Walker Brothers

Birmingham Store - Clothing Department Report

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 Table of Contents

1. Introduction............................................................................................................................................6
2. Performance of All Sections of Clothing Department in Birmingham Store and comparison.........6
2.1 Revenue /Month.....................................................................................................................................6
2.2 Total Revenue / Year...............................................................................................................................7
3. Performance of Each Department in Birmingham Store in 2015-16..................................................8
4. Contribution of Each Department in Birmingham Store in 2015-16 Revenue..................................9
5. Clothing Department throughout All Stores........................................................................................9
6. Regression Calculation and Revenue Forecast for the next 5 years..................................................12
7. Correlation Coefficient Analysis..........................................................................................................13
8. Clothing Market in UK........................................................................................................................14
9. Conclusion.............................................................................................................................................15
10. References.........................................................................................................................................16

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1. Introduction

Statistics encompasses the gathering, summarizing, and analysing data. Statistical analysis can be
used for assumptions and in decisions making (Berenson et al., 2009) in various domains.
This report presents an analysis of the performance of the Clothing Department in the Birmingham
Store of Walker Brothers encompassing the trends and the changes compared to the previous years and also a
comparison with the other departments. In the investigation there were used different descriptive statistics
and some external factors were taken into account in order to make pertinent recommendation to the Head
Office.

2. Performance of All Sections of Clothing Department in Birmingham Store and comparison

2.1 Revenue /Month

In FY 2015-2016 all Sections performed well registering increases in total sells compared with the
previous years. Boys Section contributed the lowest to the overall performance of the Department in the last
three years, with only 2.03%, being followed by the Girls Section with a contribution of 3,11% as shown in
Figure 1. Men Section represents a significant part to the overall performance of the Department, with
31,56% contribution, but not as much as Women Section whose performance was twice better than the Men
Sections, registering a contribution of 63,31% over the last three years.
The Boys Sections performance over the last three years was steady showing some fluctuations in
spring months. The Boys Section total sales recovered in 2015-2016 after their decline in 2014-2015. On the
other hand, Girls Sections revenues were the lowest in March and November and had their peaks in August

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and February, but the overall performance showed an improvement in 2015-2016 after the decline in sales in
2014-2015. Moreover, Men Sections total sales, after slightly decreasing in 2014-2015, registered a
considerable increase in 2015-2016. December was the best month for this Section, while May had the
lowest sales in the last three years. Women Section is undoubtedly the best performing Section in the
Clothing Department with the highest sales compared with the other Sections. Women Section sold an
average of 1.08 million, while for Men Section the average sales were 539 550, for Girls Section were 53
330 and for Boys Section were 34 730. The trend shows that for Women Section December was also the
best month in sales, while June registered the lowest sales in all three years.

2.2 Total Revenue / Year

Figure 2: Total Revenue / Year for each Section in Birmigham Store

13,500.00

12,000.00
10,500.00
Revenue 000's / Year

9,000.00

7,500.00
6,000.00

4,500.00
3,000.00

1,500.00

-
2013-14 Total 2014-15 Total 2015-16 Total

Souce: The Business

boys gi rl s men women

The Clothing Department had a small decrease in total sales in FY 2014-2015, but it recovered well in FY
2015-2016 with an increase of 13,47 % due to the growth registered by all Sections in the last year. Women
Section had the biggest growth, showing that the women section remained avid clothes buyers, followed by
Men Section, due to an increase in the number of young men shoppers (Mintel, 2016), followed by Girls
Section and Boys Section, in this order. Our forecast is that the Birmingham Clothing Department sales will
continue to grow but at a lower rate.

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3. Performance of Each Department in Birmingham Store in 2015-16

Figure 3: Performance of Each Department in Birmingham Store in 2015-2016

35,000.00

30,000.00

25,000.00
Revenue 000's in 2015-16

20,000.00

15,000.00

10,000.00

5,000.00

-
accessories clothing entertainment foodhall furnishings furniture household restaurant stationery toiletries

Source: The Business

2015-16 Mean

All through the FY 2015 2016, the Offices in the Birmingham Store have performed in an
unexpected way, as the high coefficient of variety shows us (see additionally Index 1). The Diversion
Division has acquired the greatest income which could be because of the generous distinction in evaluating
contrasted with different offices, for example, Stationery.

The Standard Deviation is likewise expansive indicating how much the offices deals vary from the
13,551.59 mean esteem. When looking at against each other, it gives the idea that exclusive the Dress,
Diversion, Furniture and Household Unit Offices have figured out how to transcend the mean.

The Garments Division performed very much contrasted and alternate offices in Birmingham Store, its
deals in 2015-2016 of 22170 million setting it simply after Diversion, and household Offices which had
incomes of 30848 million and 28428 million separately.

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4. Contribution of Each Department in Birmingham Store in 2015-16 Revenue

Figure 4: Contribution of each Department in Birmingham Store in 2015-2016 Revenue

7.43%

acces s ories
cl othi ng
4.19% 1.14% 2.24% 16.36% entertai nment
20.98% foodha l l
furni s hi ngs
furni ture
househol d
resta urant
stationery
8.90% toi letri es
3.46% 22.76%

12.54%

The Birmingham Store is isolated into ten separate Divisions, each in charge of a rate of the general
income of the store. In FY 2015-2016 the biggest commitment was made by the Entertainment and
Household unit Offices with 23% and 21% individually. The Clothing Department was the third best
performing division, on the commitment premise, representing 16% of the aggregate incomes of the store,
while Toiletries and Stationery contributed with 2% the slightest, and 1% separately.

5. Clothing Department throughout All Stores

For the examination of the Clothing Department in various Stores the normal offers of every one of
the four Clothing Areas were aggregated in the figures beneath. They will permit a less demanding and
clearer examination between various Stores amid 2013-2016.

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 Figure 5: MEAN Revenue of Boys Section in all Stores during 2013-2016
60.00

50.00

40.00
Mean Revenue 000's

30.00

20.00

10.00

-
re re re re re re re re re
Sto Sto lS
to Sto Sto Sto Sto Sto kS
to
am ss to ad ds ts er m eld r
gh ro
Br
is he ee e ha ef Yo
in tC tes
L c h ng Sh
rm en Ga an t
Bi Br M No

Source: The Business 2013-14 2014-15 2015-16

Figure 6: MEAN Revenue of Girls Section in all Stores during 2013-2016

70.00
60.00
50.00
Mean Revenue 000's

40.00
30.00
20.00
10.00
-
re re re re re re re re re
Sto Sto lS
to Sto Sto Sto Sto Sto kS
to
am ss to ad ds ts er m eld r
gh ro
Br
is he ee e ha ef Yo
in tC tes
L c h ng Sh
rm en a an t
Bi Br G M No

Source: The Business 2013-14 2014-15 2015-16

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 Figure 7: MEAN Revenue of Men Section in all Stores during 2013-2016
800.00
700.00
600.00
AMean Revenue 000's

500.00
400.00
300.00
200.00
100.00
-
re re re re re re re re re
Sto to Sto Sto Sto Sto Sto Sto Sto
sS ol ad ds ter rk
am os ir st s ha
m eld o
gh Cr he Le
e
he ef Y
in t B ta es c ng Sh
rm en an t
Bi Br G M No

Source: The Business 2013-14 2014-15 2015-16

Figure 8: MEAN Revenue of Women Section in all Stores during 2013-2016

1,600.00
1,400.00
1,200.00
1,000.00
Mean Revenue 000's

800.00
600.00
400.00
200.00
-
re re re re re re re re re
Sto sS
to Sto Sto Sto Sto Sto Sto Sto
am os ol ad ds ter m eld rk
gh Cr ir st he e s ha Yo
B Le he ng ef
in en
t ta es an
c
t Sh
ri m Br G
B M No

Source: The Business 2013-14 2014-15 2015-16

Assessing the Clothing section, all through all stores in the UK, will enable the organization to get better
outcomes when settling on choices about speculations or illuminating an issue. The primary thing that is
called attention to by the above charts is that all segments all through the stores have worked and performed
correspondingly if the outer variables were to be avoided. Additionally, taking a gander at the Birmingham
Store, Young men Segment had a plunge in the FY 2013-2014 from 34.95 Million to 33.47 Million in FY
2014-2015 and again picked up a lift in the next year 2015-2016 as it accomplished 35.76 Million, this
being the situation with all segments over all stores as appeared in Figure 5. This could imply that the
acquiring power or the Gross domestic product of the nation (UK) was more grounded in the years 2013-

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 2014 and 2015-2016, than the money related year 2014-2015 which thus, helped the execution of the
Segments inside those years to increment. Be that as it may, including the outer variables into the condition
would bode well in investigating this execution. For instance, the way that Leeds' Young men Area has a
littler incentive than Manchester in all the previous three years can be ascribed to the distinction in populace
of these urban areas - the quantity of individuals who live or visit the city. Leeds has 757,700 individuals
(Bbc.co.uk, 2017) while Manchester is swarmed with 2.55 million individuals in this manner expanding the
odds of offers and hence the execution of the store (Ukpopulation2016.com, 2017). Another outer
component which can likewise decide the execution of a few segments is the purchaser conduct. From the
introduced diagrams, obviously the Ladies Segment has the most elevated esteem contrasted and different
Segments over all Stores. This could be because of lady conduct of buying materials more regularly than
men.

6. Regression Calculation and Revenue Forecast for the next 5 years

Linear Regression analysis is one of the important tools in examining the relationships between two
variables, the dependent and the independent (Berenson et al., 2009). Using Linear trend, the regression
between the annual revenues of the Clothing Department in Birmingham Store and the duration is generated
giving the R^2 equal to 0.8088, shown in Figure 9. In this case the time is a good predictor of revenue i.e.
over time, the revenue has increased or decreased at a predictable rate. Thus, predictions for the total
revenues over the next five years can easily be made as illustrated in both figures below. For Figure 10 the
forecast linear trend formula was employed showing an expected increase of 3% in revenue for the year
2016-2017 and a steady increase in the following four years.

Figure 9: Regression Calcuation and Revenue Forecast of Clothing Department of Brimingham Store
25,000.00
22,170.91
22,500.00
f(x) = 1247.43x - 2493202.13 19,846.10 19,538.62
20,000.00 R = 0.81
17,392.66
16,620.86
17,500.00
Total Revenue 000

15,000.00
12,500.00
10,000.00
7,500.00
5,000.00
2,500.00
-
2011.5 2012 2012.5 2013 2013.5 2014 2014.5 2015 2015.5 2016 2016.5
Years
Total Revenue/Year Linear (Total Revenue/Year)

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 Figure 10: Forecast Total Revenue Growth for Birmingham Clothing Department over next 5 Years
30,000.00 28,546.10
27,410.06
27,500.00 25,686.02
24,645.11
25,000.00
22,856.11
22,170.91
22,500.00
19,846.10 19,538.62
Total Revenue 000's

20,000.00
17,392.66
17,500.00 16,620.86

15,000.00
12,500.00
10,000.00
7,500.00
5,000.00
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: The Business

7. Correlation Coefficient Analysis

The Table 1 below explains the correlation coefficient analysis between each section of clothing
department of Birmingham Store and the total sales of the Clothing Department between 2011-2016. There is
a strong positive relation between the sales generated by Boys, Men and Women Sections as the sales they
generated have a high impact on the total Department sales, moving up and down together. In contrast, there
is a weak positive relation between the sales generated by Girls Section and the total revenue of the
department which means that the Girls Sections sales have less impact on the total sales of the department.

Birmingham Store - Clothing Department

boys girls men women
5 Years Data from
Clothing
2011-2016 0.67 0.25 0.86 0.96
Department

Table 1: Correlation Coefficient Analysis of Each Section with Total Sales of Clothing
Department of Birmingham Store

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8. Clothing Market in UK and the local competition

Despite a longer than usual period of unseasonal weather in 2016 and other possible risks (Brexit
vote) the UK clothing market remains strong. The consumer clothing expenditure was estimated at 44bn in
2016 (Savills, 2016) with a visible preference for physical stores despite the growth of online retailing which
was less of a threat and more of an opportunity for retailers to increase their revenues (Savills 2016; Mintel
2016).

According to a 2016 report of Savills Research, Birmingham is in the

top 10 cities in the UK which share some of the highest fashion revenues. The
average annual spend on clothing & footwear in Birmingham is 313 more
than in Newcastle and London where the average spending is 304 and 262
respectively.

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 Walker Brothers top competitors in the UK are Marks & Spencer, Zara, Next, H&M, Gap and New
Look, all of them having the average sales in the last five years below the average of Walker Brother
Clothing Department sales.

Figure 11: Annual Clothing Sales per Outlet in UK Market (2011-2016)

Birmingham Store Clothing Department

Mean= 19,114

Mean= 2,290
Gap UK

Zara UK Ltd

Mean= 3,883
H&M UK

Mean= 1,870
New Look UK
Mean= 11,768
Marks & Spencer (UK non-food)

Mean= 6,764
Next UK & Ireland

0 5,000 10,000 15,000 20,000

Total Revenue 000
2011-12 2012-13 2013-14 2014-15 2015-16

The Walker Brothers Clothing Department in Birmingham is expected to have positive growth in the
future and, assuming that no major disruptions will affect the revenues of the store, it will continue to lead in
the local competition.

9. Conclusion

After analysing the performance of the Clothing Department of Birmingham Store, benchmarking it
against other departments within the company, and in other stores the Departmental Team has positive
feedback on the evolution of the department. It is expected a continuing growth in the following years, yet
more attention has to be paid to the Girls and Boys Sections to increase their sales. Also, some investments
in online retailing could also be useful for the store due to the increase in this trend in Birmingham.

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10. References

Bbc.co.uk. (2017) BBC - Leeds Features - Facts. [online] Available at:

http://www.bbc.co.uk/leeds/features/facts/index.shtml [Accessed 2 Feb. 2017].

Berenson M.L., Levine, D.M. and Krehbiel, T.C. (2009), Basic Business Statistics. Pearson/Prentice Hall,
NJ.

Mintel (2016) Clothing Retailing -UK-October 2016. [online] available from Mintel Academic database.
[Accessed 4 Feb. 2017].

Saville Research (2016) Spotlight. Retail Revolution: How the Different Generations Shop. [online] available
from: < http://www.savills.co.uk/research_articles/205506/208325-0> [Accessed 4 Feb. 2017].

The Business.

Ukpopulation2016.com (2017) Population of Manchester 2016. [online] Available at:

<http://ukpopulation2016.com/population-of-manchester-2016.html> [Accessed 4 Feb. 2017].

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Appendix 1 (Mean Revenue and Standard Deviation Calculations for the departments in Birmingham Store)

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 Appendix 2 (Mean Revenue and Standard Deviation Calculations for Boys Sections in All Stores)

MEAN Revenue Calculations (Boys) in All Stores

Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 34.95 31.85 27.58 38.16 23.47 44.65 24.70 35.68 25.23

2014-15 33.47 31.28 26.51 36.73 22.90 43.04 23.46 34.69 24.24

2015-16 35.76 34.57 29.21 40.33 25.10 47.98 26.35 38.54 26.32
SD Calculations (Boys) in All Stores
Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 11.28 10.34 8.04 11.13 6.59 12.94 8.04 7.91 7.21

2014-15 7.51 7.51 5.37 8.25 5.97 9.46 6.09 6.96 3.69

2015-16 8.09 9.67 8.17 7.89 6.39 11.98 6.84 8.03 5.06

Appendix 3 (Mean Revenue and Standard Deviation Calculations for Girls Sections in All Stores)

MEAN Revenue Calculations (Girls) in All Stores

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 Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 51.78 48.61 39.03 55.26 31.94 61.99 36.25 46.13 33.36

2014-15 51.03 45.72 38.27 56.12 30.88 59.79 36.56 45.16 33.00

2015-16 56.58 49.34 42.41 62.76 34.18 66.15 40.09 50.17 36.24
SD Calculations (Girls) in All Stores
Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 15.62 16.95 12.27 15.15 9.73 18.77 10.58 10.98 10.09

2014-15 12.27 10.29 8.87 11.00 6.01 12.70 6.68 8.94 7.54

2015-16 15.37 12.78 10.16 13.19 8.00 15.30 9.97 11.58 9.21

Appendix 4 (Mean Revenue and Standard Deviation Calculations for Men Sections in All Stores)

MEAN Revenue Calculations (Men) in All Stores

Store Birmingham Brent Cross3Store Bristol Gateshead Leeds Manchester Nottingham Sheffield York

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 Store Store Store Store Store Store Store Store

2013-14 520.57 432.68 328.06 620.70 272.33 637.15 361.62 486.66 306.58

2014-15 514.46 416.35 322.72 596.48 262.69 638.91 371.06 477.35 309.79

2015-16 583.63 466.01 361.72 664.34 290.20 719.31 411.56 547.57 332.70
SD Calculations (Men) in All Stores
Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 141.48 126.62 77.52 159.98 70.39 178.46 81.54 133.43 88.47

2014-15 116.22 94.44 80.00 164.89 50.18 168.24 78.85 127.35 94.27

2015-16 142.13 129.98 98.65 204.10 57.73 214.55 86.51 151.99 97.65

Appendix 5 (Mean Revenue and Standard Deviation Calculations for Women Sections in All Stores)

MEAN Revenue Calculations (Women) in All Stores

Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 1,046.54 1,123.14 859.78 1,295.46 810.42 1,222.12 811.05 996.88 662.75
2014-15

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 1,029.25 1,103.15 838.37 1,244.51 795.39 1,187.46 818.48 979.28 655.78

2015-16 1,171.61 1,247.32 923.67 1,376.61 869.91 1,345.51 911.92 1,091.56 726.91
SD Calculations (Women) in All Stores
Birmingham Bristol Gateshead Leeds Manchester Nottingham Sheffield York
Store Store Brent Cross Store Store Store Store Store Store Store Store

2013-14 278.96 338.09 237.31 299.00 269.55 317.28 262.47 284.04 177.78

2014-15 235.28 338.40 208.21 189.67 248.18 242.16 227.02 284.83 155.24

2015-16 295.87 406.89 256.00 236.85 291.54 313.84 303.20 313.91 157.27

Appendix 6 (Forecast Calculations of Total Revenue Values for Birmingham Clothing Department)

Forecast of Total Revenue Values for Birmingham Clothing Department

store year Year clothing Yearly Change
Birmingham 2011-12 2012 17,392.66
2012-13 2013 16,620.86 -4%
2013-14 2014 19,846.10 19%
2014-15 2015 19,538.62 -2%

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 2015-16 2016 22,170.91 13%
2016-17 2017 22,856.11
2017-18 2018 24,645.11
2018-19 2019 25,686.02
2019-20 2020 27,410.06
2020-21 2021 28,546.10

*Using the Linear Trend

Appendix 7 (Annual Clothing Sales per Outlet in UK Market)

Annual Sales per Outlet, 2011-15

Outlet Name 2011-12 2012-13 2013-14 2014-15 2015-16 Mean
Next UK & Ireland 6,189 6,290 6,661 7,152 7,529 6,764
Marks & Spencer (UK non-
12,339 11,866 11,726 11,428 11,482 11,768
food)
New Look UK 1,760 1,782 1,777 1,833 2,197 1,870
H&M UK 3,769 3,816 3,691 3,985 4,152 3,883
Zara UK Ltd 5,675 6,811 7,043 7,497 7,868 6,979
Gap UK 2,194 19
2,189 2,466 2,524 2,078 2,290
Birmingham Store Clothing 17,393 16,621 19,846 19,539 22,171 19,114
Department