This document discusses finance and merchandise planning for retail. It summarizes a model that connects three teams: corporate FP&A, retail FP&A, and merchandise planning. The model builds a customer funnel, translates customers to revenue and unit forecasts, allocates targets to retail locations, incorporates new store openings, plans for cannibalization, does margin planning by category, builds store operating expense plans, incorporates capital expenditures, analyzes store P&Ls, does price-volume-mix analysis, plans open-to-buy, does assortment planning, and accelerates the connected planning journey.

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FINANCE & MERCHANDISE PLANNING FOR RETAIL
• TOPS-DOWN AND BOTTOMS-UP RETAIL P&L BUILD
• CUSTOMER FUNNEL MODELING
• OPEN-TO-BUY, ASSORTMENT, IN-SEASON, & REPLENISHMENT

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CONNECTING YOUR PEOPLE
This model is specifically tailored to bring together
three separate teams and better facilitate their
collaboration:
• Corporate FP&A
• Retail FP&A
• Merchandise Planning & Allocation, Product Strategy

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BUILD YOUR CUSTOMER FUNNEL
Toggle customer behavior
drivers to produce a
customer forecast.
Finance & Merchandise Planning for Retail

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TRANSLATE CUSTOMERS TO REVENUE TARGETS
Translate customers
to a sales and units
forecast.
Finance & Merchandise Planning for Retail

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ALLOCATE REVENUE TARGETS TO RETAIL LOCATIONS
Allocate
revenue targets
to individual
retail locations
based on
historical
performance.
Finance & Merchandise Planning for Retail

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INCORPORATE NEW STORE OPENING FROM THE REAL ESTATE TEAM
Model new store
openings based
on a comparable
store or location
type.
Finance & Merchandise Planning for Retail

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PLAN FOR IMPLIED CANNABILIZATION
Cannibalize existing
locations to ensure
sales are not double
counted.
Finance & Merchandise Planning for Retail

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MARGIN PLANNING BY CATEGORY
Manage COGS and
Margin as a
percentage of revenue
or driven by specific
unit sales.
Finance & Merchandise Planning for Retail

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STORE HEADCOUNT AND OPEX
Build out the full operating
expense plan for a retail
location, from standard
opex to a staffing plan.
Finance & Merchandise Planning for Retail

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NEW STORE OPENINGS, RENOVATIONS, ONGOING MAINTENANCE
Incorporate
capital
expenditures to
open new
stores or
maintain
existing ones.
Finance & Merchandise Planning for Retail

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STORE P&L
Analyze the full
output of your
planning with a
P&L by individual
location.
Finance & Merchandise Planning for Retail

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DETAILED PRICE VOLUME MIX ANALYSIS
Understand variances
across your product
and store profile with
PVM analysis across
either dimension.
Finance & Merchandise Planning for Retail

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OPEN-TO-BUY
Set an
inventory buy
plan.
Finance & Merchandise Planning for Retail
Inventory
Planning

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ASSORTMENT PLANNING
Perfect
your
assortment
with
allocations
driven by
any
attribute.
Finance & Merchandise Planning for Retail
Inventory
Planning

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ACCELERATING YOUR CONNECTED PLANNING JOURNEY
Assortment
Planning
In-season
Planning
Merchandise
Planning
Replenishment
Planning
Long Range /
Annual Financial
Planning
Retail Capex &
Opex Planning
Customer Funnel
Sales Forecasting
Store-level
Allocation
Finance &
Merchandise
Planning for
Retail
Workforce &
Compensation
Planning
Merchandise
Finance
Store-level P&L
Open-to-Buy
Floorset Guide
SKU Ranking &
Inventory
Analysis
Price Volume
Mix Analysis
COGS & Margin
Planning

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