New Venture Assignment FINAL

FASH 422 New Venture Development:
Business Plan Simulation Assignment

Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and
Jacqueline Trunks
For Judi Shekter, Tuesday March 4th, 2014 @ 10:50 a.m.
[ls-so]
FASH422 Business Plan Simulation Assignment
Table of Contents
STEP 1: CHOOSING A BUSINESS, TARGET CUSTOMER, AND PRODUCT LINE
PRODUCT LINE AND MERCHANDISE CATEGORIES

BRANDS AND KEY RETAIL PRICE POINTS
NICHE AND COMPETITIVE ADVANTAGE
TARGET MARKET
STEP 2: LOCATION
COMMERCIAL LISTING
STORE LOCATION FACT LIST
LEASE
MAP
DESCRIPTION OF LOCATION
FLOOR PLAN
3-5
3
3
4
5
6-13
6
7
8-10
11
11-12
13
STEP 3: FINANCIAL AND SALES PLAN
14-17
FIRST-YEAR SALES PLAN

SALES PER SQUARE FOOT
STATISTICAL RESEARCH
FIXED COSTS
LONG-TERM GOALS
TYPES OF INVESTORS
STEP 4: BUSINESS RESUME AND LOGO
18-25
LOGO
BUSINESS CARD
LETTERHEAD
BUSINESS RESUME
STEP 5: PROFIT AND LOSS PLAN
18
18
18
19-25
26-30
MONTHLY SALES PLAN

MONTHLY FIXED COSTS
BREAKEVEN ANALYSIS
PROFIT AND LOSS STATEMENT
STEP 6: MERCHANDISING YOUR STORE
26
27
28
29-30
31-32
OPENING INVENTORY PLAN

MERCHANDISE MANAGEMENT
31
32
REFERENCES
Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and Jacqueline Trunks
14
14
15
16
17
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Step 1: Choosing a Business, Target Customer and Product Line
Product Line and Merchandise Categories
Lusso is a luxury womens footwear and accessories retailer offering a selection of womens accessory
product categories including:
Womens designer shoes

Womens luxury handbags
Womens jewellery
Womens accessories
The aesthetic is urban, edgy, and luxe. The product assortment incorporates colours and silhouettes that
convey a modern, trend-savvy persona in the wearer, while maintaining a look that resists fad culture
and stands the test of time. In selecting merchandise for Lusso, we aim to offer clients a trendy aesthetic
with craftsmanship that is superior to most other fashion forward retailers in the current Canadian
market. In addition, sales associates at Lusso will also serve as stylists for our clients and work to source
outside, coveted items.
Brands and Key Retail Price Points
Brands carried at Lusso are high-end designer labels, known for quality materials and craftsmanship.
Brands carried all have a strong brand image and identity, conveying a sense of exclusivity and being on
the cutting edge of fashion. The brand assortment will come together to create one cohesive identity for
Lusso that appeals to our target market as a whole. Brands carried will include:
Shoes: Sophia Webster, Givenchy, Saint Laurent, Charlotte Olympia, Chloe, Valentino,
Senso, Kenzo, Alexander Wang
Handbags: Givenchy, 3.1 Phillip Lim, Sophie Hulme, Saint Laurent, Comme des Garcons,
vintage Chanel, vintage Hermes, Proenza Schouler, Alexander Wang
Accessories: Opening Ceremony, Kenzo, Givenchy, Balmain, Prada, Celine, Tom Ford,
Chanel, Karen Walker, Thierry Lasry, Illesteva, Oliver Peoples, Eugenia Kim
Jewelry: Lanvin, Maison Martin Margiela, Alexander McQueen, Saint Laurent, CC Skye,
Pamela Love, Dannijo, Tom Binns
The average price point at Lusso will also convey a sense of exclusivity and superior quality. Since all
brands carried are already established, all products carried in Lusso have a predetermined retail price
point. Price points range from:
Shoes: $250-$1500
Handbags: $500-$2500
Accessories: $50-$1000

Niche and Competitive Advantage
Lusso aims to fill an existing gap in the Canadian footwear and accessories market by offering product
rarely found in other luxury retailers. Currently, the luxury footwear market in Toronto is dominated by
Davids and Specchio. However, these retailers neglect the more fashion-forward and trend-savvy luxury
shopper. Lusso will maintain a similar price point while introducing a product selection to the Canadian
market that is edgier and more urban than Davids or Specchio.
We will also offer an extensive selection of luxury handbags, accessories, sunglasses, and jewellery,
which will give us a competitive advantage over the competition. Although Holt Renfrew, as a
department store, offers these product categories as well, Lusso will carry a selection of brands that are
not carried at Holts, appealing to the fashion community specifically and elevating our sense of
exclusivity. In further contrast to Holt Renfrews business model, the boutique setting of Lusso will offer
a higher degree of customer service and emphasize lasting client relations by offering personal styling
and concierge services that other luxury brand retailers dont currently have. Because Lusso offers a
selection of vintage merchandise, part of our services will involve sourcing and obtaining specific vintage
items customers are looking for. It will also involve ordering product based on individual customer wants
and needs.

Target Market
CATEGORIES
Geographics
Demographics
VARIABLES
Region
City or Census
Metropolitan Area Size
Density
Climate
Age
Gender
Family Size
Stage in Family Life Cycle
Income
Occupation
Education
Ethnic Background
Home Ownership
BREAKDOWN
GTA
250,000-1,000,000+
Urban
Any; Cold OR Warm
30-45
Female
1-4
Young single adult
Young married, w/ or w/o kids
$60,000+
Professional
Sales
Managerial
College or University graduate
All ethnic backgrounds
Owns or rents home
Lusso aims to target young adult females in Toronto and surrounding areas. The target market ranges
from age 25-40, an age sector that comprises nearly 60% of Yorkvilles inhabitants (Environic, 2005). The
Lusso customer is a mix of the urban and suburban dweller. She may live and work in the downtown
core or may come to shop in Yorkville from her home in wealthier areas such as Oakville Lakeshore,
Thornhill, or the Bridlepath. 31% of people travelling to Yorkville from surrounding areas come with the
intent of shopping, and 76% of customers make purchases while shopping in Yorkville (Environic, 2005).
She occupies a white-collar profession, an occupational category that comprises 59.6% of Yorkvilles
working population (Environic, 2005). Yorkvilles habitants earn an average yearly household income of
$174,420 (Environic, 2005), ensuring that customers living and working in the area will be able to afford
Lussos luxury price point. She likely in the field of business, sales, or managerial in a creative industry
such as fashion or marketing, which speaks to this customers edgy and fashion-forward stylistic
preferences.

Step 2: Location
Commercial Listing

Store Location Fact List
Cross streets
Bloor Street and Bay Street; Bloor Street fronts the property
Dimensions of entire space:

Total square footage
1242 square feet
Dimensions of separate spaces:

Square footage of bathrooms,
square footage of store rooms
Square footage of non-selling space: 642

Square footage of bathroom: 24 sq. ft.
Square footage of store rooms: 500 sq. ft.
Square footage of office: 128 sq. ft.
Square footage of selling space: 600 sq. ft.
Shape of store
Rectangular
Location of entrances/exits
Street entrance on the front of the store and an entrance at the

back to the retail complex on the main floor
Locations of windows
Street-side and open to retail complex.
Monthly rent,
Rental/square foot
Monthly rent: $4337.69

Rental/square foot: $41.91
Terms of lease
One-year term, gross lease.
Common area fees:

Maintenance,
marketing, etc
Security deposit
N/A
Realtor fees
Paid by owner of building.
Expenses incurred by leasee:

Utilities, etc.
Utilities covered by leasee, including hydro, electricity, and gas. Any

future interior renovations to be paid for by lease.
Allowable renovations
Minor renovations permitted, but must be approved by landlord.
Landlord
obligation/commitment for
renovations
Landlord has agreed to pay for exterior and retail complex upkeep,
as well as being responsible for the upkeep of any structural
maintenance.
Miscellaneous
N/A
Two months rent.

Lease
RETAIL DEED OF LEASE AGREEMENT
THIS DEED OF LEASE AGREEMENT (this Lease), is made as of this Day of Month , Year , by and between
Landlords name in ALL CAPS (the Landlord), Tenants name in ALL CAPS (the Tenant), and Thalhimer, a
Virginia corporation (the Agent).
WITNESSETH
THAT for and in consideration of the below stated rent and other terms and conditions stipulated in this Lease, Landlord
does hereby lease to Tenant, and Tenant does hereby rent from Landlord, the following described property located in the
City/County of ____________, State (the Leased Premises) and more particularly described on Exhibit A, attached
hereto and by this reference made a part hereof.
TO HAVE AND TO HOLD said Leased Premises and the privileges and appurtenances thereunto belonging unto Tenant,
its successors and permitted assigns, for the term hereinafter provided, and upon all of the following terms and conditions,
to which Landlord, Tenant and Agent hereby mutually covenant and agree:
1.
TERM:
The original term of this Lease (the Term) shall be for Number of years - written out ( Number of years numerical) years and shall commence on the Day of Commencement day of Month of Commencement , Year of
Commencement (the Commencement Date) , and shall end on the Day of Expiration day of Month of Expiration ,
Year of Expiration (the Expiration Date). The twelve-month period following each anniversary of the
Commencement Date is referred to herein as a Lease Year. Notwithstanding anything contained herein to the contrary,
Landlord and Tenant mutually agree that if the Leased Premises cannot be delivered to Tenant on the Commencement
Date for any reason, then the Commencement Date shall be adjusted to the date possession is given to Tenant and the
Expiration Date shall be adjusted to reflect the Term of this Lease as contemplated herein. Tenant agrees that it shall not
be entitled to any damages, rights or remedies whatsoever which Tenant might otherwise have by reason of possession of
the Leased Premises not being given on the originally contemplated Commencement Date; provided, however, that if
Landlord is unable to give possession of the Leased Premises to Tenant on the Commencement Date due to work
undertaken by Landlord at Tenants request, then the Rent (as hereinafter defined) shall nevertheless commence as
scheduled on the Commencement Date without abatement or allowance and the Expiration Date and the term of this Lease
shall not be adjusted.
In the event Tenant (i) shall fail to take possession and open for business in the Leased Premises fully fixtured,
stocked and staffed on the Commencement Date, or (ii) shall vacate, abandon or desert the Leased Premises, or (iii) shall
cease operating Tenants business therein, then and in any of such events (hereinafter collectively referred to as Failure to
do Business) Landlord shall have the right, at its option (i) to collect not only the Rent, but also Additional Rent (as
hereinafter defined) equal to one-half (1/2) of the Rent reserved for the period of Tenants Failure to do Business,
computed at a daily rate for each and every day during such period, and such Additional Rent shall be deemed to be in lieu
of any Percentage Rent (as hereinafter defined) that might have been earned by Landlord during such period, or in
addition, at Landlords option, (ii) to treat such Failure to do Business as a default under this Lease.
2.
RENT:
During the Term of this Lease Tenant covenants to pay a base annual rental to Landlord, without any demand,
offset, or reduction whatsoever, the sum of Annual Rental Payment - written out Dollars ($ Annual Rental Payment
- numerical ), payable in equal monthly installments in advance on the first day of each month in the amount of
Monthly Rental Payment - written out Dollars ($ Monthly Rental Payment - numerical ) (together with the
Percentage Rent and the Renewal Rent, as hereinafter defined, and all additional charges and rental (hereinafter
collectively referred to as Additional Rent), the Rent); provided, however, that Tenant shall pay the first months
installment of Rent simultaneously with Tenants execution of this Lease. In addition, if the Term does not commence on
the first day of the month, Tenant shall pay, simultaneously with Tenants execution of this Lease, Rent for the period
from the Commencement Date to the last day of the calendar month in which the Commencement Date occurs equal to
one-thirtieth of the Rent due hereunder for each day of such period, together with all other sums due under this Lease for
such period. All Rent thereafter shall be payable in advance on the first day of each month. All Rent due Landlord shall
be paid when due to Agent at P. O. Box 702, Richmond, Virginia 23218-0702 or to such other place as Landlord may
designate in writing to Tenant.
A.
PERCENTAGE RENT:
Tenant agrees to pay Landlord Percentage Rent % - written out percent ( Percentage Rent % - numerical
%) of Tenants Gross Sales (as hereinafter defined) in excess of $ Gross Sales Amount per annum - numerical per
annum during each Lease Year of the Term and any Renewal Lease Terms of this Lease (the Percentage Rent). For any
Lease Year longer or shorter than twelve full months, the Percentage Rent shall be proportionately adjusted. The
Percentage Rent shall be determined and payable annually on or before the fifteenth (15th) day following the close of each
Lease Year.
On or before the twentieth (20th) day of each month during the Term of this Lease, commencing with the second
full month thereof, Tenant shall deliver to Landlord and Agent a current statement of the Gross Sales made in, upon or
from the Leased Premises during the calendar month immediately preceding the current month. In addition to such
monthly statement, Tenant shall, on or before the twentieth (20th) day following each anniversary of the Commencement
Date deliver to Landlord a certified statement showing the total Gross Sales made in, upon or from the Leased Premises
for the preceding Lease Year, and at such time as such certified statement is delivered to Landlord, an adjustment, if
necessary, between the Rent then in effect, and any Additional Rent due shall immediately be paid by Tenant. The first
such payment shall include any Percentage Rent that may be due for any fraction of a month from the Commencement
Date to the first day of the first full calendar month.
Tenant further agrees to furnish monthly to Landlord accurate and exact reports of all sales reported to the
Commonwealth of Virginia and to permit Landlord, at its expense, at any time and from time to time, to have an audit
made of said books, records and accounts. Upon five (5) days prior written notice to Tenant, Landlord shall have the right
to cause a complete audit to be made of all business affairs conducted at, upon or from the Leased Premises by Tenant
(and all assignees, concessionaires, licensees or subtenants of Tenant, as may be permitted under the terms of this Lease)
and of all books and records pertaining thereto, and Tenant will make all such books and records available, or cause the
same to be made available, for such examination at the Leased Premises. If the results of such audit shall show that
Tenants statement of Gross Sales for any period has been understated by two percent (2%) or more, then Tenant agrees to
pay Landlord the cost of such audit and in addition, any deficiency payment required as shown by such audit. A report of
the findings of Landlords accountant shall be binding and conclusive upon Landlord and Tenant. The furnishing by
Tenant of any grossly inaccurate statement shall constitute a default under this Lease. Any information obtained by
Landlord as a result of such audit shall be held in strict confidence by Landlord, except in any action or proceeding to
recover

FIRST LEASE ADDENDUM
GUARANTY
[IF AN INDIVIDUAL]
In consideration of Landlord agreeing to lease to Tenant the Leased Premises, the undersigned, hereby waiving the
obligations of the homestead exemption laws as to this Lease, jointly and severally if there be more than one undersigned,
guarantee the payment of Rent and the performance of all provisions of this Lease by Tenant, its successors and assigns,
and agree that the mere nonpayment of Rent and nonperformance of said provisions by Tenant or its successors and
assigns shall create an immediate liability on the part of the undersigned to Landlord and its successors and assigns and to
Agent and its successors and assigns. Landlord and Agent need not first exhaust their legal remedies against Tenant or its
successors and assigns before proceeding against the undersigned. Neither Landlord nor Agent is required to notify the
undersigned of any default of Tenant under the provisions of this Lease. Landlord and Tenant may amend this Lease from
time to time and may increase the obligations of Tenant hereunder without releasing guarantor from any liability under
this guaranty.
Date:
Name:
Address:
Social Security Number:
[IF A CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP]

In consideration of Landlord agreeing to lease to Tenant the Leased Premises, the undersigned, hereby waiving the
obligations of the homestead exemption laws as to this Lease, jointly and severally if there be more than one undersigned,
guarantee the payment of Rent and the performance of all provisions of this Lease by Tenant, its successors and assigns,
and agree that the mere nonpayment of Rent and nonperformance of said provisions by Tenant or its successors and
assigns shall create an immediate liability on the part of the undersigned to Landlord and its successors and assigns and to
Agent and its successors and assigns. Landlord and Agent need not first exhaust their legal remedies against Tenant or its
successors and assigns before proceeding against the undersigned. Neither Landlord nor Agent is required to notify the
undersigned of any default of Tenant under the provisions of this Lease. Landlord and Tenant may amend this Lease from
time to time and may increase the obligations of Tenant hereunder without releasing guarantor from any liability under
this guaranty.
GUARANTOR:
Date:
,
a
By:
Name:
Title:
Address:
Employer Identification Number:
10

Map
Decription of Location
How will this location contribute to the success of the business?
Our location in the heart of Yorkvilles shopping district places us in a prime location to draw in foot
traffic from our target market. We will be situated near stores such as Holt Renfrew, Davids Footwear,
and Specchio Shoes, which will give us a high degree of visibility and exposure to our target customers.
The area is a shopping destination for many; 31% of people coming to Yorkville from other areas come
with the intention of shopping which means many potential customers passing or entering the store will
already be in the mindset to spend money and may be seeking specific items.
The intersection of Bloor and Bay is also within close proximity to the workplace of many business
executives, 59.6% of whom occupy white-collar positions with incomes averaging $190,000 per year
(Environic, 2005). This data is significant because it means that the people walking past our store daily
will be in our target income bracket. It also creates the potential of lunch-break shoppers.
What benefits of the location will appeal to the target market?
Lusso occupies a desirable commercial retail space in the heart of Yorkville, a central and frequently
visited shopping destination for luxury customers. The most visited shopping destination in Yorkville is
The Bay (Environic, 2005), located at the intersection of Bloor and Yonge. Lusso, located just one major
city block west of The Bay, will draw in foot traffic from shoppers visiting the Bay, and will offer the
11

added benefit of one-on-one personal styling services and a selection of luxury brands not carried at
most luxury footwear or accessories retailers in the area.
What are potential issues with the location and how will we overcome them?
Traffic levels affected by weather
Since our store location is not within an indoor shopping centre, ease and enjoyability of the shopping
experience is largely dependent on weather. During inclement weather conditions, we may find lower
traffic levels. Luckily, our store happens to have an alternate entrance accessible to an indoor
concourse, making us accessible to commuters during winter months and unpleasant weather
conditions, which will hopefully help to improve our business during these times. Furthermore, we
intend to optimize our sales in agreeable weather by increasing floor coverage and adjusting daily sales
plans according to weather conditions, aiming for higher numbers during pleasant weather to make up
for any losses incurred due to inclement weather.
Saturated Market
Although we will be competing with nearby stores for the same customer dollar, we will have the
advantage of offering younger, trendier brands and styles than those typically offered at other shoe
stores with a similar average price point. In this way, we can become known for having the product
shoppers arent able to find at other high-end shoe boutiques. Further, we will offer the additional
service of personal styling and concierge services to all customers in our store, which will encourage
customer loyalty and generate positive word of mouth for the business within the Yorkville community.
High Expenses
Rental costs in the Yorkville area are significantly higher than most other areas in Toronto, which raises
our annual fixed expenses. However, according to Fortune magazine, Bloor St. is the seventh most
expensive shopping street in the world, and that retail leases can achieve $1500-$4500 sales per square
foot (Lifestyles and Homes). Thus, although the high rental costs in Yorkville increase our operating
expenses, we feel that the potential for sales in this area will quickly realize profit despite high rental
fees.
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Floor Plan
13

Step 3: Financial Sales Plan
First-Year Sales Plan
Estimated buying customers served each day
Average price of items in store
$400
Dollar value of each day's sales
$1,600
Number days open each year
356
Amount of business per year $569,600

Sales Per Square Foot
1242
Selling square footage
600
Amount of business/selling square footage
$949.33
Revise sales plan $427,200
Revised Sales Per Square Foot
1242
Selling square footage
600
Amount of business/selling square footage
$712.00
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Statistical Research
We have revised our sales plan and lowered our sales per day, thus lowering our annual sales plan. We
have adjusted the number of customers making purchases from four to three, which decreases our sales
per day from $1,600 down to $1,200. This decreases our annual sales plan from $569,600 to $427,200
and gives us a more reasonable sales per square foot of $712.00 compared to $949.33. We decided to
adjust the sales plan to make our profit margin more reasonable and our sales goals more attainable.
Weve developed the figures for our sales plan based on industry standards for the sale of luxury goods
using average productivity indicator metrics for luxury retailers. The annual sales plan for Lusso was
determined primarily by two key indicators: conversation rates and sales per square foot.
Conversion refers to the number of people making purchases divided by the number of people entering
the store. A typical conversion rate in a luxury bricks and mortar retailer can range from 30% - 60%
(Chevalier, 2012). We have decided to aim for the lower end of the spectrum, with a conversion rate of
30% because our store is located in a busy area populated by tourists, shoppers and business people
alike. A 30% conversation rate accounts for patrons who enter the store to merely check out the new
store and may not necessarily have had the intention of purchasing a luxury good. Thus, our sales plan
accounts for an average of 3 purchases per day with average daily foot traffic of 10 people.
A target sales per square foot measure of $700 was also used to determine our sales plan. Although the
industry standard for sales per square foot is $125 - $250 (Regni, 2009), we strayed from this figure to
accurately depict the selling potential of our particular business. Typically, sales per square foot depends
largely on the environment, brand standing, and type of merchandise (Chevalier, 2012). Fortune
Magazine states that in 2008, stores on Bloor St in Yorkville were achieving sales per square foot of
$1500 - $4500 (Lifestyles and Homes). We have aimed lower than this in the development of Lusso to
account for the fact that the aforementioned numbers are based on already established brands and that
business may be slower in our first year. In terms of brand standing, Lusso will be carrying brands that
have a well developed and highly esteemed brand image and reputation in the fashion community,
justifying higher price points. And finally, we feel that a higher than average sales per square foot is
likely due to the fact that the merchandise carried is footwear, handbags, accessories, and jewellery
which takes up less space than apparel and can be merchandised effectively with little selling space.
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Fixed Costs
Cost Category
Annual Expenses
% of Sales Plan
Staffing
$0.00
0.00%
Payroll Taxes
$0.00
0.00%
Rent
$52,052.22
12.18%
Utilities
$6,835.20
1.60%
Maintenance and Repairs
$1,708.80
0.40%
Security
$1,281.60
0.30%
Telephone/Fax
$2,563.20
0.60%
Internet
$640.80
0.15%
POS System Maintenance/Software Updates
$1,312.40
0.31%
Insurance
$2,563.20
0.60%
Supplies and Postage
$2,990.40
0.70%
Marketing/Advertising
$17,088.00
4.00%
Travel and Entertainment
$6,408.00
1.50%
Accounting/Bookkeeping
$569.60
0.13%
Banking Services
$2,990.40
0.70%
Miscellaneous
$2,990.40
0.70%
TOTAL
$101,994.22
23.88%
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Long-Term Goals
Expansion: In three years we would like to open a second location in Yorkdale Mall. In the next five
years we would like to open a third location in Sherway Gardens Mall.
E-commerce: By the end of our first year of business we would like to have a fully operational ecommerce website that will operate within Canada. By our second year of business we would like it to
reach the U.S. and by the third year we would like it to ship and operate globally.
Sales: In our first three years of business, we would like to see a 10% increase in sales each year. From
years three to five we would like to see a 15% increase in sales each year. After year five we would like
to see a 20% increase in sales each year.
Debt: We would like to have our bank loan fully paid off in 10 years.
Staff: In our second year we would like to hire one full-time sales associate. By our third year we would
like to hire two more sales associates and promote or hire a store manager. By year five we would like to
have the store fully run by hired staff.
Vendor Relations: By year five we would like to be established with our vendors and therefore be able
to leverage our buying power to negotiate a higher markup, thus increasing our profit margin.
Salary: By year three we would each like to be able to take an owners salary from our annual profit.
Types of Investors
Personal: Each partner will invest $25,000 into the business to demonstrate to lending institutions and
other investors that we are committed to the success of the business. By investing equal amounts each
partner will equally share in profits and risks and will have equal say in business decisions.
Lending Institution Credit Union and/or Large Bank: Such as Meridian Credit Union or Scotiabank, as
both these lending institutions have received high ratings from small businesses.
17

Step 4: Business Resume and Logo
Logo
[ls-so]
[ls-so]
Business Card
[ls-so]
FRONT
416.000.0000
55 Bloor St. West --- Unit 22
www.lusso.ca
BACK
Letterhead
416.000.0000
55 Bloor St. West Unit 22
Toronto, ON
M6J 3L3
www.lusso.ca
[ls-so]
Procurers of the coveted

18

Business Resume
416.000.0000
55 Bloor St. West Unit 22
Toronto, ON
M6J 3L3
www.lusso.ca
[ls-so]
Procurers of the coveted
Mission Statement: To inspire confidence in Canadas luxury brand market by

combining cutting-edge, luxe brands with personalized styling services in order to
provide a unique fashion experience.
Located in the heart of Yorkville, at Bay and Bloor, Lusso is a luxury footwear and accessories retailer
that specializes in edgy, trendy, and urban designers rarely found in other Canadian retailers. Lusso also
offers styling and procurement services for clients by sourcing hard-to-find items around the world, both
vintage and new. Lusso sells shoes, handbags, jewellery, and accessories such as sunglasses, belts,
leather goods, scarves, and hats.
Lusso aims to serve a clientele consisting of females ages 25-40 from Toronto and surrounding areas
who already shop in the Yorkville area. Lusso hopes to fill a gap in the luxury brand market by attracting
customers that prefer trendy, edgy, and fashion-forward designs. The Lusso customer desires high-end,
exclusive brands that showcase her personal taste and unique fashion sensibilities.
Lusso will operate its brick and mortar store in Yorkville in downtown Toronto, but will expand its reach
nationally and internationally via its e-commerce website.
Lusso sells edgy, urban, and fashion-forward luxury brands, many of which are not currently being sold
in Canada by other retailers. Lusso also offers styling and procurement services to its clients and
specializes in attaining hard-to-find new and vintage items. Being a boutique store, Lusso will set itself
apart from other luxury department stores in the area by offering exceptional customer service and
relationship selling. Lussos upscale interior creates an enticing and comfortable environment for
customers to shop in.
Lusso owners and employees all have styling capabilities and have worked in the fashion industry
forging relationships with various industry professionals for many years.
Lusso will be a partnership between Andrea Della Mattia, Elizabeth Kyi, Leanna Silvestri, and Jacqueline
Trunks. Elizabeth and Jacqueline are primarily responsible for the accounting and bookkeeping, as well
as operational logistics. Andrea and Leanna are responsible for merchandising and marketing aspects of
the business. Combined, these women offer complimentary skillsets that work to form a dynamic and
effective team.
19
20
ANDREA DELLA MATTIA
6 Louvre Circle Brampton, ON L6P 1W2

Phone: 416.230.9220
Email: [email protected]
LinkedIn: http://www.linkedin.com/in/andreadellamattia
Education:
Humber College
Now Enrolled in full time Fashion Arts Program
St. Marguerite DYouville Secondary School
Completed In June 2011
Experience:
Starbucks Barista
Cash Out Customers
Prepare Drinks
Opening/Closing Duties
May 2013 Present
Rivini Bridal - Intern

Model Fittings
Steam Dresses
Filing
Fabric Samples
April 2013 May 2013
Turtle Jacks Hostess

Smart Serve Certified: e130328129612
Educated on Matre D System
Seated guests & Update guests on specials
April 2012 May 2013
Sobeys
Lotto
Returns/Refunds
Customer Complaints
Break Schedules
Cash Office Clerk February 2010 July 2012
Front End Supervisor
Balanced cashier tills
Balanced Cash Office
Brinks Deposits
Cashier July 2009 October 2009

Customer Service November 2009 February 2010
21
ELIZABETH KYI
12 2520 Bloor Street West Toronto, ON M6S 1R8

Phone: 416.333.7240
LinkedIn: http://www.linkedin.com/in/elizabethkyi
Education:
Humber College
Expected: Advanced Diploma in Fashion Arts, Honours
September 2012 2014
Carleton University
September 2010 2014
Expected: Bachelor of Arts with a major in English and a minor in Communications
Highlights:
In depth understanding of fashion retailing obtained through operational experience in the industry
Strong work ethic and effective time management skills demonstrated by my ability to balance
academic excellence with full time employment and an unpaid internship
Software: Microsoft Office: Word, Excel, Powerpoint & Adobe Creative Suites: InDesign, Photoshop,
Illustrator
Web: Hootsuite, WordPress, LinkedIn, Twitter, Facebook, Pinterest,
Professional Experience:
INFUSE Magazine Content Editor
December 2013 Present
Ensure all written content is free from spelling and grammatical errors, adheres to excellent stylistic
standards, and maintains consistency of voice
Follow an outlined critical path to produce a quality finished product in an organized and timely
fashion
Communicate with team of writers to ensure deadlines are met and content quality is up to par
Reach out to potential contributors to request their participation in feature articles
Club Monaco POS Supervisor
October 2012 Present
Responsible and accountable for operational accuracy and policy adherence at point of sale
Regularly honing problem solving skills by finding solutions to customer issues that uphold company
policy while still leaving customers satisfied
Exercise time management skills by servicing customers in store, while simultaneously ensuring daily
and weekly operational functions are being completed, upholding asset protection standards on the
floor, and fulfilling customer product orders and monitoring shipment process
Maintain and exceed 75% email capture rate
Maintain and exceed SPH of $150/hr.
Rent Frock Repeat Social Media Assistant
September 2013 February 2014
Worked closely alongside Social Media Coordinator to execute a social media marketing strategy
that worked to effectively accomplish set follower and engagement goals
Managed a team of interns to ensure content posting consistency and quality
Edit all tweets and blog posts for spelling and grammatical errors, stylistic elements, format, and
proper SEO
LEANNA SILVESTRI
31 Milne Court Ancaster, ON L9G 4T3

Phone: 905.520.6478
LinkedIn: http://www.linkedin.com/in/leannasilvestri
Education:
Humber College
2012 to Present
Toronto, Ontario
Fashion Arts Program
Participated in semester long simulations, developing a department store buying plan and
internationally importing denim for a department store.
Forecasted fashion trends for one year in advance.
Learned features of proper product promotion through various marketing and social media classes.
Related Skills and Experience:
Interned at Harry Rosen Inc. Head Offices in the Merchandise Control Sector.
Was on a fashion show committee for three years and was involved in all areas of putting the show
together as well as being a model and entertainer in the shows.
Judged a Miss All Canadian Pageant from ages 0-20 years old in the areas of beauty, talent and
themed outfit of choice.
Backstage crew for the Bishop Tonnos High School fashion show for two years as well as a model
and entertainer in each of the shows.
Computer skills in Microsoft Word, Excel, and Powerpoint.
Work Experience:
Step N Out Dancewear Boutique
2011 to Present
Hamilton, Ontario
Store Associate/Assistant Manager
A small boutique specializing in dancewear offering a wide variety of clothing, shoes, and various
accessories for dancing, skating and gymnastics.
Provide superior customer service to store clients
Responsible for product maintenance and housekeeping
Sizing all dancers properly and professionally for requested dance shoe
Travel to various Canadian cities for Rhythm Dance Competitions vendor
merchandise booth
InHayle Dance Studio
2012 to Present
Ancaster, Ontario
Substitute Dance Instructor
A relatively new small dance studio owned by renowned dancer and choreographer Hayley Paone
specializing in Contemporary, Lyrical, Jazz, Tap, Ballet, Acro, and Hip Hop.
Responsible for all students in the classes
Stretching, and warming up students as well as going over their
choreographed routines and making corrections
23

Silvestri Investments
2011 to 2012 (seasonal)
Hamilton, Ontario
Assistant Secretary
An international family real estate business founded and operated by Frank Slvestri since 1955
specializing in Land Development in Canada, USA and Europe.
Answered business calls and directed them to proper employee
Took notes in meetings
Completed invoices, received incoming & sent outgoing packages
Urban Behaviour
Hamilton, Ontario
Sales Associate
A clothing company for the fashion-minded at affordable prices.
Provided superior customer service to store clients
Responsible for product maintenance and housekeeping
2008-2009
24
JACQUELINE TRUNKS
1 Donnamora Crescent Thornhill, ON L3T 4K4

Phone: 416.993.0168
LinkedIn: www.linkedin.com/in/jacquelinetrunks
Highlighted Qualifications:
Advanced computer skills proficient in Mac and PC operating systems, Microsoft Office, and Adobe
Creative Suite.
Ability to effectively multitask and perform well under pressure as demonstrated by my ability to
balance academic excellence with full time employment.
Excellent communication and customer service skills developed from over 7 years experience in the
hospitality industry.
Education:
Humber College, Advanced Diploma Fashion Arts
2012 2014
Currently in Honour Roll standing with an overall GPA of 4.0 in my previous three semesters. Received
the Fashion Award, donated by the Dean of the Humber Business School, for outstanding academic
achievement, community involvement, and leadership initiative. Studied topics such as:
Marketing
Global Retail Operations
Social Media and Fashion Promotion
Wholesale Sales
Retail Buying
New Venture Development

University of Western Ontario, Honours Specialization Health Sciences (BHSc.)
2005 2009
Studied a diversity of topics with an emphasis on research methodology. Completed a minor in
Psychology.
Work Experience: Customer Service
Hospitality Industry
2006 Present
Bier Markt, Server and Supervisor
March 2012 Present
Enhance customer satisfaction by combining exceptional product knowledge and an understanding
of customer wants and needs.
Certified Training Program train new hires by promoting brand values and culture in order to
enhance brand and employee performance.
Shift leader and supervisor manage staff and oversee restaurant operations in the absence of a
manager.
Consistently achieve top sales by utilizing upselling techniques.
Assist with responsibilities outside the normal expectations of my position, including: managing the
servers dine and dash fund and occupational health and safety liaison.
Canadian Tire Financial Services, Financial Services Representative
April December 2007
Generated highest level of new customer acquisition by promoting service strengths.
Helped company attain high customer service ratings by providing attentive and thorough service.
25

Work Experience: Marketing/Administrative
To Be Seen Promotions, Marketing and Administrative Assistant
May September 2006
Recruited potential customers via phone and email and responded to customer inquiries.
Developed marketing materials for clients that resulted in improved sales.
Streamlined company operations by implementing a new and improved filing system.
Demonstrated ability to take direction and work in a team environment by providing office support
as needed.
Internships and Volunteer Experience:
Infuse Magazine, Editor-in-Chief
September 2013 Present
Conceptualize innovative and creative editorial and artistic concepts for Infuse, Humber College
Fashion Arts, Spa and Cosmetic Management Magazine.
Manage and motivate editorial contributors in meeting deadlines.
Oversee all editorial content and crosscheck facts, spelling, grammar, and writing style and approve
design layout and photos.
Coordinate meetings with editorial sources and amongst team members.
Cascata Blu, Volunteer
March 2012 Present
Assist swimwear designer Cheryl Gurshue with various company activities, including marketing,
product development, merchandising, and administrative duties.
Toronto World MasterCard Fashion Week, Lobby and Fashion Atmosphere Volunteer
March 2012
Maintained a pleasant and clean lobby atmosphere for Toronto World MasterCard Fashion Week
guests, as well as assisted in greeting guests and distributing promotional material.
26

Step 5: Profit and Loss Plan
Monthly Sales Plan
Month
% of Total
Year Sales
Sales Plan
Justification
April
7.0%
$29,904.00
16% below average due to store opening.
May
8.3%
$35,457.60
Average month.
June
9.0%
$38,448.00
8% above average due to warm weather.
July
8.0%
$34,176.00
4% below average due to vacation season.
August
9.0%
$38,448.00 8% above average due to warm weather and shopping for

fall season.
September
8.3%
$35,457.60
Average month.
October
8.3%
$35,457.60
Average month.
November
9.5%
$40,584.00
14% above average due to start of holiday shopping

season.
December
11.0%
$46,992.00
33% above average; busiest shopping month of the year

due to holidays.
January
6.3%
$26,913.60
24% below average due to weather and after-Christmas

slump.
February
7.0%
$29,904.00
16% below average; slight increase from January due to

Valentine's day, but bad weather is still an issue.
March
8.3%
$35,457.60
Average month.
TOTAL
100.0% $427,200.00

Monthly Fixed Costs
Cost Category
Monthly Expenses
% of Sales Plan
Staffing
$0.00
0.00%
Payroll Taxes
$0.00
0.00%
Rent
$4,337.69
1.02%
Utilities
$569.60
1.60%
Maintenance and Repairs
$142.40
0.40%
Security
$106.80
0.30%
Telephone/Fax
$213.60
0.60%
Internet
$53.40
0.15%
POS System Maintenance/Software

Updates
$109.37
0.03%
Insurance
$213.60
0.60%
$249.20
0.70%
Marketing/Advertising
$1,424.00
4.00%
$534.00
1.50%
Accounting/Bookkeeping
$47.47
0.01%
Banking Services
$249.20
0.70%
Miscellaneous
$249.20
0.70%
TOTAL
$8,499.52
12.30%
28

Breakeven Analysis
Annual Sales
$427,200
Annual Fixed Costs
$101,994
Gross Profit %
48.70%
Break-even Sales $209,433.26

Sales Over Breakeven $217,766.74
Profit Dollars $106,052.40
29

Profit and Loss Statement
Month
Total
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
Net Sales
29,904
35,458
38,448
34,176
38,448
35,458
35,458
40,584
46,992
26,914
29,904
35,458 427,200
100.0%
Cost of Goods Sold
15,341
18,190
19,724
17,532
19,724
18,190
18,190
20,820
24,107
13,807
15,341
18,190 219,154
51.3%
Gross Profit
14,563
17,268
18,724
16,644
18,724
17,268
17,268
19,764
22,885
13,107
14,563
17,268 208,046
48.7%
Staffing
0%
Payroll Taxes
0%
Rent
4,338
4,338
4,338
4,338
4,338
4,338
4,338
4,338
4,338
4,338
4,338
4,338
52,052
12.2%
Utilities (Electric, Heating, and Water)
527
527
600
600
600
527
527
600
600
600
600
527
6,835
1.6%
Maintenance
142
142
142
142
142
142
142
142
142
142
142
142
1,709
0.4%
Telephone/Fax
214
214
214
214
214
214
214
214
214
214
214
214
2,563
0.6%
Security
107
107
107
107
107
107
107
107
107
107
107
107
1,282
0.3%
Internet and POS System Maintenance
163
163
163
163
163
163
163
163
163
163
163
163
1,953
0.5%
Insurance
214
214
214
214
214
214
214
214
214
214
214
214
2,563
0.6%
249
249
249
249
249
249
249
249
249
249
249
249
2,990
0.7%
Marketing
1,750
1,261
1,261
1,261
1,750
1,261
1,261
1,750
1,750
1,261
1,261
1,261
17,088
4.0%
141
141
141
141
2,500
141
141
141
141
141
2,500
141
6,410
1.5%
Accounting
285
285
570
0.1%
Banking Services
249
249
249
249
249
249
249
249
249
249
249
249
2,990
0.7%
Miscellaneous
249
249
249
249
249
249
249
249
249
249
249
249
2,990
0.7%
Total Expenses
8,627
7,853
7,926
7,926
10,774
7,853
7,853
8,415
8,415
7,926
10,285
8,138 101,995
23.9%
Net Profit/Loss
5,936
9,415
10,798
8,717
7,950
9,415
9,415
11,349
14,470
5,181
4,278
9,130 106,051
25%

Staffing and Payroll Taxes: In our first year of business we will not hire any outside employees as all four
owners will act as sales associates, stylists, and managers. Therefore, staffing costs are zero. This will
also result in no payroll tax expenses. By having the owners run the store, we are controlling our staffing
and associated expenses.
Rent: 1242 square feet X $41.91 per square foot.
Utilities: Natural gas supplied by Enbridge; gas usage goes up in winter months resulting in a higher
utility bill for the months of November to February. Water is supplied through the City of Toronto and
remains constant throughout the year. Toronto Hydro supplies electricity at a standard rate and is
higher for the months of June to August due to air conditioning and therefore increases the utility bill.
Utilities costs will be controlled by closely monitoring usage and keeping it to a minimum.
Maintenance: The lease is a gross lease meaning that the lessee is not responsible for any maintenance
issues associated with the property itself. However, an amount will be saved each month and placed in a
business savings account for emergency maintenance and repair issues associated with store fixture or
computer systems.
Telephone/Fax: Through Bell; quote for business rate monthly service and unlimited long distance.
Higher costs associated with out-of-town vendors and necessary long-distance calls.
Security: Through ADT; monthly fee covers cost for initial alarm system installation, alarm maintenance,
and 24-hour alarm coverage.
Internet and POS System Maintenance: Internet through Bell packaged with telephone services to
control costs. First Data POS program; system maintenance will cover the cost of having a service person
visit the store and service consultation over the phone when system issues arise.
Insurance: Through Desjardins insurance; liability insurance.
Supplies and Postage: Includes stationary, stamps, printer ink and other office supplies, light bulbs,
cleaning supplies, toilet paper, and any other day-to-day necessities. Will be purchased in bulk to control
costs.
Marketing: Expenditures will be highest during the months of April, when the store is first opening,
November, when the holiday shopping season begins and Black Friday sales occur, and December, which
is the peak month for holiday shopping. The business will rely on word-of-mouth marketing and buzz
created by location.
Travel and Entertainment: Buying trips to New York City will occur during the months of February and
August when market weeks are held for Fall/Winter and Spring/Summer respectively. Only one owner
will attend each buying trip, which will minimize travel expenses. A monthly expenditure for
entertainment will cover the cost of taking vendors out for lunches and dinners to facilitate relationship
building.
Accounting: Bookkeeping to be done by owners using QuickBooks Canada Small Business; this cost is
divided between the months of April, when the store opens and the program will be purchase, and
March, right before tax season when an updated version will be purchased. Avoiding the use of
professional accountants will reduce costs.
Banking Services: Through Scotiabank, which is located near the business. Monthly fee covers the cost
of the business account including costs for cashiers cheques, money orders, and credit card processing
charges.
Miscellaneous: Extra money for unforeseen costs.

Step 6: Merchandising Your Store
Opening Inventory Plan
Category Avg. Retail
Shoes
Wgt. Avg.
Avg. Cost
% Price Pt.
$250
15%
10
$500
35%
23
$1,000
35%
23
$1,500
15%
10
$788
$384
Wgt. Avg.
65
$500
20%
$1,000
20%
$2,000
30%
$2,500
30%
$1,650
$804
Wgt. Avg.
27
$100
30%
23
$250
35%
27
$750
20%
15
$1,000
15%
11
$418
$203
Total Cost Act. Pc. Act. Cost
Act. Retail
40%
$24,800
35%
$21,700.00
100%
Total
Accessories
Planned %
100%
Total
Handbags
# Pc./Price Pt.
100%
Total
76
25%
$15,500.00
Grand Tot.
168
100%
$62,000.00
32

Merchandise Management
In order to keep merchandise current and capitalize on market trends, owners will go on buying trips
twice per year, once in February and once in August, to attend market weeks and make new
merchandise selections for the season. To ensure repeat visits from customers, we will introduce new
selections of merchandise to the selling floor monthly, while consistently keeping a basic stock of our
top selling items. In our first year of operation, we will closely monitor product sales to determine our
drivers and communicate with our customers to assess what is in highest demand. Through this method
of primary research, we will determine the best course of action with regards to inventory
replenishment, and likely order replacement stock from vendors monthly along with our new collection
merchandise.
Lusso will place high importance on visual merchandising. Store design, lead by partners, Andrea and
Leanna, will centralize around customer experience. The primary aim is to create an environment that
makes customers feel comfortable to spend time in the store, allowing them to spend more time
browsing our merchandise selection and engaging with our personal stylists. In order to keep customers
in the store, furniture will take the form of large, comfortable couches, soft and aesthetically pleasing
rugs on the floor, and coffee tables reminiscent of a residential space to make customers feel at home.
The store will also feature a free flow layout that keeps sightlines open and encourages shoppers to
wander freely throughout the store. We will model fixtures after this free and open aesthetic, through
the use of transparent glass shelving, white walls, and modern, clean lines on the cash desk and tables.
The layout will encourage customers to touch and try things on without barriers, which will facilitate
purchase decisions. The aesthetic and feel of the store will be designed specifically to make customers
feel welcome and comfortable and eliminate the intimidation factor of shopping in many high-end
retailers.
33

References
(2005). Bloor-Yorkville Shopping Traffic Study. Environics Research Group, 1, 4-55.
Chevalier, M., & Gutsatz, M. (2012). Luxury retail management how the world's top brands provide
quality product and service support. Singapore: Wiley.
Lifestyles and Homes. (n.d.). Yorkville. Retrieved March 3, 2014, from
http://lifestylesandhomes.ca/yorkville/
Regni, R. J., & Anderson, J. G. (2009). Entrepreneurship in action: a retail store simulation. New York:
Fairchild ;.
Yorkville Neighbourhood Central Toronto. (n.d.). Jamie Sarner. Retrieved March 3, 2014, from
http://jamiesarner.com/toronto-neighbourhoods/yorkville-real-estate/
34

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FASH 422 New Venture Development:

Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

PRODUCT LINE AND MERCHANDISE CATEGORIES

STEP 3: FINANCIAL AND SALES PLAN

FIRST-YEAR SALES PLAN

STEP 4: BUSINESS RESUME AND LOGO

STEP 5: PROFIT AND LOSS PLAN

MONTHLY SALES PLAN

STEP 6: MERCHANDISING YOUR STORE

OPENING INVENTORY PLAN

FASH422 Business Plan Simulation Assignment

Womens designer shoes

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

Dimensions of entire space:

1242 square feet

Dimensions of separate spaces:

Square footage of non-selling space: 642

Street entrance on the front of the store and an entrance at the

Street-side and open to retail complex.

Monthly rent: $4337.69

One-year term, gross lease.

Common area fees:

Paid by owner of building.

Expenses incurred by leasee:

Utilities covered by leasee, including hydro, electricity, and gas. Any

Minor renovations permitted, but must be approved by landlord.

Two months rent.

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

Social Security Number:

[IF A CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP]

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

Estimated buying customers served each day

Average price of items in store

Dollar value of each day's sales

Number days open each year

Amount of business per year $569,600

Total square footage

Selling square footage

Amount of business/selling square footage

Revise sales plan $427,200

Revised Sales Per Square Foot

Total square footage

Selling square footage

Amount of business/selling square footage

FASH422 Business Plan Simulation Assignment

FASH422 Business Plan Simulation Assignment

Maintenance and Repairs

POS System Maintenance/Software Updates

Supplies and Postage

Travel and Entertainment