Value Retailers sec2

Value Retailers: 

Value Retailers Paul Gernetzke Cassie Mattei Terrance Monroe James Shinstine Kat Trumpy

Value Retailers: 

Value Retailers Retailer that offers a broad variety of merchandise, limited service and low prices Offer both private labels and national brands but the brands are typically less fashion-oriented than brands in department stores

Introduction: 

Introduction

Wal-Mart: 

Wal-Mart Brief History First Store Opened November 1962 Founded by Sam Walton Largest Retailer in the world Always Low Prices……Always. Roll Back Prices

Locations/Store Information: 

Locations/Store Information US Stores (year ending 2003) 1568 Discount Stores 1258 Supercenters International Stores 942 Discount Stores 238 Supercenters Over 1,500,000 Employees

Customer Attractions: 

Customer Attractions Extremely Low Prices People who live paycheck to paycheck CEO’s, Presidents and Vice-Presidents McDonald’s, Pharmacy, Photo Center, US Cellular Friendly Atmosphere/ Greeter Customer Service

Store Interior: 

Store Interior Lighting Crowed Aisles due to Merchandise Massive Displays Long Checkout Lines Self Checkout Wal-Mart TV

Financials: 

Financials 2003 Net Profit Margin: .032 Asset Turnover: 2.58 Leverage: 2.40 RONW: .204 2002 Net Profit Margin: .031 Asset Turnover: 2.61 Leverage: 2.38 RONW: .190

Special Events/Community Issues: 

Special Events/Community Issues Scholarships for Higher Education 11 Million United Way 80 Million Children’s Miracle Network Telethon Raised 131 Million Donated 27 Million

Overall Rating: 

Overall Rating Aisle Size Lighting Selection Prices Customer Service Atmosphere

Kohl’s: 

Kohl’s Brief History Founded in 1962 by the Kohl’s family Half apparel, half hard goods Sold in 1972 to BATUS Sold to Kellogg and two other exec’s in 1986 Acquired 26 Main Street dept. stores

Locations/Store Information: 

Locations/Store Information Stores in 37 states 563 stores and kohls.com Average store size 88,650 sq. ft.

Customer Attractions: 

Customer Attractions Strong national brands, good value and commitment to convenience Offer “best merchandise at best price” #1 priority is to offer excellent customer service Many fashion exclusive being introduced Apt. 9 Estee Lauder products Daisy Fuentes

Target Market: 

Target Market Middle income women Families

Loyalty Program: 

Loyalty Program Kohl’s Charge Card MVC Exclusive Privileges Saving Events

Community Service: 

Community Service Kohl’s Kids Who Care Recognition Program Children’s Hospital Program Fundraising Card Program Associate Volunteer Recognition Program

Financials: 

Financials 2003 Net Profit Margin: .057 Asset Turnover: 1.54 Leverage: 1.60 RONW: .14 2002 Net Profit Margin: .071 Asset Turnover: 1.44 Leverage: 1.80 RONW: .18

Store Layout: 

Store Layout

Overall Rating: 

Overall Rating Aisle Size Lighting Selection Prices Customer Service Atmosphere

Target: 

Target Brief History Established in 1962 Formerly known as Dayton Hudson Target chains became company’s money maker in 1977 SuperTarget introduced in 1995 2004: Stopped issuing products through catalogs

Store Locations: 

Store Locations 47 States No stores internationally and no stores in Vermont, Alaska and Hawaii Highly concentration of stores in the Midwest and now in California

Store Information: 

Store Information Owns apparel supplier-Associated Merchandising Corp. Two level stores glimpse of future International expansion? Plans to add dollar selection

Customer Attractions: 

Customer Attractions Trendy, high quality merchandise at reasonable prices Exclusive brands like Mossimo, Liz Lange, Isaac Mizrahi Target to a T Image of customization

Target Market: 

Target Market Median age is 45 Income of 57k Typically women High percentage of customers have children 44% of customers have attended or graduated from college

Special Services/Programs/Events: 

Special Services/Programs/Events 1% of all Target credit card sales go to the school of purchasers choice Makes contributions to educational purposes within their communities and have expanded efforts internationally Committed to increasing access to the arts Partnership with Tiger Woods Foundation in Start Something Address critical safety issues in store communities

Financials: 

Financials 2003 Net Profit Margin: .084 Asset Turnover: 1.62 Leverage: 1.31 RONW: .178 2002 Net Profit Margin: .084 Asset Turnover: 1.62 Leverage: 1.30 RONW: .177

Overall Rating: 

Overall Rating Aisle Size Lighting Selection Atmosphere Prices Customer Service

Brief History: 

Brief History 1886 Watch selling Mail order Homes First retail store in 1925 Unique items and specialty service

Store Locations: 

Store Locations   HQ Hoffman Estates IL Nearly 900 full line stores 1,100 specialty stores

Recent Merger: 

Recent Merger Kmart and Sears merge to form Sears Holdings, Inc. for $11.5 billion 3rd largest in U.S.

Customer Attraction: 

Full assortment of goods Brands: Kenmore, Craftsman, DieHard, Lands’ End, Covington, Apostrophe Sears carries top six appliance brands Multiculturalism appeal Customer Attraction

Store Tour: 

Store Tour Service Counter “Foot Prints” Backroom Loading Docks Deliveries Three Foot Rule

Target Market: 

Target Market Life Time Customers 30 – 60 year olds

Special Services: 

Special Services Registries Installation Delivery Service Warranties Credit Card Habitat for Humanity Allocated Donation Fund “Extreme Makeover”

Special Services cont’d: 

Special Services cont’d “Satisfaction Guaranteed or Your Money Back” Service Counter 1 mill. Hrs community volunteer National Assoc. Female Executive’s 2004 list of top 30 companies for executive women Latina Style magazine as one of the corporate 100 best places to work for Latinos Annual Sales Event

Financials: 

Financials 2003 Net Profit Margin: .093 Asset Turnover: 1.31 Leverage: 4.33 RONW: .5306 2002 Net Profit Margin: .0385 Asset Turnover: .71 Leverage: 7.46 RONW: .204

Overall Rating: 

Overall Rating Aisle Size Lighting Selection Atmosphere Prices Customer Service

Market Basket: Wal-Mart: 

Market Basket: Wal-Mart 3 pack Hanes T-Shirts: $5.97 Guys Wedding Band: $14.97 Bath Towel: $3.88 Full Sheet Set: $24.84 Oven Mitt and Pot Holder: $2.88 Hamilton Beach Blender: $12.44 12” Cooking Pan: $9.98 Foreman Grill: $19.44 Dirt Devil Vacuum: $98.77

Market Basket: Kohl’s: 

Market Basket: Kohl’s 3 Pack Hanes T-Shirts: $8.45 Guys Wedding Band: $169.99 Bath Towel: $4.69 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $5.00 Hamilton Beach Blender: $14.99 12” Cooking Pan: $49.99 Foreman Grill: $24.99 Dirt Devil Vacuum: $95.99

Market Basket: Target: 

Market Basket: Target 3 Pack Hanes T-Shirts: $5.49 Guys Wedding Band: $45.00 Bath Towel: $4.99 Full Sheet Set: $19.99 Oven Mitt and Pot Holder: $5.99 Hamilton Beach Blender: $19.99 12” Cooking Pan: $17.99 Foreman Grill: $19.99 Dirt Devil Vacuum: $89.99

Market Basket: Sears: 

Market Basket: Sears 3 Pack Hanes T-Shirts: $8.24 Guys Wedding Band: $29.88 Bath Towel: $1.98 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $6.99 Hamilton Beach Blender: $24.99 12” Cooking Pan: $19.99 Foreman Grill: $29.99 Dirt Devil Vacuum: $99.99

Market Basket: Lowest Price: 

3 Pack Hanes T-Shirts: Guys Wedding Band: Bath Towel: Sears Full Sheet Set: Oven Mitt and Pot Holder: Hamilton Beach Blender: 12” Cooking Pan: Foreman Grill: Dirt Devil Vacuum: Market Basket: Lowest Price