CASE STUDY 2 PLANNING FOR EFFECTIVE BUYING oted to the position of buyer for the hosiery department in y store. Your market is about to open, and in anticipation of this you You were recentl a large specialt must be prepared with certain dollar goals for the coming season. t is the policy of your store that the buyer be responsible for the formulation of the departmental dollar six-month plan. You know that if this plan is to be of value, the igures established must be ones that you can actually achieve. You also know that despite your inexperience you will have to be prepared to explain and justify the plans and strategies you will use as guidelines when merchandising for the period under consideration. Where shall you begin? You know a sound basis for future planning is to analyze the past results of your "new" department. So before you develop your plan for Fall, you decide to review the figures below, which show the performance achieved by the hosiery department for Fall of last year stock $455.500 $850,000 $550,000 $600,500 $850,000 $440,000 $454,000 $900,000 August September October $75,000 $205,000 $135,000 $135,000 $230,000 $120,000 $2,000 $2.000 $7.500 $7,500 $8,300 $24,000 January February Total $51,300 Turnover for period Makdown % 5.7% Your Divisional Merchandise Manager (DMM) informed you that though the sales increases for the Fall season of last year had been greater than planned, there were other areas in the overall operation that needed improvement. You are aware of the following facts the nationwide economy is moving briskly; top management has planned on an overall storewide sales increase of 7%; legwear has had a strong surge of sales for the first six-month period (sales were planned with a 15% increase but actually were ahead 23% over the year before); fashion influences of long, leggy looks with slits in dresses and skirts continue as important apparel looks; the rising trend for legwear in the Spring season, after four dismal years, also saw the revival of body suits, which has stabilized to a fair contribution of total sales The textured hosiery introduced in the spring retailing at 20% higher retail prices is expected to create big business.... CASE STUDY 2 PLANNING FOR EFFECTIVE BUYING oted to the position of buyer for the hosiery department in y store. Your market is about to open, and in anticipation of this you You were recentl a large specialt must be prepared with certain dollar goals for the coming season. t is the policy of your store that the buyer be responsible for the formulation of the departmental dollar six-month plan. You know that if this plan is to be of value, the igures established must be ones that you can actually achieve. You also know that despite your inexperience you will have to be prepared to explain and justify the plans and strategies you will use as guidelines when merchandising for the period under consideration. Where shall you begin? You know a sound basis for future planning is to analyze the past results of your "new" department. So before you develop your plan for Fall, you decide to review the figures below, which show the performance achieved by the hosiery department for Fall of last year stock $455.500 $850,000 $550,000 $600,500 $850,000 $440,000 $454,000 $900,000 August September October $75,000 $205,000 $135,000 $135,000 $230,000 $120,000 $2,000 $2.000 $7.500 $7,500 $8,300 $24,000 January February Total $51,300 Turnover for period Makdown % 5.7% Your Divisional Merchandise Manager (DMM) informed you that though the sales increases for the Fall season of last year had been greater than planned, there were other areas in the overall operation that needed improvement. You are aware of the following facts the nationwide economy is moving briskly; top management has planned on an overall storewide sales increase of 7%; legwear has had a strong surge of sales for the first six-month period (sales were planned with a 15% increase but actually were ahead 23% over the year before); fashion influences of long, leggy looks with slits in dresses and skirts continue as important apparel looks; the rising trend for legwear in the Spring season, after four dismal years, also saw the revival of body suits, which has stabilized to a fair contribution of total sales The textured hosiery introduced in the spring retailing at 20% higher retail prices is expected to create big business