Objectives Of Mr Price

Shopping can and should be about more than just price or convenience. Moreover, for high street and main street retailer, concentrating only on price means losing the opportunity to build genuine brand loyalty or give shoppers a reason to enjoy their visit.

profitability, slowing demand growth and a surge in private label sales threatened to undermine the

With the economic downtown, this may affect sales for the company as consumers’ discretionary spending become less and less. Macy’s also faces intense competition which is inherent to the retail and department stores industry.

| * Having very little financial resources can leave Fresh Connections susceptible to the business uncertainties of this industry * Currently highly dependent on a stagnating market segment as Retail make up half their sales

That being said, suppliers can have some power in regards to choosing the number of stores where their product can be purchased at. This allows the suppliers to regulate their sales and stay away from the “red tape”. The bargaining power of customers impacts HBC as customers are able to influence pricing based on their buying habits. Of course, customers do not choose the retail prices offered to them, however, if inexpensive clothing were to lead the industry, retail stores would adapt to this consumer demand and offer an abundance of inexpensive clothing due to consumer preferences. These forces lead to rivalry among competitors due to the many options offered to consumers to grant their desires. These forces combine to cause strategic implications for HBC. HBC must differentiate itself from its competitors who, similar to HBC, have large annual revenue, strong and profitable supplier agreements and large amounts of capital. As well, due to competitors large sale volumes, competitive pricing is an implication which faces

Increasing competition from Scrambled merchandising from Canadian tire & dollar store chains. Increasing competition is putting a pressure on profit margins as well.

Ross Dress for Less has been keen to ensure it retains competitive edge where substitutes are concerned. The company through its price strategy coupled with purchasing methods which are unique can be said to be the key factors that counteract the threat of substitutes. There is the need for the company to keep watch of fake commodities in the market which may serve to undercut its market.

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

This has hurt negotiations with current buyers, causing gross margins to slip due to the aggressive competition. Being known for quality is important, but the brands creating cheaper replicas, artifacts, and jewelry still have a place in the market.

This is because other dealers in the market will get an opportunity to sell their products in the market. Customers can get products locally with the change. Some suppliers can still get a way of working around the pricing issue to increase their sales.

The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very

Supplier Power: This highlights that it is easy for suppliers to rise up their prices. This is determined by the number of suppliers, the uniqueness of their product, their control over the buyer, and the cost of changing from one buyer to another. The scarcer the supplier choices you might have, and the more you need the help and that

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.

The power of buyer is high as there is an overabundance of retailers in the market. For instance, Zara, Gap and Uniqlo. (Johnson et al., 2014, pg 576) This implied that customers have a wide variety of stores to shop around for bargainable apparel at the best prices. This leads the buyers to switch from one brand to another effortlessly.

Demographics: over 55 years old, as well as small group of women aged between 25 and 45