Retail 101 Nypl

Retail 2.
Presented By:
Global Purchasing Companies
www.globalpurchasinggroup.com
Top 5 Rules before you go into
the retail business
1.You are not opening this store/boutique for your ego.
This is a business to make money.
2. You are not buying clothing or items for yourself. You
are buying goods to sell to your target market.
3. From day one think about the big picture which
includes having more than one store.
4. You (the owner) should NOT plan on working on the
sales floor.
5. Dont quit your day job.
What you will need to decide
Who your target market is?
What type of store will it be?
What kind of retailer?
Where will it be located?
What will you sell?
What size store do you need?
What will you sell?
Start by asking yourself 3 questions.
What is the need in your area?

Can you supply the need?
Can you make a profit selling this item?
Its all about the math
Retail is 90% math, 5% fashion
5% good luck
Its not about

Ego
Pleasing your Friend & Family
Being the Home Coming
Queen
Markets that are under retailed
The Plus Size Market

62% of the US population is a plus size consumer
The Baby Boomer
38% of the US Population is a baby boomer born
between 1946 and 1965
The Petite Market
40 million Latin's live in the US & 20 million
Asians
Lingerie boutiques
Childrens boutiques
Social occasion
You will need three Pros
Legal consul that only does retail
contracts and leases
Retail accountant that understands
and knows all the retail and sales tax
laws
A floor planner/merchandiser
Math you need to know
Mark-Up (Margin)
Turn-Over
Sales to Stock Ratio
Sales per Square foot
O.T.B (Open to Buy)
R.O.I (Return on Investment)
Pricing
The truth is no one can make a living with a key stone
mark-up
The key to pricing is knowledge
Understanding your customers price
resistance
Knowing what the competition is pricing the
item at
Following the manufactures standards
Then charging the most you can for the
product
Turnover
Turnover: Is literally how many times
you clear the floor of goods and restock
it.
Total net sales for the year
= Turnover
Average inventory at retail
$120,000 / $20,000 = 6.0 turns per year
Sales to Stock
Sales to Stock Ratio: The amount of stock you have on
hand in relation to the sales you are predicting.
Inventory on hand at the beginning of the month at retail

= Sales to stock Ratio
Amount of predicted sales
90,000 in inventory/ 30,000 predicted sales = 3/1
3/1 is ideal 2/1 is great but tough to manage 1/1 and you
are under inventoried.
Sales per Sq. Foot
Projected Yearly sales (or yearly sales)

=Sales per square foot
Total sq. feet of selling space
Chains do about $350 a sq.foot boutiques

can have a much higher sales per sq.
Can you make your sales goal?
If, you have to sell $20,000 a month to meet
your overhead you would take your average
price point, lets say it is $30, and divide it by
the $20,000. Our store would need to make
around 667 sales. If we were open 6 days a
week 8 hours a day, we would need to make
about 28 sales a day or 3.5 sales an hour. If
only half the people who shop at your store
buy, then you would need 56 people a day to
stop at your store.
Some good news
Not everyone will buy $30, hopefully you
will have multiple sales.
More than half the people that visit your
store will shop. In a small store your
sales goal should be 70% of the people
who stop in should buy.
Return on Investment
ROI= the amount of profit, before taxes and
after depreciation from the investment
made.
For every dollar you put in what is the
return?
How many years will it take you to make
back your capital investment?
Where to shop
Tradeshows
Can view many vendors in a small amount of time
Review fashion and retailing trends.
Excellent place to network
Crash appointments with apprehensive vendors
Not the place to make deals
Regional Markets
Easier pace-more specialty store friendly
Great for finding young designers
Prices can be higher & reps dont have the full line
Market Week Showroom Appointments
Best place to make deals
See full collection & ask for off price
Not for the weak of heart
Questions to ask the vendors
Is it ok to thumb the line?
Can you give me an idea of your price points?
What is the cancel date?
What is the start date?
What is you FOB point?
What are your terms? Are you factored?
What is your opening order?
What is your size run & how do they come
packed?
Is this the best you can do?
Tips for shopping a trade show
Register early and online.
Start your day early. You are not on vacation.
Pick up the trade show book and map out your
day.
Walk row by row.
You can leave your orders at the show but make
sure to mark them, hold for confirmation.
Bring a notebook, stapler and an extra pair of
shoes.
Work on all of the senses
Truth is we have more than 5 senses. You have
about 4 seconds to make the consumer want to be
in your store.
The over-all store presentation

Displays & Fixtures
Lighting
Signage
Music
Smell
Excitement
Prime Time Dressing Room
The prime real
estate in your store Focus Wall
is the 20-foot
semicircle just inside
the front door.
F F
o o
c c
u u
s s
Impact Zone
Moment of Interruption
You are here
Why Run Sales
1.Move Goods
2.Build Cash Flow
3.Attract New Customers
Its a numbers Game
You lose money everyday you have a dead
item on the floor.
You buy 6 pcs at a cost of $10. A total investment of
$60
You sell 3 pcs at a full markup of 2.5 for a total of $75
You have made back your investment of $60 plus $15
You sell the 4th pc at 20% off or $20 full keystone
markup
You sell the 5th pc at 50% discount or $12.50
You sell the last pc for $10 or cost.
Did you lose money? No. Your average sales price was
$19.50 or a margin of 49%
The key is Smart Recruitment
Create an employee profile & job
description.
Look everywhere, dont just hang a sign in
the window.
Hire nice people with positive attitudes.
Look for people who want fashion careers
not jobs.
Must know or has use store product in the
past.
Experience working in retail with a major
store.
Willingness towww.globalpurchasinggroup.com
learn.
Sales in 5 easy steps
Greet the Customer
Discover the neednot what they want
Provide a Solution
Close the Sale
Follow it up
Types of loss
Shoplifters:
Individuals & Teams
Employee Theft
Refund Fraud
Refund Abuse
Counterfeit Money
Credit Card Scams
Sweetheart Sales
Bad Checks
Package Switching
Price Switching
Gift Card scams
Profiling Customers Conduct
Standing alone in a remote part of the store
Looking around or side to side
Waving items in the air
Moving items from one area to another
Wearing coats or jackets on warm days
Customers that come in all the time but never buy anything
Customers that walk in alone but continue to look at
another customer that is in the store
Last minute customers that can help themselves as you
are closing
Weird accidents that take you off the floor
Wearing way too baggy clothing
Probable cause
See the shoplifter approach your merchandise
See the shoplifter select your merchandise
See the shoplifter conceal or carry away your
merchandise
You must maintain continuous observation the
shoplifter
You must see the shoplifter fail to pay for the
merchandise
You must approach the shoplifter outside of the
store
Exposure
Studies show that consumers are hit with
200 bits of advertising a day
When tested, they could only recall the

names of the brands from
Television 24% of the time
Newspaper 20% of the time
Magazines 20% of the time
Radio 13% of the times
Be the creditable expert
Fashion update emails

Be quoted in local paper
Get out of the store!
Be part of the community events
Postcards
Craft fairs, markets and events
Social Media
Surprising a customer = fans
Think customer relationships, not just customer service.
Short approach times
Quick check-outs
Gift Wrap (unique & pretty)
Delivery Service
Seating areas
Clean Bathrooms
Layaway
Good, clear signage
Gift Certificates
Personal Shopper (phone orders)
Coat/bag check
Internet
Longer store hours during seasons
Personal Thank You notes
Store policies
Must be clearly posted.
Should be printed on each receipt.
Dont just give store credit.
14 to 30 days for a return with receipt.
Make sure staff knows store policies.
Retail Cloning-Think BIG
Receiving
Inventory Control
Security Control
Returns
Safety
Employee & Company policies
Visual merchandising & presentation
Financial plan
POS & Technological infrastructure
Setting an example is not the
main means of influencing
others; it is the only means.
.
Albert Einstein
please contact us at:
Global Purchasing Group
1133 Broadway Suite 908
New York, NY 10010
212-414-4001 Fax 212-414-3156
Follow me on Twitter: mercedesgpc
On youtube I am: nyfashionbuyer
[email protected] to friend
me on Face Book.

Retail 101 Nypl

Uploaded by

Copyright:

Available Formats

Retail 101 Nypl

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Retail 101 Nypl

Uploaded by

Copyright:

Available Formats

Retail 2.

What is the need in your area?

Its not about

The Plus Size Market

Inventory on hand at the beginning of the month at retail

90,000 in inventory/ 30,000 predicted sales = 3/1

Projected Yearly sales (or yearly sales)

Chains do about $350 a sq.foot boutiques

The over-all store presentation

When tested, they could only recall the

Fashion update emails

You might also like