Unit 2 Assignment
Executive Summary Handout
Gordmans Stores Inc. is an off-price fashion retailer operating 99 stores in the mid-west partion of the US. The company’s history spans over a century and has seen the retailer grow from a small family business to a large company serving a wide market. The company sells fashion products including apparel, home fashions, and accessories for men, women, and children.
Operating in the larger retail industry places Gordmans in competition with other major retailers such as Wal-Mart and Kohl’s. In view of the threat of competition in this industry, Gordmans needs a new business strategy to remain competitive and on path to achieve its vision, mission, and goals. Therefore, this proposal presents a…show more content… The home fashion product category has been the second largest in the three consecutive years contributing over 27 percent of the total company revenue. The accessories product category, which also includes the fragrances, is the smallest in terms of revenue contribution representing less than 17 percent of the company revenue (Gordmans Stores Inc., 2015).
Recommendations and Justification
The recommended addition of a new store for Gordmans fits the company’s corporate growth strategy. The addition of the new store is in line with the company’s mission of delighting guests with big savings, big selection, fun, and friendly associates. The addition of the new store will spread this experience to new customers who will be shopping at Gordmans.
Considering that this will be the latest addition to the company’s stores, it will be the most modern and appealing Gordmans store to date. Therefore, the customers’ experience while shopping in the new store will be more appealing. This will help Gordmans stay relivant in the ever changing retail market.
Additionally, one of the multi-pronged growth strategies for Gordmans is expanding the store base. In the current financial year (2015), the company plans to add six new stores to its store base (Gordmans Stores Inc., 2015). This implies that the proposed new store will be in line with this growth strategy. It will be an actualization of the company’s short-term growth plan for expanding store base.