Buying Plan Decisions
Madewell is rapidly growing and expanding, therefore, we calculated a percent increase of 34.85% from the previous year. The inventory turnover is 1.75 because of our fashion denim product category. We will be buying a majority of bottoms so we need to have enough stock on hand to meet sizing needs. Our reductions percent is 18%. Basic items are usually reduced at 10% and fashion items at 20%. We planned our percentage in between the two based on our product category and identified trends.
Individual Store Selections
We selected stores in Atlanta and Portland for our two individual buying plans. It was important to choose stores in separate markets to help us understand the different strategies when buying for various locations. The Madewell store in Atlanta opened in 2008 and has been performing well. Atlanta’s buying plan is similar to the corporate plan because of the size and demand of the geographic market. The Madewell store in Portland opened one year ago so customers are still familiarizing with the brand. We planned less aggressively with our turnover rate but still enough to deliver merchandise to the customer.