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Strategic Results Strategic Results A Presentation for Board Retailers Association

Yesterdays Gone...Whats Your Tommorrow

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Merchandise Planning for retail stores. It's more than just Open-to-Buy dollars.

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  • 1. Strategic Results A Presentation for Board Retailers Association

2. Merchandise Planning . . .

  • Yesterdays Gone,
  • Whats Your Tomorrow?

Strategic Results is an affiliate of Management One 3. What YouCantControl in a Turbulent Retail Environment.

  • Competition
  • Weather, Surf & Snow Conditions
  • Financial Community
  • Economy

Strategic Results is an affiliate of Management One Excuses 4. What YouCanControl in a Turbulent Retail Environment.

  • Waste
  • Planning
  • Sales Staff
  • Marketing
  • Communication with Customers
  • Excitement in the Store
  • Expenses

Strategic Results is an affiliate of Management One Today --- Are you in Control? 5. What Does it Take to be Successful Today?

  • It Requires A Business Strategy
  • For Today
  • That You Can Control & Implement

Strategic Results is an affiliate of Management One Yesterdays Gone Plan for Today and Tomorrow 6. Merchandise Planning Strategic Results is an affiliate of Management One Strategy Merchandise Plan Actions Results 7. Merchandise Planning

  • Its more than just Open-to-Buy
  • Expenses
  • Cash Flow
  • Marketing
  • Markdown (RTV) Strategy
  • Budgets Based on Future Demand

Strategic Results is an affiliate of Management One Planning Must Adjust To The Current Situation 8. Planning by Classification

  • Meaningful Classifications
  • Spot Trends
  • Vendors are not Classifications

Strategic Results is an affiliate of Management One Businesses Grow by Understanding what Happens at the Classification Level 9. Sales Planning

  • Top Down
  • Bottom Up
  • Interactive

Strategic Results is an affiliate of Management One Take Advantage a Powerful Weapon! 10. Turn Data Into Useful Information

  • Not All Numbers Are Created Equal
  • Numbers Only Have Value When They Lead To The Right Action

Strategic Results is an affiliate of Management One Can Your Planning System Predict Your Future? 11. What would you do here? Strategic Results is an affiliate of Management One Do you know enough to make a decision? Class Sales T-SHIRTS 150,000 SHORTS 200,000 SANDALS 75,000 TOTAL 425,000 12. What Decisions Can Be Made Based This Scenario? Strategic Results is an affiliate of Management One Change Your Mind? Class Sales Avg. Inv Purchases T-SHIRTS 150,000 40,000 75,000 SHORTS 200,000 180,000 130,000 SANDALS 75,000 30,000 45,000 TOTAL 425,000 250,000 13. The Numbers Tell the Story Strategic Results is an affiliate of Management One If you dont measure it, you cant improve it Class Sales Avg. Inv Purchases MMU Turn GM$ GMROI T-SHIRTS 150,000 40,000 75,000 46% 3.75 69,000 3.45 SHORTS 200,000 180,000 130,000 42% 1.11 84,000 .93 SANDALS 75,000 30,000 45,000 29% 2.50 21,750 1.45 TOTAL 425,000 250,000 14. Your Merchandise Plan!

    • Expenses
    • Sales Inventory
    • Markdowns
    • Marketing
    • Cash

Strategic Results is an affiliate of Management One 15. Do You Use Financial Statements?

  • To Monitor Business Progress?
  • To Monitor Expenses?
  • To Create Expense Budgets?
  • To Create a Breakeven Analysis

Strategic Results is an affiliate of Management One Cost Accounting and Managerial Accounting YOU NEED BOTH! 16. Breakeven Analysis

  • Sales
  • - Less COGS
  • = Gross Profit (MMU)
  • Gross Profit
  • - Variable Expenses
  • = Contribution Margin
  • Contribution Margin
  • - Fixed Expenses
  • = PROFIT
  • When Profit = Zero, That is Breakeven

Strategic Results is an affiliate of Management One 17. What isYourBreakeven?

  • Sales
  • - Less COGS
  • = Gross Profit (MMU)
  • Gross Profit
  • - Variable Expenses
  • = Contribution Margin
  • Contribution Margin
  • - Fixed Expenses
  • = PROFIT
  • What is Your Required MMU?
  • Are Variable Expenses Controlled?
  • Are Fixed Expenses Minimized?
  • Maximize Your Contribution Margin?
  • Profits????

Strategic Results is an affiliate of Management One Whats Your Plan for Next Quarter? 18. Strategic Results is an affiliate of Management One Markdowns Sales Inventory Receiving On Order & OTB Managerial Accounting 19. Balance and Flow

  • Do You Know Your Cash Position at the Beginning of Each Season?
  • Do You Know What Your Cash Position Will Be at the End of a Season?

Strategic Results is an affiliate of Management One Merchandise Planning is Cash Flow Planning 20. Cash Flow Planning

  • Beginning of the Year
  • Cash
  • Current Liabilities
  • = Opening Cash
  • Current Position
  • Opening Cash
  • + YTD Sales
  • YTD Expenses
  • YTD Purchases
  • = Current Net Cash
  • Forecast (For Period)
  • Current Net Cash
  • + Planned Sales
  • Planned Expenses
  • On-Orders
  • Planned Receiving
  • = Net Cash at End of Period

Strategic Results is an affiliate of Management One 21. Planning The Roadmap to Cash& Profits

  • Predict Future Demand by Class Each Month
  • Invest Properly in Inventory Levels & Flow
  • Seize Opportunities & Minimize Risk
  • Provide For Cash to Pay Bills

Strategic Results is an affiliate of Management One If Inventory Levels Controlled Sales & Profits, Wouldnt we Order Merchandise by the Truckload? 22. This is where weve been Where will you go?

  • Merchandise planning is more than numbers on a page.
  • Breakeven Analysis
  • Sales Plan
  • Markdown Plan
  • Cash Flow Projections
  • OTB Budgets

Strategic Results is an affiliate of Management One If you only do what youve always done, youll only get what you always gotbut less! 23.

  • Alan Roseman
  • Strategic Results
  • Phone: 310.545.7304
  • [email_address]