Customer Service Standard and Store Ambience and Layout
The store stocks a wide variety of services and goods, which allows for Reed Supermarkets to be a one-stop shop for consumers in the area, driving traffic into stores and enticing potential customers to position themselves around their store. The customer service standard of the Reed Supermarkets is exceptional. Not only is this a huge differentiator in an increasingly automated world, Reed Supermarkets also pays special attention to its store layout and quality of service through services such as runners and greeters with cookies. All these distinguish Reed Supermarkets from stores such as Wal-Mart who are more mechanical and less personal. This not only helps with Reed Supermarkets brand …show more content…
Comparatively speaking however, Reed Supermarkets falls short in areas such as expense and operating profit management. In Exhibit 2, Reed Supermarkets had total expenses of $20.6 million in 2010. Dollar Stores on the other hand had total expenses accumulate to $23.6 million as a composite of three Dollar Stores. Not to mention the operating profit for Reeds Supermarkets in 2010 was $2.1 million while Dollar Stores had a remarkable operating profit of $8.5 million for a difference of $6.4 million. Therefore, Reed Supermarkets is able to operate only marginally better than Dollar Stores as its difference in expenses is $3 million to three Dollar Stores. Dollar Stores have a capacity to operate at a lower cost compared to Reed Supermarkets while also generating an operating profit of approximately 75% more than Reed Supermarkets in 2010 with all three Dollar Stores …show more content…
The three Dollar Stores only have a market share of 1.8%. This structure is a weakness as if it could cut costs in certain areas, Reed Supermarkets could pool that income into a promotion strategy that could make them even more profit. There is the opportunity cost associated with the high
The store stocks a wide variety of services and goods, which allows for Reed Supermarkets to be a one-stop shop for consumers in the area, driving traffic into stores and enticing potential customers to position themselves around their store. The customer service standard of the Reed Supermarkets is exceptional. Not only is this a huge differentiator in an increasingly automated world, Reed Supermarkets also pays special attention to its store layout and quality of service through services such as runners and greeters with cookies. All these distinguish Reed Supermarkets from stores such as Wal-Mart who are more mechanical and less personal. This not only helps with Reed Supermarkets brand …show more content…
Comparatively speaking however, Reed Supermarkets falls short in areas such as expense and operating profit management. In Exhibit 2, Reed Supermarkets had total expenses of $20.6 million in 2010. Dollar Stores on the other hand had total expenses accumulate to $23.6 million as a composite of three Dollar Stores. Not to mention the operating profit for Reeds Supermarkets in 2010 was $2.1 million while Dollar Stores had a remarkable operating profit of $8.5 million for a difference of $6.4 million. Therefore, Reed Supermarkets is able to operate only marginally better than Dollar Stores as its difference in expenses is $3 million to three Dollar Stores. Dollar Stores have a capacity to operate at a lower cost compared to Reed Supermarkets while also generating an operating profit of approximately 75% more than Reed Supermarkets in 2010 with all three Dollar Stores …show more content…
The three Dollar Stores only have a market share of 1.8%. This structure is a weakness as if it could cut costs in certain areas, Reed Supermarkets could pool that income into a promotion strategy that could make them even more profit. There is the opportunity cost associated with the high