buying simulation:
bloomingdale’s
the ask
conduct comprehensive and thorough research to produce a realistic six-month plan, assortment plan, and purchase order for a luxury department store.
the process
step 1: the Business report
the goal of this portion was to, 1) assess the competition, 2) analyze the consumer, 3) identify market trends, and 4) identify fashion trends
Assessing the competition : to conduct this comparison of Bloomingdale’s competition, we researched Nordstrom and their target market, store-wide assortment (considering brand choices & price points). we also analyzed Nordstrom’s in-store and digital presentation, and utilized all of these factors to determine their overall competitive and comparative advantage.
Analyzing the consumer : Using demographic and psychographic tools like VALS and Claritas, we pinpointed Bloomingdale’s primary consumer segment - getting as detailed as to know their favorite shows and their specific neighborhoods. This information helped us understand their buying behaviors and allowed us to develop a strategy to attract this customer.
Market trends : We conducted research on general retail market trends and trends that were specific to the department store market. Our findings included new fitting room technology and the use of A.I as well as an increase in private-label goods.
This market research included a dedicated portion to an overview of the characteristics on the industry, which in our case was the intimates market. Our findings highlighted the increase in celebrity-owned brands like Skims, Savage x Fenty, and Yitty, and their impact on increasing in-store shopping.
Fashion trends: In research of current offerings as well as future forecasts, we recognized a growing trend in young consumers for intimate and sleepwear products. These specific styles included seamless styles, matching sets, and organic loungewear, bustier and corset tops, and full-length bodysuits.
step 2 : six-month plan
To mimic a realistic buying setting, we created a six-month plan including projected season total sales, projected monthly sales, projected stock to sales ratio and inventory, markdowns, purchases, turnover, and gross margin.
To validate our six-month plan we had to justify all of these projections based in a research of economic conditions, market trends, and last year sales for Bloomingdale’s.
step 3 : assortment plan
Using the financial information determined in the six-month plan, we created an assortment plan including classifications, monthly sales by classification, a vendor plan, purchases by classification, and a price lines plan.
the outcome
This project was a great simulation of realistic buying practices and forced me to think about the process in its entirety.