Chapter 1: Introduction
1.1 Purpose of the study
1. To identify factors influencing the consumer’s preference for shopping at electronics retail store.
2. To know why the footfalls are low at NEXT retail store and Digiworld retail store.
3. To find what store attributes are important for the consumers.
1.2 Context of the study
The company is having problems with generating footfalls for its retail store, so the researcher wanted to know why the footfalls are low at the company’s retail store.
NEXT Retail India Ltd. is India’s largest electronics retail chain. Incorporated in 2003, NEXT specializes in organized retailing of consumer electronics, small home appliances and mobile phones. NEXT is a multi-brand, multi-product retail chain which
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Strongly Agree Agree Neither Agre… Disagree Strongly Dis…
0 15 30 45 60
Strongly Agree 21 9.6% Agree 35 16%
Neither Agree nor Disagree 65 29.7% Disagree 73 33.3%
Strongly Disagree 25 11.4%
6) I would like to finish shopping as soon as possible.
Strongly Agree
Agree
Neither Agre…
Disagree
Strongly Dis…
0 15 30 45 60
Strongly Agree 61 27.9%
Agree 65 29.7%
Neither Agree nor Disagree 39 17.8%
Disagree 42 19.2%
Strongly Disagree 12 5.5%
7) I shop where it saves my time.
Strongly Agree
Agree
Neither Agre…
Disagree
Strongly Dis…
0 20 40 60 80
Strongly Agree 57 26%
Agree 90 41.1%
Neither Agree nor Disagree 27 12.3%
Disagree 34 15.5%
Strongly Disagree 11 5%
Following are the importance of the store attributes while shopping for electronic products in retail format as per the
Moreover, around 40% of Dick’s Sporting Goods revenue is derived from equipment sales, 19% from footwear sales and the rest from sports apparels. Its stores are 15 times the size of Finish Line’s. It is, therefore, more natural for a consumer to visit a Dick’s Sporting Goods outlets and get access to a wide range of products than visiting a Finish Line. The average revenue per store for Dick’s Sporting Goods in the footwear segment (2015) was more than that of Finish Line and was about USD 1 million. Hence, the alternative for Finish Line was to include a broad range of products. However, they had a high inventory turnover period of 100 days. Therefore, taking into account the space constraints, this was not a viable option for the company. Additionally, another possibility was to open larger stores like Dick’s Sporting Goods and sell a broader range of products. However, this is a relatively long-term solution. Although the average revenue per store for Finish Line went on decreasing, its average revenue per square foot went on increasing in the last 5 years. The inventory turnover days for Finish Line was also increasing. The same store sales growth was initially high as seen in the below chart. Over the period of time as the store count went on increasing, this value however declined. Thus, it can be stated that Finish Line had the twain portfolio of
has week chance to compute with rest of retailers which have strong tie with the society.
Footlocker’s marketing plan entails selecting the target market, integrating the best marketing tactic to reach as many customers as possible, and customer retention initiatives. Essentially, this customer-driven marketing blueprint is classified as the marketing concept, which does not rely heavily on promotions to procure sales. Instead, the company learns to pinpoint what the customer wants before he or she does, to accommodate existing and future needs. Moreover, within the past five years, a new store entitled House of Hoops has made its debut in the same mall as Footlocker, which has caused the veteran shoe store to experience a decline in sales. This suggests that Footlocker may need to modify its sales strategy to help the company attract more customers to the store. “House of Hoops has a variety of shoes, and a large store front,” stated the interviewee, “customers are drawn to the store because it is new and possesses a
In the United States and all over the world, the entry and operations of big retailers like Wal-Mart into a small town sparks great controversy within the community. The fact that people contemplate on the fact that the policies and actions of Wal-Mart are destructive to a small town’s economy is not new. Most small town’s economies are run by subsistence and self-reliant traders. With time, the traders embrace the division of labor and specialization of skills in accordance with the trade, production and manufacturing needs of the community. In such a market, a simple move like a decision by the producers to sell directly to the consumers may spark
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.
Paco Underhill has created a way for stores to draw more customers in and spend more money by getting in the mind of the customers. I found some of Underhill’s theories to be true. Underhill’s theories have helped provide research of the actions of consumers inside of American Eagle, Meijer and Hollister, these theories include, the need for shoppers to acclimate to their surroundings, the way customers turn into stores, and by placing most used products in the farthest places away from the
Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and
Often, people come back because they like the place, and it is the convenience for them. Finally, the data from anthropologists’ study are helping the retailers improve their business performance. The product will catch customers’ attention because they know exactly where to put it. That leads to more product sales and more money being generated.
Dunnes Stores is an indigenous, family owned Irish Company. The Company is a retailer in both the food and textile market who work around the principle of providing competitive prices, high quality products and a vast variety of choices. The company’s motto of “Better Value” looks to draw in all these principles together.
Second, some retailers are affected by economic factors more than other retailers. Being able to build big-box stores with a deep assortment of merchandise as well as knowledgeable employees is a luxury that only some firms can afford. Consequently, these more su...
Wal-Mart Stores, Inc. operates retail stores in various formats in the United States and Internationally. It has two segments: The Wal-Mart Stores and The Sam's Club. The Wal-Mart Stores segment includes Discount Stores, Supercenters, and Neighborhood Markets in the United States, as well as Walmart.com. It offers apparel for women, girls, men, boys, and infants. They also offer hardware, electronics, home furnishings, small appliances, automotive accessories, sporting goods, toys, pet food, cameras, health and beauty aids, pharmaceuticals, jewelry, optical department and photo processing services. The Neighborhood Markets include dry grocery, meat, produce, deli, bakery, frozen foods, pharmaceuticals, photo processing, health and beauty aids, household chemicals, general merchandise, and a pet supplies departments. The Sam's Club segment comprises the warehouse membership clubs in the United States and samsclub.com. It offers electronics, jewelry, sporting goods, toys, tires, books, grocery items, and selected private labels. As of July 31, 2005, Wal-Mart operated 1,276 Wal-Mart stores, 1,838 Supercenters, 92 Neighborhood Markets, and 556 Sam's Clubs in 50 states in the United States. The company operates various retail formats in Argentina, Brazil, Canada, Germany, Mexico, Puerto Rico, South Korea, and the United Kingdom. It operates 261 Canadian Wal-Mart stores and Sam's Clubs, 11 units in Argentina, 150 units in Brazil, 88 units in Germany, 16 units in South Korea, 697 units in Mexico, 54 units in Puerto Rico, and 292 units in the United Kingdom, as well as 48 units in China under joint venture agreements.
A retailer can link its store to specific attribute or benefit such as convenience or
Rajagopal. "International Journal of Retail & Distribution Management." Emerald. Emerald Group Publishing Limited, 2011. Web. 21 Feb. 2014
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)
Thau was inspired by the Bashar Nejdawi, president of Ingram Micro Mobility that is a provider of technology and supply chain services. According to Nejdawi, “In five years, consumer electronics stores as we know them today won’t even exist, and the same rings true for our favorite apparel brands”. He also asserts that three influential factors will change the retail landscape: instant gratification, borrowing and customization. A good example of instant gratification is Uber or Amazon. The Uber customer can see in real time where the Uber car is and when is going to arrive. In the same way the Amazon provide fulfillment program that allow retailers to sell products that are not physically in storage. In this way the retailers do not have to care about inventory and can concentrate on marketing. Secondly, the borrowing culture is going to grow. As an example is Zip Car or Netflix applications. On the Zip Car program someone can borrow a car just for few hours. Likewise, some business offer a mobile device rental program that allow a customer to lease the latest device for a fraction of the cost. Further, the customization program permits customers to choose their preferences before the product is being made. As an example is miAdidas company that gives to the clients the possibility to create