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Service Management
Case: Esquire Department Store
碩研工管二甲
M98U0207
黃逸帆
Introduction
 Esquire Department Store has established by
Arthur Babbitt, Sr., in 1971
 Esquire Department Store has shown a recent
decline in sales.
2
Introduction
 The store manager, young Arthur Babbitt, Jr.,
has noticed a decrease in the movement of
customers between departments .
 He believes that customers are not spending
enough time in the store .
3
Introduction
 This result from the present layout, which is
based on the concept of locating related
departments close to each other.
 Babbitt, Sr., is not convinced.
 He argues that the loyal customers are not
likely to quit shopping here simply because of
the layout.
4
Introduction
 Babbitt, Jr., explains that the greater the
distance the customer travels between
departments, the more products the customer
will see.
 Customers usually have something specific in
mind when they go shopping, but exposure to
more products may stimulate additional
purchases.
5
Introduction
 It seems that the best answer to this problem is
to change the present layout so that customers
are exposed to more products.
 The company must display products better and
encourage impulse buying.
6
Introduction
 Babbitt, Jr., has estimated that on average, 57
customers enter the store per hour. The store
operates 10 hours a day, 200 days a year.
 He has a drawing of the present layout, which
is shown in Figure 9.9, and a chart depicting the
flow of customers between departments, which
is shown in Table 9.4.
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Figure 9.9 Current Layout of Esquire
Department Store.
Offices
5.Housewares
Warehouse
9.Boys’
clothing
1.Exit
Entrance
4.Jewelry
7.Ladies’ wear
10.Sporting
goods
11.Ladies’
lingerie
13.Furniture
6.Cosmetics
12.Shoes
3.Audio-TV
8.Mens’ wear
2.Appliances
Display
Display
Display
Display
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Table 9.4 Flow of Customers between
Departments, in Thousands
1
2
3
4
5
6
7
8
9
10
11
12
13
1
0
32
41
19
21
7
13
22
10
11
8
6
10
2
17
0
24
31
16
3
13
17
25
8
7
9
12
3
8
14
0
25
9
28
17
16
14
7
9
24
18
4
25
12
16
0
18
26
22
9
6
28
20
16
14
5
10
12
15
20
0
18
17
24
28
30
25
9
19
6
8
14
12
17
20
0
19
23
30
32
37
15
21
7
13
19
23
25
3
45
0
29
27
31
41
24
16
8
28
9
17
19
21
5
7
0
21
19
25
10
9
9
14
8
13
15
22
18
13
25
0
33
27
14
19
10
18
25
17
19
23
15
25
27
31
0
21
17
10
11
29
28
31
16
29
19
18
33
26
31
0
16
16
12
17
31
25
21
19
17
19
21
31
29
25
0
19
13
12
25
16
33
14
19
31
17
22
15
24
18
0
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Improvement & Suggestion
 According to Figure 9.9 and Table 9.4, I put
forward a plan for improving layout of this case.
 Setting up high flow of customers’ departments
together.
 For example: we can set up cosmetics
department and Ladies’ wear department
together.
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