Factors for closing the stores
In recent times Aeropostale is suffering from huge lose in their revenues and net income because of various things, all these things lead to closure of their stores in Canada and USA around 41 and 113 respectively. The factors leading to closing stores is as follows
TRENDS AND FASHION When Aeropostale started its journey it was well known for fashion, people used to call it as a trend setter in clothing industry. Because of its fashion and creating the new style Aeropostale got huge response from people especially from youth and teenagers, at one stage they became as a regular customers and it got free word of mouth publicity, but later on they try to continue their charisma and their way of creating new styles,
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One more thing they are still using is the old store atmosphere, which became as an outdated one. Which is not motivating or creating interesting in shoppers to buy clothes from them, because of boring store experience shoppers now shifting to online shopping.
Fall of Revenue
After being a successful company in 2008 recession, from 2011 Aeropsotale’s sales and performance started falling because of many things like losing customers, stake holders, etc. Figure 2: Showing the performance of Aeropostale from 2011-2015
Note: Seeking alpha (June 21, 2015), Aeropostale: From Clothing To Closing. Retrieved from http://seekingalpha.com/article/3272225-aeropostale-from-clothing-to-closing?page=2
In 2011 Aeropastale is one of the top market share holder with 32.50% of shoppers, but from that year onwards there is a decline it went down to 10% in fourth quarter of 2011 and it recovered slightly in 2012 with 22.50% of market share. After that it never bounced back and by the end of 2015 company is holding only 2% of share.
Now it started closing down its stores in both Canada and USA around 41 and 113 and expecting to come again as a new brand
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Norms for consistency was another determinant of why Abercrombie decided to commit to reinvesting in its brand. Leaders are expected to take action when they encounter difficult situations. This expectation derives both from the public and from the employees as well. Thus, it was necessary for Abercrombie’s executives to act. Abercrombie believed that if they stay consistent with their efforts, the results were going to be positive. However, rebranding has proven to failed for several years
Along with this innovation of trying to drive sales, the Popular Club began to find its brand image. The company’s focus was leisurewear for upper-middleclass customers, seeking the Ralph Lauren look at a much lower price. The company’s merchandise style was a combination of Ralph Lauren, on the high end, and the Limited, on the lower end. Popular Club wanted to signify a “preppy spirit,” in doing so they renamed the operation J.Crew. In January 1983, the company mailed its first catalog to its customers (http://www.fundinguniverse.com/company-histories/j-crew-group-inc-history/). This will be the beginning of a thriving company.
And those trends have been going on for more than a year. Whatever role nonstore retailers are playing in the decline of department store sales, looking at the two together shows just how dramatic the downward trend in department store sales is compared to a segment with which those stores often compete.
Facts of the Case: In 2008, Samantha Elauf applied for a job at Abercrombie & Fitch, Inc., who as part of their “Look Policy” prohibit the use of caps. Elauf, as part of her religious practice, wore a headscarf to the interview. She was interviewed by assistant manager Heather Cooke, who gave her a score that qualified her to be hired. Cooke, however, was worried that Elauf’s headscarf was against the store’s policy and called her district manager Randall Johnson. She informed Johnson of her belief that Elauf wore her headscarf because of her religion, and Johnson replied that headwear whether it was religious or not violated the “Look Policy” of the store. Elauf with the help of the EEOC sued Abercrombie on the grounds of religious discrimination. The U.S Equal Employment Opportunity Commission (EEOC) is an agency established by the government of the United States that imposes federal laws that make it
Barnes & Noble, Inc. (NYSE:BKS) is a Fortune 500 company, the nation’s largest retail bookseller and the leading retailer of content, digital media and educational products. Barnes & Noble provides customers easy and convenient access to books, magazines, newspapers and other content across its multi-channel distribution platform. Barnes & Noble, Inc. is a publicly traded company listed on the New York Stock Exchange under the symbol “BKS.” After a series of mergers and bankruptcies in the American bookstore industry since the 1990s, Barnes & Noble stands as United States ' last remaining national bookstore chain. Previously, Barnes and Noble operated the chain of small B. Dalton Book stores in malls until they announced the
Annual Report 2012 Costco Wholesale: Year Ended September 2, 2012 [PDF document]. 1-7. Retrieved from Costco Wholesale Financial Reports:
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
Kenney Paul, Alison. “2014 Retail Industry Outlook.” The Wall Street Journal. Jan 7, 2014. Web.
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I am aware of university policy on Academic conduct (published on Moodle) and I declare that this assignment is my own work entirely and that suitable acknowledgement has been made for any sources of information used in preparing it. I have retained a hard copy for my records.
Business strategy and model: Zappos.com had a differentiation strategy with which they had differentiated themselves from the rest of the market. They had use a unique corporate culture in their company which was one of the major competitive edges of the company. According to the CEO of the company, Tony Hsieh, that everything that they had done at Zappos such as their relationships with 1,200 to 1,500 brands, policies and website style could be copied, however, the only thing that no one could copy from them was their unique culture. Zappos had 10 unique core values as a basis of their company’s culture, employee performance and their overall operations. They were hiring and firing people on the basis of their abilities that whether they were living up to these core values or not.
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