College of Accountancy, Business, Economics and International Hospitality Management

C & A Mode Company

Retail Business Plan

MKT 308 - Retailing Management

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND

INTERNATIONAL HOSPITALITY MANAGEMENT

Richelle G. De Luna
Subject Instructor

Manalo, Kristine Erika P.

Papa, Jay Ron M.
Patriarca, Daniel M.

Names of Members

date
May 15, 2023
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
1

TABLE OF CONTENTS

PAGE

EXECUTIVE SUMMARY……………………………………………......

COMPANY ANALYSIS……………………………………………..........

INDUSTRY ANALYSIS……………………………………………..........

CUSTOMER ANALYSIS……………………………………………........

COMPETITIVE ANALYSIS……………………………………………..

MARKETING PLAN……………………………………………...............

OPERATIONS PLAN……………………………………………..............

MANAGEMENT TEAM…………………………………………….........

FINANCIAL PLAN……………………………………………..................

APPENDIX……………………………………………...............................

RETAIL BUSINESS PLAN SUMMARY………………………………..

REFERENCE……………………………………………...........................

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
2
EXECUTIVE SUMMARY

A clothing company is a business that designs, manufactures, and sells clothing items to

consumers. These companies can range from small, independent brands to large multinational

corporations. Clothing companies typically offer a range of products including casual wear,

formal wear, activewear, and accessories like bags, shoes, and jewelry.

The fashion industry is highly competitive, and clothing companies need to stay on top of

the latest trends and consumer preferences to remain successful. Many clothing companies

employ fashion designers, pattern makers, and other professionals to create new designs and

collections.

In addition to design and production, clothing companies also need to manage their

supply chains, marketing and advertising, and distribution channels. They may sell their products

through their own retail stores, e-commerce websites, or through third-party retailers.

Clothing companies are an important part of the global economy, employing millions of

people and generating billions of dollars in revenue each year. They play a significant role in

shaping the way people dress and express themselves through fashion.

C&A is a multinational retail clothing company with European head offices in Vilvoorde,

Belgium, and Düsseldorf, Germany. The company operates approximately 1,300 stores in

Europe and approximately 300 stores in Brazil, as well as websites for online shopping. It offers

affordable clothing for men, women, and children through its physical retail stores across

Europe, China, Mexico, and Brazil, as well as its online platform. C&A is one of Europe's

leading fashion retailers, with over 25,000 employees and about two million visitors to its stores

in Europe every day. The company's goal is to have half of its sales come from online channels

by 2026. C&A also licenses the C&A name for use in other countries.

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
3
C&A offers a variety of clothing for men, women, and children at affordable prices. The

company offers quality fashion for the whole family, including ready-to-wear clothing for

everyday people. C&A's website offers online shopping, and the company is dedicated to making

shopping for clothes easy and convenient. The website does not provide specific information

about the types of clothing offered, but it is safe to assume that C&A offers a wide range of

clothing types, including business attire and casual wear.

COMPANY ANALYSIS

C&A specialized in outerwear for ladies, maids and girls. Within a few years,

however, the word ‘maids’ was dropped from C&A’s advertising and millinery had

become an important new line (hence the nickname Coats’n’Ats). When a second

London branch opened in the old Hyam’s building on Oxford Street in 1925 it was

briefly called ‘Canada’, just in case the market could not sustain two C&A branches so

close together. But that pretense was dropped in 1927. With passion and authenticity, it is

our common claim to give our consumers fun in fashion and trends and to make their lives more

beautiful and easier through our range of goods and services. Our long-standing co-workers in

the stores take care of everyone's satisfaction. Our path into the future is characterized by

constantly changing market conditions in times of digital change and the resulting increase in

customer expectations as well as a growing awareness of a more sustainable way of life. The

customers may choose different ways of payment in the stores, be it with debit or credit cards,

gift certificates, cash or even Apple Pay and Google Pay.

C&A is making shopping for clothes easy and convenient. We are adding to our 1,300

general and specialty stores throughout Europe. Additionally, we are evolving the look and

layout of existing stores with a welcoming, light and modern touch. As our customer needs have

Leading Innovations, Transforming Lives, Building the Nation

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BATANGAS STATE UNIVERSITY
The National Engineering University
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4
evolved, we are assisting our customers who prefer to shop at home 24/7. The C&A online shop

has become very popular as a source of the right clothing for every occasion and is available in

more and more countries all the time. C&A is also expanding globally and currently has a large

number of stores outside of Europe: Stores are the backbone of C&A. Therefore, we have

modernized a first wave of 400 stores across Europe by the end of 2021.

Since then our consumers find an exciting shopping experience, where our products and a

modern corporate identity (CI) go hand in hand with a focus on customer service as well as our

omni-channel offer.

● When and why did you start the business?

Fashion retailing involves the buying and selling of fashion products, such as clothing,

footwear, accessories, and beauty products, through physical or online stores. The fashion retail

industry is highly competitive, dynamic, and constantly evolving to keep up with changing

trends and consumer preferences. Individuals or companies may start a fashion retailing business

for various reasons, such as a passion for fashion, identifying a gap in the market, a desire to

offer unique and innovative products, or to fulfill a need or demand in the market. Some may

also see it as a profitable business opportunity or a way to enter the fashion industry.

Starting a fashion retailing business requires careful planning, market research, financial

investment, and a strong understanding of the target audience, competition, and the overall

fashion industry. Success in the fashion retail industry often requires a combination of creativity,

marketing strategies, efficient operations, and a customer-centric approach.

● What milestones have you achieved to date? Milestones could include sales goals

you've reached, new store openings, etc.

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Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
5
C&A Mode is a fashion retailing industry. Here are some milestones achieved by C&A Mode to

date:

● In 1941, C&A began advertising on the radio and developing labels

● In 1948, C&A initiated self-service

● In 1952, C&A opened its first store in the USA

● In 1960, C&A began offering clothing for small children in a separate department

● In 1963, C&A opened its first store in Belgium

C&A has adapted to changing consumer trends in the fashion industry by focusing on

sustainability and innovation. In 2021, C&A inaugurated its Factory for Innovation in Textiles in

Germany with the aim of developing more sustainable products and increasing local production.

The company has also been offering affordable clothing for men, women, and children through

its physical retail stores across Europe, China, Mexico, and Brazil, as well as its online platform.

C&A has been leveraging data on consumer trends to create products that meet their needs. The

company has also been taking steps to reduce its carbon emissions and become more

environmentally friendly.

● Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole

proprietorship?

C&A Mode GmbH & Co KG (C&A), a subsidiary of Cofra Holding AG, is a specialty

fashion apparel retail chain operator. The company offers a wide range of products for women,

men, and children. Its product portfolio includes fashion apparel, jackets, gloves, lingerie, suits,

leather belts, hooded tops, caps, leather ankle footwear, swimwear, sportswear, maternity wear,

fashion and lifestyle accessories, jewelry, jeans, woven scarves and trousers. The company

markets all of its products under brand names of Yessica, Your Sixth Sense, Angelo Litrico,

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BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
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6
Westbury, Canda, Clockhouse, Palomino, Here & There, Rodeo Sport and Babyclub. It also

provides online shopping services through regional websites in various countries. The company

has presence in Brazil, Europe, Mexico, and China. C&A is headquartered in Dusseldorf,

Germany.

Legal Information- C&A MODE GMBH & CO. KG

Type Headquarters

Year Establish 1911

Legal Form GmbH & Co. KG

Activity (NAC08) Retail sale of clothing in specialized stores

(4771)

Firmenbuchnummer HRA 6237 Düsseldorf

VAT no DE121280555

No employees More than 5000 Employees

INDUSTRY ANALYSIS

As if being incorporated for over 180 years weren’t remarkable enough, the company’s

origins in textiles run much deeper – its relationship with clothing dates back as far as the 1600s.

And not only has it lived through the prosperous and turbulent times of the centuries in between,

C&A has also helped to define the way people choose and buy their clothes. Still family owned

after six generations, C&A continues to adapt and innovate, just as it did when brothers Clemens

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Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
7
and August Brenninkmeijer (the C and A behind the company’s name) set out in 1841 to make

their names. Today C&A is still managed as a family company that is just as committed to its

customers as it was in 1841. The pioneering spirit that drove the company's founders in the 19th

century is still helping to transform the fashion industry to not just do less bad, but good.

In the 19th century at the height of the industrial revolution, C&A revolutionized an

industry and created a new market of vast potential by offering affordable fashion. In 1841, the

two serious-minded brothers, still only in their early 20s and armed with a loan from their father,

founded their own linen and cotton fabric business – C&A Brenninkmeijer – in the town of

Sneek. Living above the stockroom, they served the local community, carrying their quality

wares from farm to farm. Hardworking and principled, the young men earned reputations as

trustworthy and reliable. Needing to establish a retail location in town, the first store was opened

in 1860 – marking the beginning of C&A as we now know it. The rest, as they say, is history.

The advent of the sewing machine brought with it an era of ready-to-wear clothes, and C&A

soon offered these in a range of different sizes. This concept proved extremely popular with

customers. A new store opened in nearby Leeuwarden in 1881, then another in Amsterdam in

1893. A second shop in Amsterdam followed in 1896. By this point Clemens and August had

passed the business on to the next generation, who now contributed their own entrepreneurial

ideas, selling ready-made ladies’ coats at the cost of a worker’s average weekly wage. This may

sound expensive today, but it was only a third of the price of the cheapest coat then sold by other

shops.

CUSTOMER ANALYSIS

The customer analysis conducted by C&A Mode highlights a few key points. To

begin with, they have a diverse customer base that includes people of all ages and

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
8
genders. C&A Mode's target demographic consists primarily of middle-income

individuals and families who are budget-conscious while remaining stylish and

fashionable.

C&A Mode has a strong following due to its low prices, high-quality products, and

excellent customer service. They collect customer feedback on a regular basis in order to

improve their products and services. They also have a loyalty program in place to reward repeat

customers.

C&A Mode has a strong online presence, which has assisted them in reaching a larger

customer base. They have an e-commerce website that allows customers to shop online, making

it easier for those who are unable to visit their physical stores. They've also been active on social

media platforms like Instagram, Facebook, and Twitter, allowing them to communicate with

customers and showcase their products.

Overall, C&A Mode's customer analysis emphasizes the importance of low prices,

high-quality products, and excellent customer service in retaining customers. C&A Mode has

been able to retain and attract new customers by listening to customer feedback and improving

their services.

COMPETITIVE ANALYSIS

Mode is up against stiff competition in the fashion industry, particularly from Zara,

H&M, and Forever 21, to name a few. These companies sell products similar to C&A Mode's but

at a lower price. C&A Mode is positioned as a mid-range fashion retailer, primarily targeting

budget-conscious shoppers looking for trendy and affordable clothing. However, their

competitors may offer a wider range of price points, giving customers more options. In terms of

product offerings, C&A Mode has clothing and accessories for men, women, and children. They

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
9
distinguish themselves from some of their competitors by emphasizing sustainability and ethical

practices. However, Zara, H&M, and Forever 21 have recently introduced more sustainable

collections. C&A Mode also competes with online retailers like ASOS and Zalando, which offer

a broader selection of products and a more convenient shopping experience.

C&A Mode serves a wide range of customers with different styles and preferences. They

offer clothing for men, women, and children of all ages, and their collections cater to different

tastes and occasions. Whether you're looking for something casual, stylish, or classic, C&A

Mode has something for everyone. They also offer a variety of sizes, ensuring that everyone can

find something that fits them perfectly. Tops, dresses, slacks, skirts, coats, and other apparel

items are available at C&A Mode for men, women, and children. They also sell accessories such

as bags, hats, scarves, and gloves to round out your look. C&A Mode has a sustainable collection

produced from organic cotton, recyclable materials, and other eco-friendly fabrics in addition to

their usual apparel line. They are committed to decreasing their environmental effect and

providing clients with sustainable fashion options. The prices of C&A Mode vary depending on

the product and collection. In general, their pricing are reasonable and competitive with those of

other fashion merchants. They have a variety of prices to suit different budgets, and they

frequently have promotions and special deals to make their products even more affordable.

Furthermore, due to the usage of eco-friendly materials, their sustainable selection may have

slightly higher cost. C&A Mode attempts to provide high-quality apparel at reasonable pricing.

C&A Mode is well-known for offering a diverse selection of high-quality apparel for men,

women, and children. They specialize at providing fashionable and trendy clothing at reasonable

prices, making fashion accessible to everybody. Their sustainable collection is especially notable,

since they are dedicated to lowering their environmental effect and providing eco-friendly

fashion options to their clients. Furthermore, C&A Mode offers exceptional customer service,

and their trained team can help consumers select the appropriate item. Overall, C&A Mode

excels at providing affordable, trendy, and environmentally friendly fashion options, as well as

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
10
exceptional customer service. It is critical to remember that each organization has its unique set

of strengths and shortcomings. C&A Mode may have a drawback in that they do not have as

much brand recognition as some other fashion retailers, which may make it difficult for them to

acquire new customers. Another potential problem is that they may not have as many physical

locations as other shops, which may make their products more difficult to access for some

customers. It is crucial to remember, however, that these are only possibilities and may not

accurately reflect the company's current status.

MARKETING PLAN

Product: To appeal to ecologically sensitive customers, C&A Mode can concentrate on

establishing sustainable clothing lines. They can also launch new patterns and styles to keep up

with the newest fashion trends and establish a distinct company identity. C&A Mode can also

perform market research to find specific client demands and design goods to meet those needs.

Tops, dresses, slacks, skirts, coats, and other apparel items are available at C&A Mode for men,

women, and children. They also sell accessories such as bags, hats, scarves, and gloves to round

out your look. C&A Mode has a sustainable collection produced from organic cotton, recyclable

materials, and other eco-friendly fabrics in addition to their usual apparel line.

Price: C&A Mode conducts a competitive analysis to identify the average market price

for similar products before setting prices. They can then adjust their prices to entice clients. C&A

Mode can also use discounts and promotions to boost sales during slow times, or they can use

premium pricing techniques to establish themselves as a higher-end brand and create a sense of

exclusivity.

Place: C&A Mode can establish retail stores in strategic locations where their target

audience frequently shops. They can also expand their online presence through social media,

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
11
e-commerce platforms, or mobile applications to reach a wider audience. Finally, partnering with

other retailers can help C&A Mode increase their distribution reach.

Promotion: C&A Mode can utilize different advertising channels such as television,

billboards or print media, sponsor events, collaborate with influencers or celebrities in the

fashion industry to promote products, or offer giveaways and contests to increase brand

awareness and engagement. The following are some promotional methods that we might

consider:

● Social media marketing

● Advertising using broadcast media ( television, radio )

● Flyers and Poster

● Banners ad at local venues

● Advertising using print media ( newspapers,magazines )

● billboards

● Digital advertising

● press advertising

● direct mail

● search engine optimization ( SEO )

● Social media website

OPERATION PLAN

At C&A, we want to bring sustainability to the mainstream. We want our customers to

trust us to do the right thing, so they can buy our products confident that they were made

transparently and with respect for people and the environment. Ultimately, we want our

customers to join our call to action through #WearTheChange.

Leading Innovations, Transforming Lives, Building the Nation

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BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
12
We are coming to the end of our first 5-year sustainability strategy, which will close at the

end of February 2021. This initial strategy was developed with an aim of embedding

sustainability across our business and increasing our sustainability leadership in retail markets.

Along with creating this global alignment throughout C&A on our top-level aspirational goals,

we also provided flexibility in how the goals are achieved in our retail markets, to meet local

needs and to drive innovation. Over 2019 and 2020, we have been working on our next

sustainability strategy, which will focus even more on connecting with our customers and

engaging our employees.

Sustainable Products

We don’t want our customers to have to choose between what’s sustainable and what’s

not. To achieve this, we are making sustainability an integral part of how we design and source

our clothing. We focus on sustainable materials – especially cotton, one of our largest raw

materials – and ensure that our clothing has been sourced and made in a way that respects

people, the environment, and animals.

Sustainable Supply

The apparel supply chain is complex. C&A’s encompasses around 1 million people,

employed through 635 global suppliers, with more than 1,700 production units. That means our

supply chain — beginning with agriculture — accounts for a significant proportion of our

footprint: for example, 90% of our water footprint. This is why our emphasis on the supply chain

is so important. We focus many of our efforts on sustainable agriculture, drive social and

environmental performance in our supply chain, and apply innovation to revolutionize the

production system.

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
13
Sustainable Lives

C&A is a global retail fashion company that touches the lives of about 51,000 employees,

1 million apparel workers, and millions of customers each year. What we do and the way we do

it has a large impact on many different groups of people. That is why we focus on empowering

our customers to make more sustainable shopping decisions, support the livelihoods of workers

in our supply chain, and engage our employees as sustainability ambassadors.

MANAGEMENT TEAM

Giny Boer

Chief Executive Officer (CEO)

Languages

English, German, Dutch, Italian, French, Spanish

About Giny Boer

since January 2021: C&A

Chief Executive Officer, Düsseldorf, Germany

December 1995 - March 2019: IKEA

Multiple senior management roles:

General Manager Retail Southern + Eastern Europe

Country Retail Manager, Austria

Distribution + Service Manager, Western Europe

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
14
Deputy Store Manager, IKEA DELFT

University of Groningen

Bachelor’s and master’s degree in Development Psychology

Hanze Hogeschool, Groningen

Bachelor’s degree in Economics

Birgit Kretschmer

Chief Financial Officer (CFO)

Languages

English, German, Spanish

About Birgit Kretschmer

since January 2021: C&A

Chief Financial Officer, Düsseldorf, Germany

1994 - December 2020: adidas

Global experience in Finance and Retail:

Member of Supervisory Board and Chair of Audit Committee,

SVP Corporate & Supply Chain Finance,

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
15
VP Finance Western Europe,

Head of PMO Global eCommerce,

Head of Reebok Controlling, Central Europe, adidas AG

Chief Financial Officer, adidas International BV, Amsterdam

Group Treasury, adidas-Salomon AG

University of Nuremberg

Degree in Business Administration

Jason Morgan

Chief Operating Officer (COO) and Chief Commercial Officer (CCO)

Languages

English, Business level Japanese, learning Dutch

About Jason Morgan

Since 2022: C&A

COO /CCO / Member of the Board of Management , Düsseldorf, Germany

2019-2022

Chief Merchandising Officer Pandora Global

University of Virginia

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
16
Bachelor of Science (BS) Foreign Affairs & Women’s Studies

Suzanne McKenna

Chief Range and Sustainability Officer (CRSO)

Languages

English

About Suzanne McKenna

since April 2022: C&A

CRSO Member of the Board of Management, Düsseldorf, Germany

Former roles

Managing Director at Clarks Shoe Company

Global Head of Brand at Triumph AG

Degrees

Bachelor of Arts with HONS Fashion Marketing

Postgraduate CIM UK

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
17
FINANCIAL PLAN

We have audited the individual and consolidated financial statements of C&A Modas

S.A. (“Company”), identified as Parent Company and Consolidated, respectively, which

comprise the statement of financial position as at December 31, 2019 and the statements of

operations, comprehensive income (loss), changes in equity and cash flows for year then ended,

and notes to the financial statements, including a summary of significant accounting policies.

The accompanying financial statements present fairly, in all material respects, the individual and

consolidated financial position of C&A Modas S.A. as at December 31, 2019, and its individual

and consolidated financial performance and cash flows for the year then ended in accordance

with the accounting practices adopted in Brazil and with the International Financial Reporting

Standards (IFRS) issued by the International Accounting Standards Board (IASB). Basis for

opinion We conducted our audit in accordance with Brazilian and International Standards on

Auditing. Our responsibilities under those standards are further described in the ‘Auditor’s

responsibilities for the audit of the individual and consolidated financial statements’ section of

our report. We are independent of the Company and its subsidiary and in accordance with the

relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the

professional standards issued by the Brazilian National Association of State Boards of

Accountancy (“CFC”) and we have fulfilled our other ethical responsibilities in accordance with

these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the financial statements of the current period. These matters were

addressed in the context of our audit of the individual and consolidated financial statements as a

whole, and in forming our opinion thereon, and we do not provide a separate opinion on these

matters. For each matter below, our description of how our audit addressed the matter, including

any commentary on the findings or outcome of our procedures, is provided in that context.

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The National Engineering University
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18
We have fulfilled the responsibilities described in the “Auditor’s responsibilities for the

audit of the individual and consolidated financial statements” section of our report, including in

relation to these matters. Accordingly, our audit included the performance of procedures

designed to respond to our assessment of the risks of material misstatement of the financial

statements. The results of our audit procedures, including the procedures performed to address

the matters below, provide the basis for our audit opinion on the accompanying financial

statements. Recoverability of deferred income and social contribution tax assets As disclosed in

Note 13, the Company has recorded deferred income and social contribution tax assets in the

amount of R$405,289 thousand at December 31, 2019, computed on temporary differences and

income and social contribution tax losses carry forward. The Company evaluated the

recoverability of deferred income and social contribution tax assets based on projections of

taxable profits. We consider this to be a key audit matter since this evaluation involves a high

degree of professional judgment by Management based on assumptions and criteria used in

determining the projections of taxable profits, which are affected by future market expectation

and economic conditions. How our audit conducted this matter Our procedures included, among

others, the engagement of subject matter experts in valuation and taxes to assist us in assessing

the assumptions and methodology used by the Company, in particular those related to the

projections of future taxable profits and discount rates to present value of such projections.

Projections of future taxable profits were prepared based on the Company's business plan, which

was approved by the Management’s bodies. We also evaluated the appropriateness of the

disclosures related to this matter in

Based on the result of the audit procedures performed on the recoverability of deferred

income and social contribution tax assets, which is consistent with Management’s assessment,

we consider that the criteria and assumptions adopted by Management, as well as the related

disclosures in Note 13 are acceptable in the context of the financial statements taken as a whole.

Tax contingencies The Company is party to administrative and judicial proceedings arising from

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
19
various tax disputes, whose provision as at December 31, 2019 was R$179,919 thousand, as

disclosed in Note 20. The assessment of the probability of loss and the measurement of the

provision to cover the probable losses require judgment by the Company’s management, which

relies on the opinions of its internal and external legal advisors. Changes in the assumptions used

by the Company, which are the basis for exercising this judgment or on external factors,

including the positioning of the tax authorities and courts, may significantly impact the

individual and consolidated financial statements of the Company. Additionally, as of December

31, 2019, the Company is party to tax discussions totaling R$306,439 thousand, as disclosed in

Note 20.3, which are not recorded in the financial statements due to Management assessment

supported by its external and internal legal advisors, which has been assessed the likelihood of

loss as possible.

APPENDIX

C&A announced 2Q20 revenue Total net revenue was R$1,175.6 million, 299.2% higher

than in 2Q20, it was 6.7% lower than 2Q19; Same-store sales were 303.9% higher than in 2Q20;

Investment in 2Q21 totaled R$141.6 million, a 212.6% increase. Retail giant C&A is pairing up

with online pre-owned fashion platform Carou for a partnership to sell second-hand clothing.

C&A Modas S.A. (“Company”), identified as Parent Company and Consolidated, respectively,

which comprise the statement of financial position as at December 31, 2019 and the statements

of operations, comprehensive income (loss), changes in equity and cash flows for year then

ended, and notes to the financial statements, including a summary of significant accounting

policies.

The accompanying financial statements present fairly, in all material respects, the

individual and consolidated financial position of C&A Modas S.A. as at December 31, 2019, and

its individual and consolidated financial performance and cash flows for the year then ended in

accordance with the accounting practices adopted in Brazil and with the International Financial

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
20
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

Basis for opinion We conducted our audit in accordance with Brazilian and International

Standards on Auditing.

RETAIL BUSINESS PLAN SUMMARY

A clothing company is a business that designs, manufactures, and sells clothing items to

consumers. They can range from small, independent brands to large multinational corporations.

C&A is a multinational retail clothing company with European head offices in Vilvoorde,

Belgium, and Düsseldorf, Germany. It operates 1,300 stores in Europe and 300 stores in Brazil,

as well as websites for online shopping. It offers affordable clothing for men, women, and

children at affordable prices. C&A also licenses the C&A name for use in other countries. C&A

offers quality fashion for the whole family, including ready-to-wear clothing for everyday

people. The company's website offers online shopping, and the company is dedicated to making

shopping for clothes easy and convenient.

C&A specialized in outerwear for ladies, maids and girls, but within a few years, the

word ‘maids’ was dropped from their advertising and millinery had become an important new

line (hence the nickname Coats’n’Ats). When a second London branch opened in the old Hyam’s

building on Oxford Street in 1925, it was briefly called ‘Canada’, but that pretense was dropped

in 1927. C&A is making shopping for clothes easy and convenient by adding to their 1,300

general and specialty stores throughout Europe, evolving the look and layout of existing stores

with a welcoming, light and modern touch, and assisting customers who prefer to shop at home

24/7. C&A is also expanding globally and currently has a large number of stores outside of

Europe, and has modernized a first wave of 400 stores across Europe by the end of 2021.

Customers find an exciting shopping experience, where our products and a modern corporate

identity (CI) go hand in hand with a focus on customer service and our omni-channel offer.

Fashion retailing involves the buying and selling of fashion products, such as clothing, footwear,

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
21
accessories, and beauty products, through physical or online stores. It is highly competitive and

dynamic, and requires careful planning, market research, financial investment, and a strong

understanding of the target audience, competition, and the overall fashion industry. C&A Mode

GmbH & Co KG (C&A) is a specialty fashion apparel retail chain operator. It offers a wide

range of products for women, men, and children, and markets all of its products under brand

names of Yessica, Your Sixth Sense, Angelo Litrico, Westbury, Canda, Clockhouse, Palomino,

Here & There, Rodeo Sport and Babyclub. It also provides online shopping services through

regional websites in various countries. C&A is headquartered in Dusseldorf, Germany.

C&A Brenninkmeijer is a company that has been incorporated for over 180 years and has

helped to define the way people choose and buy their clothes. It was founded by brothers

Clemens and August Brenninkmeijer in 1841 and is still family owned after six generations. In

the 19th century, C&A revolutionized an industry by offering affordable fashion by offering

ready-to-wear clothes in a range of different sizes. The advent of the sewing machine brought

with it an era of ready-to-wear clothes, and C&A soon offered these in a range of different sizes.

By this point, Clemens and August had passed the business on to the next generation, who now

contributed their own entrepreneurial ideas, selling ready-made ladies’ coats at the cost of a

worker’s average weekly wage. This was only a third of the price of the cheapest coat then sold

by other shops.

C&A Mode has a diverse customer base that includes people of all ages and genders.

Their target demographic consists primarily of middle-income individuals and families who are

budget-conscious while remaining stylish and fashionable. C&A Mode has a strong following

due to its low prices, high-quality products, and excellent customer service. They collect

customer feedback on a regular basis to improve their products and services, and have a loyalty

program in place to reward repeat customers. C&A Mode has a strong online presence, with an

e-commerce website and social media platforms. Overall, C&A Mode's customer analysis

emphasizes the importance of low prices, high-quality products, and excellent customer service

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
22
in retaining customers. They have been able to retain and attract new customers by listening to

customer feedback and improving their services.

C&A Mode is a mid-range fashion retailer, primarily targeting budget-conscious

shoppers looking for trendy and affordable clothing. They distinguish themselves from some of

their competitors by emphasizing sustainability and ethical practices. C&A Mode also competes

with online retailers like ASOS and Zalando, which offer a broader selection of products and a

more convenient shopping experience. C&A Mode serves a wide range of customers with

different styles and preferences, offering clothing for men, women, and children of all ages, and

their collections cater to different tastes and occasions. They also sell accessories such as bags,

hats, scarves, and gloves. C&A Mode has a sustainable collection produced from organic cotton,

recyclable materials, and other eco-friendly fabrics in addition to their usual apparel line. C&A

Mode is a fashion retailer committed to decreasing their environmental effect and providing

clients with sustainable fashion options. Their prices are reasonable and competitive with those

of other fashion merchants, and they frequently have promotions and special deals to make their

products even more affordable. They also offer exceptional customer service, and their trained

team can help consumers select the appropriate item. However, C&A Mode may have a

drawback in that they do not have as much brand recognition as some other fashion retailers, and

they may not have as many physical locations as other shops. It is important to remember that

these are only possibilities and may not accurately reflect the company's current status.

Leading Innovations, Transforming Lives, Building the Nation

Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
JPLPC Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: [email protected] | Website Address: http://www.batstate-u.edu.ph
23
REFERENCES

https://buildingourpast.com/category/ca-modes/

https://logos-world.net/ca-logo/

https://www.encyclopedia.com/books/politics-and-business-magazines/ca

https://ri.cea.com.br/en/a-companhia/history/

https://en.m.wikipedia.org/wiki/C%26A

https://www.c-and-a.com/eu/en/corporate/company/about-ca

https://www.marketresearch.com/MarketLine-v3883/Mode-GmbH-KG-Strategy-SWOT-3

238759/

https://sustainability.c-and-a.com/uk/en/sustainability-report/2019/our-approach/our-strat

gy/

Equity | C&A corporate website (c-and-a.com)

https://www.c-and-a.com/eu/en/corporate/company/about-ca/our-european-management-

am

C&A Financials | Fashionbi

Leading Innovations, Transforming Lives, Building the Nation