Financial Assignment Sportswear

Table of Contents Executive Summary ........................................................................................................................ 2 Discussion For each pair of graph .................................................................................................. 4 Expenditure (%): ......................................................................................................................... 4 Volume (%): ................................................................................................................................ 5 Expenditure (000s): ................................................................................................................... 6 Volume (000s):.......................................................................................................................... 7 Average Price: ............................................................................................................................. 8 Conclusion ...................................................................................................................................... 8 References ....................................................................................................................................... 9

Executive Summary

The objective of this report is to examine the footwear retail share for Sports Shop. The analysis highlighted the different patterns that can be obtained using the same data, for say, outcome that can be obtained using data in terms of units can be different when the same data is analyzed in terms of percentages. The analysis is done on quarterly basis i.e. from Jul-Sep 2007 till Jul-Sep 2012 and the graphs provide quarterly results for each variable in a comprehensive manner and give an idea about the existing trend in the variable. Furthermore, the graphs can be used to explain the prevailing trend in the footwear share of Sports Shop over the quarters. The data used is obtained from the quarterly reports of the Sports Shop and is in line with data provided by Kantar World Panel which is responsible for preparing the reports. This particular report is based on the assessment of footwear retail share for the Sports Shops and the findings depict the different pattern that can be observed in the same data when analyzed in a different way. In addition to this, the analysis is expected to provide an analysis of the impact of global financial crisis of 2008 and current financial distress on the performance of the footwear retail share of the Sports Shops. Therefore, the data taken covers the period of the crisis and financial turbulence.

Discussion For each pair of graph

Kantar World Panel (2013) pointed out that due to advancement and increasing development in information technology, the world today has become a global village. It is due to these advancements that Kantar World Panel has provided rich data on fashion industry. The target market for this segment is huge comprising of kids, men and women of all the ages and sizes that are continuously in search for something new either a newly launch apparel or footwear. However, the needs and desire of the target market is quite similar as very well stated by Ross (2008) that different people from different cultural backgrounds and religions, from different parts of the world, speaking different languages can dress and fashion in similar way. Talking about advancement and global development in fashion industry, footwear industry cannot be ignored. As specified by Albany (2006) that as a result of changing fashion needs the global footwear market is experiencing a stable growth rate. Compare to athletic footwear market, the non-athletic footwear market is experiencing a faster CAGR this is due to designs and styles and demand for innovation. In this report, the concerns are for non-store footwear share which is expected to grow at a rate of 6.9% CAGR from 2011 to 2018. Now, we will analyze the five indicators i.e. Expenditure (%), Expenditure (000 units, Volume (%), Volume (Units) AND Average price in order to conclude about the performance of the footwear share in a Sports Shop on a quarter basis: Expenditure (%):

Expenditure %- Footwear Retail Sector

180.00 175.00 170.00 165.00 160.00 Expenditure %Footwear Retail Sector

Above is the visual representation of Footwear retail expenditure in terms of percentages on quarter to quarter basis. The graph depicts extreme volatility in the expenditure (%) by Sports Shop on footwear retail share. It can be seen that on a quarter to quarter basis, the expenditure (%) increased dramatically till the third quarter of 2009 that is over the crisis Sports Shop were making expenses on this share but after that there was a sharp decline in the expenditure % which could be observed from the period Jul-Sep 2009 till Jul-Sep 2011. The reason attributed for this decline can be that after the crisis customers are less willing to buy few garments at high prices therefore Sports Shops cut their expenses. Furthermore, the graph also highlighted that this sector of the fashion industry is working to achieve stable growth as noted by Albany (2006) and therefore in 2012 the trend line shows an increasing trend.

Volume (%):

Volume %- Footwear Retail Sector

200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00

Volume %- Footwear Retail Sector

The graph provides a snapshot on the volume in terms of percentages sold of the footwear share by the Sports Shops. The graph shows that the volume (%) of the footwear share of the Sports shop is less volatile as compare to the expenditure (%) graph shown above. The graph shows a slight decrease in the volume (%) as a result of financial crisis i.e. after Jul-Sep 2008 but gain pace after during Jul-Sep 2009 till Jul-Sep 2012. Comparatively, it can be said that both

expenditure (%) and volume (%) graphs shows similar pattern that is after the financial crisis that was upward trend in both indicators however later it was stabilize and now it is on an increasing trend. Thus, it posits the presence of a balance between supply and demand that is Sports Shop produce with respect to the prevailing demand for the product. Expenditure (000s):

Expenditure (000s)
1,650,000 1,600,000 1,550,000 1,500,000 1,450,000 1,400,000 1,350,000 1,300,000 1,250,000 1,200,000

Expenditure (000s)

It can be seen that both, expenditure (%) and expenditure (000s) graphs highlighted a different pattern. The graph for the expenditure (000s) shows an upward trend which could be observed from Jul- September 2007 till Jul-Sep 2008 but after Jul-Sep 2008 the values drop for the period of Jul-Sep 2009. Further, the graph shows that after Jul-Sep 2009 there has been a dramatic increase in the Expenditure (000s) in the footwear retail of the Sports Shop. Similarly, the trend has been same for the expenditure (%) but after Jul-Sep 2009 there was a decreasing trend till Jul-Sep 2012 which in contrast with the above graph. Thus, it could be said that by merely looking at the graphs, the data shows different patter when considered in percentage and units terms.

Volume (000s):

Volume (000s Units)

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jul-Sep Jul-Sep Jul-Sep Jul-Sep Jul-Sep Jul-Sep 2007 2008 2009 2010 2011 2012 Volume (000s Units)

The pattern is different than that of Volume (%). The graph above shows that there was slight increase in volume (000s) after the financial crisis of 2008 i.e. in Jul-Sep 2009 and after that the data shows an increasing trend in the volume (000s) indicator. Thus, very similar to expenditure indicator, the volume (%) and volume (000s) graph depicts different pattern which can be observed by merely looking at the graphs. The decrease after the financial crisis shows that footwear industry was also affected by the global financial crisis. Forstater (2012) noted that the textile and apparel industry are globalized sectors of an economy providing employment to a number of people, worldwide. As for this reason, the sector was extremely affected by the financial crisis.

Average Price:

Average Price
22.0 21.5 21.0 20.5 20.0 19.5 19.0 18.5 Average Price

The graph above shows the average price for the footwear retail share of Sports Shop. It can be seen by the graph that after the financial crisis the average price shows a decreasing trend which stabilize in the quarters ranging from Jul-Sep 2010 to Jul-Sep 2012. As specified earlier that during the crisis consumers are less willing to buy at a high price therefore footwear industry reduced the prices in order to increase demand.

Conclusion

It can be concluded that the nature of data can change the analysis completely. Different data when observed in different terms can provide different patterns. Furthermore, it could be seen during the analysis that Sports Shop balanced the supply and demand for the footwear during the financial crisis and are successfully gaining growth in the footwear retail share. In addition to this, it was further highlighted that the financial crisis has a huge impact on the performance of the above five indictors due to the global operations.

References Albany, N.Y. (2012) Global Athletic Footwear industry analyzed by Transparency Market Research, PRWEB (October 26, 2012) Forstater, M. (2012) Implications of the global financial and economic crisis on the textile and clothing sector, International Labor Office, Geneva Kantar World Panel (2013) Fashion - Kantar Worldpanel. [online] Available at: http://www.kantarworldpanel.com/global/Sectors/Fashion [Accessed: 10 Mar 2013]. Ross,R. (2008). Clothing: A Global History. Polity. Wrangler (2013) WRANGLER INTERNATIONAL. [online] Available at:

http://www.wrangler.com/WRG_STORE_US/index.html [Accessed: 10 Mar 2013].