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CASE STUDY
NJ Children's Wear Merchant
A prominent children's high end apparel retailer in North Jersey found himself with a profitable main store and three losing satellite stores. After his own analysis, he concluded that he had fallen victim to a "department store mentality." A salesman whom he trusted suggested that he contact Natelsons, Inc.
During discussions with us, he said, "When I started my business nineteen years ago, I wanted to be bigger than Macy's. Now I just want to be better than Macy's."
During initial meetings, it was apparent this capable merchant had two big strategic assets. He had the financial wherewithal and he was close enough to the New York wholesale market to replenish inventory on a weekly basis if necessary to maximize sales from increased store traffic.
Together we formulated a detailed plan, agreeing on financial goals based on our sales forecast (which he considered aggressive), establishing open-to-buy budgets department by department and store by store. He wanted to maximize sales without compromising future sales in his main store.
We worked out a complete marketing plan, starting with a program for using his stores' mailing lists in an effective manner, and progressing to a complete media plan. We conferred on personnel needs, from sale set-up teams through complete staffing requirements. We directed the set-up in each of his four stores.
Although the owner was an experienced buyer, he was new to off-price buying. We coached him as to how to approach his familiar vendors as well as new sources. We set benchmarks for discounts from regular prices necessary to meet his goals. He used these new skills well, hitting his pricing targets and avoiding excessive ending stock.
Because this merchant was using his own funds to augment his inventory, his investment had to be monitored weekly. After the first weekend sales met projections, we supplied current open-to-buy figures on a weekly basis, triggering new purchases to fill merchandise needs.
The sale met client expectations in every way.
Contacted several years later, he confirmed that sales in his anchor store were up, the business was solidly in the black and much more manageable than before the satellite closings.
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