Case Analysis: Rue 21

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Rue 21 is one of the many retailers that are geared towards teens, however what set them apart from the rest is their affordability. This company strives to keep all of its merchandise under 35 dollars. Rue 21 has locations in various strip malls with 52 percent, regional mall 31 percent and outlet centers 17 there are pros and cons that affect the company for each of them (Berman, 2009). Having this store in a strip center can be a really great thing for consumers put not such a positive thing for the company as a whole. The positive to a strip mall is that it is easily accessible for customers to find and shop at the location. Strip malls have less congestion when it comes to parking, which makes for a more pleasurable for shoppers like…show more content…
This is a bad thing because not only is they’re no security but this causes for the company to pay more in overhead expenses. Also the rent they are paying has the possibility to be increased each year. There is a positive to Rue 21 not owning their real estate, which is if the location is not doing so well the have a clause in the lease where they can back out of the contract if projected sales are not met (Berman, 2009). To help reduce the risk of the real estate strategy it would be in Rue 21’s best interest if they increase the amount of stores they open in malls to help share the consumer base as target since they are in a lot of malls and have the same consumer base. In doing this it will help Rue 21 pick locations that give them more exposure with less risk or loss of…show more content…
There are a lot places that this company would do great at because there are low-income families all over. Rue 21 has have great success in the US so bringing it to other countries can only be positive. As long as this company has the right location for its stores and is keeping its targeted consumer in mind then the store will strive. Although this has a lot of pros there will be some difficulties that Rue 21 will have to overcome. For instance, this company currently uses domestic suppliers to help keep up with the current trends. The targeted age range for Rue 21 is 11 to 17 year olds and the trends for this age is regularly changing every few weeks to months. This means the company will have a difficult time finding resources in different countries that can have the same turn around time. It is not impossible for the company to find those suppliers but coming from the U.S to other countries that you are not familiar with this could be a bit of a change and challenge. Rue 21 is on its way to competing with other discounted stores due to the store set up setting them apart from other discounted retailers they just have to keep up the good work and be smart about store locational
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