Citi Trends: Affordable And Fashionable Clothing For Urban Customers

Discover the Latest Trends in Fashionable Merchandise

Citi trends is an American retail clothing chain brand which mainly sells discounted products and targets primarily the urban customers. Citi Trends is dedicated in bringing fashionable as well as fresh merchandise for its customers as well as the communities that they serve (Citi Trends, 2022). The company was formed in 1946 and had opened its first store in Savannah Georgia named as Allied department stores. The product offerings of this business include the latest trends in terms of clothing, having the hottest brands for clothing, accessories, shoes, home décor as well as making it convenient for the people from all age groups. It serves as a one stop destination for adults, infants along with the entire family. The business even deals with selling good quality products which are at 50 percent discount from the rest of the shops that are considered to be present in the country. Currently, it is operating in more than 600 plus stores in more than 33 states providing with the best quality services and even in making better changes that area being needed. The company focuses on providing the latest trends as well as maintaining the quality in a proper way which is considered to be possible. It even keeps hottest brands and beauty products that help the customers to focus on one brand and make necessary changes as per the ideas that are being developed in the company. The company allows its customers to select from a variation of products that are available in the retail market.

The mission statement of Citi Trends is to provide merchandise at a discounted rate to the department as well as the specialty stores with the regular prices of 20 percent to 70 percent.

The vision of Citi Trends is to distribute the relevant and latest merchandise that are needed in the stores in a timely manner. To increase the sales and even maintaining better quality of the products which are being sold in the company.

Citi Trends are concerned with the target audience who are the retail customers. These retailing customers are mainly the urban families. The target audience includes infants to adults and even engages better outcomes having the discounted brands. There is certain segmentation done as per the urban families and communities as per the customers (Michna et.al., 2018). The main market is based upon the urban communities who look for different brands and even increased quality of products. The target audience come from different back grounds and age groups. The company offers products for all age groups hence the target customer base is considered to be more.

The products provided by the company are homogenous and keeps a wide range of product categories which caters to the needs of maximum customers. The company carries the brands like Apple bottoms, Roca wear, Coogi as well as Dickies. The designer brands are present in the malls but at a higher price than other products. It has indirectly established the supply chain where the products of the company are being shipped from the manufacturer to retail distribution centers and then in the stores for the consumers so that they can buy them. For instance, the manufacturer of Coogi products will simply ship their products to the Citi Trend’s distribution centers. From there the products will go to one of the stores in 33 states. The products that are provided by this company are of good quality and are available at cheaper rates than the other brands that are considered to be present other malls present in the country (Soni, 2020). It provides heavy discounts on the products and make the customers satisfied with the quality and price of the product that is being provided to them. There are mostly a lot of aspects which needs to be worked upon in managing the ideas and allowing the customers to buy more of the products which are present in the company and even dealing with the new changes which are considered to be appropriate. There are different positions which are being used conveniently to promote the products and reach to the target audience.

Citi Trends : The Brand’s Story and Mission Statement

There are variety of products that are present in terms of customers to choose from. The urban customers are given with ample option at affordable rates to select from. The products include clothing, accessories, beauty products, infant clothing and other aspects that are said to be available for the individuals in the company (Kusumaningrum, et.al., 2016). There are most of the products which are at 50 percent discounted rates and even in indulging new changes which are considered to be present. The discount services are given to the customers so that they buy the products more and even in allowing them to engage themselves in better aspects and also in dealing with proper ideas which are considered to be present in the company.

The legal structure of the business is considered to include keeping the customer’s information confidential, to accept credit and debit cards in our stores by following the Payment card industry data security standards which is attested compliance annually. There are several securities as well as technological safeguarding that allows the different assessments and make sure that these are being well adopted in the business. There are strong protocols that are being protected as per the security and also the simulation strategies in monitoring along with the patching activities. The organizational chart of Citi trends is being given below:

The above people are referred to as the key responsible individuals who are related to most of the changes and even in making better changes that are required to be there (Gumel, 2017). The license required by these managers are to provide the work that has most of the services included by them to look after the needs of the people and also in managing new changes that are needed in term of the people who are been working.

The marketing strategy of Citi Trends are being given with the help of 4ps of marketing:

Product- to keep variation in products and taking feedbacks from the customers will allow in enhancing the sales of the product. There are certain options which are being used in terms of getting the best results and also in making different products that are said to be appropriate. Most of the products are being well managed and the ideas are supposed to be based on making better products that are available. Most of the issues are considered to be there and also in dealing with the changes as per the challenges and also in making certain aspects which are said to be important (Turner & Endres, 2017). There are certain areas which needs to be there so that most of them work towards a given aspect and also in dealing with certain aspects that are considered to be needed in order to make the best products. To increase the production as well as asking the manufacturers to provide them with the products that are in demand so that the sales are increased. It is important to improve on the supply of the products which will allow the business to reach to its maximum sales. It is important for the individuals to make certain achievements in the company. There are mostly a lot of aspects including the quality of the products should also be looked so that these products are being managed well in the company. There are better understanding of the work and even in dealing with the changes which are considered to be there. There are better changes that are dealing in order to make better changes as well as in dealing with the production and also in making new changes that are considered to be there. The different changes are considered to be there so that the business provides certain actions that are needed in dealing with the ideas and also in making certain changes which are considered to be relevant.
Price- Citi trends never involve in the vertical price fixing where the manufacturer simply collaborates with retailer in reselling upon an agreed price. The products that are present in the Citi Trends have their own list and as suggested by the manufacturer’s retail price and even in making several changes that are considered to be appropriate and even in engaging with the ideas in a better way. The price is said to include several merchandise factors in the promotions, labour as well as overhead. The business must know what are the prices that needs to be set on the basis of the demands as well as the affordability of the target audience. The pricing even deals with the selection of different markets which is considered to be present (McKenzie, 2017). The layout of the stores that are to manage a better aspect and also in encouraging new terminologies which are needed in the company to overcome its situation and make a better understanding possible. The company even provides overall discounts to its customers which is not available in any other store. It is important to understand the different price ranges and how much the target audience could spend in a particular product (SHOKHNEKH, et.al., 2017). There are different challenges that help in finding the target audience and also in considering the factors in improving the pricing strategies that are involved in terms of getting the best results that are being evaluated in the team. There are no changes which will help in ensuring ideas that help in making certain ideas that are appropriate and even helps in engaging for the betterment of the ideas. There are new changes which are required in involving better changes in the prices. The main aspects are relating to the prices which helps in increasing the sales of the company.
Promotion- to make other promotional channels than advertising in the radio. The company will engage more of in its online presence. They will start to work on the aspects in dealing with the ideas in order to work on the progress of the company. The company even engages in certain areas that needs to be there (Shtompel, 2018). The online promotions will help the company to reach to a larger audience in the future and yet increasing the best of the ideas which are said to be appropriate and even in making new changes that are said to be developed well in the business and even in making new areas where the promotion can be done without causing any problems. The promotional activities need to be enhanced by adding new features and also in working towards getting better ideas that are considered to be there and also in making new opportunities that are said to be present. It is important to make a social media presence and make people aware of the offers and other aspects which are said to be present. The most important aspect is to look for affordable merchandise which can be used in dealing with the ideas and also in making several promotions as reaching to the maximum audience (Mcknight, 2018). To make attractive advertisements which shows the price highlights and discounts that are being provided to the consumers. This will help in initiating better facilities in the team and also allow in working with the individuals in an appropriate way. It is important to understand that most of the changes tend to take place as per the ideas and also in working together with the promotional activities that are needed in the company.
Place- the product focuses on the urban population so it will be mainly in including the urban areas. The stores are also present in the urban areas and more 100 stores are about to open in the next 6 months of time (Prystemskyi, 2020). Concerning the urban population, it helps in serving the customers and making them work towards the ideas in terms of getting the best place in selling the products and making it important. It is necessary to understand the marketing strategies of knowing the exact policies which are said to be present and even in engaging new changes that are involved in the company (Elistratov, Kutyakhina & Vinichenko, 2017). The business will look for new places where they don’t have their stores and will find their target audience in that country in which they will set up new stores provided the demand of the products along with the accessibilities of the products supplied by the informer in an appropriate way that is needed to be there and mostly it helps in making changes that are said to be based upon the target audience and the supply of the products to reach a wider audience hence increasing the sales.

Projected Balance sheet

Assets	Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Cash and short-term investments	$611,300	$8,467,966	$16,296,788	$24,246,009	$32,467,491	$42,226,440
	Accounts receivable	$5,050,000	$5,151,000	$5,357,040	$5,678,462	$6,132,739	$6,132,739
	Total inventory	$5,050,000.00	$5,151,000.00	$5,357,040.00	$5,678,462.40	$6,132,739.39	$6,132,739
	Prepaid expenses	0	0	0	0	0	$0
	Deferred income tax	0	0	0	0	0	$0
	Other current assets	0	0	0	0	0	$0
	Total current assets	$10,711,300	$18,769,966	$27,010,868	$35,602,933	$44,732,970	$54,491,919
	Buildings	$83,600	$83,600	$83,600	$83,600	$83,600	$83,600
	Land	0	0	0	0	0	0
	Capital improvements	$ 40,000	40,000	40,000	40,000	40,000	40,000
	Machinery and equipment	$ 42,300	42,300	42,300	42,300	42,300	42,300
	Less: Accumulated depreciation expense	0	33,180	67,024	101,531	136,702	172,536
	Net property/equipment	$165,900	$132,720	$98,876	$64,369	$29,198	($6,636)

	Goodwill	$0	$0	$0	$0	$0	$0
	Deferred income tax	0	0	0	0	0	0
	Long-term investments	0	0	0	0	0	0
	Deposits	0	0	0	0	0	0
	Other long-term assets	0	0	0	0	0	0
	Total assets	$10,877,200	$18,902,686	$27,109,745	$35,667,303	$44,762,168	$54,485,283
Liabilities	Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Accounts payable	$1,032,500	$1,053,150	$1,095,276	$1,160,993	$1,253,872	$1,253,872
	Accrued expenses	0	0	0	0	0	0
	Notes payable/short-term debt	0	0	0	0	0	0
	Capital leases	0	0	0	0	0	0
	Other current liabilities
	Total current liabilities	$1,032,500	$1,053,150	$1,095,276	$1,160,993	$1,253,872	$1,253,872
	Long-term debt from loan payment calculator	–	$0	$0	$0	$0	$0
	Other long-term debt	$0	$0	$0	$0	$0	$0
	Total debt	$1,032,500	$1,053,150	$1,095,276	$1,160,993	$1,253,872	$1,253,872
	Other liabilities	0	0	0	0	0	0
	Total liabilities	$1,032,500	$1,053,150	$1,095,276	$1,160,993	$1,253,872	$1,253,872
Equity		Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Owner’s equity (common)	$ 1,000,000	$1,000,000	$1,000,000	$1,000,000	$1,000,000	$1,000,000
	Paid-in capital	0	0	0	0	0	0
	Preferred equity	0	0	0	0	0	0
	Retained earnings	0	0	0	0	0	0
	Total equity	$1,000,000	$1,000,000	$1,000,000	$1,000,000	$1,000,000	$1,000,000
	Total liabilities and equity	$2,032,500	$2,053,150	$2,095,276	$2,160,993	$2,253,872	$2,253,872

Projected income statement

· Revenue
	Gross revenue		$25,250,000	$25,755,000	$26,785,200	$28,392,312	$30,663,697
	Cost of goods sold		$5,162,500	$5,265,750	$5,476,380	$5,804,963	$6,269,360
	Gross margin		$20,087,500	$20,489,250	$21,308,820	$22,587,349	$24,394,337
	Other revenue [source]		$0	$0	$0	$0	$0
	Interest income		$0	$0	$0	$0	$0
	Total revenue		$20,087,500	$20,489,250	$21,308,820	$22,587,349	$24,394,337
Operating expenses
	Sales and marketing		$25,000	$25,500	$26,520	$28,111	$30,360
	Payroll and payroll taxes		$13,000	$13,260	$13,790	$14,618	$15,787
	Depreciation		$33,180	$33,844	$34,507	$35,171	$35,834
	Maintenance, repair, and overhaul		$4,230	$4,315	$4,399	$4,484	$4,568
	Total operating expenses		$75,410	$76,918	$79,217	$82,384	$86,550
Operating income		$20,012,090	$20,412,332	$21,229,603	$22,504,966	$24,307,787
	Interest expense on long-term debt		$0	$0	$0	$0	$0
Operating income before other items		$20,012,090	$20,412,332	$21,229,603	$22,504,966	$24,307,787
	Loss (gain) on sale of assets		$0	$0	$0	$0	$0
	Other unusual expenses (income)		$0	$0	$0	$0	$0
Earnings before taxes		$20,012,090	$20,412,332	$21,229,603	$22,504,966	$24,307,787
Taxes on income	30%	$6,003,627	$6,123,700	$6,368,881	$6,751,490	$7,292,336
Net income (loss)		$14,008,463	$14,288,632	$14,860,722	$15,753,476	$17,015,451
Cumulative income		$14,008,463	$28,297,095	$43,157,818	$58,911,293	$75,926,744

Cash flow statement

		Year 1	Year 2	Year 3	Year 4	Year 5	Total
Operating activities
	Net income	$14,008,463	$14,288,632	$14,860,722	$15,753,476	$17,015,451	$75,926,744
	Depreciation	$33,180	$33,844	$34,507	$35,171	$35,834	$172,536
	Accounts receivable	($101,000)	($206,040)	($321,422)	($454,277)	$0	($1,082,739)
	Inventories	($101,000)	($206,040)	($321,422)	($454,277)	$0	($1,082,739)
	Accounts payable	$20,650	$42,126	$65,717	$92,879	$0	$221,372
	Amortization	0	0	$0	$0	$0	$0
	Other liabilities	0	0	$0	$0	$0	$0
	Other operating cash flow items	0	0	$0	$0	$0	$0
	Total operating activities	$13,860,293	$13,952,522	$14,318,101	$14,972,972	$17,051,285	$74,155,173
							$0
Investing activities						$0
	Capital expenditures	$0	$0	$0	$0	$0	$0
	Acquisition of business	0	0	0	0	0	$0
	Sale of fixed assets	($6,003,627)	($6,123,700)	($6,368,881)	($6,751,490)	($7,292,336)	($32,540,033)
	Other investing cash flow items	0	0	0	0	0	$0
	Total investing activities	($6,003,627)	($6,123,700)	($6,368,881)	($6,751,490)	($7,292,336)	($32,540,033)
Financing activities
	Long-term debt/financing	$0	$0	$0	$0	$0	$0
	Preferred stock	0	0	0	0	0	0
	Total cash dividends paid	0	0	0	0	0	0
	Common stock	0	0	0	0	0	0
	Other financing cash flow items	0	0	0	0	0	0
	Total financing activities	$0	$0	$0	$0	$0	$0
Cumulative cash flow	$7,856,666	$7,828,822	$7,949,220	$8,221,482	$9,758,949	$41,615,140
Beginning cash balance	$611,300	$8,467,966	$16,296,788	$24,246,009	$32,467,491
Ending cash balance	$8,467,966	$16,296,788	$24,246,009	$32,467,491	$42,226,440

References

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