | 29.2% | 43% | 22% | 35% | n/a | 0. Web | ||||||
| DEB | Debs Wigan | 1 | 27,231 | 80 | 13.09 | 55.57 | 68.3% | 31.5% | 14% | 0% | 86% | 76 | 4. Town Large | ||||||
| HOF | HOF Birmingham | 1 | 82,672 | 133 | 23.91 | 69.71 | 71.4% | 25.1% | 60% | 32% | 8% | 75 | 1. Major Regional Centre | ||||||
| HOF | HOF Carlisle | 1 | 23,473 | 127 | 7.11 | 59.58 | 69.1% | 31.0% | 77% | 0% | 23% | 108 | 4. Town Large | ||||||
| HOF | HOF Darlington | 1 | 43,492 | 139 | 12.03 | 60.41 | 68.9% | 31.7% | 41% | 19% | 40% | 94 | 4. Town Large | ||||||
| HOF | HOF Exeter | 1 | 30,200 | 120 | 9.68 | 61.38 | 70.5% | 27.5% | 68% | 20% | 12% | 117 | 3. City Centre | ||||||
| HOF | HOF Lincoln | 1 | 23,385 | 69 | 13.04 | 56.76 | 68.9% | 30.7% | 66% | 13% | 21% | 117 | 4. Town Large | ||||||
| HOF | HOF Oxford Street | 1 | 101,159 | 95 | 40.96 | 75.72 | 72.2% | 22.8% | 57% | 18% | 25% | 64 | 1. Major Regional Centre | ||||||
| WEB | HOF Website | 1 | 305,322 | 139 | 84.48 | 66.06 | 68.5% | 32.0% | 44% | 27% | 29% | n/a | 0. Web | ||||||
| IND | IND Truro | 1 | 21,953 | 73 | 11.57 | 57.77 | 69.9% | 28.2% | 61% | 17% | 22% | 123 | 7. Town Small | ||||||
| IND | IND Wimbledon | 1 | 31,912 | 103 | 11.92 | 64.34 | 71.7% | 23.1% | 53% | 21% | 26% | 79 | 6. City Centre Suburb | ||||||
| WEB | Inhouse Websites | 1 | 397,231 | 139 | 109.91 | 65.55 | 69.2% | 30.7% | 41% | 29% | 30% | n/a | 0. Web | ||||||
| WEB | JLP Website | 1 | 731,639 | 139 | 202.45 | 75.02 | 72.4% | 22.2% | 45% | 31% | 24% | n/a | 0. Web | ||||||
| SALES AND SPACE GRADE SUMMARY TABLE | |||||||||||||||||||
| SALES LABEL | SPACE LABEL | Grade Name | Store Count | Planned Sales £ | Linear | Linear Density | Average Sales £ | Average Linear | Store % | Planned Sales % | Linear % | ||||||||
| 01 Web | Large | 01 Web | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||
| 02 Top Store | Small | 02 Top Store Large | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||
| 03 Mid Store | 02 Top Store Small | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||
| 04 Standard Store | 03 Mid Store Large | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | |||||||||
| 03 Mid Store Small | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| 04 Standard Store Large | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| 04 Standard Store Small | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
| Total Brand | 0 | 0 | 0 | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ||||||||||
