Evaluating Retail Stores Essay

818 Words Aug 26th, 2011 4 Pages
Evaluating two successful stores and two unsuccessful stores

The retail industry is extremely competitive particularly during the current economic conditions when customers have limited spending power (Bloomberg, 2009). Therefore, it is crucial that the business owner assess all of the factors which determine the profitability of a store. Since the financial figures are unavailable for all of the different outlets, the success of the store will be assessed using the same physical factors which can be observed; location, client flow, employee cost, pricing, inventory levels, marketing strategy and customer service. To evaluate what makes a store’s performance good, two successful and two unsuccessful stores will be looked at and the same
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The store is located on level 2 next to the escalator; this is an ideal location as potential customers will spot the store immediately. Moreover, customer service quality is excellent as the staff show willingness to help.
Strengths
1. Established brand name
2. Global recognition
3. Offers extensive varieties of clothes at reasonable prices
4. Good style, fit and quality of apparels
5. Good customer service

Unsuccessful - BoardGames Rejuvenate at the Central
BoardGames Rejuvenate is a small shop located on the third floor of ‘The Central’. The store manager confirmed that business is slow and usually revenue only covers the costs. On average, six out of the twenty daily visitors purchase a product. They have two full-time employees. The price range is wide, starting from twenty to hundred Singapore dollars. Currently, the main marketing tool used is a website where they publish promotions, new arrivals and photos of the shop, as they feel handing out flyers has previously not been effective. All of the inventory is kept in-house and clients can exchange products, but not be refunded. When asked about the financials, the manager was unaware of the situation as they outsource this activity. Therefore she is unable to identify the problems and make suitable decisions.
Unsuccessful store - Quereshi’s at Centre Point
Quereshi’s is located on the top floor of ‘Centre Point’. The store sells exclusive hand-knotted

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