05 Mar Lingerie Retail Clothing Store Business Plan

Introduction

This plan describes the financial and promotional strategies of Bravo intimates, which will be located downtown Royal Oak, Michigan. This exciting venture will bring an intimate apparel shop for women to the metro area. The second year will include products for mastectomy. This customer is not served by any major mastectomy stores in the metropolitan area. We envision Bra~vo Intimates will be able to achieve the greatest portion of market share in the region through active support of women’s and community organizations, connecting events to in-store promotions. Our ultimate goal is to be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, giving her incredible support and shape, therefore enhancing her entire silhouette!

A portion of the profits will be deposited in an account that will fund our purchase of our own building. It is expected to happen for year four.

The Company

Bravo’s team of experienced and professional managers has over 35 years experience. We have all aspects of the business covered with each member of our team working in their respective areas of expertise.

Rebecca autumn will have 55% ownership. The owner/operator will be responsible in buying, customer selling and fittings.

Lucille Winters will be: Co-owner with 26% ownership and will act as merchandising consultant, employee training and part-time sales.

Deborah Summers is a co-owner with 19% ownership. She will serve as the Operation Manager and be responsible for receivables and inventory control.

The store is located in Royal Oak, Michigan’s downtown Shopping District. Situated on South Washington street, the main upscale avenue in town. The area measures approximately 2,000 sq. ft. (100 x 200).

The Products

We will only sell brands that we feel meet our standards for quality and fit. New brands will be available to customers.

Bravo will be carrying quality European and American brands such as Rigby & Peller and Prima Dona, Wacoal and OnGossomer. Our specialty is bra fitting for full-figured women. Bras and intimate apparel will comprise the bulk of our merchandise. Next, swimwear, nightwear/At home-wear, and accessories will be included.

Bravo will expand its product range in order to meet its profitability and sales goals. We celebrate our first anniversary by expanding into the following categories: bra/intimate wear, swimwear accessories, nightwear, at home-wear, and socks.

The Market

Intimate apparel for women, also known as innerwear, has seen a 10% increase in sales over the last three-years to $11.8 million. All product categories experienced strong growth over this period with the greatest growth in Bras (17%) & Bottoms (12%) Consumer awareness of proper bra fitting has been on the increase for the last eight years. Since 2005, independent stores all over the country have experienced double-digit sales increases. This can be attributed to two factors. First, the clothing industry has featured more skin-exposing clothes that require speciality foundations. Second, fashion columnists stress the importance and benefits of bra fitting.

Bravo Intimates and Bravo Intimates accounted for $304 million of $10,702million in total sales. They also accounted for $341 millions of $11,797million of the intimate clothing market. Direct mail merchants gained the largest portion of market share in the past two years, at $914 million last year. Internet sales made up the majority of the increase.

We have estimated that the Royal Oak area has 94,201 potential customers. Knowing the missed opportunities of competitors, this strongly suggests that there is still a market for prospective customers. An intimate apparel store that caters to all Tri-county women’s needs is an opportunity in this untapped market.

Financial Plans

Bra~vo Intimates’ financial goals are the following:

• To achieve a net profit margin exceeding 7% in the second year and 15% in the third.
• To realize a net loss of $41,000 in the second and more than $100,000 in the third years

These figures are possible because we have start-up needs of approximately $196,000. This includes $80,000 in initial stock.

We will negotiate a 5-year loan in partnership with National City Bank, Royal Oak, in order to make the first years’ payments as flexible possible.

1.1 Objectives

• To establish a point-of-entry shop for top lingerie and swimwear.

• To attain the largest market share possible in the region for speciality garments foundation clothes.

• To get involved in supporting women’s organizations and communities, linking events to in-store promotion.

• To achieve a net profit margin of over 7% the second year of operation and 15% the third.

• A net profit over $100,000 in the third year, and $41,000 the second.

1.2 Mission

To be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, giving her incredible support and shape, therefore enhancing her entire silhouette!

1.3 Keys of Success

To succeed in the intimate apparel business we know we must:

• We carry a wide range of foundations in quality brands, in different sizes, styles, colors and colors.

• You will find fashion and basics brands that stand out from the rest.

• Help our customers to be fitted and have a wardrobe of foundations that will suit a variety fashion needs.

• Continuously evaluate our sales and adjust inventory levels as necessary.

• Customer service excellence in a positive environment for body image.

• Advertise in areas where customers may learn about you and the services that we provide.

• Stay up to date with technology and the latest brands.

• Consider a variety price points because women come from all walks of life.