...Norton’s Department Stores Case Table of Contents Executive Summary3 Introduction3 Case Findings4 Evaluations of Alternative Solutions5 Conclusion7 Recommended Plan of Action8 Evaluation of Recommended Solution9 References10 Appendices10 Executive Summary The Norton's chain of department stores has a long and tumultuous history, characterized by their early rise as an industry stalwart in the early twentieth century, to their current state on the brink of bankruptcy. The factors that coalesced to their fall from grace are numerous in nature. Yet one singular factor constantly resurfaces: the mismanagement of the firm stemming from the authority from birth-right exercised. Whatever course of action is taken; whether it is downsizing current locations, creating an e-commerce marketplace, or creating a new pricing strategy, one thing is clear: the main problem of management needs to be addressed first. Introduction Norton’s Department Stores was founded in 1869 by Thomas Norton, in a less than desirable area of Toronto. Since it humble inception, Norton’s have been instilled with certain characteristics conducive to success: “long hours, high quality, and friendly staff (Das, 2005)”. Norton’s has always been a private firm, run exclusively by the Norton family. In its early history, Norton’s experienced exponential growth and came to be known around Canada as a “dependable and customer-friendly merchandising empire (Das, 2005)”. At its height, the firm had...
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...Denver Department Stores, a Colorado retail store chain, is an entity that was suffering from the effects of decreased sales volume. Jim Barton, the supervisor of four departments within the main location in Denver, was struggling with developing a process to improve the store’s sales. Barton identified with the notion that the decrease in sales volume was a simple matter of a slowdown in the economic landscape, and that the downturn would effect all stores in the retail business. However, Barton’s superior, Mr. Cornwall, the general merchandiser of Denver Department Stores, told Barton that some stores have experienced a 15% gain in recent sales. Cornwall made it clear that he expected Barton’s segments to have sales equal to the other departments within the company due to more aggressive salespeople. As a result, Cornwall proceeded to employ a tally card system that would keep track of each employee’s sales as a method of evaluation. It should be noted that Denver Department Stores employs part-time clerks, those responsible for the majority of sales within each department, and head clerks, the superiors to the part-time clerks. The head clerks are responsible for organizing the stock room, training part-time employees, and maintaining the positive appearance of the store. Cornwall concluded that the tally card system would allow the company to eliminate the weak salespeople and replace them with people that possess stronger sales skills. Ultimately, the tally card system did...
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...McGregor’s Ltd. Department Store | To: | Staff members | From: | President James McGregor | Date: | 10/22/2012 | Re: | New discount program | Comments: | McGregor’s Ltd. Department Store in this year has increased in sales, and sales are above the average for retail stores; However, it has acquired the image of being old fashioned and traditional. I would like to change the image of the Store and to achieve higher efficiency and profitability by creating more business sense in the policies of the store. The outdated employee discount program is the place to start. Under the current employee’s discount program which is complex and in egalitarian, the size of the discount depends on the position of an employee, and there are six possible discounts existed. Some discounts are eating into profit margins such as major electrical appliances, calculators, cameras, and typewriters. In the other hand, salespeople, maintenance workers, and clerks are not getting a fair shake; therefore, new policy, which is more generous for most employees would encourage spending on high-profit-margin goods and increase the involvement of employees in the store and should lead to a significantly greater volume of sales. The new policy is based on simplicity, equality, and profitability. The discount would vary according to the goods purchased, not the status of the purchaser. There are three tiers in this program: 1. 10 percent discount would be given on low margin goods, such as large electrical...
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...audit of United Department Stores Inc.(henceforth UDS) UDS is the second largest retail department store in the US with projected 2010 consolidated total assets of approximately 18 billion and projected consolidated sales of 7 billion. Consolidated Net income for the year ended January 31, 2010 is currently projected to be somewhere in the neighborhood of $ 150 million. You are currently performing pre-closing audit field work during the last week of January 2010. In the course of performing your field work you discover the following circumstance: UDS proposes to suspend $28 million of 2009 depreciation charges applicable to its new discount department store chain, Details underlying this proposal are as follows: UDS acquired all of the net assets of Worthless Stores Inc. on July 31, 2008 for $ 850 million. Worthless had been a moderately successful national retailer that owned and operated 60 relatively modern stores. These store facilities were located in major cities in 25 of the 50 States. Cost assigned to the 60 stores acquired was $ 425 million. Land acquired was valued at $ 40 million. From July 31, 2008 until March 30 2009 UDS wound down the operations of the Worthless Stores and sold-off most of the existing inventories. On March 31, 2009 UDS closed the Worthless Stores and began a program to re-decorate and re-equip them for a new Discount Retail Department Store Operation. This plan had been contemplated at the time the Worthless Stores were acquired. The...
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...External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services to the clients in large numbers of countries. The company currently operates in four business segments including Macy’s, macy.com, Bloomingdale’s and Bloomingdales.com (one source, 2011). The company’s stocks are listed in the New York Stock Exchange under the symbol M (Macy’s Inc, 2011). The current market capital of the company is over thirteen billion US dollars and holds second position while Kohl’s Corporation has over sixteen billion US dollars market capital holding first position in the markets (NYSE:M, 2011). SWOT Analysis SWOT Matrix Strengths • Market position • Business operations • ecommerce Weaknesses • Legal issues • Geographic concentration Opportunities • Business expansion • Expanded product lines • mergers Threats • Competition • Regulations • Economic conditions Strengths Macy’s Inc. is among the largest retail outlets operating in the United States that deals in the diverse range of products like apparel, households, jewelry etc. The...
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...Memo of Macy’s Department store repositioning Case Synopsis The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent. Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers. Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation. Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? I think the following external environment factors could affect the success...
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...it’s for every day at the office, dramatic, or smokey-eye look for a night on the town, newcomers to the world of eye shadow can find themselves getting lost amidst the vast array of name-brands, shades and pigments of eye shadows. Then there are the options to choose between cream, powder, loose or baked eye shadows. The buyer will want to know how to apply the products as well as whether or not there will be long-term protection for her skin. Today’s shopper should compare quality, volume and pricing. Many make gurus have endorsed higher end and higher priced products but, quality eye shadow does not need to come with a high price-tag; this is shown by comparing key elements between department store and drug store eye shadows. Entering the cosmetics area of a Macy’s Department store can be a bit overwhelming to the fledgling shopper. For someone who has never experienced this it can be a bit like Alice tumbling down the rabbit hole. The first thing that happens is she is immediately met with the aroma which appears to be a magnificent blend of flowers, fruits and spices. It’s a clean, crisp scent but somehow after only a moment she finds herself almost gasping for air, eyes watering, wondering if she can climb back up the way she came. The trail splits and forks, divided to clearly showcase the vast array of high-end cosmetic brands that sparkle brightly catching her eye. The true adventure begins as the cast of characters appearing from nowhere they are perfectly...
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...Hightower Department Stores: Imported Stuffed Animals Executive Summary On the morning of January 17, 1993, before the annual buying trip to Germany for the 1993 Christmas season, the toy buyer for the chain of Hightower Department Stores named Julia Brown was reviewing the performance of some models of stuffed animals tested for sales during 1992. Every time Julia’s on the trip, she would buy some stuffed animals for testing. Fifty was the minimum amount the manufacturers require. Based on Julia’s years of buying experience, the tested result would give Julia a clear estimation about how many new stuffed animals she needed to order. Figure 1 in below shows the timeline of how Julia buys the toys for the company: 1992 January 1993 December 1994 50 of Each Tested for sale: Evaluation Test Results then Order Estimated Number of Bear, Pig, Bear, Pig, & Raccoon & Buy Test Toys for 1994 Christmas & Raccoon for Christmas Season Figure 1: Timeline of how Julia buys the toys for the company Decision Problem During last year, three stuffed animals were tested for sale, including a bear, a pig, and a raccoon. The result shown there were 10 out of 50 bears, 4 out of 50 pigs, and 32 out of 50 raccoons sold. Julia was faced with a decision to make about whether she should import the toys from Germany or but the toys domestically...
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...Coursework submission sheet Academic Year 2013/ 2014 Programme | BA Fashion Business | Unit | Fashion Marketing 1 | Term | 1 | Teachers | Fabio Ciquera (FC), Abdullah Abo Milhim (AB), Karen Bacchus (KB), and Claudia alvarez kuzteer (CA), | Name and Surname | Tasneem Bhojwani | Student Number | FB1132017490 | Deadline of the submission | Time: Between 12:00-13:00 Date: 28TH November 2013 | Signature | Tasneem Bhojwani | ***Late submission will be penalised*** PLAGIARISM DECLARATION By sending this message I certify that I have read and that I understand the regulations of The University regarding plagiarism and unauthorized collusion. I understand that all of the assignments submitted by me in the course of this module should be work written by me, and that they should clearly cite and reference each and every source that was used in their development. Where I use the actual words of a source, I must put those words inside quotation marks. I understand that the inclusion of a quotation in my answer only adds academic value if I discuss or analyse it, or compare or contrast it with other materials. I understand that submitting materials, or parts of materials, that were not created by me, without clear citation of the source, constitutes academic plagiarism and is a punishable act of academic fraud. I have read and I understand the explanation of how to cite and reference my sources which is available at per the student handbook and guideline...
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...February 25, 2010 Assignment 2 Porter’s Six Forces Analysis General Retail: Merchandise/Department Stores Prepared by: Yulia Petukhova ID# A30 The department store industry will be analyzed taking department stores as players, individual consumers as buyers, and manufacturers and distributors as the key suppliers. The Rivalry among existing firms High The period from the end of the 20th century up until now has been marked by the consolidation trend in the department store industry, characterized by major acquisitions by a few larger, powerful competitors, greatly intensifying the rivalry among them.9, 13 Since there are only a few of them in the industry, they tend to match each other’s steps in some way or another. After JC Penny introduced itself to Manhattan just a block away from Macy’s, it is only a matter of short time before Kohl’s will finally announce its move into Manhattan as well.10 Slowdown in the industry growth coupled with reduced consumer spending and low switching costs intensifies rivalry even further prompting the market players to differentiate their products by introducing exclusive brands and increasing innovation.3, 15, 17, 19, JC Penny contracted Cindy Crawford to extend her jewelry brand exclusively at their stores, while Macy’s has signed a strategic alliance agreement to become an exclusive retailer of Ellen Tracy branded women’s sportswear in spring 2010...
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...was 5.93 Assets to sales Ratio was 0.28 Total liabilities to net worth was 2.06 Part II Estimate the business value using BizStats. –Valuation Rule for Sporting Goods Store at BizStats. These are the BizStats I found Profitable Sole Proprietorships | 51.40% | Non-Profitable Sole Proprietorships | 48.60% | Income Among Profitable Sole Proprietorships | 80.00% | Income Among Non-Profitable Sole Proprietorships | 20.00% | Average Net Profit | 11.50% | Valuation Rule of Thumb Industry | "Rule of Thumb" Valuation | Accounting Firms | 100–125% of annual revenues | Auto Dealers (New Cars) | 0–10% of annual sales + inventory | Book Stores | 15% of annual sales + inventory | Coffee Shops (Gourmet) | 40% of annual sales + inventory | Day Care Centers | 45–50% of annual sales incl. inventory | Dental Practices | 60–65% of annual revenues incl. inventory | Dry Cleaners | 70–80% of annual sales + Inventory | Engineering Services | 40–45% of annual revenues | Flower Shops | 30–35% of annual sales + inventory | Food Shops (Gourmet) | 30% of annual sales + inventory | Gas Stations (w/o C-Store) | 15–20% of annual sales + inventory | Gift/Card Shops | 35% of annual sales incl. inventory | Grocery Store (Supermarket) | 15% of annuals sales + inventory | Hardware Stores | 45% of annual sales incl. inventory | Insurance...
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... DATABASE ADMINISTRATOR FOR DEPARTMENT STORE (TECHICAL PAPER) ANDREW L. PASSIE STUDENT Dr. HOSSEIN BESHARATIAN PROFESSOR CIS 515 STRAYER UNIVERSITY September 6, 2013 SUMMER Page 1 STRATEGY PLAN FOR DATABASE SYSTEMS ABSTRACT We are also going to discuss a Technical paper on Database Administrator for Department Store. We should know that a Database Administrator is the person who is responsible for planning, organizing, controlling, and monitoring the centralized and shared corporate database. The DBA is the general manager of the database administration department. We are also going to discuss the potential sales of the department store transaction within a database, evaluation of all relationships of the database solution using the Crow Foot notation, justifying that Big Data tools could be used for forecasting sales and inventory of the department store, the SQL functions to help sales predictions, implementing cloud-hosted solution for a database in the cost involved and pricing structure required, ranking the cloud services options of software...
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...Kohl’s Department Store Analysis Ursula Landry & Angela Burton Cardinal Stritch University Managerial Finance ADM 406 January 27, 2016 Introduction The New York Times states, “Kohl’s Corporation is a specialty department store. As of January 31, 2015, the company operated 1,162 department stores in 49 states and e- commerce website (www. Kohl’s.com). The company sells private label, and national brand apparel, foot wear, accessories, and beauty and home products. Kohl’s Corporation is one of the largest discount department store chains in the United States. Targeting middle-income shoppers buying for their families and homes, the chain maintains low retail prices through a low cost structure, limited staffing, and progressive management information systems, as well as the economical application of centralized buying, distribution, and advertising. Kohl’s mission is to be the leading family-focused, valve-oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting. This paper will attempt to illustrate a brief history of the Kohl’s Corporation, financial analysis of the company, three areas for improvement and recommendations that help the Kohl’s Corporation continue to be successful. History Maxwell Kohl opened his first Kohl’s Department Store in Brookfield, Wisconsin in 1962. Maxwell Kohl’s career started with a small grocery business that developed into...
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...Federated Department Stores made a decision in 2005 to reposition and consolidate 15 of its regional department store chains under just one national brand—Macy’s. This decision was in response to the decline in sales and profits that had hit the traditional department store industry, which was in a maturing stage and moving towards a downward trend for some time. Just three years later, in 2008, U.S. economy was hit with a recession that threatened the livelihood of many successful retail giants. While Macy’s did experience a significant drop in revenue in 2008 with a net loss of $4,803 million, compared to other department stores such as Mervyn’s that went bankrupt when the recession hit, Macy’s managed to stay in the game. Macy’s ability to not become obsolete was in part due to the consolidation and repositioning tactics that provided the company an avenue in creating a national brand and reducing the unit cost of advertising and promotional budgets considerably due to having one central hub for all of the company’s administrative functions and bulk purchasing. The success of the consolidation strategy is attributed to several factors. For instance, Macy’s brand already had nationwide recognition as “America’s department store” through aggressive national advertising activities, Fourth of July Celebrations and Thanksgiving Day Parade. In addition, when Federated had consolidated its regionally established department stores, these stores had a well-established customer base...
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...EXECUTIVE SUMMARY Macy’s Department Stores, Inc. is a large organization with many stores, departments, and employees. They have a quick employee turnover rate and high goal setting. They expect their employees to reach sales goals in set periods of time which causes stress amongst the ranks. Each department in a store is accountable to one or more managers, those managers have a floor manager and so on. Although it is tough to work for Macy’s, the goals they set have allowed them to thrive in the competitive department store world. There are three levels to the makeup of a company. Each level has many independent variables; we will be focusing on one for each level. The first level is the individuals with their skills and abilities. By using a questionnaire and sales results, we found how employees use their skills and abilities to meet their day-to-day goals. The next level is group processes. At Macy’s, departments are expected to meet goals from all their employees together. The independent variable that we chose to analyze is group characteristics. This also uses the questionnaire and sales results used for the individuals. The last independent variable that will be discussed is the organizational goals. When employees meet their goals, this allows the group to perform well and the whole store is better off. Each store competes to help Macy’s be a great organization. In our analyses we found that workers at Macy’s are stressed to meet their goals. This stress factor...
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