NOTES:
CASES SYNOPSIS, USES, DISCUSSION QUESTIONS, AND
ANSWERS
Uses of Cases
CASE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
1. Making Macy’s
Meaningful: Moves by
the Retail Chain to
Maintain Its
✓
✓
✓
3. Tractor Supply
Company Targets the
Part-Time Rancher
✓
✓
✓
✓
✓
4. Build-a-Bear
Workshop: Where Best
Friends Are Made
✓
✓
5. Blue Tomato:
Internationalization of
a Multichannel Retailer
✓
✓
7. Remixing a Green
Business: The Green
✓
✓
✓
✓
8. Ashley Stewart
✓
✓
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Making Process for
10. Home Depot:
Opportunities and
Challenges in China
✓
11. Parisian Patisserie
“Maison Ladurée” Goes
Global
✓
✓
✓
✓
12. Retailing in India:
The Impact of
Hypermarkets
✓
✓
✓
✓
13. Diamonds from
Mine to Market
✓
✓
✓
✓
14. Starbucks’s
Expansion into China
✓
✓
✓
✓
15. Tiffany and TJX:
Comparing Financial
Performance
✓
16. Choosing a Store
Location for a
Boutique
✓
17. Hutch: Locating a
New Store
✓
18. Avon Embraces
Diversity
Comparison between
France and the United
✓
✓
✓
States
20. Attracting
Generation Y to a
Retail Career
✓
Analyzes Its Customer
Database
✓
22. Mel’s Department
Store under New
Management
✓
Merchandise Budget
✓
Plan
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
25. Kroger and Fred
Meyer: Sourcing
Products in a Global
Marketplace
✓
26. American
Furniture Warehouse
Sources Globally
✓
✓
27. How Much for a
Good Smell?
✓
Technology
29. Promoting a Sale
✓
30. Target Marketing
with Google AdWords
✓
31. Diamond in the
Rough
✓
32. A Stockout at
Discmart
Management at
Nordstrom
✓
✓
34. Zipcar: Delivering
Only as Much Driving
as You Want
✓
35. A Musical
Quandary in an Italian
Restaurant
✓
36. Yankee Candle:
Product Management
and Innovation
✓
✓
✓
Position
Introduction to Case Analysis
Case Analysis and Presentation Suggestions
• Case situations can be one of the most effective instructional methods for enhancing student
involvement and stimulating understanding of retailing management concepts.
• When evaluating cases, students should address the following areas:
1. background of the situation, including organizational factors and the external
environment,
2. the various concerns, issues, and problems evident in the situation,
3. the main area of concern (main problem),
• As students prepare cases for class discussion and for written assignments, they should
consider the following:
1. carefully evaluate all information presented in the case,
2. list all possible problems and concerns, being sure to look at causes of the problem area,
not symptoms,
• For students to fully benefit from a case analysis assignment, they must PREPARE and
PARTICIPATE in the discussion.
Case Method Teaching Resources
• The following instructional reference materials regarding the case method are available from
1. Hints for Case Teaching (copy available upon request),
2. Teaching and the case method (Christensen & Hansen),
3. Instructors Guide to Teaching and the Case Method (Christensen, Hansen & Moore)
4. Note to Beginning Case Method Teachers (Christensen).
CASE 1 – Making Macy’s Meaningful: Moves by the Retail Chain to
Maintain Its Competitiveness
Synopsis: After surprising sales declines in 2016 and 2017, Macy’s developed a new strategy, to
build on its current strengths and engage with new retail options. The strategy involves
expanding its omnichannel presence, pursuing the Millennial target market, and entering
into a new partnership with Best Buy.
Uses:
Chapter 3 Multichannel and omnichannel retailing
Chapter 4 Market segmentation
Discussion Questions:
1. What is Macy’s plan to attract Millennials?
• Macy’s has implemented a $400 million renovation effort for its flagship New York City
store, testing out various options that might attract more of the cohort of shoppers between
the ages of 18 and 35 years. The basement level of this massive store is a newly designated
“One Below” section that offers a notably different shopping experience.
2. How is Macy’s positioned in the fashion market? Who are its main competitors, and how
well does it compete against them?
Macy’s midrange position in the fashion market seeks to offer good quality at reasonable price
points. It offers a wide range of name-brand and exclusive products at prices lower than those
charged by designer stores but higher than discount retailers. Its main competitors include other
3. Who are Macy’s target markets? In which targets is it winning, and in which is it losing?
Why?
Traditionally, Macy’s has targeted Baby Boomers, but declining sales prompted it to target
Millennials. It continues to attract Baby Boomers though, with its reasonable prices and wide
variety of merchandise; these shoppers tend to have more disposable income and more time to
4. Perform a SWOT analysis for Macy’s.
Strengths: Great online presence and in-store technologies, wide variety of merchandise, great
reputation and presence among the Baby Boomer generation.
Weaknesses: Insufficient on-duty sales personal, messy stores, outdated image among Millennials
5. Do you shop at Macy’s? Why or why not
Students’ answers will vary.
Back to cases
CASE 2 – Find “Good Stuff Cheap” at Ollie’s Bargain Outlet
Synopsis: Ollie’s Bargain Outlet describes itself as “one of America’s largest retailers of closeouts,
excess inventory, and salvage merchandise.” 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. Perform a SWOT analysis for Ollie’s. If you were able to invest in Ollie’s, would you?
Why or why not?
Strengths
• Recession-resistant concept
• Experienced team of buyers
Weaknesses
• Customers might want to trade-up from
this retailer when they feel they can
Opportunities
• Plenty of new geographic markets to
which Ollie’s could expand
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
• Ollie’s concept appeals to budget-conscious Americans, reputedly most of the U.S.
population.
Investment Cons:
• Many of the goods Ollie’s sells are discretionary. Were there to be another recession, Ollie’s
customers would likely be tightening their belts and trimming down the purchases they make
there.
2. Describe Ollie’s target markets. How are they similar? Different?
Core Target Market:
• Middle to lower-middle income households
• Often do-it–yourselfers (DIY’ers)
• Shops Ollie’s before venturing into more expensive retailers
Secondary Target Market:
• Middle to upper-middle income
• Better educated
Similarities:
• Bargain orientation
• A willingness to try less familiar brands, flavors, and types of merchandise
Differences:
• The core target comes there because they need to shop at a store such as Ollie’s. Higher–
end secondary customers venture in because they’re looking for treasure hunt finds.
3. Compare Ollie’s retailing strategy to Macy’s and to Marshall’s.
Ollie’s has more in common with Marshall’s than Macy’s.
As Compared to Macy’s, Ollie’s Bargain Outlet:
• Has a bare-bones environment; Macy’s shopping environment is more luxurious.
• Is more self-service oriented; Macy’s has more sales associates to assist customers in the
store, offers its own credit card, and caters to customers’ needs in a more overt fashion.
As Compared to Marshall’s, Ollie’s Bargain Outlet:
• Both sell end-of-season merchandise, overstocks, and discontinued goods.
• Both have a treasure hunt environment.
• Both sell items that may only appear once, adding to the urgency to “buy now.”
• Ollie’s has a more stripped-down retail atmosphere (bare concrete floors, hand-written
signs) with some merchandise sold out of cardboard displays. Marshall’s is a bit more
sophisticated with dressing rooms, finished flooring, and more organized check-out
lines.
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CASE 3 – Tractor Supply Company Targets the Part-Time Rancher
Synopsis: Tractor Supply Company (TSC) is a relatively large, but unknown retailer that targets
people seeking a rural lifestyle who operate farms or ranches as a hobby.
Uses:
Chapter 1 Illustration of a retailer with a unique target market
Chapter 2 Example of a specialty store retailer
Discussion Questions
1. What is Tractor Supply Company’s growth strategy? What retail mix does TSC provide?
TSC targets the hobby farmer/rancher, who are fully employed in jobs but want to enjoy a rural
lifestyle and operate a farm or ranch in exurbs of a city. The retail mix of TSC is:
• Location – stores are in stand-alone locations in commercial corridors in the exurbs
• Merchandise assortment – stock a wide variety of merchandise that provides everything
the hobby farmer/rancher needs. Probably shallow assortment.
2. How has TSC’s target customers changed over time?
Originally targeted full-time farmers but as the farming industry consolidated, the large farms
3. How does TSC’s retail mix provide the benefits sought by its target market?
Stores are located near the rural communities where the target market lives. Extensive customer-
4. How vulnerable is TSC to competition? Why is this the case?
Not very vulnerable because the target segment is not price sensitive or very knowledgeable
5. Why does TSC place so much emphasis on training employees?
Customer service is critical because the customers in the target market may not be very
Back to cases
CASE 4 – Build-A-Bear Workshop: Where Best Friends Are Made
Synopsis: Build-A-Bear Workshop is a unique chain of over 400 stores where customers can build
their own teddy bears and, in general, obtain a novel and fun experience. The case
highlights the strategy and operations of a typical store and types of experiences enjoyed
by customers.
Uses:
Chapter 1 Provides a general overview of a unique retail concept.
Discussion Questions
1. Is the Build-A-Bear concept a fad, or does it have staying power?
Children’s fascination with huggable, stuffed animals, especially Teddy Bears, has only grown
over the past several decades. Build-A-Bear’s core emphasis is on the giving children an
environment of fun and play, while enabling them to create their own stuffed animal. Given
2. What can Build-A-Bear Workshop do to generate repeat visits to the store?
For repeat visits, consumers (in this case, children) must be exposed to something novel and
interesting during each visit. In Build-A-Bear’s case, this is already happening with frequent
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CASE 5 – Blue Tomato: Internationalization of a Multichannel Retailer
Synopsis: Blue Tomato is the leading European multichannel retailer for board sports and related
apparel. This case describes the different distribution channels adopted by the company,
as well as the internationalization of Blue Tomato’s business activities.
Discussion Questions
1. What strengths do the different distribution channels have from the company’s
perspective?
The advantage of traditional, brick-and-mortar stores is the close and direct contact they offer with
(potential) customers, a level of contact that aligns with Blue Tomato’s overall philosophy.
2. Which synergies has Blue Tomato created across different channels? What additional
actions might it take to become an omnichannel retailer?
In its brick-and-mortar stores, Blue Tomato has installed kiosks, which enable consumers to find
personalized information about special offers in particular stores, as well as log on to their Facebook
(or other social media) accounts to connect with their friends and ask for advice on, for example,
how the latest snow gear or street wear looks on them.
3. What key challenges remain for Blue Tomato in its efforts to coordinate these different
channels?
The key challenge for Blue Tomato is to provide a consistent face to customers across all contact
points. This demand requires not only that its customer orientation and commitment to providing
the best service gets implemented in all channels but also that elements such as prices,
communication, and merchandise management are standardized.
4. Which challenges might Blue Tomato face as it expands its business activities
internationally?
If the company decides to operate more brick-and mortar stores in foreign countries, it will need to
invest large sums of capital.
Regardless of whether it pursues internationalization through direct exports or investments, tackling
more markets could make it more difficult for Blue Tomato to follow a standardization strategy,
Back to cases
CASE 6 – Staples, Inc.
Synopsis: Staples operates in the highly competitive office products market. The office supply
category specialists, including Staples and Office Depot/OfficeMax, dramatically
changed the landscape of the office supply industry. Warehouse clubs, supermarkets, and
Uses:
Chapter 3 Multichannel and Omnichannel Retailing
Chapter 17 Customer Service
Discussion Questions
1. Assess the extent to which Staples has developed a successful multichannel strategy.
What factors have contributed to its success?
Staples faces several challenges in integrating its channels of distribution, though, most of which are
related to its Internet channel. First, it must consider the extent to which the Internet may
cannibalize its retail store sales. If overall sales are flat—that is, if online retailing only converts retail
store sales to Internet sales—Staples suffers increased overhead costs and poorer overall
2. What are the advantages and disadvantages of using kiosks as a part of its approach?
Students must evaluate both the pros and the cons of Staples’s in-store kiosks.
In-store kiosks offer customers more SKU options than the retail store carries and eliminate the
need to carry a lot of inventory at each location. However, Staples must persuade customers to use
3. How should Staples assess which SKUs to keep in its stores versus on the Internet?
The typical Staples retail store maintains approximately 8,000 stockkeeping units (SKUs), but
Staples.com offers more than 45,000 SKUs. Because a retail store cannot carry as much merchandise
4. How do the Staples Copy and Print centers differentiate it from the competition?
The Copy and Print centers allow Staples to offer value-added services. These centers enable
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CASE 7– Remixing a Green Business: The Green Painter
Synopsis: To make the case for launching a new green retail business, this case offers readers an
overview of some striking issues facing retailers in the green retailing movement in
today’s marketplace. Using the example of an innovative green retail paint shop, this case
Uses:
Chapter 4 Customer Buying Behavior
Chapter 12 Buying Merchandise
Discussion Questions
1. If you were starting a green business in the next five years, how would you design the
business model? What lessons could you learn from The Green Painter?
Visit successful green companies for ideas, develop a business plan that is flexible and reasonable,
2. Research current business practices being used in the food and retail industries in general
and report practices that would help you develop your business.
Answers will vary; students might start with businesses such as Patagonia, Walmart, Whole Foods,
Target, or Starbucks.
3. Do a SWOT analysis for this business based on the information provided in this case.
Strengths:
1. They have developed a unique green business.
2. Even in the early start-up phase, the business has developed brand loyalty, which is
increasing.
Weaknesses:
1. Customer preferences can change, and the business must continue to change to meet
customer needs and expectations.
2. Other competitors can enter the green market and underprice New Living.
3. Entrepreneurs often do not focus on research findings and adapt their offerings in a
timely manner.
Opportunities:
1. New Living has opportunities to expand its offering to other sources, e.g. Whole Foods,
Threats:
1. Competitors can copy the products and offer products at lower prices.
CASE 8 – Ashely Stewart
Synopsis: Ashley Stewart is a plus-size women’s apparel store that has had financial problems
in the past, but under new leadership is now thriving.
Uses:
Discussion Questions
1. What is Ashley Stewart’s retail format?
Ashley Stewart is a specialty store, selling apparel and accessories to a particular target market of
women.
2. Who is its target market? Could/should that target market be expanded?
The target market is plus-size, fashionable women looking for stylish clothing. Because it is
3. What are its bases for sustainable competitive advantage?
Ashley Stewart has a strong reputation for style and customer service. At the moment, it is nearly the
only brand targeting this segment. Accordingly, it has encouraged strong customer loyalty, and its
4. Perform a SWOT analysis for Ashely Stewart. If you were a potential investor, would you
invest in it? Why or why not?
Strengths: reputation, customer loyalty, charismatic leader. Weaknesses: history of bankruptcies,
substantial competition, struggles earning a profit. Opportunities: growing market, social media.
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