Module Number: CB3193
Module Title: Financial Merchandising for Fashion
Word-limit:
Part A – Excel Document and Justification – 1000 words
Part B – Report – 2000 words
Part A: WSSI and 6-Month Plan (40%) + Justification (20%)
You are working as an assistant merchandiser for Lululemon, and upper management would like to review the overall company’s weekly sales, stock and intake data using a WSSI document. You have been asked to:
- Update the WSSI document with actual figures.
- Forecast the final two months of the WSSI.
- Complete a full 6-month-merchandising plan
Upper management would then like the results of the WSSI document and 6-month plan to be analysed into a 1000-word essay, focusing on the final 2-month’s forecasted figures and the findings from the 6-month plan.
WSSI Information:
- The first 2 months contain actual figures for Sales, Markdowns, Stock Adjustment, and Intake.
- The following 2 months must be updated with performance figures detailed in Table 1.
- The final 2 month’s forecast figures should be adjusted to consider your findings and incorporate your recommendations for rectifying any weaknesses in the WSSI that have become apparent during your review. You must justify all the decisions you make for the final 2 months.
The following information should be integrated into the spreadsheet to up-date your WSSI document.
TABLE 1: ACTUAL FIGURES, WEEKS 10-17
(TO BE ENTERED INTO THE WSSI DOCUMENT)
Additional information to be entered:
- In week 12 one of the stores was robbed, which resulted in several missing and damaged goods. As a result, an additional £15,000 of stock should be entered into the stock adjustment.
- In week 13 a shipping dispute led to several deliveries being re-arranged. This affected £319,000 of stock. After discussions with the relevant company these items will be delivered as followed: £292,000 in week 15, £8,000 week 16 and £19,000 week 19. This will be in addition to any other scheduled deliveries.
- Lululemon will launch 3 new stores between July and August. Two new stores will open in week 22 with the other new store opening in week 27. Each new store requires a minimum opening stock of £260,000. Delivery to the stores should arrive 1 week before the store opens.
- Management has decided to hold a 3-day sale in Week 23. A minimum of £11,000 markdown should be planned for this event along with a minimum sales uplift of 12% for the week.
NB: The final 2 months will be treated as a forecast, however, estimated sales, markdowns, stock adjustments should be made to the WSSI, along with adequate justification. The final WSSI document should be produced and used to complete a 6-month-merchandising-plan
Part B Merch Report – 30% (2,000 Words)
Upper management have asked you to research and recommend three new locations to open Lululemon stores within the UK (United Kingdom). They would like to open one top-grade store, one mid-grade store, and one low-grade store. Based on your store grades you must then show how the merchandise assortment will differ between each store.
- Propose 3 new store locations for Lululemon to open in 2024. Analyse the retail environment of the local area using a range of sources (think about location features, demographics of the area, general retail environment etc) to help you identify locations and their store grade. Each proposed new store should have a different grade: one top-grade, mid-grade, and low-grade store.
- Outline and justify decisions relating to category and assortment range for the three new stores (one top-grade, mid-grade, and low-grade). Discuss how the assortment range and product categories differ across the different grades. Think about things like category management, depth and breadth of merchandise, and type of merchandise.
- Finally, make recommendations of sales performance measures that should be introduced.