Case Study 1: Family Dollar

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Case Study #1: Family Dollar: Reinventing the Discount Store

1. Evaluate Family Dollar’s retail strategy. Will it work in both good and bad economic times?

Family Dollar’s retail strategy will work in both good and bad economic times. The company’s mission: is to provide our customers with a compelling place to shop, our team members with a compelling place to work, and our investors with a compelling place to invest. Our vision is to be the best, small format convenience and value retailer serving the needs of families in our neighborhoods. (Family Dollar 2012 Annual Report) During the economic downturn, Family Dollar reevaluated the company’s goals. One of the goals the company will be refocusing on will be to build customer
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The biggest con is decreased selections. People will not have a variety of items to choose from. They will also not be able to compare which is the cheapest or the best products for their families. Even though there will not be a variety of products to choose from, consumers will have lower prices due more bargaining power that Family Dollar will have with suppliers. This will simplify its ordering and re-stocking process this will keep shelves from being empty. Even though Family Dollar is decreasing the number of brands they are carrying, they are increasing the products that are stocked by each brand.

3. Describe Family Dollar’s competitive advantages and disadvantages with respect to competition from conventional supermarkets and box stores.

Family Dollar has a big competitive advantage over supermarkets and box stores. The same products that the supermarkets and box stores carry, Family Dollar sells to its customers for a cheaper price. Family Dollar stores are conveniently located in your local neighborhoods within walking or a short driving distance. Most supermarkets and box stores you have to fight with crowds and parking in a larger shopping district. Family dollar not only sells food and health and beauty products but they also have clothing for the family. This is something that supermarkets do not carry. Some box stores do carry clothing products but not with the convenience that Family

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