- Dillard's is a high-end department store founded in 1938 with over 300 stores in 29 states. It focuses on luxury brands and customer service. - The document outlines Dillard's lingerie department, including target markets, competitors, price points, sales goals, and merchandising plans for spring/summer 2017. It provides financial goals, budgets, and assortment plans to guide lingerie sales. - Key details include a 36.2% gross margin goal and plans to increase panty price points while decreasing shapewear points to boost certain category sales. The 6-month budget forecasts monthly sales distributions and purchasing needs.

1. Women’s Lingerie
Fall 2016 CADS 5500: Merchandising Portfolio
Madalyn Jenkins

2. Table of Contents
Company Analysis…........................................................................................Slide 3-4
Target Market...................................................................................................Slide 5
Retail Strategy Analysis…...........................................................................Slide 6-7
SWOT Analysis..................................................................................................Slide 8
Market Research…..........................................................................................Slide 9-11
Lingerie Financial Goals for 2017............................................................Slide 12
Dillard’s Women’s Planned Sales for 2017 class/subclasses........Slide 13
Suggested Price Points of Subclassifications for 2017.................Slide 14
6 Month Merchandise Budget Plan.........................................................Slide 15
Planned Sales Plan for S/S 2017...............................................................Slide 16
Bras/Panties Assortment Plan....................................................................Slide 17
Visual Merchandising Plan In-Store Display .....................................Slide 18
Executive Summary...........................................................................................Slide 19
Reference List......................................................................................................Slide 20

3. Dillard’s Department Store
— Founded in 1938 by William Dillard.
— The first store was opened in a shopping mall in Austin, TX in 1964.
— Dillard's marketing philosophy focuses on selling methods, keen attention of day-to-
day organizational details, alert personnel, and hard work.
— There are over 300 stores located in 29 states (Dillard’s, 2016).
— Dillard’s is a high end department store that offers luxurious name brand merchandise
with strong branding from offering merchandise from over 150 high end name brands
(Dillard’s, 2016).
“The company focuses on delivering maximum fashion and value to its
shoppers by offering compelling apparel and home selection
complemented by exceptional customer care.”
(Dillard’s, 2016)

4. Type of Merchandise
The lingerie department offers a range of classifications including pajamas,
shape wear, lingerie, bras, and panties. The main price points are $48, $58
and $88, depending on the brand and product.
Dillard's Lingerie Price Points
Pajamas &
Sleepwear
$12.50, $24, $44, $60, $120, $140
Shape Wear
$18, $38, $58, $62, $88, $98
Lingerie &
Babydolls
$44, $52, $58, $76, $98, $148
Bras
$29, $40, $48, $58, $65, $78
Panties
$5, $7, $10, $18, $24, $48
Other departments
Dillard’s also offers
includes:
— Men’s clothing
— Women’s clothing
— Children’s clothing
— Accessories
— Home goods
— Shoes

5. Target Market
Demographic
— Dillard’s target market
consists of middle aged,
family and career-
oriented women and
their families.
— Middle and upper class
men and women.
— All ethnicities;
predominantly
Caucasian.
— Most ages ranging from
high school graduates,
college graduates, to
middle aged adults.
Geographic
— Customers can live in
any climate where
there is a local
Dillard’s store. Most
customers live in an
urban or suburban
area. Dillard’s might
attract some rural
customers that are
willing to drive to
the closest store.
— The target market
comes from many
different areas
including 29 different
states.
Psychographics
— Customers who
want the best deal,
but don’t want to
sacrifice quality.
— Value the power of
a brand name.
— Customers can vary
from someone who
plays golf to
business people,
moms shopping for
the whole family,
and men shopping
for themselves.

6. Competitor Analysis
Major Competitors
— According to Hoover’s, Dillard’s
primary competitors are JC
Penney and Macy’s (Ramirez,
2015).
— Belk is also a main competitor
of Dillard’s.
Comparison of Price Points
• Dillard’s carries similar price
points and the same or
competing brands.
• Dillard’s keeps a competitive
advantage over these stores
by carrying more fashion-
forward merchandise and
private labels by exclusive
designers with higher quality.
Macy's
Pajamas and Sleepwear $18, $28, $49, $64, $130, $160
Shape Wear $38, $48, $58, $72, $98
Lingerie & Babydolls $40, $56, $64, $98, $130, $160
Bras $22, $34, $48, $60, $88
PanIes $10, $20, $26, $38, $50
Belk
Pajamas and Sleepwear $15, $26, $48, $62, $115, $138
Shape Wear $20, $36, $48, $64, $90
Lingerie & Babydolls $40, $54, $64, $72, $90, $120
Bras $20, $38, $50, $68, $74
PanIes $8, $16, $26, $38, $44
JC Penney
Pajamas and Sleepwear $10, $16, $26, $38, $50
Shape Wear $10, $22, $34, $40, $52
Lingerie & Babydolls $18, $26, $42, $60, $68
Bras $15, $26, $38, $46, $58
PanIes $5, $12, $18, $26, $30

7. Dillard’s Lingerie Positioning Map
High Price
High Income Low Income
Low Price

8. Weaknesses
• The decrease in mall popularity
and our traditional location in
malls .
• Younger consumers don’t perceive
us as fashionable
• We aren’t strong on social media
• We don’t focus on advertising
Threats
• The increased popularity of
specialized, boutique style stores.
• Other companies that have a
strong social media following.
• Companies with a more flexible
store layout for more popular
locations.
Strengths
• Private brands bring in new
customers and create loyal
customers.
• Trustworthiness
• Credit card loyalty system
• Strong customer service and
personal shoppers
Opportunities
• Improving social media to attract
a younger market.
• Promote our private label brands
to new customers.
• Expand our selection of sizes to
include a wider range of
underserved consumers.

9. Market Research - Megatrends
• Rocker Chic
Edgy and contemporary
• Seductive Sleeper
Lingerie and corsets
• Leather in various colors
(Premiere Vision, 2016).

10. Market Research - Color Trends
Aurora Red
Shows confidence while also
providing some excitement
and a sensual look with a
pop of color (Eiseman, 2016).
Sharkskin
A neutral color that is great
to base your palette off of
because it is easily pairable
but also somewhat edgy and
contemporary (Eiseman,
2016).

11. — Elegant lingerie and
sleeper (Matthams-
Spencer,2016).
— Corsets and
structured
silhouettes
(Matthams-Spencer,
2016).
— Edgy and unique
look.
Market Research – Style Trends

12. Dillard’s Lingerie Financial Goals for 2017
Total Lingerie & Accessories Planned Sales 2017: $1,085,050,912
Total Lingerie Planned Sales 2017: $108,505,091.20
Inventory TO 2017: 3.19
Gross Margin %: 36.2%
GMROI: 1.81
Dillard’s Total Annual Sales 2016: $6,754,550,000
Dillard’s Total Planned Sales 2017: $6,781,568,200
— Dillard’s Total Planned Sales based on .4%
increase. This is based on the .38 increase in 2015
(Ramirez, 2016).
— Lingerie Department Sales 2016/2017: Ladies
accessories and lingerie makes up 16% of Dillard’s
total sales (Ramirez, 2016).
— Accessories are 6% of lingerie and accessories,
making lingerie alone 10% of total sales.
— Gross Margin based on average of the last 5
years (Dillard’s Inc., 2016).
— Inventory TO based on average of last 5 years TO
(Inventory Turnover, 2016).
Dillard’s Past 5 Years Total Sales

13. Dillard’s Women’s Lingerie Planned Sales
for 2017 (by class/sub-classes)
— Based on knowledge that
bras and panties sell
more than daywear
(Dillard’s Annual Report,
2014).
— Babydolls/garters are
slightly more popular
than other daywear
styles (Lingerie Retail
Clothing Store Business
Plan, 2016).
— Based on the fact that
slightly more panties are
sold than bras (Lingerie
Retail Clothing Store
Business Plan, 2016).
Bras and PanIes 68% $73,783,462.02
Daywear 32% $34,721,629.18
Total Lingerie Sales $108,505,091.20
Dillard's Buying % Daywear Sales $ Daywear
BusIer 13% $4,513,811.79
Chemise 28% $9,722,056.17
Babydoll/Garter 31% $10,763,705.05
Camisole/Short Set 28% $9,722,056.17
TOTAL 100% $34,721,629.18
Buying % Bras/PanIes Sales $ Bras/PanIes
Bras 49% $36,153,896.39
PanIes 51% $37,629,565.63
TOTAL 100% $73,783,462.02

14. Suggested Price Points of Sub-
Classifications for 2017
Dillard’s Women's Lingerie
Pajamas and
Sleepwear 15% $12, $22, $42, $56, $68, $82 Stable
Shape Wear 4% $18, $30, $42, $56, $60, $86 Decrease
Lingerie and
Babydolls 13% $42, $50, $58, $62, $78 Stable
Bras 33% $28, $42, $48, $56, $66, $78 Stable
PanIes 35% $7, $12, $18, $24, $50 Increase
Total 100%
Dillard's Women's Lingerie
Sub-Classes % of Sales Suggested Price Points
Daywear
BusIer 13% $18, $30, $42, $56, $60, $86 Decrease
Chemise 28% $44, $52, $68, $78, $100, $140 Stable
Babydoll/Garter 31% $42, $50, $58, $62, $78 Stable
Camisole/Short Set 28% $12, $22, $42, $56, $68, $82 Decrease
Bras and PanIes
Bras 49% $28, $42, $48, $56, $66, $78 Stable
PanIes 51% $7, $12, $18, $24, $50 Increase
(Lingerie Retail
Clothing Store
Business Plan,
2016)
— Decrease in planned
price points for
shape wear (bustier
and camisole/short
sets) as these
percent of sales are
very low in
comparison to other
sub-classes.
— Increase in planned
price points for
panties because they
are selling really well
year round.

15. — More lingerie is purchased in the earlier months of the year, especially February because of
Valentine’s Day.
— Another big time of the year for department stores to have lingerie sales is in the middle of
the year, and summer months- May, June, and July.
6 Month Merchandise Budget Plan for S/S 2017
FEB MAR APR MAY JUN JUL Total
Net Sales
DistribuIon % By
Month 20% 15% 14% 17% 18% 16% 100%
Net Sales $ By
Month
$10,850,509.12 $8,137,881.84 $7,595,356.38 $9,222,932.75 $9,765,458.21 $8,680,407.30 $54,252,545.60
ReducIon
DistribuIon % By
Month 15% 13% 15% 17% 23% 17% 100%
ReducIons $ By
Month $1,627,576.37 $1,057,924.64 $1,139,303.46 $1,567,898.57 $2,246,055.39 $1,475,669.24 $9,222,932.75
BOM Stock-Sales-
RaIo EsImate 2.35 1.30 1.15 2.10 2.35 1.75 -
BOM Stock
$25,498,696.43 $10,579,246.39 $8,734,659.84
$19,368,158.78
$22,948,826.79 $15,190,712.77 -
EOM Stock
$10,579,246.39 $8,734,659.84 $19,368,158.78
$22,948,826.79
$15,190,712.77 $17,053,383.50 -
Purchases R
$(2,441,364.55) $7,351,219.93 $19,368,158.78
$14,371,499.33 $4,253,399.58 $12,018,747.27 -
Purchases C
$(1,333,553.58) $4,043,170.96 $10,652,487.33 $7,904,324.63 $2,339,369.77 $6,610,311.00 -

16. 6 Month Merchandising Budget for
S/S 2017
— Based on ladies
accessories and
lingerie make up
16% of total
sales; with
lingerie alone
making up 10% of
total sales.
— Annual lingerie
sales 2017
$108,505,091.20,
making 6 month
sales for lingerie
$54,252,545,60.
— Based on .4%
increase in sales
growth.
(Ramirez, 2016).
Planned Sales Plan for S/S 2017
Seasonal Sales for Dillard’s Women’s
Lingerie $54,252,545.60
ReducIons % of sales 17%
MD% 12.00%
Shortage % 3.00%
Sales Discounts % 2.00%
GM % 36.20%
Inventory Turnover Plan 3.18
GMROI 1.804326019
Avg Inventory R Plan $17,060,548.93
Avg Inventory C Plan $9,081,433.43
Actual Average Inventory R $17,053,383.50
Actual Inventory Turnover 3.181336161
IniIal MU % 45%

17. Bras/Panties
Assortment
Plan for Feb
2017
— Nude, black, and
white are the
highest distributed
colors.
— C36 is the most
common bra size, so
it has the highest
distribution
(Average Bra Size,
2014).
— $42 is the most
sold/popular price
point for this
assortment and has
the highest
distribution.
Assortment
Factor Elements % DistribuIon $ BOM Stock $ % DistribuIon Units BOM Stock Units
Style Strapless 19% $4,844,752.32 19% 441
Push-up 23% $5,864,700.18 23% 534
Demi Bras 26% $6,629,661.07 26% 603
T-shirt bra 21% $5,354,726.25 21% 487
AcIve Bras 11% $2,804,856.61 11% 255
Color Nude 25% $6,374,674.11 25% 580
Black 21% $5,354,726.25 21% 487
Red 10% $2,549,869.64 10% 232
White 17% $4,334,778.39 17% 395
Pink 11% $2,804,856.61 11% 255
Grey 16% $4,079,791.43 16% 371
Size 32A 3% $764,960.89 3% 70
34A 4% $1,019,947.86 4% 93
36A 6% $1,529,921.79 6% 139
B32 5% $1,274,934.82 5% 116
B34 9% $2,294,882.68 9% 209
B36 9% $2,294,882.68 9% 209
C32 6% $1,529,921.79 6% 139
C34 11% $2,804,856.61 11% 255
C36 12% $3,059,843.57 12% 279
D32 7% $1,784,908.75 7% 162
D34 11% $2,804,856.61 11% 255
D36 10% $2,549,869.64 10% 232
DD 7% $1,784,908.75 7% 162
Price Points $28.00 23% $5,864,700.18 21% 487
$42.00 34% $8,669,556.79 32% 743
$56.00 27% $6,884,648.04 29% 673
$70.00 16% $4,079,791.43 18% 418
Total 100% $25,498,696.43 2321

18. Visual Merchandising In-Store Display
— Aurora Red
and
Sharkskin
Grey will be
the big color
trends in
lingerie for
S/S 2017.
— Featuring
neutral and
highly
distributed
colors– black,
nude, white,
and pink.

19. Executive Summary
• This presentation shows that Dillard’s is a very established and well-known company.
Their price points are competitively priced considering the high-end brands and even
private label brands that Dillard’s offers. The SWOT analysis of Dillard’s determines
their strengths, weaknesses, opportunities, and threats competitively. Also, the
positioning map shows where Dillard’s stands competitively based on price points and
income.
• Dillard’s lingerie projected color trends for Spring/Summer 2017 include Aurora red and
Sharkskin Grey. These colors will be found in many different predicted styles such as
Seductive Sleeper and Rocker Chic.
• Dillard’s total sales will increase by .4% in 2017. Women’s lingerie will make up 16% of
total sales for Dillard’s. The planned inventory turnover, gross margin percentage, and
GMROI are included in the 2017 financial goals.
• Women’s lingerie can be broken down into Daywear and Bras/Panties. Most price points
for these sub-classifications are planned to remain stable, with only a few slight changes.
• The 6-month merchandise budget plan is based on estimates for higher net sales per
month in February, May, June, and July. From this, monthly net sales, reductions by
month, BOM stock, EOM stock, Purchases R, and Purchases C for the next 6 months are
calculated.
• The planned sales plan for S/S 2017 includes the breakdown of reductions, inventory TO
plan, average inventory R plan, average inventory C plan, actual inventory R, actual
inventory TO, and IMU.
• The assortment plan for bras and panties includes the assortment BOM stock units at
2321 units and also shows distribution %, BOM stock, and distribution units.
• Finally, a photoshopped depiction of an in-store display includes the predicted color
trends, style trends, and Dillard’s store image.

20. References
Average Bra Sizes. (2014). Retrieved October 05, 2016, from hJp://www.brasize.com/average-
bra-size.html
Dillard's Annual Report. (2014). Retrieved from hJp://files.shareholder.com/downloads/DDS/
663472485x0x819290/8816D774-2C5A-4BC2-B659-A137B6556E23/
Dillards_2014_Annual_Report.pdf
Dillard’s. (n.d.). History of Dillard's, Inc. Retrieved September 05, 2016, from
hJp://investor.shareholder.com/dillards/history.cfm
Dillard's Inc. (NYSE:DDS) Inventory Turnover. (2016, July). Retrieved from
hJp://www.gurufocus.com/term/InventoryTurnover/DDS/Inventory+Turnover/Dillards+Inc
Dillard's Inc. (2016, January). Retrieved September 20, 2016, from
hJp://financials.morningstar.com/ra^os/r.html?t=DDS
Lingerie Retail Clothing Store Business Plan. (n.d.). Retrieved from hJp://www.bplans.com/
lingerie_retail_clothing_store_business_plan/market_analysis_summary_fc.php
MaJhams-Spencer, K. (2016, September 1). Fall/Winter 2016-2017 Trends. Retrieved September
15, 2016, from
hJp://en.vogue.fr/fashion/fashion-inspira^on/diaporama/fwah2016-fall-winter-2016-2017-
trends/26545#tendance-mode-automne-hiver-2016-2017-bus^ers-nouvelle-genera^on
Première Vision Paris: The Spring/Summer 2017 Season. (2016, January 20). Retrieved
September 15, 2016, from hJp://www.fashiontrendseJer.com/v2/2016/03/04/
premiere-vision-paris-the-springsummer-2017-season/
Ramirez, D. (2016). Dillard's, Inc. Retrieved from hJp://subscriber.hoovers.com.spot.lib.auburn.edu/H/
company360/
compe^torsList.htmlcompanyId=10463000000000&newsCompanyDuns=004867198