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Canadian Tire

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Canadian Tire Check-Out Configuration

Glennt Butt the Vice-president of Canadian Tire has to make a decision in a short period of time. He has one month left to decide which check out configuration to implement in the next generation of stores. This is a very important election, since the future profits and clients depend on the lay-out and on their experience in Canadian Tire stores.
From my point of view I would choose to implement the single line lay out. After calculating some data, the second option appears to be as the most profitable and effective check –out configuration: * Maintaining the tandem check –out configuration:
It requires a total investment of $65.400 using a total space of 150m2 which represents a 3% of the store. This kind of configuration may cause some problems when there is a pick of costumers. As they can only stand in one line, if the queue takes more time as usual the client must feel anxious and disappointed with its experience in our stores. Furthermore, when the business is slow a lot of space would be wasted. * Single Line
Implementing the single line configuration implies an investment of $57.000 occupying a total space of 125 m2. In comparison with the tandem configuration we gain 25 m2 more, which means $70.000 of profit per year. The line would be much faster, as the cashier would be working in a more effective way. Moreover the costumer would have a better buying experience as they could go to the fastest register and would not have to suffer from unexpected waits. Canadian Tire could also take profit of the single line by selling more products in the impulse shelf, then the client would be occupied during its wait and the store would sell more products which have higher margins. * Self-check-out
I will totally recommend not implementing this alternative as it represents a huge amount of investment ($200.000) per store and for maintenance. In addition it offers an impersonal service to the costumer. From my point of view it would only be suitable as a way of support for the tandem configuration in order to afford the peak hours. The target customer of these machines is not the same as the majority of Canadian Tire clients. Also, depending 100% on technologies increases the risk in case of electrical failures.
To sum up, if I was Glennt Bunnt I will present the Single Line configuration as the best election. It is the cheapest one and it occupies less space than the current lay-out, the client would spent less time in line and would purchase more product of our stores having, as a result a better buying experience.

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