Overview
• Why forecast?
• Store planning
• Merchandise planning
• Financial forecast and budget
www.targetta.net
About Targetta
• Develops planning software for retail companies
• Founded by former SAP BPC consultants in 2015
www.targetta.net
Strategic Profit Model
ROA
Net profit
Net sales
Net sales
/ Net profit %
Net assets/ Asset turnover
x
Actions vs Budget
Integrated plan (sales, merchandising)
Initiatives Budget
CEO
Sales manager
Purchasing manager
…
GMROI
Conversion rate %
Visitor count
Profit & Loss
Cash flow
Balance sheet
People KPI
www.targetta.net
Goal setting and planning in Targetta: top-down and bottom-up
Corporate goals
Revenue Gross Margin
ROA 20%Revenue 10%Net profit 7%
OPEX, CAPEX and employees
Visitor count Avg ticket Conversion rate%
GMROI Inventory turnover
Business unit plansStore sales plan Merchandising
budget
Formal planning processes Targetta covers 3 most common
Boston Retail Partners. Annual Merchandise Planning and Allocation Survey 2014
Sample case
• SportLine sells seasonal fashion/sport merchandise
• 30 stores
• online shop
www.targetta.net
Let’s compose the management team…
CEO CFOMerchandisingmanager
Sales manager
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Goal setting
KPI-s
• employees can influence the outcome
• measuring is frequent (monthly, weekly)
• constant feedback, frequent revision of plans
How to make employees accountable?
CEO
ROA 20% Revenue 10% Net profit 7%
Store plan Store manager can influence CR% and average ticket
Marketing manager can influence visitor count Category manager can influence gross margin
Revenue growth 10%
Merchandising Budget Plan (seasonal goods)
Sales forecast
Markdown
Stock-to-sales ratio
Beginning of month
inventory
End of month inventory (*)
Additions (*)
Financial planning
Merchandise & store planning
OPEX, CAPEX, employees
Profit & loss forecast
Cash flow forecast
Balance sheet forecast
www.targetta.net
Profit & Loss forecast
Chart-of-accounts freely customizable
Driver based accounts & planning
logic
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Regular activities• 1x year:
• compose a budget
• Every month, week:
• forecast updates
• actual vs budget
• forecast vs budget
www.targetta.net
Märt Parker
+372 514 6334
@targettanet
www.targetta.net
Thank you!