Merchandising in fashion industry essay

merchandising / fashion / retailing


Merchandising operations quiz

 2. Top shop has continually postponed the opening of their soho store. Please list 5 reasons for these delays and why.

  • Reason number 1. Logistics

The example may serve the British fast-fashion retailer Topshop. The shop was originally planned as an open a 40,000-square-foot flagship in SoHo this fall

  • Reason number 2. Construction Delays

The entrance of into the U.S. market was postponed until March because of construction delays at the store. The whole case was described as the “a logistical nightmare.”

  • Reason number 3. The need to work on the new territory and under new circumstances

According to Philip Green, Topshop’s owner “America is a new territory for us and we have to get it exactly right. This store can’t be a nine out of 10 when it opens; it has to be a 10 out of 10. So we’re delaying the opening until around mid-March.” (Yarrow A., Cinema delays opening, August 18, 1989)

  • Reason number 4. The presence of structural building issues. The opening of the store was delayed dues to the presence of numerous structural problems.

The example may serve the SoHo Bloomingdale's store that was planed to be opened in November 2007, but the opening of the store was delayed due to the presence of a number of structural building issues. These issues contributed to the delay in the opening of the store.

  • Reason number 5. Tights budget

 3. In today’s economic climate, to weather the storm, many retailers are making serious changes to their working capital. Explain 5 ways that brick and mortar retailers have changed the way they are selling goods.


Retailers have all the rights to be regarded the two important types of middlemen. These people are forming a part of the distribution channels. In other words, retailers are acting as an intermediary link between the manufacturers and the consumers of goods. Also, a great number of retailers are known for specializing on providing a wide range of services for both the producers as well as the consumers. Also, the retailers are known to reduce the amount of efforts that are required by the manufacturer while distributing the final product to the consumers.

5 ways that brick and mortar retailers have changed the way they are selling goods in clued the following:

1. The introduction of online auction

2. The introduction of discount website

3. Openings of the discount stores (Historically, many of the major innovations in retailing took place in the United States of America. It is widely known that Five-and-dime stores, for example, were the brainchild of Franklin W. Woolworth).

4. The development of chain stores.

5. Opening of the supermarkets

The changes were caused by the following reasons:

  1. The dominant role of the Big box retailers
  2. The introduction of New technologies
  3. the presence of The “Wal-Mart” effect
  4. the discovery of the internet

 4. The e-commerce war continues. Only the strong will survive. Name and explain three changes that are taking place among internet retailers to solidify and increase their business.

 1) Internet retailers have to adjust their prices more readily than conventional retailers. This is usually done in response to structural changes that take place in supply or demand. The changes are common for the internet. Sales in the internet can be characterized by the following characteristics:

 2) Internet retailers show the tendency to change prices in smaller increments as compared to the conventional retailers. The estimations show that the smallest observed price change on the Internet has amounted to the sum of $0.01. Up to this date, it was the smallest observed price change that has been once expected from the side of a conventional retailer was $0.35.

 3) The other tendency is the fact that the Internet markets are highly concentrated. It means that the retailers with the lowest prices do not receive the most sales.

 4) Online retailers are reported to spend about $40 on the acquisition of a new shopper. The acquisition is reported to take place in the second quarter of 2000. The figure is constantly rising.

 5. Old Navy is slowing adding in new product lines. Plus size, women and maternity were not part of their original model. Explain why they were added to the mix and why the big box retail stores do not stock the full assortment?

 Old Navy is slowing adding in new product lines. One of these are products for women and maternity. Though these have not been initially a part of the program, the products have been successfully added to the product line. The addition of new products to the Old Navy’s product mix is not occasional. The situation is largely reasoned a number of factors. One of these is the ineffectiveness of Old Navi branding former branding strategy. In fact, branding of Old Navy now features a prominent ON. In old times the situation was different. For a long time the branding of Old Navy remained to be unchangeable. The addition of new products was one of Robertson’s (key branding manager) ideas to change the face of the company. In other words, this was the way to established a new brand position of the Old Navy.

Why stores do not stock the full assortment? This is question is very simple. Box retail stores are smaller store concepts. Though small in size they can allow retailers to get in to neighborhoods or areas that they previously would not have been able to approach.

 6. Uniqlo has one shop in NYC. Why do you think they have not explained?

 To answer this question one must delve into the very nature of UNIQLO. UNIQLO is Japan's most popular apparel retailer and a worldwide leader that specializes in selling casual wear. The store is known to have opened its first global flagship store. The store can be regarded as the world's largest UNIQLO in New York City. This is one of the largest fashion capital of the world.

UNIQLO has grown into one of the largest apparel retailers in Japan thus becoming a brand – one single global shop.

 7. Without discount coupons many New Yorkers will not shop? How has this type of marketing impacted the sales of the retailers like Macy’s?

 New York City has many interesting features. One of these is the presence of New York Discount coupons. The discount coupons enable people to buy products for much lower prices. Also, discounts and coupons serve to be the best entertainment for New Yorkers. The major benefit is cheap eating. New Your has discounts in a number of most popular theme restaurants that are located in midtown, Planet Hollywood and ESPN Zone. There are certain discounts at New York City attractions as well as in the New York Water Taxi tour and many other interesting venues located at the New York City.

The whole idea can be explained as one of the boldest stroke in American retailing in decades. The introduction of the coupons enabled Macy's chain to complete its takeover of 410 struggling department stores.

 8. Most retailers do not expect to sell their products at full retail…They have pricing strategies in place before the merchandise hits the floor. With the changes in the economy, is this platform still prudent?

 There are many outside influences. These influences are known to affect profitability and a retailer's bottom line. It is also widely known that setting the right price is a crucial step that can help to achieve good profits. The choice of the retailing strategy closely depends on the costs that are associated with the products. The other factors that matter include the cost of goods and the amount of operating expense. The major part of the retailers are not able to succeed in business if they continue to sell their products below cost.

While choosing a proper strategy the following things must be taken into account:

 1. Retail Pricing Strategies The cost of the products must be changed. This is largely reasoned by the competition and the initial cost of the products. To achieve their goal the retailers will also need to examine their channels of distribution and research what the market is willing to pay. Also, many of the pricing strategies are dependable on particular a set of circumstances such as:

  • Mark-up Pricing
  • Competitive Pricing
  • Psychological Pricing
  • Other Pricing Strategies

 9. Fear leads to frugality. What are five results of the economic slowdown to effect retailers?

 1. The smaller businesses are getting managerially integrated into the larger business

Organizations with larger cost heads will be first to get hit in case of a slowdown. In general, the situation is very problematic and many retailers are looking at ways to trim expenses and protect their profits. Many of the food chains have been engaged in studying options for cost rationalization, thus making steps to improve the situation.

 10. Of the many on line retailers selling apparel, please select one and explain their strategy.

There is a close relationship between vertical scope and the company’s the ability to respond to a significant economic shock. The final result has been achieved in the process of studying how firms in the apparel industry have adapted to the Internet. In fact, the use of the internet has become the main way in which the online retailers are selling their products. Also, there is the evidence that implies that the products of vertically integrated retailers are more available on-line than those of non-integrated vendors.


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