Retail Industry Solutions |
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Retail presents several challenges to analysis: · Extreme seasonality, including specific days or periods of peak demand ·
· Weekly data · Non-standard calendars, with 4- or 5-week periods instead of months, the occasional 53rd week in a year, and sometimes 13 periods per year · Competition is very strong, with lots of new stores being opened and old stores being remodeled or replaced · Demand is sensitive to many events, such as competitive actions, weather, promotions, etc. Performance Chain™ can model and accurately measure all of these factors. Best of all, all of that modeling is done by Performance Chain™, not your managers. This simplifies their job and makes forecasting easy and accurate. Revenue Growth Case Studies Target department store monthly
sales from 1989 to 2003 are analyzed.
This example adjusts for Target’s Cost Control Case Studies Kmart bankruptcy and department store operations This case study compares Walmart, Target Corporation, and Kmart cost control performance for both cost of sales and sales, general, and administrative expense. It shows how Kmart’s bankruptcy was inevitable without drastic changes in their cost control ability. It also revels an interesting difference between industry giant Walmart and contender Target. Specialty
department store operations Pier 1 Imports is compared with Cost Plus World Markets in this case study. The comparison shows each company could improve its performance relative to the other. This comparison of Kroger, Albertsons, and Safeway shows there are performance differences even in this extremely competitive market. While Safeway compares favorable, recent performance raises concerns. This case study examines store pre-opening expense at Cost Plus World Markets. It illustrates the difference between average and marginal rates, and the importance of using the correct measure when evaluating performance. Capital Management Case Studies Specialty Department Store Profitability This case study compares profitability for Pier 1 Imports, which is large and established, with Cost Plus World Market, which is smaller and growing. Also see the Capital Management page for hypothetical store examples. |
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Retail |
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