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!