Case Synopsis, Uses, Discussion Questions, and Answers
8
CASE 2
excess inve In 2004, the company had 30 stores and is
currently on a tremendous growth trajectory with 219 stores and counting. The company
has an ambitious goal to reach to 950 stores across the United States in the coming years.
Uses:
Chapter 1 Retail management decision making
Discussion Questions:
1. Per
Why or why not?
Strengths
Recession-resistant concept
Weaknesses
Customers might want to trade-
up from
Opportunities
Plenty of new geographic markets to
whic
Threats
Competitors such as Big Lots, Family
Dollar, TJX, and others sell similar
Investment Pros:
The retailer is on a strong growth trajectory and has plenty of room for expansion.
Case Synopsis, Uses, Discussion Questions, and Answers
9
Investment Cons:
there to be
customers would likely be tightening their belts and trimming down the purchases they make
2.
Core Target Market:
Middle to lower-middle income households
Often do-it-
Secondary Target Market:
Middle to upper-middle income
Better educated
Similarities:
Bargain orientation
Differences:
Case Synopsis, Uses, Discussion Questions, and Answers
10
The core target comes there because they need to shop at a store such as Ol –
3.
As Compa
Has a bare- .
Is more self-
store, offers its own credit card, and caters to .
Both sell end-of-season merchandise, overstocks, and discontinued goods.
Both have a treasure hunt environment.
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