Transcript Department stores & supermarkets.ppt

Department stores & supermarkets?
- supermarkets and department
stores pricing schemes and
renovations
Andrew Hill
Bobby Pfennigs
Seunghee Cha
Supermarket and department
store trends
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Supermarket: Safeway, Albertson’s
Department Store: Marshall’s, J.C.
Penny
50-70 percent off specials
BOGO's (Buy One, Get One)
Both started to shift from toward EDLP
(Every Day Low Prices)
What Customers are looking
for
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They soon found out that customers go
to supermarkets or department stores
for the bargains
For EDLP, consumers tend to go to big
discount stores such as Wal-Mart or
club stores for EDLP
Admitting Defeat
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The Supermarkets and department stores
realized that there was no way to
compete against Wal-Mart’s low prices.
So they are realizing that they must
transition back to bargain pricing and
differentiate themselves in other ways.
Bringing in customers
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The supermarkets and department stores
are doing a number of things to bring in
customers:
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Putting clear signs up to tell the customer where
to go for certain items
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The customer likes easy shopping
Spending millions on renovations to improve
ambiance
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They can charge more for the experience
In Summary
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They have learned
that making it easier
for shoppers to shop
pays off!
Customers are
willing to pay a
higher price for a
better shopping
experience.
Bibliography
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"Department stores & supermarkets? - supermarkets and department stores
pricing schemes and renovations". Shopper Report, The. Oct 2003.
FindArticles.com. 06 Mar. 2007.
http://www.findarticles.com/p/articles/mi_m0YQW/is_2003_Oct/ai_110392663