Transcript Aritzia Presentation

Ratika Chaudhary, Candace Hodgins, Sarah Jesberger
Overview - Aritzia
Who
Market
Buzz
• Large Canadian retailer selling mid-range designer clothing to
women.
• “It’s the hot Canadian retail property right now… People are all bending over
backwards to get Aritzia into their malls. They’re Canadian and they’re
different.”
• David Gray, President of Vancouver’s Sixth Line Solutions, a retail information and strategy company
• Aritzia Saskatoon location – on 2nd between 22nd and 23rd
Proposal
Required
• $200,000 in equity financing
• Providing a 67% return
Aritzia’s
Advantage
• Proven Sales
• Strong Market Forecast for Saskatoon
Overview
Financials
Marketing
Conclusion
Operations
Questions
Overview - Aritzia
• Mission
‒ At Aritzia, we seek to inspire our customers by establishing a
connection for them to the elements of urban culture. This is done by
bridging fashion with elements of urban culture– specifically,
clothing, accessories, and music.
• Product
‒ Aritzia is selling an experience that begins in the store and is
recaptured every time our customer wears our clothing.
‒ Product mix
• 70% in house designs, 30% external brands
• Price
‒ Average selling price of products = $90
Overview
Financials
Marketing
Conclusion
Operations
Questions
Marketing
Target
Market
Females aged 14
– 30
Not tween
market
Overview
Financials
Marketing
Strategy
Price
Styling
preferences of
women
Average selling
price of products
= $90
Demographic
spending habits
Vertical
integration leads
to a competitive
advantage
Marketing
Conclusion
Operations
Questions
Aritzia’s Relevance to Saskatoon
- Limited competitors
- “Saskatoon and Regina continue to lead the country year over
year in retail sales growth at 11% and 9.5%, respectively (2008
and 2009)”
Colliers International – Saskatoon. The Knowledge Report
Overview
Financials
Marketing
Conclusion
Operations
Questions
Customer Value Proposition
6
Current Boutiques
LuluLemon
The Bay
Aritzia
Other Mall Stores
4
2
0
Quality
Overview
Financials
Price
Customer Service
Marketing
Conclusion
Diversity in Product
Brand Recognition
Operations
Questions
Financial Projections
• Sales 4x the retail industry
average
• Conservative projections at
$400/square foot in annual
sales
Sales
Operating
Expenses
Overview
Financials
• Minimal capital outlay
• Salaries and wages
• Corporate Administrative
charges as a % of annual
sales
Marketing
Conclusion
Operations
Questions
Financial Projections
Base-Case
Worst-Case
• $400/sq. ft
annually
• 67% Rate of
Return
• $250/sq. ft
annually
• 9% Rate of
Return
Best-Case
• $600/sq. ft
annually
• 133% Rate of
Return
IRR
Overview
Financials
Marketing
Conclusion
Operations
Questions
Investor Value Proposition
Excellent
Rate of
Return
• Based on
conservative sales
projections
• Low debt financing
Growing
Market
• Proven sales
• Established brand
Funding Needs
• Initial capital
outlay
• Initial Inventory
Level
Overview
Financials
Marketing
Conclusion
Operations
Questions
Conclusion
Key
Success
Factors
The
Aritzia
Advantage
Competitive
Advantage
Overview
Financials
Marketing
Conclusion
• Product variety relative to the
retail clothing market in
Saskatoon
• Product availability
• Expressing fashion beyond simply
clothing; linking fashion to culture
• Friendly, fastidious and
fashionable staff
• Proven sales
• Growing retail market in
Saskatoon
• Vertical integration
• Brand recognition
• Management
Operations
Questions
Questions?
Overview
Financials
Marketing
Conclusion
Operations
Questions