Connections
July/August 2016 Managing Inventory and Open-to-Buy Guides
UC Davis to Dramatic Financial Improvements
This month, our feature article comes from indiCo, featuring C2O
subscriber UC Davis Stores and indiCo partner RMSA.
Recognized as one of the most respected and innovative collegiate
retailers in the country, UC Davis Stores maintains a legacy of
operational excellence. So, when Director Jason Lorgan realized
that he had an excess of aged inventory affecting profitability, he
immediately began to seek solutions.
In October 2013 he turned to RMSA Retail Solutions for help in
improving his general merchandise purchasing processes. In
particular, Lorgan wanted to achieve a reduction in cost of goods and
improve margins and turn. At the same time, he wanted better control
of the buying process using open-to-buy.
Establishing Realistic Goals and a Plan
As a starting point, margin and turn goals were established for each
department, by class. They created a 12-month Merchandise Plan
based on these goals and historical data. Monthly meetings followed
with Dave Downard, the RMSA analyst, to review the plan, guide them
through managing their inventory, adjust goals, and identify risks and
opportunities.
“These monthly discussions are an important part of the process,” says
Downard. “They’re solution driven, creating action steps each month
that are then reviewed the following month. Often the meetings are
intertwined with discussions about marketplace trends, new ideas
and how to best tackle future risks and opportunities.”
The UC Davis Stores’ results exceeded expectations. Despite closing
two major stores, the liquidation of the associated inventory and
being housed in two temporary locations, the operation achieved a
much improved bottom line.
HIGHLIGHTS
Total Store
Increased bottom line by over 40%
Increased Inventory Turn from 3.7 turns to 4.5
Increased GMROI from $1.44 to $1.75
Apparel Department
Increased Inventory Turn from 2.7 turns to 3.5
Increased GMROI from $2.81 to $4.31
Increased Maintained Mark-up from 51% to 55.2%
“We now refer to our buyers as
investors, as they are investing
our money with the expectation
that those investments will
provide a nice return,” says Lorgan.
“Buying suggests just spending
money. Investing is a much more
accurate description of what we
hope to achieve when we buy merchandise for resale. “
“We are working much smarter with RMSA’s help. Our numbers are
improving, and improving rather dramatically. We are on our way to
becoming known as one of the most financially sound college stores in
the nation.”
For UC Davis Stores, this increased profitability supports their mission
of providing the UC Davis community with products, services and
technologies that ensure academic success, promote campus pride
and enhance the lifestyle of the community.
For more information on consulting services, contact
[email protected].
July/August 2016
Connections 1
Connect2One Welcomes Fjallraven
Michelle Johnson
Program Manager
New vendor partner, Fjallraven, was founded
in Sweden in 1960 and is a leading brand name
bag vendor in Europe and throughout the world.
Now it’s catching on big in the US! With their
adorable Fox logo, great color selection and
classic styles Fjallraven is sure to be a hit. The Kanken backpack is the #1
style and comes in 40 colors. A new version, the Re-Kanken is now available
made from 100% recycled polyester. Other key styles include Kanken
Laptop Backpacks plus Rucksacks, Briefcases, Totepacks and the super
cute Pocket Crossbody Bag perfect for a day on campus. See more at www.
fjallraven.us. Connect2One stores receive a 5% discount.
Kanken Laptop 15 in. Backpack
Foldsack No. 1 Daypack
Pocket Crossbody Bag
Kanken Daypack
Rucksack No. 21
Totepack No. 1
New Designs from New Agenda
New Agenda by Perrin is offering lots of new designs—some brand new and some that have been out for just a few months.
Whether influenced by the movies or a new state design these graphics are what’s happening right now.
For more information call 800-243-6326 and ask for Customer Service.
STRAIGHT OUTTA STARKVILLE
Inspired by the movie “Straight Outta Compton” this
design has really caught traction. Use your city name or
try “Straight Outta The Bookstore” for a great staff t-shirt.
FLORIDA GATORS
Front & back designs are a hot look right now.
This “quatrefoil” graphic makes a bold & colorful statement,
front & back.
CENTRAL MISSOURI MULES
This design uses a handwritten style font
with the addition of glitter ink as a drop
shadow. Glitter accents are a current trend.
MICHIGAN STATE
State designs keep growing in
popularity. Here’s a unique, new
design to help you keep the trend
going strong.
FLAG DESIGN
This design is patriotic without being political. It’s
been booking very well for both summer and fall 2016.
REDBIRDS ILLINOIS
This fun, lower case font with half tones has a
contemporary vibe. It’s selling well on both ladies
and youth styles.
2 Connections
July/August 2016
The SOURCE Promotions that Really Work
Over 210 Connect2One stores placed commitments for
The SOURCE program in 2016. And all size stores participate.
Here are some of the ways small and medium size stores use
and promote the MV Sport and Russell Jerzees products that are
part of this program:
The University Store at Bloomsburg University has been
doing a “Buy Any Sweatshirt/Get a FREE Pair of Jerzees
Sweatpants” promotion for the past 3 years. Apparel buyer, Tami
Temple, calls it one of their best sales events of the year. They
sold 288 sweatshirts and gave away 288 pairs of sweatpants in
just 1 day!
Flash Sales have proved to be very successful at the College
Store at Plattsburg St. University. Apparel buyer, Michelle
Marcil, says they do 4 flash sales each semester. They only offer
1 garment per sale for just 5 hours. On April 5 the store sold 100
Jerzees crews at $15.99 and on April 7 they sold 250 Jerzees
t-shirts at $7.77. They also hold 24 hour online Flash Sales for
their out of town customers.
The BW Bookstore at Baldwin Wallace University added
this basic MV Sport t-shirt to their everyday inventory—in 12
different colors. Apparel buyer, Margie Gilbride, says offering
lots of colors is the key to their success. They’ve sold over 2,000
in the last year at $12.99 each. The store has also used this tee
as a staff t-shirt at events on campus—what a good looking
t-shirt and great looking staff!
The Iowa Western College Store participated in a campus
wide, 1 day Tent Sale as part of their Homecoming festivities.
They did a classic price point promotion with Jerzees product
and sold 40 t-shirts, 30 sweatshirts and 25 sweatpants. General
merchandise specialist Lindsy Brown was very pleased with the
results.
July/August 2016
Connections 3
Participation Awards
Congratulations to the top participating stores in
each subscriber level for excellent participation in
Connect2One programs. The awards are based on total
purchases and number of vendors used as reported in
this year’s annual Savings & Rebate Report. Can you
identify each store by the logo of the campus served?
If not, head to Connect2One.com for a complete list.
4 Connections
July/August 2016
Winning Ways with Visual Merchandising
The Cougar Store at Southern Illinois University at Edwardsville
(SIUE) and Central Michigan University Bookstore (CMU) were
the lucky winners of C2O’s Visual Merchandising Mini-Makeovers.
Store managers Emily Colton and Barry Waters were looking
forward to having a fresh pair of eyes on their stores, provided by
Connect2One’s Paula Haerr. Not surprisingly, first impressions were
at the top of their priority lists.
Apparel buyer Anna Pavlik and the SIUE student employees attacked
the front entrance with gusto!
►► ❶ Before photo shows fixtures extending into the main
entrance aisle. ❷ After photo shows fixtures squarely aligned
to the carpet edges, creating a uniform look. The mannequin
creates height, dimension and interest. With the signs removed,
the focus is on the product and not on visual clutter.
►► Two four-way fixtures going into the apparel department were
blocking site lines and ingress. With ❸ nested tables placed at
ascending heights, customers are visually drawn into the space.
The front tiered table provides a great solution for blankets,
hoodies and water cups, all in coordinating colors.
►► ❼ Reference books were condensed from 5 to 3 wall fixtures
to make way for a boutique area for cute bags, stationery and
accessories—a perfect fit with the repositioned greeting card
racks and the soon to be expanded health and beauty care
section.
►► Affectionately known as the “Beast”, this ❽ x-wing fixture
was taking up more than 100 sq. ft. in the insignia gift area.
Dismantling this over-size space hog and reconfiguring to backto-back sections created better flow to the back of the store and
room for more suitable fixtures.
So, there you have it. In just one day, with fresh eyes and a cando attitude, you, too, can tackle those problem areas. For a copy
of C2O’s Visual Merchandising Primer which includes tips and
standards you can adapt for your store, email
[email protected].
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5
►► ❹ Simplified signage will soon be installed to call out key
price points and brands for a less-is-more ascetic.
It was all hands on deck at CMU with Deb Stack, Candy Stockel
and Deb Parsons pitching in to solve one problem, merchandising
backpacks in a window facing into the student center. Eventually the
project spilled into other areas.
BEFORE
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►► ❺ Before photo shows SALE backpacks taking up a key
location, obscured by greeting card racks. In the ❻ After
photo, a fashion collection is showcased for a colorful view
into the store. SALE bags were moved to the back wall to draw
customers further into the area.
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3
AFTER
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BEFORE
2
AFTER
July/August 2016
Connections 5
6 Connections
February 2016
Buyers Find “Fun” at D&H Show
During the first week of June, tech buyers from across
the country gathered in Lancaster, PA for the popular
back-to-school D&H show. Though intense, the show
allowed buyers to weave through 70+ vendor booths
and listen to quick 3-1/2 minute info talks about the
latest tech innovations this year. “Hey Robb” and many
C2O buyers enjoyed learning what was available and
hopefully you can bring in a few of these Fashionable,
Unique and Novelty (“FUN”) favorites!
F
ashionable
Apple continues to influence color choices. Rose
Gold and Metallic looks are trending strong
in the tech space. The Kate Spade collection from
Incipio is a great way to get some high fashion into
the store, says Brad Erisman at Schoolcraft College
Bookstore, Livonia MI. He also liked the display and
marketing materials available for the line. Design
upgrades on Logitech mice were a favorite for Robert
Adams at New Mexico Junior College Bookstore,
Hobbs. He plans to feature them on an endcap at the
entrance of his tech department and noted, “Who
wants a plain black mouse?”
U
nique
Another category thriving on college
campuses is gaming. Stores should stick
to popular brands and assortments to influence
student purchases. Karen Charanza at Texas State
Technical College Bookstore, Waco, said the Razer
backpack from Mobile Edge was her choice for all
gamers! Also, look for the recently released Razer
Overwatch keyboard to expand the line. Another
unique category is Virtual Reality. At an affordable
$99.99 ERP, the Samsung Gear VR Headband was a hit
at the show and Robert plans to have student workers
wear it and show it off as a demo. He thinks Android
customers will love the new gadget!
N
ovelty
The BUQU booth was packed with people
every time you walked by! With great margins
and a “chunky” look, both Brad from Schoolcraft
and Katie Overholser at University of Dayton
Bookstore were impressed by these fun products.
Katie thought the display was cute and geared toward
female users, and Brad quipped, “Everyone needs
chargers and cables, why not have a little fun with
them?”
Whether fashionable, unique, or novelty, be sure to
refresh your tech plan-o-grams periodically, introduce
new brands to your customers and have FUN!
For more “C2O Picks” and Buyer Favorites, refer to the
“Hey Robb” broadcast email sent in late June. Contact
[email protected] with questions or contact
your D&H rep for additional details and pricing:
call 800-340-1003 or visit www.dandh.com.
July/August 2016
Connections 7
Three Steps to Take Control of Inbound Shipping
Knowing how to properly check your inbound freight can save you
from a big headache when handling any resulting claims – especially
during a busy time like rush. To help you understand exactly what
you need to do in these situations, PartnerShip® developed a white
paper on how to accept freight and handle claims. You’ll learn:
•
•
•
•
•
What procedures to follow when receiving freight
How to check for damages or shortages
How to make notations on the delivery receipt
The steps you need to take to file a claim
How to improve your inbound shipping management
This tip is brought to you by PartnerShip, the company that
manages the Connect2One Shipping Program. When you work
with PartnerShip, you benefit from the personalized attention
of a dedicated account representative who can provide you with
routing management, claims assistance, and the competitive freight
rates your store needs. For more information or to enroll, visit
PartnerShip.com/C2O, email [email protected], or call 800599-2902.
Visit PartnerShip.com/HowToAcceptFreight to download the white
paper!
If you receive shipments from your vendors, this white paper is a
must-read. For more educational resources, visit PartnerShip.com/
WhitePapers.
Connect2One Welcomes!
Belmont University Campus Store
Bookstore Manager Catherine Murphy
[email protected]
Columbus State Community College Bookstore
Director Stacey Mulinex
[email protected]
Simon Fraser University Bookstore
Director Mikhail Dzuba
[email protected]
Reserve now from NACSCORP for shipment by
7/31/16 on-sale date!
(order in carton qty. & policy agreement required)
Vassar College Store
Bookstore Manager Steve Glasgow
[email protected]
Ohio University - Bobcat Depot
Branch Campus Managers:
Lancaster - Susan Thomas
[email protected]
Chillicothe - Andrea Carroll
[email protected]
Eastern - Jordan Barbina
[email protected]
Southern - Shawn Aldridge
[email protected]
Vendor Update
Our program with Sleep Innovations is regrettably no longer
available. For mattress cover and dorm supply needs, email
[email protected].
After
4350 Glendale-Milford Rd. Suite 240
Cincinnati, OH 45242
Phone: 800-563-9034 or 513-754-0111
Fax: 800-600-9034
connect2one.com
[email protected]
8 Connections
July/August 2016