Guess Jeans: Merchandizing Plan

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GUESS JEANS ASSIGNMENT DAVID DIEZ MAFED 2012

Sales (units) Mens Collection Kni ts Pa nts Swea ters Ja cket Shi rts Acces s ori es Total % sales

Initial % cumulativ Styles e 39% 75% 88% 94% 99% 100% 69 78 33 42 32 11 265 SKUs

Production Styles SKUs % on total Cancellation Cancelled Cancelled Units sold/ Units sold/ SKUs rate-SKUs styles SKUs style sku offered (%) 38% 26% 16% 9% 8% 3% 100% 15 24 7 19 11 3 79 133 264 57 142 100 22 718 27% 51% 27% 63% 58% 47% 43% 2294 2069 1605 718 762 509 1688 338 443 276 197 219 163 330

123,852 111,752 41,742 16,518 16,005 4,071 313,940

39% 36% 13% 5% 5% 1% 100% Sales

499 516 208 226 173 47 1669

54 54 26 23 21 8 186

366 252 151 84 73 25 951

Initial % cumulativ Styles e 44% 76% 82% 89% 94% 100% 100% 100% 89 87 36 48 48 40 7 3 358 SKUs

Production Styles SKUs % on total Cancellation Cancelled Cancelled Units sold/ Units sold/ SKUs rate-SKUs styles SKUs style sku offered (%) 42% 20% 9% 12% 8% 8% 1% 0% 100% 15 21 12 8 17 13 3 3 92 160 130 82 99 106 63 15 9 664 25% 36% 45% 41% 54% 40% 71% 100% 37% 3862 3134 1808 1064 1194 1351 80 2453 608 903 434 304 407 384 53 577

(units) Womens Collection Kni ts Pa nts Shi rts Swea ters Ja cket Ski rts Acces s ori es Dres s es Total

% sales

285,791 206,837 43,397 42,577 37,021 36,466 319 0 652,408

44% 32% 7% 7% 6% 6% 0% 0% 100%

630 359 182 239 197 158 21 9 1795

74 66 24 40 31 27 4 0 266

470 229 100 140 91 95 6 0 1131

TABLE 1: GUESS? JEANS SEASONAL SUMMARY

Total Sales %

Key Collection 90%

Delivery 1 % 4%

Delivery 2 % 6%

TABLE 2: WOMEN COLLECTION ANALYSIS

KEY COLLECTION No. Of Fabrics
Pants Skirts Jacket Shirts Dresses Knits Sweaters Accessories Total

DELIVERY 1 No. Of Fabrics 4 3 2 6 0 6 3 29% 24 25 Cancellatio Cancelled Cancelled n rate of styles SKUs SKUs (%) 5 8 2 2 3 4 1 19 24 21 16 9 37 15 141 42% 67% 78% 39% 100% 48% 38% 51% No. Of Fabrics 2 0 2 2 0 3 4 3 16

DELIVERY 2 Cancelled Cancelled styles SKUs 7 4 8 5 4 3 31 3 36 15 146 6% 69% 71% 61% 33 12 26 21 Cancellatio n rate of SKUs (%) 92% 100% 84% 57%

Cancellatio Cancelled Cancelled n rate of styles SKUs SKUs (%) 11 3 35 9 1 7 5 78 27 59 45 120 48 377 28% 25% 42% 43% 24% 32%

17 16 18 5 0 11 7 74

TABLE 3: SKU CANCELLATION RATE

1. MEN / WOMEN ANALYSIS AND RECOMENDATIONS There is excessive variety of Men and Women clothing for the fall 200n-1 collection, thus reducing efficiency. Supporting this fact are the numbers in the above tables for initial SKUs introduced and SKUs produced and total number of SKUs. COLLECTION’S WIDTH: According to the table both collections, knits and pants are the top performing categories in terms of the sales volume generated. In the case of the Mens collection, knits and pants make up 55% of the total number of initial styles introduced, contributing to 75% of the total number of units sold. Similarly for the Womens collection, knits and pants, which make up 49% of the total number of initial styles introduced, generating 75% of the total number of units sold. Sales generation is highly concentrated on these two categories and the high % of total SKUs offered – 64% for Men and 62% for Women, shows that merchandising efforts have already been placed on these categories. COLLECTIONS’ DEPTH: We can infer that the cancellation rates, as demonstrated by Table 1, in Men’s collection, pants, jackets and shirts have a rates of 51%, 62% and 57%, very high indeed. These cancellation rates tells that more than 50% of the SKUs introduced are not well received by customers and that the development efforts for these product categories are not efficient. In the case of the Womens collection, the same issues with high cancellations rates can be observed for jackets, 53%, accessories 71% and dresses 100%. Inefficiency in development efforts has to be streamlined for categories that offer many SKUs but generate poor sales. For instance, in both collections, jackets make up approximately 11% of the total SKUs...
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