Fashion Merchandising and Trading, and assignment will need excel sheets.
Anoushka10
Week7WC12thNovemberLectureandSeminar-20190120.zipLecture.week.7.pdf
PROPS, FIXTURES & LIGHTING
VRP Report
Image – Visual Merchandising, 2nd edition. Tony Morgan
Page 2 VRP unit hand book -
Lighting –Atmospheric/ Ambient
Image – Visual Merchandising, 2nd edition. Tony Morgan Images, dezeen.com collection
Lighting –Natural Light
Images, dezeen.com collection
Lighting –Decorative/Functional
Image – Visual Merchandising, 2nd edition. Tony Morgan Images, dezeen.com & pinterest.comction
Fixtures/POS
Image – Visual Merchandising, 2nd edition. Tony Morgan
- A wide variety of fixtures is available for the presentation of products. The way in which products are presented in the store will largely determine the fixtures.
- Fixtures may be standard off the shelf items or bespoke and made especially for a specific brand/store concept. Purchasing store fixtures is a long term and expensive investment.
- Considerations in choosing fixtures include purpose, function, durability, style and fabrication
Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Capacity fixtures Hold large quantities, usually showing one style of product in several colours and a complete range of sizes.
Feature Fixtures Designed to hold fewer items and are used to highlight category groupings. Often used to bring together coordinated outfits to make shopping easier.
Signature Fixtures One of a kind units positioned at the entrance to a store. Their unique design attracts shoppers’ attention.
Metal Floor Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Metal floor fixtures are the staple choice for retailers. They come as round rails, four way fixtures, hanging rails. Most metal rail fixtures have adjustable height mechanisms to accommodate different length products.
Metal Floor Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Round Rails A round rail is a capacity fixture. It is mostly used to stock basic items that have been purchased in depth
Image Silent Selling, Judith Bell, Kate Ternus p. 76-78llection
Metal Floor Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Four-Way Rails A 4 armed capacity fixture to hold items that have been purchased in depth. All the arms can be set at different heights.
Image Silent Selling, Judith Bell, Kate Ternus p. 79collection
Metal Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Bespoke Hanging Rails/fixtures Bespoke hanging fixtures are designed in line with the overall store design
Metal Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Bespoke Hanging Rails/fixtures Bespoke hanging fixtures are designed in line with the overall store design
Fixtures - Shelving
Image – Visual Merchandising, 2nd edition. Tony Morgan
Gondola Is a system of shelving which offers stacked merchandise to the customer in a longitudinal presentation.
Fixtures - Shelving
Image – Visual Merchandising, 2nd edition. Tony Morgan
Shelving Often made in glass, wood, metal shelving can be stand alone or placed against walls.
Fixtures - Wall Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Wall mounted Rails & Grids There are 2 common wall systems ; slatwalls & gridwalls. Commonly used are also garment rods & crossbars.
Image Silent Selling, Judith Bell, Kate Ternus p. 85 & 86llection
Fixtures - Tables
Image – Visual Merchandising, 2nd edition. Tony Morgan
Tables Can be used to stack items or to create an elegant display with a variety of different product categories.
Image cargocollective.com
Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
Fixtures
Image – Visual Merchandising, 2nd edition. Tony Morgan
When considering the types of fixtures that a retail space needs consider the following - Which fixture offers maximum exposure to the
customer? - How is the fixture going to work in the space? - What are the VM opportunities that can be gained from
using a specific fixture? - How much merchandise does a particular fixture hold?
Mannequins
Image – Visual Merchandising, 2nd edition. Tony Morgan
Mannequins allow brands to present a complete look – with not only clothes but hair, makeup & attitudes as well.
Props
Image – Visual Merchandising, 2nd edition. Tony Morgan
Specific props enable the product to be shown to it’s best advantage and can create animation in store
Moodboards
Image – Visual Merchandising, 2nd edition. Tony Morgan
- A moodboard is an arrangement of images, materials, pieces of text, etc. intended to evoke or project a particular style or concept.
- Moods, feelings, atmosphere are often hard to present so most creative use mood boards to set the scene for their idea
Mood Boards
Image weconnectfashion.com
Mood Boards
Image personal collection
Mood Boards
Image personal collection
Mood Boards
Mood Boards
Image personal collection
Mood Boards
Image fikerandquiche.com
Mood Boards - tips
• Don’t rely only on pinterest & google for your images • Take photos when you are out & about of things that
inspire you • Visuals could be in the form of photographs, magazine
cuttings & newspapers although these must be carefully cut out
• Place visuals so that they look clean, uncluttered and are easy to read. Avoid using images that are too small
• To add interest, overlapping visuals can work well
Mood Boards - tips
• If you have strong colours, make sure that the board is balanced, so that one area doesn’t become the focus.
• Create interest by using different forms, for example curved lines next to straight lines
• Simple line drawings & sketches can add a creative touch • Title the moodboard and add key words if necessary but
don’t overload the board with text.
Visual Merchandising Trends
Where to research current visual merchandising trends?
• WGSN trend reports
Visual Merchandising Trends
Where to research current visual merchandising trends?
• From observation of stores & windows (although it can be Christmas focused at the moment)
• www.vmsd.com • Stylus • www.retailfocus.co.uk
‘A flagship store displays the highest ideals of a company’s brand image. Every detail from the fitting room hooks to floor coverings reflect the company’s brand ‘
Silent selling, 2006, Judith Bell, Kate Ternus. P.13
Flagship Stores
Flagship Stores
- Flagship store design may be a one off exceptional design or higher specifications than the rest of the network
- Usually large & located in high footfall, prestigious
- Offer a full range of merchandise, with an emphasis on more expensive, high quality/fashion lines
- Role of a flagship is reinforce and build the brand image - When entering a new international market, retailers
often begin with a flagship. Flagships often get a lot of media coverage.
Flagship Stores
Images left to right Image 1, Prada Soho NY, prada.com Image 2, Prada Soho NY, vida-bella.com Image 3, Prada Soho NY, vogue.com
Prada New York
Pop up Stores
‘Pop up stores are temporary concepts that blend retail with event marketing. They launch new product lines or promote existing stores‘
Silent selling, 2006, Judith Bell, Kate Ternus. P.62
Pop up Stores
Cos, LA
Images Dezeen.com
Pop up Stores
Images left to right Images 1, 2 &3, Dunhill Pop up Store, NY fashion week thecoolhunter.net
Dunhill Pop Up NY
Concept Stores
- Concept stores are often destinations in themselves. They evolve and change regularly encourage customers to return.
- A concept store is a retail store that appeals to a general sense of lifestyle by offering products to match the desires of those involved in a particular social scene
- The design and aesthetic of a concept store is also likely to be quite distinct, unlike a standard retail store.
- A concept store may be linked to a particular individual or celebrity.
Concept Stores
"I want to create a kind of market where various creators from various fields gather together and encounter each other in an ongoing atmosphere of beautiful chaos; the mixing up and coming together of different kindred souls who all share a strong personal vision." Rei Kawakubo, Comme des garcons
All Images Dover street market, Haymarket, dezeen.com
Dover Street Market, London
Concept Stores
“takes the point of view of a magazine, changes like a gallery, and sells things like a store.”
Images coolhunting.com
Story, concept store NYC
- PROPS, FIXTURES�& LIGHTING
- VRP Report
- Lighting –Atmospheric/ Ambient
- Lighting –Natural Light
- Lighting –Decorative/Functional
- Fixtures/POS
- Fixtures
- Metal Floor Fixtures
- Metal Floor Fixtures
- Metal Floor Fixtures
- Metal Fixtures
- Metal Fixtures
- Fixtures - Shelving
- Fixtures - Shelving
- Fixtures - Wall Fixtures
- Fixtures - Tables
- Fixtures
- Fixtures
- Mannequins
- Props
- Moodboards
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
- Slide Number 26
- Slide Number 27
- Slide Number 28
- Slide Number 29
- Slide Number 30
- Slide Number 31
- Slide Number 32
- Slide Number 33
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Slide Number 37
- Slide Number 38
- Slide Number 39
- Slide Number 40
MPT19 Wk7 Numeracy - Markdown Exercises.xlsx
MD Exercise
| Markdown Exercise | ||||||
| Old Ticket Price | New Ticket Price | Stock Units | Question | Answer | ||
| £29.00 | £20.00 | 1,500 | What is the Cost of Reduction? | |||
| What is the Markdown Cost or Value? | ||||||
| What is the Markdown Reduction % (or Depth)? | ||||||
| £10.00 | £8.00 | 10,000 | What is the Cost of Reduction? | |||
| What is the Markdown Cost or Value? | ||||||
| What is the Markdown Reduction % (or Depth)? | ||||||
| £99.00 | £59.00 | 400 | What is the Cost of Reduction? | |||
| What is the Markdown Cost or Value? | ||||||
| What is the Markdown Reduction % (or Depth)? | ||||||
| Cover with Promotional Cost | ||||||
| Sales | POS Discount | Stock | Cover | |||
| 1. | £15,600 | £1,500 | £120,000 | |||
| 2. | £9,375 | £1,875 | £45,000 | |||
| 3. | £2,575 | £125 | £32,400 |
MD Costing Exercise
| Markdown Costing | ||||||||||||||||||||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| 5 | Top#5 | £11.90 | £45.00 | 68.27% | 16 | 18 | 17 | 20 | 71 | 1,429 | 71.5 | 16 | 16 | 17 | 49 | 0 | 1,380 | £30.00 | 33.3% | 52.40% | £20,700.00 | 720 | 0 | 660 | £22.50 | 50.0% | 36.53% | £4,950.00 |
| 11 | Top#11 | £15.10 | £50.00 | 63.76% | 15 | 17 | 16 | 18 | 66 | 934 | 51.9 | 15 | 14 | 15 | 44 | 200 | 1,090 | £35.00 | 30.0% | 48.23% | £16,350.00 | 540 | 0 | 550 | £25.00 | 50.0% | 27.52% | £5,500.00 |
| 19 | Blouse#19 | £12.64 | £45.00 | 66.29% | 14 | 16 | 15 | 17 | 62 | 1,238 | 72.8 | 14 | 13 | 14 | 41 | 0 | 1,197 | £30.00 | 33.3% | 49.44% | £17,955.00 | 588 | 0 | 609 | £22.50 | 50.0% | 32.59% | £4,567.50 |
| 23 | Tunic#23 | £15.30 | £55.00 | 66.62% | 16 | 18 | 17 | 20 | 71 | 1,629 | 81.5 | 16 | 15 | 17 | 48 | 0 | 1,581 | £35.00 | 36.4% | 47.54% | £31,620.00 | 816 | 0 | 765 | £27.50 | 50.0% | 33.24% | £5,737.50 |
| TOTAL | 61 | 69 | 65 | 75 | 270 | 5,230 | 69.7 | 61 | 58 | 63 | 182 | 200 | 5,248 | £86,625.00 | 2,664 | 0 | 2,584 | £20,755.00 | ||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| 1 | Trouser 1 | £8.50 | £30.00 | 66.00% | 51 | 56 | 54 | 61 | 222 | 2,278 | 37.3 | 51 | 49 | 52 | 152 | 0 | 2,126 | £20.00 | 33.3% | 49.00% | 1,224 | 0 | 902 | £15.00 | 50.0% | 32.00% | ||
| 4 | Trouser 4 | £7.90 | £30.00 | 68.40% | 62 | 68 | 65 | 75 | 270 | 3,230 | 43.1 | 62 | 59 | 63 | 184 | 0 | 3,046 | £20.00 | 33.3% | 52.60% | 1,560 | 0 | 1,486 | £15.00 | 50.0% | 36.80% | ||
| 6 | Trouser 6 | £9.30 | £35.00 | 68.11% | 33 | 36 | 34 | 39 | 142 | 1,858 | 47.6 | 33 | 31 | 33 | 97 | 0 | 1,761 | £25.00 | 28.6% | 55.36% | 828 | 0 | 933 | £20.00 | 42.9% | 44.20% | ||
| 19 | Trouser 19 | £8.90 | £35.00 | 69.49% | 21 | 23 | 22 | 25 | 91 | 1,609 | 64.4 | 21 | 20 | 21 | 62 | 0 | 1,547 | £25.00 | 28.6% | 57.28% | 636 | 0 | 911 | £20.00 | 42.9% | 46.60% | ||
| TOTAL | 167 | 183 | 175 | 200 | 725 | 8,975 | 44.9 | 167 | 159 | 169 | 495 | 0 | 8,480 | 4,248 | 0 | 4,232 | ||||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| A | Tee A | £1.30 | £4.99 | 68.74% | 102 | 113 | 108 | 123 | 446 | 4,554 | 37.0 | 102 | 97 | 105 | 304 | 0 | £3.99 | 60.90% | 2,520 | 0 | £2.49 | 37.35% | ||||||
| B | Tee B | £2.05 | £7.99 | 69.21% | 81 | 89 | 85 | 98 | 353 | 3,147 | 32.1 | 81 | 77 | 83 | 241 | 1,500 | £5.99 | 58.93% | 2,496 | 0 | £3.99 | 38.35% | ||||||
| C | Tee C | £2.17 | £7.99 | 67.41% | 49 | 54 | 52 | 59 | 214 | 2,786 | 47.2 | 49 | 47 | 50 | 146 | 1,500 | £5.99 | 56.53% | 2,100 | 0 | £3.99 | 34.74% | ||||||
| D | Tee D | £2.74 | £9.99 | 67.09% | 44 | 49 | 47 | 53 | 193 | 2,307 | 43.5 | 44 | 42 | 45 | 131 | 0 | £7.99 | 58.85% | 1,080 | 0 | £4.99 | 34.11% | ||||||
| TOTAL | 276 | 305 | 292 | 333 | 1,206 | 12,794 | 38.4 | 276 | 263 | 283 | 822 | 3,000 | 8,196 | 0 |
This is an example for you
Work out the MD Cost only
Homework: Look at how the template works and have a go at the whole modelling exercise
POS Costing Exercise
| Promotion Costing Exercise | |||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| 3641260 | EXAMPLE | SAVE 25% | 5 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £10.00 | £30.00 | £30.00 | 0.00% | 327 | 327 | 5,000 | 15.29 | £9,810.00 | £0.00 | £9,810.00 | £8,175.00 | £3,270.00 | £0.00 | £4,905.00 | 60.00% | |||
| 1 | £10.00 | £30.00 | £22.50 | 25.00% | 900 | 175% | 900 | 0 | 4,100 | 4.56 | £20,250.00 | £20,250.00 | £0.00 | £16,875.00 | £9,000.00 | £6,750.00 | £7,875.00 | 46.67% | |
| 2 | £10.00 | £30.00 | £22.50 | 25.00% | 740 | -18% | 740 | 0 | 4,360 | 1,000 | 5.89 | £16,650.00 | £16,650.00 | £0.00 | £13,875.00 | £7,400.00 | £5,550.00 | £6,475.00 | 46.67% |
| 3 | £10.00 | £30.00 | £22.50 | 25.00% | 600 | -19% | 600 | 0 | 3,760 | 6.27 | £13,500.00 | £13,500.00 | £0.00 | £11,250.00 | £6,000.00 | £4,500.00 | £5,250.00 | 46.67% | |
| 4 | £10.00 | £30.00 | £22.50 | 25.00% | 400 | -33% | 400 | 0 | 3,360 | 8.40 | £9,000.00 | £9,000.00 | £0.00 | £7,500.00 | £4,000.00 | £3,000.00 | £3,500.00 | 46.67% | |
| 5 | £10.00 | £30.00 | £22.50 | 25.00% | 250 | -38% | 250 | 0 | 3,110 | 12.44 | £5,625.00 | £5,625.00 | £0.00 | £4,687.50 | £2,500.00 | £1,875.00 | £2,187.50 | 46.67% | |
| Total Promo | 2,890 | 2,890 | 0 | £65,025.00 | £65,025.00 | £0.00 | £54,187.50 | £28,900.00 | £21,675.00 | £25,287.50 | 46.67% | ||||||||
| Av Weekly | 578 | 578 | 0 | £13,005.00 | £13,005.00 | £0.00 | £10,837.50 | £5,780.00 | £4,335.00 | £5,057.50 | 46.67% | ||||||||
| Total Profit Impact | £152.50 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| 1234 | YUP YUP | £5 OFF | 3 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £3.40 | £15.00 | £15.00 | 0.00% | 150 | 150 | 4,000 | 26.67 | £2,250.00 | £0.00 | £2,250.00 | £1,875.00 | £510.00 | £0.00 | £1,365.00 | 72.80% | |||
| 1 | £3.40 | £15.00 | £10.00 | 33.33% | 600 | 300% | 600 | 0 | 3,400 | 5.67 | £6,000.00 | £6,000.00 | £0.00 | £5,000.00 | £2,040.00 | £2,960.00 | 59.20% | ||
| 2 | £3.40 | £15.00 | £10.00 | 33.33% | 450 | -25% | 450 | 0 | 2,950 | 6.56 | £4,500.00 | £4,500.00 | £0.00 | £3,750.00 | £1,530.00 | £2,220.00 | 59.20% | ||
| 3 | £3.40 | £15.00 | £10.00 | 33.33% | 320 | -29% | 320 | 0 | 2,630 | 8.22 | £3,200.00 | £3,200.00 | £0.00 | £2,666.67 | £1,088.00 | £1,578.67 | 59.20% | ||
| Total Promo | 1,370 | 1,370 | 0 | £13,700.00 | £13,700.00 | £0.00 | £11,416.67 | £4,658.00 | £6,758.67 | 59.20% | |||||||||
| Av Weekly | 457 | 457 | 0 | £4,566.67 | £4,566.67 | £0.00 | £3,805.56 | £1,552.67 | £2,252.89 | 59.20% | |||||||||
| Total Profit Impact | £887.89 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| XYZ | HELLO | BUY ONE GET ONE FREE ("BOGOF") | 3 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £1.36 | £5.00 | £5.00 | 0.00% | 350 | 350 | 10,000 | 28.57 | £1,750.00 | £0.00 | £1,750.00 | £1,458.33 | £476.00 | £0.00 | £982.33 | 67.36% | |||
| 1 | £1.36 | £5.00 | £2.50 | 50.00% | 1,750 | 400% | 1,750 | 0 | 8,250 | 4.71 | £4,375.00 | £4,375.00 | £0.00 | £3,645.83 | £2,380.00 | £1,265.83 | 34.72% | ||
| 2 | £1.36 | £5.00 | £2.50 | 50.00% | 1,300 | -26% | 1,300 | 0 | 6,950 | 5.35 | £3,250.00 | £3,250.00 | £0.00 | £2,708.33 | £1,768.00 | £940.33 | 34.72% | ||
| 3 | £1.36 | £5.00 | £2.50 | 50.00% | 1,000 | -23% | 1,000 | 0 | 5,950 | 5.95 | £2,500.00 | £2,500.00 | £0.00 | £2,083.33 | £1,360.00 | £723.33 | 34.72% | ||
| Total Promo | 4,050 | 4,050 | 0 | £10,125.00 | £10,125.00 | £0.00 | £8,437.50 | £5,508.00 | £2,929.50 | 34.72% | |||||||||
| Av Weekly | 1,350 | 1,350 | 0 | £3,375.00 | £3,375.00 | £0.00 | £2,812.50 | £1,836.00 | £976.50 | 34.72% | |||||||||
| Total Profit Impact | -£5.83 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| ABC | DINGLY DELL | 3 FOR THE PRICE OF TWO | 3 | 70% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £1.90 | £9.00 | £9.00 | 0.00% | 520 | 520 | 6,000 | 11.54 | £4,680.00 | £0.00 | £4,680.00 | £3,900.00 | £988.00 | £0.00 | £2,912.00 | 74.67% | |||
| 1 | £1.90 | £9.00 | £6.00 | 33.33% | 1,200 | ||||||||||||||
| 2 | £1.90 | £9.00 | £6.00 | 33.33% | 900 | ||||||||||||||
| 3 | £1.90 | £9.00 | £6.00 | 33.33% | 650 | ||||||||||||||
| Total Promo | 2,750 | ||||||||||||||||||
| Av Weekly | 917 | ||||||||||||||||||
| Total Profit Impact | |||||||||||||||||||
Work out the POS Cost only
This is an example for you
Work out the POS Cost only
Homework: Look at how the template works and have a go at the whole modelling exercise
MD Answer
| Markdown Exercise | ||||||
| Old Ticket Price | New Ticket Price | Stock Units | Question | Answer | ||
| £29.00 | £20.00 | 1,500 | What is the Cost of Reduction? | £9.00 | ||
| What is the Markdown Cost or Value? | £13,500.00 | |||||
| What is the Markdown Reduction % (or Depth)? | 31% | |||||
| £10.00 | £8.00 | 10,000 | What is the Cost of Reduction? | £2.00 | ||
| What is the Markdown Cost or Value? | £20,000.00 | |||||
| What is the Markdown Reduction % (or Depth)? | 20% | |||||
| £99.00 | £59.00 | 400 | What is the Cost of Reduction? | £40.00 | ||
| What is the Markdown Cost or Value? | £16,000.00 | |||||
| What is the Markdown Reduction % (or Depth)? | 40% | |||||
| Cover with Promotional Cost | ||||||
| Sales | POS Discount | Stock | Cover | |||
| 1. | £15,600 | £1,500 | £120,000 | 7.0 | ||
| 2. | £9,375 | £1,875 | £45,000 | 4.0 | ||
| 3. | £2,575 | £125 | £32,400 | 12.0 |
MD Costing Answer
| Markdown Costing | ||||||||||||||||||||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| 5 | Top#5 | £11.90 | £45.00 | 68.27% | 16 | 18 | 17 | 20 | 71 | 1,429 | 71.5 | 16 | 16 | 17 | 49 | 0 | 1,380 | £30.00 | 33.3% | 52.40% | £20,700.00 | 720 | 0 | 660 | £22.50 | 50.0% | 36.53% | £4,950.00 |
| 11 | Top#11 | £15.10 | £50.00 | 63.76% | 15 | 17 | 16 | 18 | 66 | 934 | 51.9 | 15 | 14 | 15 | 44 | 200 | 1,090 | £35.00 | 30.0% | 48.23% | £16,350.00 | 540 | 0 | 550 | £25.00 | 50.0% | 27.52% | £5,500.00 |
| 19 | Blouse#19 | £12.64 | £45.00 | 66.29% | 14 | 16 | 15 | 17 | 62 | 1,238 | 72.8 | 14 | 13 | 14 | 41 | 0 | 1,197 | £30.00 | 33.3% | 49.44% | £17,955.00 | 588 | 0 | 609 | £22.50 | 50.0% | 32.59% | £4,567.50 |
| 23 | Tunic#23 | £15.30 | £55.00 | 66.62% | 16 | 18 | 17 | 20 | 71 | 1,629 | 81.5 | 16 | 15 | 17 | 48 | 0 | 1,581 | £35.00 | 36.4% | 47.54% | £31,620.00 | 816 | 0 | 765 | £27.50 | 50.0% | 33.24% | £5,737.50 |
| TOTAL | 61 | 69 | 65 | 75 | 270 | 5,230 | 69.7 | 61 | 58 | 63 | 182 | 200 | 5,248 | £86,625.00 | 2,664 | 0 | 2,584 | £20,755.00 | ||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| 1 | Trouser 1 | £8.50 | £30.00 | 66.00% | 51 | 56 | 54 | 61 | 222 | 2,278 | 37.3 | 51 | 49 | 52 | 152 | 0 | 2,126 | £20.00 | 33.3% | 49.00% | £21,260.00 | 1,224 | 0 | 902 | £15.00 | 50.0% | 32.00% | £4,510.00 |
| 4 | Trouser 4 | £7.90 | £30.00 | 68.40% | 62 | 68 | 65 | 75 | 270 | 3,230 | 43.1 | 62 | 59 | 63 | 184 | 0 | 3,046 | £20.00 | 33.3% | 52.60% | £30,460.00 | 1,560 | 0 | 1,486 | £15.00 | 50.0% | 36.80% | £7,430.00 |
| 6 | Trouser 6 | £9.30 | £35.00 | 68.11% | 33 | 36 | 34 | 39 | 142 | 1,858 | 47.6 | 33 | 31 | 33 | 97 | 0 | 1,761 | £25.00 | 28.6% | 55.36% | £17,610.00 | 828 | 0 | 933 | £20.00 | 42.9% | 44.20% | £4,665.00 |
| 19 | Trouser 19 | £8.90 | £35.00 | 69.49% | 21 | 23 | 22 | 25 | 91 | 1,609 | 64.4 | 21 | 20 | 21 | 62 | 0 | 1,547 | £25.00 | 28.6% | 57.28% | £15,470.00 | 636 | 0 | 911 | £20.00 | 42.9% | 46.60% | £4,555.00 |
| TOTAL | 167 | 183 | 175 | 200 | 725 | 8,975 | 44.9 | 167 | 159 | 169 | 495 | 0 | 8,480 | £84,800.00 | 4,248 | 0 | 4,232 | £21,160.00 | ||||||||||
| *VAT Rate 20% | Actual Cum Sales | Sales Forecast Wk 5-7 | Stock & Intake | Markdown Modelling Wk 8 | Forecast Wk 8-19 | Markdown Modelling Wk 20 | ||||||||||||||||||||||
| Style # | Description | CP | RRP | Intake Margin* | Wk1 | Wk2 | Wk3 | Wk4 | Total | Closing Stock Wk 4 | Cover Wk 4 | Wk5 | Wk6 | Wk7 | Total | Intake 5-7 | Open Stk Wk 8 | New Price | % off RRP | Margin | MD Cost | Total Sales | Total Intake | Open Stk Wk 20 | New Price | % off RRP | Margin | MD Cost |
| A | Tee A | £1.30 | £4.99 | 68.74% | 102 | 113 | 108 | 123 | 446 | 4,554 | 37.0 | 102 | 97 | 105 | 304 | 0 | 4,250 | £3.99 | 20.0% | 60.90% | £4,250.00 | 2,520 | 0 | 1,730 | £2.49 | 50.1% | 37.35% | £2,595.00 |
| B | Tee B | £2.05 | £7.99 | 69.21% | 81 | 89 | 85 | 98 | 353 | 3,147 | 32.1 | 81 | 77 | 83 | 241 | 1,500 | 4,406 | £5.99 | 25.0% | 58.93% | £8,812.00 | 2,496 | 0 | 1,910 | £3.99 | 50.1% | 38.35% | £3,820.00 |
| C | Tee C | £2.17 | £7.99 | 67.41% | 49 | 54 | 52 | 59 | 214 | 2,786 | 47.2 | 49 | 47 | 50 | 146 | 1,500 | 4,140 | £5.99 | 25.0% | 56.53% | £8,280.00 | 2,100 | 0 | 2,040 | £3.99 | 50.1% | 34.74% | £4,080.00 |
| D | Tee D | £2.74 | £9.99 | 67.09% | 44 | 49 | 47 | 53 | 193 | 2,307 | 43.5 | 44 | 42 | 45 | 131 | 0 | 2,176 | £7.99 | 20.0% | 58.85% | £4,352.00 | 1,080 | 0 | 1,096 | £4.99 | 50.1% | 34.11% | £3,288.00 |
| TOTAL | 276 | 305 | 292 | 333 | 1,206 | 12,794 | 38.4 | 276 | 263 | 283 | 822 | 3,000 | 14,972 | £25,694.00 | 8,196 | 0 | 6,776 | £13,783.00 |
This is an example for you
Work out the MD Cost only
Homework: Look at how the template works and have a go at the whole modelling exercise
POS Costing Answer
| Promotion Costing Answer | |||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| 3641260 | EXAMPLE | SAVE 25% | 5 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £10.00 | £30.00 | £30.00 | 0.00% | 327 | 327 | 5,000 | 15.29 | £9,810.00 | £0.00 | £9,810.00 | £8,175.00 | £3,270.00 | £0.00 | £4,905.00 | 60.00% | |||
| 1 | £10.00 | £30.00 | £22.50 | 25.00% | 900 | 175% | 900 | 0 | 4,100 | 4.56 | £20,250.00 | £20,250.00 | £0.00 | £16,875.00 | £9,000.00 | £6,750.00 | £7,875.00 | 46.67% | |
| 2 | £10.00 | £30.00 | £22.50 | 25.00% | 740 | -18% | 740 | 0 | 4,360 | 1,000 | 5.89 | £16,650.00 | £16,650.00 | £0.00 | £13,875.00 | £7,400.00 | £5,550.00 | £6,475.00 | 46.67% |
| 3 | £10.00 | £30.00 | £22.50 | 25.00% | 600 | -19% | 600 | 0 | 3,760 | 6.27 | £13,500.00 | £13,500.00 | £0.00 | £11,250.00 | £6,000.00 | £4,500.00 | £5,250.00 | 46.67% | |
| 4 | £10.00 | £30.00 | £22.50 | 25.00% | 400 | -33% | 400 | 0 | 3,360 | 8.40 | £9,000.00 | £9,000.00 | £0.00 | £7,500.00 | £4,000.00 | £3,000.00 | £3,500.00 | 46.67% | |
| 5 | £10.00 | £30.00 | £22.50 | 25.00% | 250 | -38% | 250 | 0 | 3,110 | 12.44 | £5,625.00 | £5,625.00 | £0.00 | £4,687.50 | £2,500.00 | £1,875.00 | £2,187.50 | 46.67% | |
| Total Promo | 2,890 | 2,890 | 0 | £65,025.00 | £65,025.00 | £0.00 | £54,187.50 | £28,900.00 | £21,675.00 | £25,287.50 | 46.67% | ||||||||
| Av Weekly | 578 | 578 | 0 | £13,005.00 | £13,005.00 | £0.00 | £10,837.50 | £5,780.00 | £4,335.00 | £5,057.50 | 46.67% | ||||||||
| Total Profit Impact | £152.50 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| 1234 | YUP YUP | £5 OFF | 3 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £3.40 | £15.00 | £15.00 | 0.00% | 150 | 150 | 4,000 | 26.67 | £2,250.00 | £0.00 | £2,250.00 | £1,875.00 | £510.00 | £0.00 | £1,365.00 | 72.80% | |||
| 1 | £3.40 | £15.00 | £10.00 | 33.33% | 600 | 300% | 600 | 0 | 3,400 | 5.67 | £6,000.00 | £6,000.00 | £0.00 | £5,000.00 | £2,040.00 | £3,000.00 | £2,960.00 | 59.20% | |
| 2 | £3.40 | £15.00 | £10.00 | 33.33% | 450 | -25% | 450 | 0 | 2,950 | 6.56 | £4,500.00 | £4,500.00 | £0.00 | £3,750.00 | £1,530.00 | £2,250.00 | £2,220.00 | 59.20% | |
| 3 | £3.40 | £15.00 | £10.00 | 33.33% | 320 | -29% | 320 | 0 | 2,630 | 8.22 | £3,200.00 | £3,200.00 | £0.00 | £2,666.67 | £1,088.00 | £1,600.00 | £1,578.67 | 59.20% | |
| Total Promo | 1,370 | 1,370 | 0 | £13,700.00 | £13,700.00 | £0.00 | £11,416.67 | £4,658.00 | £6,850.00 | £6,758.67 | 59.20% | ||||||||
| Av Weekly | 457 | 457 | 0 | £4,566.67 | £4,566.67 | £0.00 | £3,805.56 | £1,552.67 | £2,283.33 | £2,252.89 | 59.20% | ||||||||
| Total Profit Impact | £887.89 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| XYZ | HELLO | BUY ONE GET ONE FREE ("BOGOF") | 3 | 100% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £1.36 | £5.00 | £5.00 | 0.00% | 350 | 350 | 10,000 | 28.57 | £1,750.00 | £0.00 | £1,750.00 | £1,458.33 | £476.00 | £0.00 | £982.33 | 67.36% | |||
| 1 | £1.36 | £5.00 | £2.50 | 50.00% | 1,750 | 400% | 1,750 | 0 | 8,250 | 4.71 | £4,375.00 | £4,375.00 | £0.00 | £3,645.83 | £2,380.00 | £4,375.00 | £1,265.83 | 34.72% | |
| 2 | £1.36 | £5.00 | £2.50 | 50.00% | 1,300 | -26% | 1,300 | 0 | 6,950 | 5.35 | £3,250.00 | £3,250.00 | £0.00 | £2,708.33 | £1,768.00 | £3,250.00 | £940.33 | 34.72% | |
| 3 | £1.36 | £5.00 | £2.50 | 50.00% | 1,000 | -23% | 1,000 | 0 | 5,950 | 5.95 | £2,500.00 | £2,500.00 | £0.00 | £2,083.33 | £1,360.00 | £2,500.00 | £723.33 | 34.72% | |
| Total Promo | 4,050 | 4,050 | 0 | £10,125.00 | £10,125.00 | £0.00 | £8,437.50 | £5,508.00 | £10,125.00 | £2,929.50 | 34.72% | ||||||||
| Av Weekly | 1,350 | 1,350 | 0 | £3,375.00 | £3,375.00 | £0.00 | £2,812.50 | £1,836.00 | £3,375.00 | £976.50 | 34.72% | ||||||||
| Total Profit Impact | -£5.83 | ||||||||||||||||||
| STYLE # | DESCRIPTION | OFFER | WKS ON PROMO | % OF SALES AT PROMO SP | |||||||||||||||
| ABC | DINGLY DELL | 3 FOR THE PRICE OF TWO | 3 | 70% | |||||||||||||||
| SALES UNITS | STOCK AND COVER | CASH SALES | POS | MARGIN | |||||||||||||||
| WK NO | CP | RRP | PROMO SP | DISCOUNT % | TOTAL | UPLIFT% | PROMO | FULL PRICE | STOCK | PO | COVER | TOT RSV | PROMO RSV | FP RSV | NET RSV | COGS | COST | MARGIN £ | MARGIN % |
| -1 | £1.90 | £9.00 | £9.00 | 0.00% | 520 | 520 | 6,000 | 11.54 | £4,680.00 | £0.00 | £4,680.00 | £3,900.00 | £988.00 | £0.00 | £2,912.00 | 74.67% | |||
| 1 | £1.90 | £9.00 | £6.00 | 33.33% | 1,200 | 131% | 840 | 360 | 4,800 | 4.00 | £8,280.00 | £5,040.00 | £3,240.00 | £6,900.00 | £2,280.00 | £2,520.00 | £4,620.00 | 66.96% | |
| 2 | £1.90 | £9.00 | £6.00 | 33.33% | 900 | -25% | 630 | 270 | 3,900 | 4.33 | £6,210.00 | £3,780.00 | £2,430.00 | £5,175.00 | £1,710.00 | £1,890.00 | £3,465.00 | 66.96% | |
| 3 | £1.90 | £9.00 | £6.00 | 33.33% | 650 | -28% | 455 | 195 | 3,250 | 5.00 | £4,485.00 | £2,730.00 | £1,755.00 | £3,737.50 | £1,235.00 | £1,365.00 | £2,502.50 | 66.96% | |
| Total Promo | 2,750 | 1,925 | 825 | £18,975.00 | £11,550.00 | £7,425.00 | £15,812.50 | £5,225.00 | £5,775.00 | £10,587.50 | 66.96% | ||||||||
| Av Weekly | 917 | 642 | 275 | £6,325.00 | £3,850.00 | £2,475.00 | £5,270.83 | £1,741.67 | £1,925.00 | £3,529.17 | 66.96% | ||||||||
| Total Profit Impact | £617.17 | ||||||||||||||||||
Work out the POS Cost only
This is an example for you
Work out the POS Cost only
Homework: Look at how the template works and have a go at the whole modelling exercise
MPT19 Wk7 Numeracy - Markdowns and Promotions.pptx
Merchandise Planning & Trading Week 7: Numeracy Session
Markdowns and Promotions
Overview
What is Markdown?
Markdown is the difference between the original retail selling price on the label and what you actually end up selling it for
To put the value of markdown in context, it is usually expressed as a percentage of the sales value
Two main types of markdown:
Permanent price change
Usually called Clearance Markdown
This devalues the STOCK
Temporary price change
Called either Promotion or Point of Sale Markdown
Stock remains at value of ticket price
The cost of the markdown is taken as the sale is processed through the till
i.e. At the Point of Sale
3
You’ve seen this slide before
Why do we markdown?
4
Mark
Down
Clearance: Permanent
Clear slow sellers
Clear over-stock/ over-pricing
Make space for new ranges
Product at end of life cycle
Clear terminal stock
Fragmentation
Quality
Promotional: Point of Sale
Drive sales
Periodic promotions of volume lines
Seasonal tactic
Part of wider marketing campaign
Reduce over-stock
Why might products be over-stocked?
Product failure
Over-priced
Over-bought
4
Markdown Myths
5
Markdown is an admission of failure
No, it’s an acceptance of reality
Product will sell out
It won’t
Buy less
Doesn’t work – buy less and you sell less
Transfer stock, rather than mark it down
That’s more expensive and, if it’s not selling in one place, it’s not likely to sell in another
Markdowns reduce profits
Only if you haven’t taken account of them in planning
Markdown Costs
Markdown Cost Calculation
Cost of reduction = current retail price – new retail price
Markdown Cost (or Value) = cost of reduction x units marked down
Markdown Depth
The discount we advertise to the customer
Cost of reduction ÷ current retail price x 100%
Example:
Current retail price = £10.00; new retail price = £7.00
Cost of reduction?
Units marked down = 2,000
Markdown cost?
Markdown depth?
7
= £3.00
= £6,000
30%
You’ve seen this slide before
Markdown Exercises
Please answer the questions on the handout
8
Markdown Modelling
A merchandiser will normally forecast a markdown cost 2-4 weeks ahead of a Clearance event
Consider stock movements in and out before the event date
Intake?
Sales at full price?
Forecast the stock units that will go into markdown and calculate the cost based on the stock forecast
Don’t forget!
If you do more than one markdown, the cost of the second markdown is calculated on the old price immediately before the markdown happens, NOT the RRP
9
| RRP | 1st MD Price | Cost of 1st Reduction | 2nd MD Price | Cost of 2nd Reduction |
| £10.00 | £7.00 | £3.00 | £5.00 | £2.00 |
You’ve seen this slide before
Markdown Costing Exercise
Please calculate the markdown costs on the worksheet
10
Re-Pricing: Price Increases
For most businesses, price increases should only be done in exceptional circumstances
Long selling life
Your price below market price
Continuity ranges with an increase in cost price
Only in line with corporate pricing policy
This will show on the WSSI as a NEGATIVE markdown cost
11
Unless you work in Top Shop!!!
Promotions
Promotions
A temporary price change
Not a substitute for markdown
Promotions must offer meaningful benefit to the customer
Promotions can be a sales generator
Planned Planned promotions can increase overall sales and profit
Promotions can sometimes reduce over-stocks but not effective for clearing product failures
Promotional discounts not usually deep enough for customer
Number of events depends on marketing strategy
Not good practice to have too many promotions simultaneously
Can cause mixed messages and confuse customer
13
You’ve seen this slide before
Use of Promotions
14
Strategic Promotions
Improve customer perception
Tactical Promotions
Clear over-buys
Reduce general over-stocks
Capture market share
Smooth dips in trading cycle
Drive sales AND profit
Often no margin benefit
However, need to assess margin impact before running
Impact included in buying plans
Promotion Techniques
What promotional offers can you think of?
(Clue, a couple were on a previous slide!)
15
SPECIAL OFFER!
Simple Discounts (cash or percent)
Members’
Discounts
Buy one item, get discount on a different item
Multi-Buy
Buy One Get One Free (BOGOF)
Gift Schemes
You’ve seen this slide before
On straight discounts, reduction is usually no higher than 20% off
Buy one item, get a discount on a separate item – for example
15
Calculating Promotional Costs
Promotions are usually actioned at the POINT OF SALE
That means we markdown each unit as it is sold
Cost of reduction = Current retail price – new retail price
Markdown Cost (or Value) = Cost of reduction x Weekly Sales Units
Example:
Current Retail Price = £10.00; New Retail Price = £7.00
Cost of reduction?
Stock = 2,000, this week’s sales = 200
This week’s markdown cost?
16
£3.00
£600
You’ve seen this slide before
Promotional Costing Exercise
Please calculate the promotional markdown costs for the 2 examples on the handout
17
Managing Promotions Effectively
Promotional uplift diminishes over time
1st week usually the highest; establish likely uplift through analysis and experience
Assess likely loss of future sales when making decision
Account for additional costs
Marketing, advertising, in-store visual merchandising
For a planned promotion, check actual sales and stock levels before launch
If you decide to cancel a planned promotion, work with marketing to agree replacement for marketing calendar
18
You’ve seen this slide before
WSSI Cover Calculation with Point of Sale
If we deflate our sales by offering a point of sale discount, then the flat cover is distorted unless we take into account the discount value
Calculation for cover using cash stock and cash sales=
Example: A company runs a promotion – Save 20% on all £5 T Shirts
19
| Sales | POS Discount | Stock | Cover | |
| Units | 200 | N/A | 800 | 800÷200 = 4.0 |
| Value | £800 | £200 | £4,000 | £4,000÷(£800+£200) = 4.0 |
| Cover = | Stock Value £ |
| Sales Value £ + Point of Sale Discount Value £ |
19
Point of Sale Cover Exercise
Calculate the cover for the examples shown on the handout
20
| Cover = | Stock Value £ |
| Sales Value £ + Point of Sale Discount Value £ |
Updating the WSSI
21
| Sales £K | Intake | Markdown | Last Year | ||||||
| Week | Act/Fcst | Var LY% | Total | Total | POS | Clearance | Sales | Total MD | POS |
| M1 | 137.0 | 27.3% | 340.0 | 0.0 | 0.0 | 0.0 | 107.6 | 0.0 | 0.0 |
| M2 | 167.0 | -0.4% | 181.0 | 15.0 | 0.0 | 15.0 | 167.6 | 11.7 | 0.0 |
| M3 | 218.0 | 4.0% | 214.0 | 0.0 | 0.0 | 0.0 | 209.6 | 8.6 | 8.6 |
| Cum | 522.0 | 7.7% | 735.0 | 15.0 | 0.0 | 15.0 | 484.8 | 20.3 | 8.6 |
| M4 | 185.0 | 14.8% | 210.0 | 10.0 | 10.0 | 0.0 | 161.1 | 0.0 | 0.0 |
| M5 | 172.0 | 8.7% | 170.0 | 75.0 | 0.0 | 75.0 | 158.2 | 59.9 | 0.0 |
| M6 | 191.0 | 15.1% | 200.0 | 100.0 | 0.0 | 100.0 | 165.9 | 121.4 | 0.0 |
| Cum | 1,070.0 | 10.3% | 1,315.0 | 200.0 | 10.0 | 190.0 | 970.0 | 201.6 | 8.6 |
| Sales £K | Intake | Markdown | Last Year | |||||||
| Week | Date | Act/Fcst | Var LY% | Total | Total | POS | Clearance | Sales | Total MD | POS |
| M1 | 124.0 | 15.2% | 340.0 | 0.0 | 0.0 | 0.0 | 107.6 | 0.0 | 0.0 | |
| M2 | 162.0 | -3.3% | 181.0 | 25.0 | 0.0 | 25.0 | 167.6 | 11.7 | 0.0 | |
| M3 | 213.0 | 1.6% | 214.0 | 0.0 | 0.0 | 0.0 | 209.6 | 8.6 | 8.6 | |
| Cum | 499.0 | 2.9% | 735.0 | 25.0 | 0.0 | 25.0 | 484.8 | 20.3 | 8.6 | |
| M4 | 185.0 | 14.8% | 210.0 | 10.0 | 10.0 | 0.0 | 161.1 | 0.0 | 0.0 | |
| M5 | 172.0 | 8.7% | 170.0 | 75.0 | 0.0 | 75.0 | 158.2 | 59.9 | 0.0 | |
| M6 | 191.0 | 15.1% | 200.0 | 90.0 | 0.0 | 90.0 | 165.9 | 121.4 | 0.0 | |
| Cum | 1,047.0 | 7.9% | 1,315.0 | 200.0 | 10.0 | 190.0 | 970.0 | 201.6 | 8.6 |
As with the sales, once the merchandiser agrees the markdown target, it is keyed into the WSSI
As the season progresses, the merchandiser must ensure that markdown spend does not increase without agreement from HOM/Director
Next Week’s Session
Interpreting the line report
22
Week.7.seminar.pdf
SEMINAR : FLOOR PLANS & PRODUCT HANDLING DYNAMICS
Basic principles of balance and proportion are essential to successful visual merchandising display.
- Symmetry is where both sides of a display are identical in design or format. This makes presentation clear and makes it easier to shop in a methodical way. Symmetry is the simplest way of creating balance but can be monotonous if applied everywhere.
- Aysmmetry is used to create interest for the eye and make a display look informal. In its simplest form a large object is placed next to a smaller one of similar type. When using asymmetry the display should be balanced.
- Multi – Asymmetry within one display it is possible to use a mixture of visual techniques in a more complex & creative way.
Exploring Display Techniques - Composition
Symmetry Asymmetry
Images – personal collection Images – personal collection
Exploring Display Techniques - Composition
Pyramid forms are very often used in display. They signify strength, balance and harmony.
Exploring Display Techniques - Pyramids
Repetition is often used within product handling when similar/identical products are presented together to produce an impactful display. We also see repetition of colour, text, shape, form, texture or display elements and props.
Exploring Display Techniques - Repetition
Gradation groups of products that are similar in type but vary in size can be placed in a gradual sequence of size.
Exploring Display Techniques - Repetition
Display Techniques – What to consider
o How the product is used/ worn o What is the main feature/highlight of the product o The size of the product o The material the product is made from o The weight of the product o The angle that the viewer will see it from o The lighting of the product
Consider how to show each product to it’s best advantage. Always think about -
Display Techniques – Functionality vs Creativity
Many displays highlight the functionality of the products, displaying the product in situ and showing viewers how the item can be used/worn.
Floor Plans
A floor plan is a scale drawing showing a view from above, of the relationships between spaces, fixtures and other physical features at one level of a structure.
IN YOUR REPORTS - WHENEVER YOU USE A FLOOR PLAN YOU MUST USE A KEY
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Floor Plans
Seminar Task
- For your Topshop floor plans, ADD fixtures and props, entrance, till, changing rooms, seating & till, (if applicable) mannequins to your plan.
- USE TRACING PAPER to test ideas without making them permanent.
- Don’t forget to leave enough space between fixtures to move through the store!
Lecture Task
- Views of some fixtures/props that can be used on your plans (you can also uses your own symbols):
Mannequin :
Square Table :
Stool:
4 Arm Rail :
Circular Rail:
Sofa: Plant:
Rail:
- SEMINAR :�FLOOR PLANS & PRODUCT HANDLING DYNAMICS
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