In 2016, Bed Bath & Beyond had the biggest market share of any home goods retailer in the country with over ten billion dollars in sales. The next closest in sales was Ikea with just under seven billion in sales (Statista, 2016). Bed Bath & Beyond seems to be doing things well; they have a great store set-up, a variety in products that appeal to every kind of buyer, and the supplier network to keep up with any increase in demand. However, there are some things Bed Bath & Beyond could do to improve sales. The first thing they could start with is their products. The U.S. economy as well as the other economies that Bed Bath & Beyond has stores in, Canada (Index of Economic Freedom: Canada, 2017), and Mexico (Index of Economic Freedom: Mexico, 2017), …show more content…
Another strategy they could use is small markups on other products to increase profit as well. They can also take a page out of a very successful competitors notebook in Ikea. Their store is laid out unlike any other. They have displays to give their customers ideas on how to decorate which usually leads to them buying more of their products to ensure that it turns out the way they want it. This could be very beneficial to Bed Bath & Beyond because their profits would see a significant increase due to this. Another competitor of Bed Bath & Beyond is Amazon. This company is an e commerce giant that has become very large in the past few years. Amazon has an enormous selection of products, from xbox ones to towels (Amazon, 2017). They have also started the use of Amazon prime. This is a service that allows its subscribers to has unlimited free two day shipping on any product compatible with it, as well as the ability to stream free movies, tv shows, and music (Amazon, 2017). This has been the biggest factor in the success of this
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
Overall the firm has maintained respectable net profits (Appendix A), only recently increasing its debt to repurchase stock and invest in the new online subscription (BBBY, 2016). A healthy balance between debt, capital, and a new dividend policy. Best Buy in acted a similar tactic, and “while it didn 't work immediately, it eventually helped the company fight back against e-commerce giants” (William, 2016). Bed Bath & Beyond is using a comparable strategy against Amazon and Wal-Mart. If it can successfully compete, while maintaining the 20% image customers have come to expect, invest in this stock today should double with three to five years while repeating increasing dividends that are sure to
maintaining a positive brand image. This store was already successful at a strong long-term location
Bed Bath & Beyond Inc. is a nationwide chain of 575 retail stores selling domestics merchandise (bed linens, bath items, and kitchen textiles) and home furnishings (kitchen and tabletop items, small appliances, and basic house wares). In 2003 Bed Bath and Beyond reported annual revenues (gross profit) of approximately $1.8 billion, net income of $339 million and net sales of $4.5 billion, representing 22% growth in revenue and 32% growth in income as compared to the previous year. In addition to the 575 Bed Bath and Beyond stores, BBBY also owns 30 Harmon Stores, a discount health, and beauty aid retailer, and 24 Christmas Tree Shops, a retailer of home décor, giftware, and seasonal merchandise. Results of operations for both the Harmon Stores and the Christmas Tree Shops are included in the companies consolidated results of operations and have been since the date of acquisition.
There are a number of smaller players but lack the public existence and retail footprint of their larger counterparts. With such high levels of market absorption, both HD and LOW enjoy high bargaining power with suppliers of goods. The two companies vary significantly in terms of the strategies they employ to compel consumer traffic. Home Depot centre of attention is customer service, while Lowe’s offers discounts to improve sales. Home Depot has determined on customer service as a driver to grow customer traffic and sales, Lowe has battled mainly on the basis of lower prices. Home Depot has a status for lesser prices and more pro-friendly impression where Lowe’s is trying to capture the traditional do-it-yourself customer by trying to appeal the female customer, who the company declares, is responsible for eighty percent of home improvement
In spite of the economic fluctuations, the bargaining power of customers has been steady, where Home Depot managed to gain the loyalty of its customers in the face of another strong competition such as Lowe’s and Rona. Home Depot also succeeded in maintaining low/moderate costs in order to lessen the move and switch of customers to other competitors.
Opening its doors for the first time in 1946, Lowe’s is now the second largest home improvement chain in the world, operating over 1,800 stores in the United States, generating $56.2 billion in sales and $2.6 billion in net income for 2014 (Lowes Newsroom, 2015). Employing around 265,000 personal making them one of the top employers in the nation, there is no question that Lowe’s must be doing something right. According to Lowes Newsroom, “Lowe’s professional customers represent approximately 30 percent of total sales, approximately 16 million retail and professional customers are served each week. (2015, para 3) “Never Stop Improving”, is Lowe’s slogan; encouraging employees and customers to work together to maximize their in store
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
What is needed and important to those on the East Coast is different than what is needed and important to those on the West Coast. They can also increase their loyalty program to entice their existing customers and potential customers to purchase from them. Another avenue that would be beneficial to pursue would be investing in their advertising
The constant renewal and the work to sustain culture that produces good products, employees, and customers has helped Home Depot maintain its competitive advantage and lead the retail building industry.
Historically, Dollar General operated in a highly price sensitive market segment, with 55% of its consumer base earning an average annual gross income of less than $40,000.[2] To attract these customers, Dollar General employed an Everyday Low Price strategy similar to Wal-Mart’s. Thus, keeping costs low and driving high traffic volumes were critical to the company’s financial success. Dollar General achieved this strategy in several ways, including keeping rents and labor costs low, locating in low-income, high traffic areas that offered consumers few substitutes, and offering a wide variety of popular CPG and white label goods.
In 2016, Bed Bath & Beyond had the largest market share of any home goods retailer in the country with over ten billion dollars in sales (Statista, 2017). The next closest in sales was Ikea with just under seven billion in sales (Statista, 2017). Bed Bath & Beyond appears to be thriving in some areas; they have an efficient store set-up, a variety of products that appeal to their multiple target markets, and the supplier network to keep up with any fluctuation in demand (Zacks Equity Research, 2017). However, there is a multitude of options that Bed Bath & Beyond can use to improve their sales. For example, they could begin by assessing their products and inventory since the economies of the countries that Bed Bath & Beyond has stores in are
Household and personal care product companies are making efforts to stimulate sales in a variety of ways, such as entering new markets, creating new product categories, adding new distribution channels, and acquiring (and divesting) businesses to be able to compete in this highly competitive industry.
It is time, at last, to speak the truth about toxic chemicals behind personal care and beauty products. The daily products of an average person consists of face wash, hand soap, shampoo, conditioner, floss, toothpaste, and deodorant. Surprisingly, all of these products listed contain toxic chemicals that are harmful to our body. If we use these products to maintain our hygiene, does that mean we are not clean without these products? For example, a common shampoo many people use is Head and Shoulders. However, do we know if the shampoo is cleaning our hair from beginning to end or is it damaging our hair? How often do you read the ingredients labeled on your personal care products and wonder if they are safe to use? More importantly, if you
While growing up, I realized the benefits a person has when they personally own their own business. You can make your own schedule, personally control your finances, and essentially have complete control of your business Of course upon this realization; I came to the conclusion that I was going to be my own boss. I have always taken pride in how I present myself including how I dress. The limitless nature of fashion and its versatility has always intrigued me. One empowering aspect of clothing that is so fascinating is how it enables people to express themselves. Because of these interests, I have come to the conclusion that I wish to own a fashion boutique. In order to pursuit the path of becoming a fashion boutique owner, it is essential that I obtain a degree in business management, evaluate my own skills that make me ideal for the job, and