Lingerie Retail Clothing Store Business Plan
This plan outlines the financial and promotional plans of Bra~vo Intimates, located in downtown Royal Oak, Michigan. This endeavor will bring a women’s intimate apparel store to the metro area, expanding in the second year to include mastectomy products. There is no major mastectomy store in the area to serve this customer. We envision Bra~vo Intimates achieving the greatest portion of market share in the region through support of women’s and community organizations, connecting events to in-store promotions. Our goal is to be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, providing incredible support and shape to enhance her silhouette.
A portion of profits will be placed in an account to fund the purchase of our own building, tentatively scheduled for year four.
The Company
Bra~vo has a strong, experienced and professional management team, with over 35 years of combined experience. With each member working in their area of specialization, we have every aspect of the business covered.
Rebecca Autumn will be the Owner/Operator with 55% ownership and will be responsible for buying, customer sales, and fittings.
Lucille Winters will be the Co-owner with 26% ownership and will act as a merchandising consultant, employee trainer, and part-time sales staff.
Deborah Summers will be the Co-owner with 19% ownership and will act as Operation Manager responsible for payable and receivables, inventory control, in-store promotions, billing, and sales.
The store will be located in the downtown shopping district of Royal Oak, Michigan on South Washington street, the main upscale avenue in town. The space is 2,000 square feet.
The Products
Our shop will sell only brands that meet our fit and quality requirements. We will introduce new brands to our customers.
Bra~vo will carry quality European and American products, such as Rigby & Peller, Prima Donna, Wacoal, OnGossomer, Lise Charmel, and Feline and Ratratti, purchased through reputable U.S. distributors in various sizes, colors, and styles. Our expertise and concentration is in fitting bras for full-busted and full-figured women. The initial percentage of our merchandise will be in bras/intimate apparel followed by swimwear, nightwear/At Home-wear and hosiery.
As Bra~vo achieves its sales and profitability goals, upon our first year anniversary, we will expand the following categories; bra/intimate apparel, swimwear and accessories, nightwear and at home-wear, and hosiery.
The Market
During the last three years, the women’s intimate apparel, or innerwear, market grew by 10%, to $11.8 billion. All product categories saw growth during this period, with the highest growth occurring in Bras (17%) and Bottoms (12%). Consumer awareness of proper bra fitting has been increasing for the last eight years. Independent stores across the country have been experiencing sales increases for the last five years. This has been due to two factors: the clothing industry has featured more skin-exposing fashions that require specialty foundation garments and fashion column writers have been stressing the importance of bra fitting along with mentioning the specialty stores in the area and their services.
Non-Chain Specialty stores such as Bra~vo Intimates captured $304 million of the total $10,702 million market and $341 million of $11,797 million of the intimate apparel market over the previous two years. Direct mail merchants gained the largest portion of market share in the past two years, at $914 million last year. Most of the increase was due to Internet sales.
We have estimated the number of prospective customers in the Royal Oak area as 94,201, and given the missed opportunities of our competitors, this strongly indicates a large void in the market. Therefore, we see an underserved market niche opportunity for an intimate apparel store that can serve all the needs of the Tri-county woman.
Financial Projections
Bra~vo Intimates’ financial goals are as follows:
– Achieve a net profit margin of over 7% the second year of operation and 15% the third.
– Achieve a net profit of $41,000 the second year and over $100,000 the third year.
To achieve such figures, we have start-up requirements of approximately $196,000, including $80,000 in initial inventory.
We will seek a five-year loan, working with National City Bank in Royal Oak, to make the first year’s payments as flexible as possible.
Contents
1.1 Objectives
- Create a premier destination shop for lingerie, swimwear, and personalized fitting service.
- Attain the largest market share in the region for specialty foundation garments.
- Support women’s and community organizations by connecting events to in-store promotions.
- Achieve a net profit margin of over 7% in the second year and 15% in the third year.
- Generate a net profit of $41,000 in the second year and over $100,000 in the third year.
1.2 Mission
Be the premier intimate apparel and swimwear store in Michigan, fitting every customer in a fashionable bra or swimsuit, providing incredible support and enhancing their entire silhouette.
1.3 Keys to Success
To succeed in the intimate apparel business, we must:
- Carry foundations in various sizes, styles, and colors from quality brands.
- Differentiate ourselves from competitors by offering both fashion and basic brands.
- Educate customers on proper fitting and encourage them to have a wardrobe of foundations for different fashion needs.
- Regularly review sales data and adjust inventory levels accordingly.
- Provide excellent customer service in a positive body image atmosphere.
- Advertise in areas where potential customers will learn about us and our services.
- Stay informed about trends, technology, and new brands.
- Offer a variety of price points to accommodate women of all shapes, sizes, and economic levels, with the average price falling in the middle range.
Company Summary
Our corporation, Bra~vo, is a Limited Liability Corporation located in the downtown shopping district of Royal Oak. This prime location was chosen due to rapid growth, retail development, and easy freeway access. We carefully selected our merchandise based on reputation, quality, and extensive size range offered. Additionally, we maintain stock in sizes that fall on the fringe.
2.1 Company Ownership
Bra~vo is a family-owned and operated business with each member having over 20 years of experience in their respective area of expertise.
Corporate ownership breakdown:
| Rebecca Autumn | 55% | Owner, Store Manager, Key Salesperson, Buyer |
| Lucille Winters | 26% | Co-owner, Merchandising Consultant |
| Deborah Summers | 19% | Co-owner, Operations Manager |
2.2 Start-up Summary
Start-up costs will be financed as follows:
- Owners’ investment: $39,000
- Five-year bank loan: $157,190
- Short-term revolving line of credit: $35,000 for inventory replenishment and new purchases during high receipt months.
Bra~vo will be a store located in Royal Oak, Michigan, specifically in the downtown shopping district on South Washington Street. The store will occupy a space of 2,000 square feet and will handle all business operations, deliveries, shipments, and in-home appointments. The store is conveniently located near major highways and expressways, making it easily accessible to customers.
Bra~vo will specialize in fitting the full-busted and full-figured woman, offering quality European and American products purchased through reputable distributors. The store will carry a variety of sizes, colors, and styles in bras/intimate apparel, swimwear, nightwear/At Home-wear, and hosiery. The main focus will be on bras, which will comprise 45% of the inventory. The store will stock AA-JJ cups and 30-48 band sizes, with a special emphasis on the most popular sizes in the market. Prices will range from $35 to $125, with an average price point of $45-$65.
In addition to bras, Bra~vo will also offer shapewear, swimwear and swim accessories, nightwear/At Home-wear, and hosiery. These categories will account for a smaller percentage of the inventory, but still play an important role in meeting customer needs. The store will provide a comfortable and personalized shopping experience, with expert fitters and a variety of brands not currently available in the market.
Bra~vo has several competitive advantages that set it apart from its competitors. The owner has extensive experience in the industry and has developed strong relationships with manufacturers and store owners across the country. The store will use advanced technology, including the Retail Pro software system, to effectively manage inventory and track sales. Bra~vo will also offer additional services, such as minor alterations and a detailed customer record system, to enhance the overall customer experience.
In terms of sourcing, Bra~vo will work with local representatives and attend industry shows to stay current with the latest trends and product offerings. The store will also expand its product offerings in the future, including launching a mastectomy department and adding new brands in swimwear and nightwear/At Home-wear.
The market analysis indicates a strong demand for a store like Bra~vo in the Tri-county area, with a large number of prospective customers and a significant underserved market niche. The store will cater to the needs of full-busted and full-figured women, providing expert fitting, a wide range of sizes and styles, and a personalized shopping experience.
Overall, Bra~vo is well-positioned to succeed in the market, with a strong competitive edge, strategic sourcing, and a clear understanding of customer needs and market trends. By offering high-quality products and exceptional customer service, Bra~vo aims to become the go-to destination for intimate apparel in the Tri-county area.
Competitor #2, located 33 miles from Royal Oak, has been inherited from mother to daughter. The store was acquired by Competitor #2 six years ago and excels in purchasing skills. Most of the staff have an average tenure of 2 years. This store’s annual sales volume is approximately 1,100,000 units and has witnessed a constant increase until last year. However, since giving birth to her third child in December 1999, Competitor #2 has only made limited appearances at work. Inventory and product ordering processes are manual. The customer base mainly consists of middle income, conservative suburban women, with an average age of 50. Merchandise is displayed by brand, but the store requires redecoration and fixture updates. While the merchandise is moderate, some brands are also available at Kohl’s and Hudson’s. Despite Competitor #2’s absence from industry markets for the past five years, there has never been attendance at any major market, leading to a lack of exposure to new brands, products, and technology. Advertising is limited to local Plymouth papers, with no in-store promotions. The store is located in a small, one-story mall on a side street in the downtown shopping area. Unfortunately, there are no signs or windows on the street front, making it challenging to attract walk-in traffic.
Competitor #3, situated 57 miles from Royal Oak, has been operating for two years. Competitor #3 has successfully tailored the product assortment to meet the needs of the local clientele, which primarily consists of price-sensitive customers from Downriver, Grosse Isle, and some parts of Detroit. With 7 years of experience in the lingerie industry, Competitor #3 achieved profitability by the second year. Estimated sales are approximately $300,000. The store primarily carries a moderate product line and organizes merchandise by brand. Unfortunately, Competitor #3 tends to maintain excessive stock levels and, like other competitors, relies on manual inventory checks and reordering processes. While attending major industry markets, Competitor #3 shows reluctance in embracing new styles or brands. The target customer is a conservative, suburban, middle-income woman aged between 35 and 55. Advertising efforts are minimal, and there are no in-store promotions. Currently, Competitor #3 has one part-time employee who has been with the store since its opening, and is in the process of hiring another staff member.
Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Royal Oak Consumer 15% 9,672 11,123 12,791 14,710 16,917 15.00%
Oakland County 12% 28,738 32,187 36,049 40,375 45,220 12.00%
Macomb County 9% 10,444 11,384 12,409 13,526 14,743 9.00%
Wayne County 5% 46,342 48,659 51,092 53,647 56,329 5.00%
Out of Town 75% 25 44 77 135 236 75.28%
Total 8.80% 95,221 103,397 112,418 122,393 133,445 8.80%
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