1. BUYING & MERCHANDISNG PROJECT
A complete understanding of a Fast Fashion B&M team
Paula Garcia Ferrer
paulgarciaferrer@gmail.com
Linked in
July 2015
Acknowledgements
Timings and deadlines: Learned to work in a fast-paced environment developing a range with its
merchandising and buying plan within a week.
Experience and skills: This fashion buying and merchandising project reflects my understanding of
the fashion retail merchandising and buying and allocation teams.
Problem-solving: Not only I gained experience and knowledge but I had access to case studies
which provide effective ideas to solve current allocation, merchandising or supplier problems.
Planning and Negotiating tactics: I have acknowledged how to deal with suppliers and
manufacturers understanding the importance of quantities, shipping and logistics, delays and
shipment splitting, packaging and ticketing, and payment terms.

2. Introduction:
The aim of this project is to reach the complete understanding of how a range of clothing is
designed, produced and allocated to stores from the Buying and merchandising point of view.
The task consists in creating a capsule range for next season composed of 6 different styles,
offered in 4 sizes and up to four colours. The sections in which the project founds structured,
explore each step of a range plan creation within the fashion retail industry. The development of
the project will start from the range creation; will be forecasting the sales and margins by style and
calculating a buying budget. Then will purchase the orders for garments and fabrics and then
allocate it to the stores according to its size and percentage of volume of the collection.
The project is divided in the following sections:
Section1: range creation
Short definition of the brand budgets, target margins.
Classification of styles, colours, options, sku's, and fabrics.
Section 2: forecasting sales and costs
Sales forecast ranking in £.
Sales forecast in units.
Margin (%) of each style within the range.
Buying cost by style
Range cost budget
Section 3: range production real costs
Fabric usage and cost per meter.
Negotiation with fabric mill and garment factory producer.
Fabric quantities and costs reviewed.
Purchase of the order by colour material and sizes
Section 4: Size ratios
Calculation of the sizes for each colour and style.
Section 5: allocation by store grade

3. Section1: Range Creation
Company Name: Rose
Theme: St Tropez
Margin: 60%
Range participation to the sales forecast: 2.000.000(20% of the total)
Rank STYLE Colour
R.S.P.
£
%
Margin
% of
total
sales
1 Plat Top white £90.00
orange £90.00
55% 25%
2 T-shirt trqs £35.00
white £35.00
sand £35.00
orange £35.00
65% 20%
3 A-Dress trqs £140.00
white £140.00
70% 15%
4 Trousers trqs £80.00
print £80.00
sand £80.00
60% 14%
Cardigan sand £70.00
60% 13%
5 Shorts sand £60.00
white £60.00
60% 13%
62% 100%

4. Section 2: forecasting sales and costs
Sales forecast ranking in £.
Sales forecast in units.
Margin (%) of each style within the range.
Buying cost by style
Range cost budget
SALES FORECAST BY STYLE AND COLOUR
RANK STYLE Colour
R.S.P.
£
%
Margin
garment
% of
total
sales
Sales
forecast
£
No.
units
1 Plat Top white £90.00 3889
orange £90.00 1666
55% 25% 499950 5555
2 T-shirt trqs £35.00 1714
white £35.00 4572
sand £35.00 3428
orange £35.00 1714
65% 20% 399980 11428
3 A-Dress trqs £140.00 1071
white £140.00 1071
70% 15% 299880 2142
4 Trousers trqs £80.00 350
print £80.00 1050
sand £80.00 2100
60% 14% 280000 3500
Cardigan sand £70.00 3714
60% 13% 259980 3714
5 Shorts sand £60.00 2167
white £60.00 2166
60% 13% 259980 4333
62% 100% 1999770 30672

5. Section 3: range production real costs
Fabric usage and cost per meter.
Negotiation with fabric mill and garment factory producer.
Fabric quantities and costs reviewed.
Purchase of the order by colour material and sizes
FABRICS USAGE AND COSTS FORECAST
REVISED FABRICS USAGE AND COSTS FORECAST

6. (Problems highlighted in red in order of appearance on the figure)
PROB.1. Minimum of 2000 mts. of fabric
SOL2.1. It is decided to raise the production of the TQUOISE and ORANGE in detriment of the
SAND and WHITE options. This affects the percentages of sales by colour.
PROB.2. DRESSES: Minimum of 2000 mts. of fabric
SOL.2. It is decided to buy 2000 mts of the fabric despite jusr 1071 units of the dresses in each
colour will be produced. The amount of textile leftover, will be counted as a wastage.
PROB.3. TROUSERS: Minimum of 1000 units produced each colour. And minimum of 2000mts of
fabric for the PRINT fabric-
SOL.3. It is decided to get rid of the TRQS option and add the 350 units planned in this colour to
the 1470 made in PRINT option. It would be still required to purchase 2000mts of the fabric, thus,
the amount of textile leftover, will be added to the wastage.
PROB.4. Minimum of 2000 MTS of fabric.
SOL.4. As the colours are very similar and they play the same role in the range, it is decided to
make the total units in one of the colours, in white, (the seasonal colour).
Section 4: Size ratios
Calculation of the sizes for each colour and style.
We deicde to use the following size ratio:
sizes s m l xl
units 15 30 35 20
ratio 0.15 0.3 0.35 0.2
We use the ratio to easily allocate amount of garments in each size. If we have 2142 dresses, we
multiplicate by each ratio to know the concrete amount ine ach size.
sizes s m l xl
units 15 30 35 20
ratio 0.15 0.3 0.35 0.2
nº dresses 321.3 642.6 749.7 428.4 2142
ROUNDED 321 643 750 428

7. Section 5: allocation by store grade
5.1 Units bought in total from all styles.
30672 units
5.2 Initial allocation of a 40% of the total stock
It is decided to allocate the 60% of the total production. Thus 40% of 30672.
0.40*30672=12,268.8 garments
5.3 Calculation of sales density
Our range of clothing is giving to the brand just a 20% (2,000,000) of it total sales (10,000,000).
Thus, we are just given a 20% of the shop space to merchandise our range.
The brand has a total of 4000 sq mts of retailing space. Accordingly the selling space we are given
is 800mts.
The Sales Density of our range will be
Stock we have allocated to stores = 12,268.8 garments = 15,33625 items per sq mtr
Mts given to sell our collection 800 mts
5.4 Calculating selling space and number of garments per store, using as a sample a small store
Taking into account that our small store size is 200 sq mtrs. We calculate how many sq mts we will
be given to merchandise our range. A 20% of 200sq mts = 40sq mts
Given the sales density of our range, 15.33625 garments per sq mtr.
We can calculate how many garments in our small shiop.
Square mts * sales density (items per sq mtr)
40*15,33625 = 613,45 garments per store.
Acknowledgements
Timings and deadlines: Learned to work in a fast-paced environment developing a range with its
merchandising and buying plan within a week.
Experience and skills: This fashion buying and merchandising project reflects my understanding of
the fashion retail merchandising and buying and allocation teams.
Problem-solving: Not only I gained experience and knowledge but I had access to case studies
which provide effective ideas to solve current allocation, merchandising or supplier problems.
Planning and Negotiating tactics: I have acknowledged how to deal with suppliers and
manufacturers understanding the importance of quantities, shipping and logistics, delays and
shipment splitting, packaging and ticketing, and payment terms.