Type of Retail Store:

 Format: A form of Department Store, dealing in a wide range of Apparels, of a single brand and
a huge assortment of varieties.

 Retailing Process: Providing a wide range of Apparels, starting from Western wear, Casual wear,
to Indian Ethnic wear.

 Ownership: Owned and operated by Mangla Group.

 Type of Different Channel Format (if any):

o   Crimsoune Club have their own Online e-commerce website (https://www.crimsouneclub.com/)

o   Additionally, the Crimsoune Club Merchandise are also available on every Apparel and Fashion e-
commerce platforms, such as Myntra, AJIO, Amazon.in, FlipKart, etc.

Retail Store Size, Location, & its Appropriateness :

 Located in the busy area and at the center of the Grand Road beside the Big Bazaar

 The Size of the store is roughly around 1000 sq. ft. (As told by the Store manager)

Product Assortment and Their Respective Target Segments:

 Product Assortment includes for Men, Women.

For Women, the categories are:

 Top Wear:

o   Casual Wear:

1. T-Shirts

2. Casual Shirts

o   Bottom  Wear:

1. Jeans

2. Chinos

For Men, the categories are :

 Top Wear :

1. Shirts

2. T-Shirts
  Bottom Wear :

1. Trousers & Chinos

2.  Jeans

Pricing Strategy implemented:

 The pricing strategy used here is a combination of Cost-Plus Pricing and High-Low Pricing
Strategy(s)

Store Planning:

  This outlet consists of 1 floor – one in the ground floor, completely dedicated to Apparels.

  This Outlet had used a Free Flow Layout, as the store layout.

 Average Daily Footfall: 40-50 people

 Sales: (For the Period of Jan. 2022)

 Gross Sales: 14,00,000 /- (Approx.)

 Net Sales: 12,00,000/- (Approx.)

 Sales Growth: (Negative Growth due to pandemic)

 Sales per unit of Space: Total Revenue / Space Available

                                     = 14,00,000 / 1,000 = 1400/-

 Category Wise Sales: (App. Figures)

Men’s Wear   = (8,50,000 / 14, 00,000) = 60.71%

Women’s Wear = (5,50,000 / 14, 00,000) = 39.28%

 Profit:

o   Gross Margin = Revenue – COGS / Revenue

COGS = 8,50,000 (App.)

So, (12,00,000 – 8,50,000) = 3,50,000/12,00,000 = 29%

o   Net Margin = (Revenue – COGS – Operating Expenses – Tax Liability) / Revenue x 100

(12,00,000 – 8,50,000 – 2,00,000 – 1,00,000) = 50,000

50,000/12,00,000 x 100 = 4%

Efficiency:

 Conversion Rate = Number of Sales / Total No. of Visitors x 100

As mentioned by the Sales Representative, out of 50 visitors to the showroom per day, at least 10-15
people make purchases.

So, total no. of visitors in a month = (50 x 30) = 1500

No. of visitors who make purchases = 15 (Assumption)

Total Sales in a month = (15 x 30) = 450

Therefore, Conversion Rate = 450/1500 x 100 = 30%

 Average Transaction Value = Total Revenue of a Period / Total no. of transactions handled

(12,00,000/450) = 2666.66/-

 Inventory Turns = Total Sales / Avg. Inventory

(12,00,000/9,00,000) = 1.33 times

Product Returns:

 As per the Sales Representative, they faced 3 to 4 return claims per week, when there was a
defect in the product or the product was not according to the customer’s needs.

 So, on a monthly basis, there could be around 10 to 12 returns made by the customers.

 GM Return On Floor (GMROF) = Gross Margin (%) x Net Sales / Selling Space

                                                = 25% x 12,00,000 /1,000

                                                 = 300 /-

 Gross Margin Return on Inventory Investment (GMROII) = Gross Margin / Average Inventory
Cost

 = 3,00,000 / 9,00,000 = 0.33 times

Employee Productivity :

 Sales Per Employee = Net Sales / No. of Employees

           = 12,00,000 / 5

                                       =2,40,000/-
Sales to Sales person Cost Ratio 

Net Sales = 12,00,000

Total No. of Salespersons = 5

Sales per Employee = 12,00,000 / 5 = 2,40,000

Sales : Salesperson Cost Ratio = (2,40,000/ 12,00,000) x 100 = 20%

Type of Retail Store:

 Retailing Process: Providing ready-made and tailor-made ethnic apparels along with some
western ones as well.

 Ownership: Sole Proprietor

Retail Store Size, Location, & its Appropriateness:

 Located at a busy and populated area, the VIP Road, near Darjee pokhari Chowk, Puri.

 The Size of the store is roughly around 14*15 sq. ft. (As told by the Store owner)

Product Assortment and Their Respective Target Segments:

 Product Assortment includes women ready-made and tailor-made apparels

Pricing Strategy implemented:

 The pricing strategy used here is a combination of Cost-Plus Pricing and High-Low Pricing
Strategy(s)

● Layout:18*40

● Product presentation: catalogues, dress bags

● Security criteria:CCTV camera

● Promotional strategy:dress bags

● Return and exchanged: within seven days

● Target segment: 1000 per day

● Opening time closing time: 11am to 9pm

● Product portfolio:

● Pricing strategy:30%above cost prize

● Customer engagement- also include special services

● Type of ownership:Private

● Technology used – billing, stock maintaining, mode of payment: online payment using Bhim UPI,
stocks are maintained for a limited time them put them on sales if they become old stock

● Sales:

● Investment:9-10lakhs

● Margin:

● Sales person:2

● Avg salary of sales person: 3000

● Footfall: avg 2-3person per day.

● Recruitment process: through references and thorough bgc from references

● Profit margin (approx): 30% of the product.

● Monthly expenses: 6000-9000