4MBS662 Retail Management

“Two Precious”
Maternity and Baby
Wear
Portfolio of management with the elements of retail mix for a clothing
store

4th April 2011

By:

Alicja Majewska 11960290

Monika Musialik12979394
Natasha Boncoeur 11692126
Kassim Ismail 12057731

Module and Seminar Leader: Zena Lutrin

Word count: 4000

1
Contents
Contents..........................................................................................................................2

Executive Summary........................................................................................................3

Market Segmentation and Positioning............................................................................4

Demographic Segmentation........................................................................................4

Positioning....................................................................................................................6

Location...........................................................................................................................7

Location 1.....................................................................................................................7

Location 2 ....................................................................................................................9

Location 3.....................................................................................................................9

Location Overview ....................................................................................................11

Final choice ...............................................................................................................12

Merchandise Plan..........................................................................................................12

Our philosophy..........................................................................................................12

Stock balance: Category of our product....................................................................13

Product Mix ...................................................................................................................15

Product ......................................................................................................................15

Nature of Two Precious Product Variety....................................................................15

Layout and Design Planning.........................................................................................16

Human Resources Management Plan..........................................................................18

Profit and Loss Account................................................................................................20

Appendix:.......................................................................................................................22

References: ..................................................................................................................27

2
Executive Summary
Two Precious is a store which specializes in maternity and baby wear (newborn to 18
months) along with a small range of beauty and care products for future mums and
babies. Our range can be described as affordable luxury.

The location of our store is Blackheath, which was carefully chosen after considering
some of the most important aspects of location; accessibility and attractiveness along
with the target market population, cost, and competitors.

Within the growing fashion industry, Two Precious will focus on the niche market of
future mums and babies, by offering a great range of unique and beautiful wear that is
good quality and reasonably priced.

We aim to create a competitive advantage by creating an exclusive experience for our

clients with highly trained staff and a guarantee to offer good quality clothing to both
mother and child who buy from our store.

Our primary target market is mums to be, mums, couples and families with young
children.

3
Market Segmentation and Positioning

Demographic Segmentation
Age: Two precious will essentially target consumers aged between 25-40 year olds,
this indicates that we are targeting the economically active population. This age range
is likely to have no problem with spending on what is essential to them and they will
only buy the best for their children as they are most likely to be first time mothers. As
seen in the diagram below, 43% of the population is within our target market age
group.

Percentage of people in each age band in your neighborhood, mid-2008

Gender: Our target market is females with babies, pregnant women and their partner
and families. Our target market is interested in good quality and comfortable maternity
and baby clothes.

Income: We will target professional working women and stay at home mothers and
their partners with annual income of £27.000 and above. This will give us the

4
opportunity to set a premium price which is similar to our competitors such as Polarn
O.pyret and Mamas & Papas.

Social Class: We will target customers in classes C and above.

The general fertility rate (GFR) is the number of live births per 1,000 women aged 15-
44. Rates are based on the most up-to-date population estimates. Our prime location
Blackheath, which is located in Lewisham borough, has 1.8 to 2.9 rate birth (map 1
below). Patterns of family formation change over time and are primarily influenced by
social and economic factors. As a resulting short-term time-related variations in
numbers of births such as those that have recently occurred in London.

Map 1 Percentage of borough total births (2009-10)

5
Positioning
The main competitors of “Two Precious” are the “Little White Company” and “Mamas
and Papas”. “Two Precious” will help and advice both mothers to be and mothers on
what best suits their shape and size and also try to help with children’s clothing.

Our price range will differ from that of the high street because our brand is exclusive to
our boutique. The goods will be manufactured and supplied from Poland, Zodyn city.

Two Precious’s Positioning

• Mid-Priced Luxury Brand (unique sales only in our boutique)

• High Quality wear and beauty products
• Differentiation from competitors based on quality and service

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Competitors price range in relation to Blackheath and neighborhood included in
Appendix1:

• Gap, H&M and ZARA – offer quality fashion, affordable and low prices.

• The Little White Company – very simplistic range of baby clothes, good
quality and relatively expensive.

• Polarn O. Pyret and Pumpkin Patch - Smart, functional and playful children’s
clothing, relatively cheap.

• Mamas& Papas and Mother care- the only stores that offer a full range of
baby and maternity clothes.

We have chosen to use a mixture of high and low priced items and specialist and non
specialist product, as the store is a boutique there are high quality clothing,
comfortable for everyday wear. The products will be exclusive to the store with special
attention to the design and product texture, making sure our textiles are professionally
chosen so they may meet the clothing industries standards (ISO 1986). Our target
market does not want low priced, low quality products instead they want value for
money products which are long lasting.

Location
According to McGoldrick (2002) the choice of retail location is one of the most
important aspects and its crucial objectives are accessibility and attractiveness.

When research for our perfect retail site we decided to evaluate the major factors
among a few locations (shopping centre, high street, and village) such as customer
preferences, population factors, accessibility, competitive forces, cost and the variable
factors which include storage, delivery.) The location of the store was chosen from
three options: Fulham, Blackheath, and West Hampstead.

Location 1

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 1. Customer preference

Westfield shopping centre offers 345 retailers from which 26 stores are designed for
children`s clothes, activities and games. As it is a shopping centre we have the
advantage of being close to store facilities (M&S and Waitrose) and at the same time
we will be placed among our competitors. This location suits families that want to go
shopping together under one roof with children stores such as toy shops attracting our
target market to the area.

2. Population factors

Although the Acorn overview of families with children is low in the area (as you can
see from the table below), Westfield shopping centre is a destination where families
will make an effort to go to. There are few reasons why Westfield is convenient for
families, such as a number of shops under one roof (convenience for pushchairs),
children play area, children friendly restaurants and baby clothing stores.

This area represents type 18 ACORN classification: Multi-ethnic young, converted

flats. (Up my street, 2011)

3. Competitive Forces

In clothing industry competitive forces are very strong due to the constant changing of
trends and fashion. Our store in Westfield would need to face direct competition and
focus on maintaining the advantage over them in terms of effective suppliers, new
products and attracting new customers.

Our range in a shopping centre would face direct and close competition from other
maternity and babies’ stores. Nevertheless this location offers not only easy
accessibility but also meets the needs of everyday shoppers with supermarkets such
as M&S and Waitrose located in the shopping centre, which can attract potential
customers by proximity.

4. Cost

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Our boutique will be located opposite Lego store in the children’s section and the total
space given by associate director Tom Welham will be 10.8 sq m at £200k per annum.

5. Business needs.

Delivery accessibility and hours are very convenient in Westfield location due to
spacious parking which is available during the night for stock unloading.

Location 2
West Hampstead

1. Customer preference

West Hampstead is a very famous and modern area, offering 104 shops and various
eateries. As an upcoming area close to the West End, West Hampstead is famous not
only with home owners but also with visitors due to its easy accessibility.

This area represents ACORN classification: 2 - Affluent working families with

mortgages.

2. Competitive Forces

Competitive forces are relatively low in West Hampstead and our store would not face
any direct competition from other maternity and babies’ stores as these are non-
existent in the area. However there are a number competitors such as Mama’s and
Papa’s in the surrounding areas of Camden as Kilburn and Camden Town.

3. Accessibility

West Hampstead is located four miles from central London and accessible by car,
bus, tube and train.

Parking is highly restricted to residents and on payment meter for the access of one
hour.

Location 3
Blackheath

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Many of the people who live in this postcode will be wealthy mature professionals
living in large houses. They are known as type 1 in the ACORN classification and
1.7% of the UK's population live in this type of area. This type of postcode
encompasses the most affluent people in the UK. They live in wealthy, high status
suburban and semi-rural neighbourhoods.

Most are highly qualified professionals, senior executives and business owners with
young children, often in their 25s and 40s. They tend to live in large detached houses
with four or more bedrooms, many of which are owned outright. These households
often have more than two cars, at least one of which is likely to be a high value
company car.

There is a high level of readership of the Financial Times as well as the other quality
broadsheets. These people have a well developed interest in the arts, classical music
and opera as well as enjoying fine wine, gourmet food and good quality lifestyle and
clothing.

Mid-2008 population estimates

Your
neighbor Your area
hood
All People Count 1,383 5,321
Males Count 670 2,621
Females Count 713 2,700

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Location Overview
Population factors, accessibility and competition within the locations chosen are
represented in the table below:

Location Population factor Means of Competition

Family Income transportation
Westfield High Underground, High
Buses, private cars
and bicycle
West Medium Underground, over High
Hampstead ground, Buses,
private cars and
bicycle
Black heath High Buses, private car Medium
and bicycle

The area map is shown below:

Shepherds Bush
West Hampstead

11
 Blackheath

Final choice
The location we have chosen is Blackheath. The main reasons for choosing this
location for our boutique are that it has the appropriate number of our target market
living in the area, moreover, the location offers large, conducive and great rental price
for the store. In addition our research showed that the population based in this
location, perfectly match our target market.

Therefore we have decided to go with Blackheath as the location of the store because
of the number of affluent people within the area that match our target market and how
central the area is to other locations like Lewisham, Greenwich and Woolwich. The
location also has regular tourism that come to the area for the purpose of site seeing,
shopping and entertainment.

Merchandise Plan
Our philosophy
The merchandise plan reveals that we are not specialists in the maternity and baby
wear but we are dedicated sellers of excellent quality and originality products. Two
Precious includes three major businesses: apparel, underwear and beauty and care

12
product. The store will offer its own “Two Precious” branded items and other small
independent brands and designers.

We are an up-scale fashion brand with the latest luxurious and sophisticated trends
that cannot be found on high street. The boutique will offer a beautiful range of
maternity evening dresses and smart work wear clothing for future mums as well as
basics and essentials. In addition the store will sell items for new born babies.

Stock balance: Category of our product.

According to Third Eyesight (a consulting firm focused on the retail and consumer
products sector) “clients visiting a store are looking for either the width of merchandise
– the variety of product lines offered – or the depth – the number of each item or
particular style of a product on offer” (Diwakar Kumar,2010).

The stock balance for our boutique will be very simplified and carefully allocated in the
space we designed. Our shop is selling maternity and baby wear (newborn to 18
months) and the merchandise division will equal 70% to 30%, where 70% will
represent maternity clothing and 30% will represent products for babies. The
merchandise plan for our boutique will include clothing for all seasons (Appendix 2).

Best selling items: all our bestselling items will appear in the fashion and baby
magazines, and will significantly improve sales.

13
14
Two Precious will offer the wide selection from the basics of maternity and babies
wear to the trendy clothing. We will be purchasing through three independent
suppliers based in Poland in a variety of sizes, colours and style to fit our target
market base.

Product Mix
Product

Our boutique product mix, which includes all our garments offered for sale is
represented in two dimensions breadth and depth. We offer sixteen products lines
(breadth) for maternity and baby with wide variety of sizes, colors and models that
represents the depth of our stock (Appendixes 3 and 4).

Two Precious is a multi branded store with up to 450 items of clothing that can be
found on the shop floor at any point in time. These will consist of the items in the
merchandise category, three items of each size and additionally accessories as well
as beauty care products. Brands included are Jocasi, Nero Cap and Bell.

Baby Wear designs are divided into boys and girls section and included more general
basics wear, next to a special occasion wear as well as accessories. We present an
extensive range of kids’ wear that are manufactured using different fabrics. Available
in a wide range of gorgeous colors, designs and prints, these apparels are designed
keeping in mind the most up-to date fashion trends.

Women’s wear designs include:

• Casual wear - T-shirts, Shirts, Tops, Jackets, Sweaters, Cardigans ,Jeans,

Shorts, Skirts and Dresses, Parkas

• Formal wear & Office Wear - Shirts, Formal Jackets, Trousers and Evening
wear dresses, Skirts

• Sports Wear - Sweat T-shirts, Jackets, Trousers and Shorts

• Accessories – Anti stretch creams, Scent oils, Body creams

Nature of Two Precious Product Variety

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We want our consumers to perceive our merchandise through a unique set of
attributes we are offering (fabrics, cuts, colours). The Unique Value Proposition (UVP)
of an apparel item is governed by visual and other sensation (Appendix 5).
These subjective sensations will be captured through objective parameters we offer:
design, comfort and handle. Each of these objective parameters is influenced by
various material & process characteristics in the upstream direction of apparel chain.

The foundation parameters on which we ensure the excellence of our garments are:

• Material. We are choosing the best quality cotton, silk, wool, cotton/polyester blends,
fleece, cashmere and viscose. Our main attractiveness is introduction of organic
cotton in all of our baby garments.

• Cut. We are offering the clothing cuts that are suitable for all the shapes to enhance
the beauty of motherhood. Baby section cuts are made to be comfortable and slightly
loose to ensure movement freedom.

• Embroidery. Our boutique stock will be handmade embroidered. All of our

merchandise is made with attention to details.

Layout and Design Planning

We strive to make “Two-precious” a place that feels comfortable, warm and welcoming
to our customers and are planning to achieve this by the chosen color scheme, its
layout design and atmosphere. Furthermore we are aiming to create an environment
that positively influences the customers purchase behavior and their perception,
attitude and image of “Two Precious”.

Regarding the physical elements of the environment as layout, the store will be on one
level with 1,000 square feet to create enough space for customers to easily move
around the shop with prams. The ceilings will be low in order to induce better focus

16
and attention to detail with the floor being carpeted to create a comfortable feeling
(Appendix 6).

The windows will be a major communication tool to create a good first impression and
attract potential customer’s attention. The windows will be big to let the day light flow
into the shop with the display being uncluttered, clean and simple to give the shop a
more professional look.

In terms of fixtures and fittings, the store will make use of freestanding fixtures,
Windows, Walls and Point-of-sale (POS) displays/areas. Examples of fixtures are
Straight Rack: this is a long pipe suspended with supports to the floor or attached to a
wall. Gondola: A large base with a vertical spine or wall fitted with sockets or notches
into which a variety of shelves, peg hooks, bins, baskets and other hardware can be
inserted, Four-way Fixture: This is two crossbars that sit perpendicular to each other
on a pedestal and Round Rack – round fixture that sits on pedestal.

For the purpose of the store layout and design, Tables, Gondola and glass shelving
will be used to display and exhibit the products in the store. In addition, the store will
have mannequins displayed in the window and on a table in the middle of the store.
Bins will be put at designated locations to allow buyers to dispose of waste and to
prevent them from spilling liquid and food on the products.

The premises will have two toilets, one will be for the staff and will be located close to
the store room, and the other toilet will have a nappy changing facility in it which will
be located close to the changing rooms and will be for the customers.

In terms of Psychological elements the desired ambience will be created by making

use of lightening and colour.

The walls of the shop will be Beige to induce a feeling of warmth and comfort. (Santa
Rosa Family and Consumer Sciences Newsletter, Vol 1 Issue 8, 2003, October).

Items will be displayed in repeated shape and colour, to create a sense of harmony.
Lighting as well as colour has also been chosen to create a relaxing atmosphere, to
make customers more comfortable about making purchases by allowing them to
examine the merchandise probably.

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As a high-end boutique we will require very low ambient lighting and a high use of
accent lighting. This will provide a more relaxed atmosphere and lower traffic volume.

Human Resources Management Plan

Two precious will employ 6 members of staff which include a manager, assistant
manager, a full time sales advisor and 3 part time sales advisors. As Two Precious is
a small boutique, a maximum of 3 members of staff will be in the store each day. This
will ensure that there are 2 members of staff on the shop floor during lunch hours.

The store will open at 9:30am on Monday to Saturday, employees will be asked to
arrive at the store at 9:15am to prepare to open the store. Members of staff who work
an 8 hour shift will be given an hour unpaid lunch break between 12:30pm to 3pm, as
well as a 15minute tea break between 4pm to 5pm. Employees who work a 4 hour
shift will not be given a break.

We anticipate that the weekends (especially during summer) will be our peak trading
time because of the location of our store. Blackheath is a popular location for families
to visit during the weekend because of the number of restaurants in the area, the
Heath and events such as the half term Fair, the Circus and the London Marathon
which begins in Blackheath.

Once employees are offered a position at Two Precious they will be given a month’s
retail training in store by the store manager. Employees will have a 3 month’s trial
period after which their performance will be reviewed and then they will be offered a
permanent contract at Two Precious.

Staff Performance Appraisals with be held every 3 months to review employee

performance and set performance goals and targets. Employee benefits will include a
staff discount of 30%, an annual bonus scheme based of company performance and
paid holiday. Below is a diagram of the staff rota:

MON TUES WED THURS FRI SAT SUN TOTAL

HOURS

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MANAGER 9:15- 9:15- 9:15- 9:15- 9:15- 40
18:00 18:00 18:00 18:00 18:00

ASSISTANT 9:15- 9:15- 9:15- 9:15- 10:45- 40

MANAGER 18:00 18:00 18:00 18:00 17:00

SALES 9:15- 9:15- 9:15- 24

ADVISER 18:00 18:00 18:00
FT

SALES 9:15- 10:45- 14

ADVISER 18:00 17:00
Part Time

SALES 12:00-16:00 12:00- 12:00- 12

ADVISER 16:00 16:00
PT

SALES 12:00- 12:00- 12:00- 12

ADVISER 16:00 16:00 16:00
PT

Total 142/40=

3.55

Weekly opening hours;

Store Opening Hours Open Close

Monday - Saturday 09:30 18:00

Sunday 11:00 17:00

Level of personal service

Meeting our customers’ expectations matter most to us and in making this happen, we
will be showing more care to the customers and insure our product and services are to
the best standards thus satisfying them and giving them a positive atmosphere in our
store.

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Internal facilities: There will be no use of CCTV on the premises as the store will be
set as a boutique, the staffs will be very attentive and will monitor the clothing taking
into the changing rooms and what the customers are packing into their bags and
buggies. Customer experience is one of the main goals of our boutique. Our fully
trained staff will ensure that the customers enjoy their time in the shop, return again
and be a source of direct advertisement among their friends.

Creation of a comfortable atmosphere in our boutique is on the top of our agenda that
is why we will always work on excellent customer service and a child friendly
environment. Furthermore our boutique design and store layout give enough space for
pushchairs and we are keeping a simple layout where all our products are visible.

Personal selling: The staff on site will make sure that all customers are attended to at
the point of entry making them feel wanted and welcomed to the store, the customers
will be offered helped while trying on their clothing if required and will be offered
alternatives and add-ons. Our well trained staffs will be well informed about quality,
fabrics and sizes of our merchandise and will be able to offer help and advice to our
clients.

For us it is crucial that we provide a positive and comfortable experience, and make
sure that all the small but important processes are executed such as maintaining a
clean shop, price tags attached to the items, fresh flowers and replenishing stock.
Along with a clean and tidy shop, our staff will be appropriately dressed in smart,
professional, work wear: black trousers/ skirt/ dresses.

Payment and refund and exchange policy: credit cards such as American express,
Visa and MasterCard will be accepted in our store. Our refund policy will be to offer a
refund for clothing that is unworn, unwashed and with the purchased price tag within
28days of buying with the original receipt.

Profit and Loss Account

The profit and loss account of Two Precious will show the opening stock among many.
It will show how the company operates from month to month with the emphasis on the
percentage paid on National insurance, Tax (20%) and the amount each staff will be
paid per hour to what they get monthly and yearly. The store will open with a capital or

20
starting cost of 150,000Pounds. An analysis of how the opening cost will be
appropriated will be shown below:

Cost rent: 3583.00£ per month

Cost of Human Resources:

Manager: 25.000£ per annual

Assistant Manager: 22.000£ per annual

Sales Assistant (12): 5.040£ per hour

Sales Assistant (14): 5.880£ per hour

Cost of inventory: 10.000£ every quarter

Total Cost per month: 77.933£ start-up cost

The salary paid at all level will be reasonable low in the first year so as to achieve
break even. We will in the future increase salaries according to improve the
employees work and in- work relationship (Cipd 2011).

Salary per Hourly

Position annum wage
Manager £25,000 n/a

Assistant Manager £22,000 £7.00

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 Sales Adviser (FT) £5.880 £7.00
Sales Adviser (PT) £5,040 £7.00
Sale Adviser (PT) £5,040 £7.00
Sale Adviser (PT) £5,040 £7.00

Total £68,000

Advertising: This will consist of using news papers and posters and in-store
magazines to increase our brand awareness. After this, we will rely on words of mouth
as the sole source of advertisement for the store; this will relatively reduce our cost in
the long run.

Shipping: This will include the cost of getting the merchandise to the store and also
sending old clothing back.

Insurance: The store will be insured against fire, flood and property damage. The cost
will be 750 pounds per calendar month.

Rent: having checked the amount shops and store places are rented for, we have
decided to go for a nice location with a relative amount of rent; we will be paying
approximately 3,600pounds for the location of our choice as it is close to the high
street and other amenities. All the details are included in Cash flow (Appendix 6).

Appendix:
Appendix 1: “Two Precious “competitors in Blackheath area

Items Competitors
Dior

Pumpkin

H&M and
O. Pyret

& Papas
Mamas
Polarn

ZARA
Patch

White
Little
Gap

The

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 Bodysu £30-70 £16-22 £6.50 -12 £5.99-9.99 £7.99-9.50 £12-30 £7-18
it (short/long
sleeves)

T shirt £32- 79 £14-20 £6.50-12 £2.99-5.99 £9.50-10 £14-20 £10-17

(short/long
sleeves)

£63-100 £15-27 £15-18 £9.99-19 £15-19 £20-26 £22-30

Dress
(short/long
sleeves)

Skirt £35-98 £14-22 £11-16 £4.99- 7 £12-15 £17-21 £15-20

£55-95 £12- 25 £9.50-14 £3.99-14 £9.50-17 £18-20 £14-20

Trousers

£45-60 £10-17 £6.5-14 £4.50-11 £7-10.5 £13-16 £16

Short
s

£100-135 £29-59 £14-16 £14.99-25 £17-19 - £18-30

Co
at

23
Appendix 2: Merchandise Categories (and calculated linear meter to each of the

items)

Appendix 3: Women product assortment

Categories Colors Sizes

T-shirts/ Tops Red, Blue, Green, Yellow, Pink, White, S-4XL

Black

Shirts White, Black, Grey, Navy Blue, Pink, S-4XL

Green
M e r c h a n d i s e Categories
Jackets/Parkas Grey, Black,(42.3 linear
White, meters,
Brown, Red lm) S-4XL
M a t e r n i t y w e a r 7 0 % lm B a b y w e a r 3 0 % lm
Sweaters & Red, Blue, Pink, Magenta, Grey, Black S-4XL
1. Dresses, skirts 1. Body, Pram, Sleep suits 6% 2.5
cardigans
14% 5.9 • Long sleeves
• casual • Short sleeves
Shorts/• professional
Trousers White, Blue, Red, Black, Denim S-4XL
• evening 2. T-shirts, Tops, Tunics 6% 2.5
Skirts Black, Red, Pink, Green, White• Long sleeves
S-4XL
2. Shirts, T-shirts, Tops, • Short sleeves
Dresses10% 4.2 Blue, White, Red, Black, Cream S-4XL
• Long sleeves 3. Vests, Cardigans, Jackets 4% 1.6
• Short sleeves
Jeans Shades of Blue 4. Hats, Bibs26”-44” 2% 0.8
3. Trousers, Jeans, Shorts 5. Shoes, Socks, Tights, 2% 0.8
Shirts13% 5.5 Shades of Blue, White, Black 26”-44”
6. Leggings, Trousers, Shorts 4% 1.6
4.JacketsSweaters,
Formal Cardigans
Blue, Grey, Brown, White, Black, Beige S-4XL
12% 5 7. Dresses, Skirts 4% 1.6
Trousers Blue, Grey, Brown, White, Black, Beigeand
8. Beauty 26”-44”
care products 2% 0.8
5. Hosiery, Sleepwear
8% 3.5
Evening Wear Black, Blue, Red, White, Brown, Silver, S-4XL
6.
Dresses Lingerie,Violet,
Swimsuits
Crimson, Onion Pink
5% 2
Party 7.
Dresses Jackets,Silver,
Parkas Gold, Grey, Black S-4XL
2% 0.8
Sweat T-shirts & Red, Green, Blue, White, Black, Brown, S-4XL
8. Beauty, Care products
6% 2.5 24
Jackets Navy Blue,

Trousers Black, White, Navy Blue, Grey, Pink, S-4XL

Red

Shorts Black, Red, Brown, White, Navy Blue S-4XL

Anti stretch mark Vanilla, Coconut Butter scents 300-500 ml

creams, Scent oils,
Body creams

Appendix 4: Babies product assortment

Categories Colors Sizes

Tops/T shirts/ Tunics Pink, White, Red 0-18 months

Jackets/Vest/ Yellow, Brown, Green 0-18 months

Cardigans

Skirts/ Dresses Pink, Yellow, Blue, Silver 0-18 months

Leggings/ Trousers/ Beige, Blue, White, Pink 0-18 months

Shorts

Body/ Pram/Sleep Suits Beige, white, Blue, White, Yellow 0-14 months

Shoes/Socks/Tights Pink, Yellow, Blue, Silver 0-18 months

Hats/Bibs Beige, Blue, White, Pink 0-18 months

Body, face oils/ Anti Scent free 200-400 ml

rash creams

25
Appendix 5

Appendix 6: Layout and disign

Appendix 7: Cash flow

Net Sales £150,000

Costs of goods sold £90,000
Gross Profit £250,000
Operating expenses
Salaries £68,000
Advertising £10,000
Utilities £3,000
Shipping £1,000
Insurance £7,500
Maintenance £5,000
Rent £43,000
Total Costs £214,000
Net Profit before
taxes 36,000

Taxes (8%) -£384

Net Profit after taxes 35,616

26
References:
Office for National Statistics, 2010. Household Income. Available from:
http://www.statistics.gov.uk/cci/nugget.asp?id=334 [Accessed 8 March 2011]

Up my street, 2011. Living in W12 7SL. Available from:

http://www.upmystreet.com/local/neighbours-in-w12-7sl.html [Accessed 8 March 2011]

Diwakar Kumar, 2010. Width or Depth: A Critical Choice. Available from:

http://www.3isite.com/articles/width_or_depth.html [Accessed 8 March 2011]

Store layout, Design and Merchandise, [Accessed 30th March]

www.radford.edu/.../store_design_layout_visual_merchandising.ppt

Employee relationship, Reward and psychological contract

http://www.cipd.co.uk/hr-resources/research/managing-change-psychological-contract-
role.aspx [Accessed 1st April 2011]

27