Targetta offers affordable merchandise, store and financial planning tool for retail companies. Our software is designed to improve the accountability and performance in small or large organiztions.

1. Merchandise and
financial planning in
Targetta
Märt Parker
www.targetta.net

2. Overview
• Why forecast?
• Store planning
• Merchandise planning
• Financial forecast and budget
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3. About Targetta
• Develops planning software for retail companies
• Founded by former SAP BPC consultants in 2015
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4. Why forecast?
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5. Strategic Profit Model
ROA
Net profit
Net sales
Net sales
/ Net profit %
Net assets
/ Asset turnover
x

6. 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
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7. 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
plans
Store sales plan
Merchandising
budget

8. Formal planning processes
Targetta covers 3 most common
Boston Retail Partners. Annual Merchandise Planning and Allocation Survey 2014

9. Sample case
• SportLine sells seasonal fashion/sport
merchandise
• 30 stores
• online shop
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10. Let’s compose the
management team…
CEO CFOMerchandising
manager
Sales
manager
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11. Targetta home page

12. 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%

13. Store planning
Sales manager + store managers
Revenue growth 10%

14. 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%

15. Merchandise planning
Merchandising manager
GMROI 130%
Revenue 10%
Gross Margin 40%

16. Merchandising Budget Plan
(seasonal goods)
Sales forecast
Markdown
Stock-to-sales ratio
Beginning of month
inventory
End of month inventory (*)
Additions (*)

17. Financial planning
Cash reserve
Net profit
CFO

18. Financial planning
Merchandise &
store planning
OPEX, CAPEX,
employees
Profit & loss
forecast
Cash flow
forecast
Balance sheet
forecast
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19. Profit & Loss forecast
Chart-of-accounts
freely customizable
Driver based
accounts & planning
logic
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20. Regular activities
• 1x year:
• compose a budget
• Every month, week:
• forecast updates
• actual vs budget
• forecast vs budget
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21. Märt Parker
+372 514 6334
mart.parker@targetta.net
@targettanet
www.targetta.net
Thank you!