An Analysis and Comparison Between Talbots Inc. and Chico's Fas, Inc.

3708 Words Aug 29th, 2008 15 Pages
A Brief Summary of the Businesses
The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate. Chico's
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In FY 2005, Chico's brand strategy was re-focused by refining the business operations, and broadening the customer base. In FY 2005, Chico's opened a total of 106 new stores, 57 Chico's stores, 44 WHBM store, and five Soma's stores. In addition to its new store openings, 36 stores increased their square footage, thus allowing them to have more merchandise readily available to the customer.
Based on its current business strategy, Chico's will continue improving their existing stores by increasing the square footage as additional selling space is needed. In addition, the Chico's loyalty club (also known as "Passport") reached 1.7 million "permanent" members with spending in excess of $500 by the end of FY 2005. As Chico's moves into FY 2006, their goal remains unchanged: "to continue to create and grow strong branded concepts that target compelling niche markets and ultimately deliver predictable, sustainable growth to out shareholders ." In FY 2006, Chico's plans to open between 140 and 165 net new stores (as of January 2007, there are currently 920 total stores). Talbots is a national specialty retailer and cataloguer of women's, children's and men's classic apparel, accessories and shoes. Talbots operates stores in the United States, Canada and the United Kingdom. They offer many varieties of clothes, ranging from sportswear to casual wear and shoes. They also brand their own merchandise in misses and women's petite sizes.

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