It is said that the location of a retail store is the most important decision made by a retailer. I would definitely have to agree. I believe the site location needs to be suitable for the target market of the retail store.
I visited Walgreens on Spring Garden Street. It is in walking distance from UNCG and the surronding student housing apartments. This retailer is a type of strip center. Strip centers are shopping centers thaat usually have parking in front of the stores. Walgreens definitely has this. So, there are two types of strip centers: a traditional strip center and a power strip center. Walgreens falls under a traditional strip center. The concept is general merchandise, 30,000-250,00 square footage, one or more anchors, and within three to seven miles. The type of anchors are discount, supermarket, drug, home improvement, and large specialty discount apparel. Walgreens is also a main street location.
The advantages are that it is close to the college and student apartments so it provides source of customers. Since it is close to campus they do have security. Campus police can be at the location in a matter of seconds. Walgreens is also open late. Of course, Walgreens has plenty of parking directly in front of the store. It has a strong competition with CVS and the pedestrian traffic is good. There are walkways from campus directly to the store location for people to cross. The disadvantages are that there is no protection from the weather, no source of entertainment/recreation, and it does not draw a large size of people to the area. Mostly, because college students live in the area. Overall, I believe it is a good location.
Monday, March 16, 2009
Monday, March 2, 2009
Circuit City
Circuit City was the United State's second-largest consumer electronics chain and they have filed for Chapter 11 bankruptcy. They have lost more than $5 billion in stock over the past two years. Its business was stolen away by discounters such as Wal-Mart and Best Buy.
Customers were disappointed at the sale prices advertised by the comapny. Comments have been posted on the virtual communities (websites for bargain hunters) that the discounts were not as significant. "Discounts are small."
Liquidators say that 10-30% off is the largest electronics liquidation ever. However, customers were not buying it.
The Alliance Entertainment Corporation is the distributor to music and electronics. Retail Chain Circuit City is 1.4 billion in debt. On August 1, 2014 a $821 million debt payment will be due. To make the payment the company will begin consolidating its magazine, CD, and DVD distribution businesses.
Circuit City would like to keep its loyal customers as it reorganizes during this tough time. Circuit City is going to stick to its loyalty programs and will continue to accept returns and exchanges.
Sources:
Jakobson, Leo. "Circuit City Bamkruptcy Roils Gift Cards." Incentive. January 2009. EBSCOhost. UNCG Jackson Library. 2 March 2009. http://libproxy.uncg.edu
Tozzi, John. "Circuit City: Vying for Liquidation Bargains." Business Week Online. 26 January 2009. EBSCOhost. UNCG Jackson Library. 1 March 2009. http://libproxy.uncg.edu
Customers were disappointed at the sale prices advertised by the comapny. Comments have been posted on the virtual communities (websites for bargain hunters) that the discounts were not as significant. "Discounts are small."
Liquidators say that 10-30% off is the largest electronics liquidation ever. However, customers were not buying it.
The Alliance Entertainment Corporation is the distributor to music and electronics. Retail Chain Circuit City is 1.4 billion in debt. On August 1, 2014 a $821 million debt payment will be due. To make the payment the company will begin consolidating its magazine, CD, and DVD distribution businesses.
Circuit City would like to keep its loyal customers as it reorganizes during this tough time. Circuit City is going to stick to its loyalty programs and will continue to accept returns and exchanges.
Sources:
Jakobson, Leo. "Circuit City Bamkruptcy Roils Gift Cards." Incentive. January 2009. EBSCOhost. UNCG Jackson Library. 2 March 2009. http://libproxy.uncg.edu
Tozzi, John. "Circuit City: Vying for Liquidation Bargains." Business Week Online. 26 January 2009. EBSCOhost. UNCG Jackson Library. 1 March 2009. http://libproxy.uncg.edu
Thursday, February 12, 2009
VALS Survey
Since we are all individuals, the VALS survey measures the physcological motivations and resources that help us make our decisons as consumers. The survey places consumers in one of eight descriptions based on their responses to the questionnaire. The main dimensions are primary motivation and resources. According to the VALS website, primary motivation is "consumers buy products and services and seek experiences that fulfill their characteristic preferences and give shape, substance, and satisfaction to their lives" and resources is "a person's tendency to consume goods and services extends beyond age, income, and education." The eight VAL types are: Innovators, thinkers, achievers, experiencers, believers, strivers, makers, and survivors.
When I took the VALS survey, the results were that i was an Experiencer as my primary dimension and a striver as my secondary dimension. According to VALS, an experiencer/striver is:
Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.
Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff.
Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.
Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.
I think the results are accurate and it corresponds with the target person that my group represented on Tuesday. Our target person was a young female, named Cindy, that loved shopping at Libby Lu.
When I took the VALS survey, the results were that i was an Experiencer as my primary dimension and a striver as my secondary dimension. According to VALS, an experiencer/striver is:
Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.
Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff.
Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.
Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.
I think the results are accurate and it corresponds with the target person that my group represented on Tuesday. Our target person was a young female, named Cindy, that loved shopping at Libby Lu.
Saturday, February 7, 2009
The Story of Nordstrom
In 1886 John W. Nordstrom emigrated to the United States at the age of 16. He began to work in the state of Michigan and saved money to purchase a 20 acre potato farm in Arlington, Washington. In 1897 he helped with the Klondike Gold Rush and after two years he struck gold. So, he returned to seattle and married Hilda Carlson and opened a shoe store in 1901. It was named Wallin & Nordstrom. Carl F. Wallin was the cofounder of the departmnet store. Soon, John and Hilda had five children and Wallin & NOrdstrom opened up there second store in Seattle in 1923.
John Nordstrom retired in 1928 and sold his shares to his two sons, Everett and Elmer. By 1958, Norstrom had expanded to eight stores in two states and only sold shoes. They did not start acquiring apparel until 1963 and in 1968 the company's name was changed to Nordstrom Best. In 1973, the Best dropped from the company's name to assume the name of the company now, Nordstrom.
Nordstrom has 109 department stores, 56 Nordstrom Rack clearance shoes, two Jeffery Boutiques, and two final clearance stores all located in 28 different states. Nordstrom plans to open 50 stores within the next 10 years. They have already announced that they will open 26 stores by 2011.
John Nordstrom retired in 1928 and sold his shares to his two sons, Everett and Elmer. By 1958, Norstrom had expanded to eight stores in two states and only sold shoes. They did not start acquiring apparel until 1963 and in 1968 the company's name was changed to Nordstrom Best. In 1973, the Best dropped from the company's name to assume the name of the company now, Nordstrom.
Nordstrom has 109 department stores, 56 Nordstrom Rack clearance shoes, two Jeffery Boutiques, and two final clearance stores all located in 28 different states. Nordstrom plans to open 50 stores within the next 10 years. They have already announced that they will open 26 stores by 2011.
Wednesday, January 21, 2009
My Favorite Retailer
My favorite retailer is Nordstrom. Nordstrom was founded in 1901 and there corporate headquarters is in Seattle, Washingtion. Initially, Nordstrom commenced as a shoe retailer and have progressed to a company that sells a variety of goods such as handbags, jewelry, cosmetics, fragrances, and etc. I favor Nordstrom the most more than any other retailer for many reasons but I will just list five.
The atmosphere in Nordstrom makes the facility a wonderful place to shop. Nordstrom has wide aisles, elegant fixturing, back wall displays, seating for shoppers, and piano players. All of these factors makes shopping more of an experience instead of a chore in Nordstrom. I especially like the wide aisles because there is more room for people to shop instead of being trampled over.
I love the fact that Nordstrom is at a lower price level than Neiman Marcus or some of the other department stores. Now, I do not shop in Nordstrom a lot but I do like to browse through there items and if I like something a lot then I will go ahead and purchase it. Especially, if I am looking for something specific.
Nordstrom is well know for its customer service. Nordstrom will gladly refund money at any time for an item purchsed from Nordstrom stores. The company also will match the price of a product if you find it cheaper somewhere else. There are also Customer Service Specialists available 24 hours a day, and 7 days a week to assist a customer.
My friend worked at Nordstrom and she would tell me how the employees and management had so much confidence for their workers. It even implies to that in their employee handbook. It states the "Number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them. This shows the employee that the company not only cares about the customers and their needs but also the well-being of the employee. In 2009, Nordstrom was number 72 in Fortune's magazine 100 Best Companies to work for. That is fantastic.
Last but not least, I like the fact that Norstrom has increased there amount of department stores at a steady pace over the years. The company also prefers to build there stores from the ground up. Throughout the years, Nordstrom has still remained a family business as well. To me, that shows dedication to the consumers.
The atmosphere in Nordstrom makes the facility a wonderful place to shop. Nordstrom has wide aisles, elegant fixturing, back wall displays, seating for shoppers, and piano players. All of these factors makes shopping more of an experience instead of a chore in Nordstrom. I especially like the wide aisles because there is more room for people to shop instead of being trampled over.
I love the fact that Nordstrom is at a lower price level than Neiman Marcus or some of the other department stores. Now, I do not shop in Nordstrom a lot but I do like to browse through there items and if I like something a lot then I will go ahead and purchase it. Especially, if I am looking for something specific.
Nordstrom is well know for its customer service. Nordstrom will gladly refund money at any time for an item purchsed from Nordstrom stores. The company also will match the price of a product if you find it cheaper somewhere else. There are also Customer Service Specialists available 24 hours a day, and 7 days a week to assist a customer.
My friend worked at Nordstrom and she would tell me how the employees and management had so much confidence for their workers. It even implies to that in their employee handbook. It states the "Number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them. This shows the employee that the company not only cares about the customers and their needs but also the well-being of the employee. In 2009, Nordstrom was number 72 in Fortune's magazine 100 Best Companies to work for. That is fantastic.
Last but not least, I like the fact that Norstrom has increased there amount of department stores at a steady pace over the years. The company also prefers to build there stores from the ground up. Throughout the years, Nordstrom has still remained a family business as well. To me, that shows dedication to the consumers.
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