THE ASK:
Develop a six-month merchandise financial plan for the company Chicos for 2025, comparing it to the year prior.
The plan should establish and justify the following performance metrics using current industry data:
Net sales, monthly sales distribution, stock-to-sales ratios, planned markdowns, inventory purchases, inventory turnover, and gross margin.
BUILDING THE BUY.
For this project, my partner and I used economic insights, consumer behavior trends, and Chico’s brand strengths.
we created a plan that reflects how real buyers research the market and trends. Our work included analyzing sales history, forecasting demand, mapping out classifications, and making strategic decisions around inventory flow, markdowns, gross margin, and assortment mix.
By grounding our decisions in Chico’s boutique-driven identity and loyal customer base, we crafted a buying plan that feels both realistic and brand-right capturing what it means to think like a buyer in today’s retail landscape.
MEET THE TEAM.
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Jason Baloyo
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Jada Cross
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KEY SKILLS
• KEY SKILLS
Assortment Planing
Buying Strategy
Consumer Behavior
Teamwork
Research
Retail Math
THE RESEARCH.
Inflation rose and higher interest rates reduced discretionary spending.
Shoppers shifted toward essentials, discount retailers, and resale.
Record-high inventory levels led to markdowns of up to 32%
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A more confident 2024 customer created favorable conditions for modest growth, supporting the team’s forecasted 2.7% sales increase.
Omnichannel expectations grew, with customers demanding seamless online → in-store journeys.
AI-driven personalization became a driver of conversions.
66% of consumers expected brands to understand their individual needs.
GDP grew 2.5%, unemployment stabilized around 4%, and inflation cooled.
Consumers showed renewed confidence and spent more on quality, durable goods.
Government spending boosted GDP, and the Fed eased rates.
Prefers in-store shopping for personalized styling, fit advice, and curated service.
Uses omnichannel tools like Style Connect for virtual styling.
Appreciates detailed product pages and ease of returns when shopping online.
ACQUISITION
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Chico’s 2024 acquisition by Sycamore Partners strengthens the brand by bringing in a proven retail turnaround strategy focused on cost control and margin improvement.
Now part of KnitWell alongside Ann Taylor and Loft, Chico’s gains shared resources and operational expertise that support tighter inventory management, stronger product margins, and better overall profitability, aligning directly with the goals of the six-month plan.
TOOLS USED
Used for consumer confidence and retail spending trends to support sales forecasts.
Provided market data and category growth insights for assortment decisions.
Offered industry commentary for competitive benchmarking and trend validation.
THE PLAN
The Fall/Winter 2024 plan projects modest but healthy growth for Chico’s, with sales increasing from $2.14B to $2.198B.
Markup is planned to rise from 53.3% to 57.0%, supporting a stronger 38.1% gross margin despite a higher planned markdown rate of 44.0%, which reflects a strategic push to stay competitive during peak promotional periods.
Average stock is planned slightly lower than last year, improving inventory efficiency, and turnover is expected to increase from 1.91 to 1.96, indicating faster sell-through and better inventory productivity.
Overall, the plan positions Chico’s for improved profitability and tighter inventory control while still driving a targeted 2.7% sales lift.
THE RESULT.
Completing this buying plan made me realize I want to become a buyer. Working with sales forecasts, margins, and consumer insights showed me how much I enjoy the strategic, numbers-driven side of merchandising, and confirmed that buying is the path where I do my best work.