Nordstrom
Merchandise Buying Simulation
I was asked to pretend I was a merchandise buyer for Nordstrom. Researching the current market, using Excel, and using my knowledge on retail math, I had to create a 6 month plan and an assortment plan to accurately prepare a merchandise plan for Nordstrom. This was a semester long assignment done in groups of two.
The Ask.
The Process.
The first step in creating a six month buying plan was to research everything about Nordstrom including its competition in the market, what products they carry, who they market to, and their SWOT analysis. Next we created a list of internal and external factors that would affect the market and Nordstrom.
Internal Factors:
Featuring a new designer brand
The creation of the Nordstrom Analytical Platform
Live online shopping platforms
External Factors:
Economic shifts in the retail industry
Retailer’s reaction to inflation
The effects of Covid 19 on consumer confidence
After finalizing the written part of the internal and external factors of the buying plan, we had to create a sales sheet using Microsoft Excel. Using theoretical numbers from Nordstrom’s previous year, we used retail math to determine the sales, markup, markdown, gross margin, stock, and turnover of Nordstrom’s current year.
The final part was to use our knowledge about Nordstrom’s current product offerings to create our own assortment plan that included women’s tops, bottoms, dresses, outerwear, and loungewear. Using retail math and Excel, we found the total sales and purchases of each class and justified each vendor that we chose.
The outcome was a successful 6 month plan and assortment plan. I learned what it would be like to be a merchandise buyer in the fashion industry. I exceeded my knowledge in market trends, retail math, vendor justification, and customer segmentation. Read the full report below!