I chose to research two very different apparel retail stores. The GAP, Inc. and Nordstrom, Inc. are very interesting companies to me because they deal with something that is very important to me and a lot of people, clothes. Everyone buys and wears clothes, and these are two companies who have succeeded in this venture. They both started out with the same intentions, to sell apparel through specialty stores, but at this point Nordstrom’s has been more successful.
In theory these two companies are very similar because they are trying to accomplish the same thing. They both sell apparel, shoes and accessories for women, men and children through specialty and clearance stores. The clearance stores mentioned are Nordstrom Rack and GAP factory outlet stores. They also stress the use of personalized customer service. The GAP and Nordstrom feel that good customer service is the way to keep customers happy and thus keep them loyal. Because of this, they have many employees to serve their customers and spend a lot of time training these employees.
These companies are also set up in the same way. They each have a chairman, president, and a couple of vice presidents. They both operate on the New York Stock Exchange. Another interesting similarity is that they both are based out of the west coast, The GAP in San Francisco and Nordstrom in Seattle. But this is where the similarities end.
The sizes of these two companies are very different. The GAP is a global retailer with about 3,700 stores and 166,000 employees worldwide. Nordstrom on the other hand has about 77 stores nationwide and 43,000 employees. It does operate one international boutique, Faconnable, mainly in Europe. The GAP has three brands including GAP, Banana Republic and Old Navy, all operating in their own stores. Because of this huge difference in size, the GAP has much higher revenue than Nordstrom, but this doesn’t mean that it’s a better company.
In the news lately, the GAP has been under a lot of scrutiny because its sales have been down so much causing their credit rating to lower as well. Investors feel that this is due to the sharp slowdown in consumer spending, growing competition and series of fashion misses. It has too many stores open to sustain this major hit on sales. They have very little debt, but analysts think that this combination spells a future bankruptcy.
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
Present day Federated consists of both Bloomingdale’s and Macy’s stores and operates in 34 states as well as Guam and Puerto Rico. While Bloomingdale’s and Macy’s provide both private and national brands and are similar in merchandising categories (men’s, women’s and children’s apparel, home décor, shoes, beauty, and accessories), they differ greatly in culture. Bloomingdale’s, being more upscale, targets consumers that are more concerned with trend and quality than they are price. Macy’s targets the more value oriented consumer and represents a broader Federated clientele. Macy’s represents 423 of the 459 Federated locations while Bloomingdale’s represents only 36 locations. Because I can better relate to the value conscious consumer of the Macy’s division and because they represent such a large portion of Federated, I will further explore their current characteristics and behaviors that suggest that they possess qualities of both monopolistic competition and oligopolies.
Men’s Wearhouse was founded by George Zimmer in 1973 as a clothing store for “the common man.” In a famous advertising campaign throughout the 1980’s and 90’s Zimmer was seen saying “You’re going to like the way you look; I guarantee it.” Throughout its history it was become a more formal store specializing in black tie formal wear such as suits and tuxedos. Today they continue to sell men’s suits, tuxedos and accessories such as belts, ties, and shoes. In October Joseph A. Bank, their main competitor, made a buyout offer at 48$ a share, an offer Men’s Wearhouse swiftly rejected and ignored. Men’s Wearhouse has since offered a buyout offer to Joseph A. Bank that has also been rejected. This situation has led me to the question: Does Men’s Wearhouse benefit from a merger with Joseph A....
Nordstrom is one of the top retailers in the United States. With a solid brand image and a sound financial situation, Nordstrom is relentless in their expansion in the US, and are beginning to expand into international markets. Nordstrom takes pleasure in providing state of the art client support and having experienced sales people. In order to hold their position as the most successful high-end retailer in the United States, Nordstrom must continue to figure out ways to improve their brand image and customer satisfaction. Nordstrom’s current business working strategy is successful but I believe there are a few ideal solutions that the organization could apply to further enhance the organization. Due to the aggressive characteristics of the fashion retail store market, it is crucial that Nordstrom preserves an aggressive advantage providing the highest level of customer support as possible.
For years Scheels has had no competition in the Sioux Falls area allowing them to raise their prices without any consequences. But Once Dicks moved into the mall Scheels has had to completely change their game plan. Instead of fighting dicks by dropping there prices they added to their store adding a golf simulator ferris wheel and restraint and archery range. Still even with these additions there are tons of similarities between scheels and Dicks. Both carry sports and hunting goods, both have a target crowd of anywhere from 14 - 60, and both have prices for the middle and upper class. The few differences include their location, size, total number of locations and there sports team apparel.
Our decision is to invest in Wal-Mart. The choice for Wal-Mart is on the basis that their functional-level strategy is really robust, nevertheless of the fact that they do not treat their employees well. The fact remains that they are financially stronger, have a better business-level strategy, and have a corporate-level strategy than Costco. Costco v. Wal-Mart: What must we learn about them? Let start with Costco. Costco is Wholesale, Retail Corporation which operates an international chain of membership distribution centers that provides quality, brand name merchandise at noticeably more affordable rates than a conventional wholesale or retail sources. Costco 's warehouses display the largest and great product categories such as groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office
... Marketer of the Year. The publisher of Fashion Network Report observed that "they made their name into a brand. They are one of the few retailers that has that luxury." Gap now spends more than half a billion dollars a year on advertising: almost five percent of the company's sales is devoted to selling the attitude that brands the clothes and the people who wear them.
Nordstrom segments are broken down into preference segments. There are three segments that Nordstrom has containing the following: homogeneous, diffused, and clustered. Homogeneous is a market with no natural segments. Diffused is a market with evenly distributed preferences with no concentration. Finally, a clustered market when natural segments exist and may be effectively targeted. Nordstrom’s segments focus on inside
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
Nike and Under Armour are both very popular companies although Nike has been around way longer. Under Armour has been around since 1996 and Nike has been around since 1964.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
According to the Kohl’s Corporation Hoover Report (2014), in the late 1920s, a man named Max Kohl opened a grocery store in Milwaukee, Wisconsin (Hoover Report, 2014, pg. 9). By 1938, Max and his three sons had developed his store into a successful chain and incorporated the business. Max Kohl had experienced enough success by 1962 that he opened a department store right next to his Kohl’s grocery store. In 1972, Max Kohl and his family’s “65 food stores and five department stores were generating about $90 million in yearly sales” (pg. 9) In the same year, the British American Tobacco’s Brown & Williamson Industries (BATUS) purchased 80% of the Kohls’ two operations. Six years later, BATUS proceeded to purchase what remained of Kohl’s. In the early 1980s, BATUS decided that “Kohl’s discount image did not fit in with BATUS’s other retail operations” and decided to ultimately separate the two operations in order to put them up for sale (pg. 9). The president and chief executive officer at the time, William Kellogg, “and two other executives, with the backing of mall developers Herbert and Melvin Simon, led an LBO (leveraged buy-out) to acquire the chain’s 40 stores and a distribution center” (pg. 9). By the time Kohl’s managed to go public in the year 1992, they “had 81 stores in six states, and sales topped $1 billion” (pg. 9). At this time Kohl’s began its expansion and within the next five years managed to top sales at two billion dollars. Kohl’s then “acquired a former Bradlees store to enter New Jersey and opened stores in Washington, DC; Philadelphia; New York; and Delaware” (pg. 9). The following year Kohl’s managed to expand into Tennessee by adding new stores. The company named Larry Montgomery CEO in 1999 and short...
... both a mixed gender store caters more to female and has the male merchandise all the way in the back of the store.
Should Kmart and Sears keep their own identities and have unique competitive strategies, or should they be combined in some way with a new overall corporate competitive strategy? Please defend your answer.
Gap, although it was successful in the 1980 's and 90 's, it could not catch up the ground they lost in the 21st century. According to the figure 2.3 in chapter 2 of "Strategic Management In Action," the diagram shows that the critical success factors are the ability to embrace change, creativity and innovation capabilities, and being a world-class organization. The Gap in the 80 's and 90 's was the world-class organization when it came to the staple American fashion but they failed in creativity and innovation. As the trends of fashion changed in the 21st century the Gap could not adapt to the change. Instead, they lost their credibility and stores like H&M took over. When I think of the Gap, I think of over-priced boring clothes. There is