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Mcgregor's Ltd. Department Store

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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 The outdated employee discount program is the place to start.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 appliances, calculators, typewriters, cameras, film, and food. 2. 15 percent discount would be given on books, records, stationery, household goods, clocks, toys, china, linens, sporting goods, small electrical appliances, and furnishings. 3. 20 percent would be given for clothing, fabrics, cosmetic s, costume jewelry, purses, belts, and scarves.For items such as candy and tobacco are

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