For my Buying class, I had to select a store and create a mock up memo and 6 month plan.

1. MEMO
To: Jennifer Mower
From: Amanda Snyder
Date: 12/9/15
Subject: 6-month plan for the Nordstrom Point of View Department
For the Point of View Department (Women’s Apparel), the planned sales for the six-
month period of February-July 2016 will be increased by 1.04% to $2,602,000. The sales are
predicted to increase due to the consistent loyalty of our biggest customers and the Anniversary
Sale that takes place in July. We have found that the minor advertising of our sale brings more
people into the store out of curiosity. Compared to last year’s statistics of $1,657,000, our stock
of Halogen clothing (specifically the button up cardigans) came up a bit short and was in higher
demand than expected. Therefore, we have planned to increase the stock ever so slightly. By
doing so, this will also increase the end of month stock. There will be a larger increase in March
for end of month stock ($2,004,000) due to the preparation of our semi annual clearance sale. As
for markdowns, they will total around $541,220. Go about the markdowns as usual, as there is no
change in percentage regarding the matter.
Additionally, the planned purchases at retail ($3,022,500) and cost ($1,420,600) will have
a slight increase in order to achieve my intended sales goal of $2,602,000. In order to reach the
preferred gross margin percent of 52.5%, the planned initial markup will be 54.5% and the
maintained markup must be 45.0%. If we succeed at achieving this, the suggested six-month plan
will be set to reach 3.8% net profit, giving it a 0.9% increase from the last year.
Finally, as a result of minor deflated spending from our consumers, the turnover for our
department is at an estimated decrease of 0.1 from last year, putting us at 1.5 for the six months.
All of the plans and suggestions regarding the future have been based off of previous statuses
and statistics of our company. Overall, we expect the sales of our Halogen line to increase.

2. Plan Last Year
SIX MONTH MERCHANDISE PLAN % Initial Markup 54.5% 53.0%
% Markdowns 20.8% 20.8%
% Maintained Markup 45.0% 43.2%
Department Name: Women's Apparel (POV) % Gross Margin 52.5% 51.6%
% Operating Exp. 48.7% 48.7%
Department Number: 1 % net profit 3.8% 2.9%
Season Turnover 1.5 1.6
Buyer Name: Amanda Snyder Average Stock $1,689 $1,657.0
Period: Feb-July 16
SPRING FEB MARCH APRIL MAY JUNE JULY Season Totals
FALL AUG SEPT OCT NOV DEC JAN
SALES Last Year $375.0 $405.0 $498.0 $503.0 $402.0 $392.0 $2,575.0
Last Year % 14.6% 15.7% 19.3% 19.5% 15.6% 15.2% 100.0%
Plan $377.0 $411.0 $501.0 $504.0 $419.0 $390.0 $2,602.0
Plan % of season 14.5% 15.8% 19.3% 19.4% 16.1% 15.0% 100.0%
Stock/Sale Ratio Last Year 4.1 4.3 3.9 3.8 3.7 3.9 3.9
Plan 4.1 4.4 4.0 3.9 3.7 3.8 4.0
EOM STOCK Last Year $1,741.5 $1,942.2 $1,911.4 $1,487.4 $1,528.8 $1,449.8 $10,061.1
Plan $1,808.40 $2,004.00 $1,965.60 $1,550.30 $1,482.00 $1,468.38 $10,278.68
MARKDOWNS Last Year $90.5 $85.7 $87.8 $87.8 $90.5 $93.0 $535.2
% of LY MD 16.9% 16.0% 16.4% 16.4% 16.9% 17.4% 100.00%
Plan $91.5 $86.3 $87.5 $87.9 $91.6 $96.5 $541.22
% of Plan MD 16.9% 15.9% 16.2% 16.2% 16.9% 17.8% 100.0%
BOM STOCK Last Year $1,537.5 $1,741.5 $1,942.2 $1,911.4 $1,487.4 $1,528.8 $10,148.8
Plan $1,545.70 $1,808.4 $2,004.0 $1,965.60 $1,550.30 $1,482.0 $10,356.0
Planned Purch. Last Year $669.5 $691.4 $555.0 $166.8 $533.9 $406.0 $3,022.5
at retail Plan $731.20 $692.85 $550.10 $176.59 $442.28 $472.88 $3,065.90
Planned Purch. Last Year $314.7 $324.9 $260.8 $78.4 $250.9 $190.8 $1,420.6
at cost Plan $402.16 $381.07 $302.56 $97.12 $243.25 $260.09 $1,686.24