Findings3
Conclusion5
Introduction
With sales decreased by 30% in the last three years, it is imperative to uncover why the store is not selling as much as it used to. Any store that has decreased in sales by that much in such a short period of time will not remain open for much longer. Losing 10% in sales steadily every year for the past three years will surely lead to bankruptcy if that trend continues and if some major changes regarding the decrease in store sales is not addressed. After having once been a leader in the market, it is astounding to now face the crisis of potential bankruptcy if sales do not improve. An investigation needs to be completed to discover the reasons why sales have decreased by such a tremendous amount. Obviously, there are some sales practices and/or merchandising challenges that have gone on for quite some time and the effects are only now being realized.
Findings
After former customers were surveyed, the results were calculated and analyzed. The surveys revealed three main issues that the store will have to overcome if it is to overcome bankruptcy. The first issue is that the purchasing managers in the store were shopping with all the same companies as they had in previous years. Maybe at some other time that would have been acceptable but since those suppliers do not have adequate competition from the purchasing managers shopping with other companies and suppliers, they do not provide the trends that customers are looking for. By shopping with the same entity, even though positive business relationships are created and nurtured, the creativity that comes with positive competition is absent and that company or supplier stunts its own growth by not challenging itself to produce up to date fashions. Purchasing managers have not attempted to try new clothing or accessories suppliers which is unacceptable because it has caused the store not to be able to keep up with current fashion trends. They should know that it is their job to be innovative with fashions and attempt to provide clients with the most up to date fashion choices. Also, purchasing managers should feel comfortable exploring a multitude of fashion genres and combinations as a way to showcase their fashion-forward talent. Purchasing managers should be encouraged to be riskier in their purchasing choices for the store. Also, with ten purchasing managers, there can be an issue with everyone being their own boss and chief. Some thought should be given to implementing a system of checks and balances to ensure that purchasing managers are working together and not against one another.
Another issue the store must overcome is that the sales personnel have not been making suggestions to management regarding store operations. Sales staff do not suggest more efficient and effective methods when they notice that a specific procedure or process within the store can be improved. Since sales staff perform particular tasks every day that are directly related to store sales volume, it is extremely important they feel that they are able to provide input regarding store operations. Also, they have to feel that the suggestions they make will be taken seriously and that they have the opportunity to be rewarded for creatively thinking of better ways to make the store run.
Overall, the survey results conclude that the environment of the store has become risk-averse. “Safe” fashions are sold and “safe” employees follow present procedures without question. There are no bold fashion statements being made; either from keeping up with current fashion trends or presenting fashion forward ideas. The other competitive stores within the vicinity offer risk, boldness, and flair. Without addressing that trend in the fashion industry, the store will continue to see a decline in sales.
Conclusion
The store is in dire need of a revival. There are several tactics the store can implement immediately to re-brand itself and entice previous and new clients to shop there. Purchasing managers must immediately seek out additional partnerships with other clothing suppliers besides the ones they normally do business with. A competitive nature should exist between clothing suppliers for the store so the clothing suppliers do not get comfortable with “guaranteed” business from the store and so they are also interested in providing more up to date fashions. Purchasing managers need to be encouraged to shop for riskier fashions. The store can implement a friendly competition for recognition by having the purchasing managers create an entire ensemble that will be displayed in the store windows. The winner can be determined by the most sales of the ensemble he or she styled. This type of competition is also available for sales personnel. They can be matched with a purchasing manager and be encouraged to make suggestions to clients much like a personal shopper. Incentives for sales personnel can vary in regards to recognition but the focus should be on making sure the client leaves the store satisfied; having received full attention from the sales staff.
Sales personnel should be encouraged to leave feedback regarding store processes. Since they are doing that type of work, they should feel comfortable addressing deficiencies and providing solutions to management, on an anonymous basis if they choose. Employee suggestion boxes can be implemented if they wish to remain anonymous or a recognition program can be utilized to give store recognition to employees that produce creative ideas to improve client service or any area of store operations.
The store needs to shed its risk-averse environment. If not already being done, sales personnel should be encouraged to wear whatever style they feel suits them best (as long as it abides by company dress code standards and is in good taste). Clients should see that store employees are encouraged to make their own fashion statements. Shopping music within the store should be monitored to make sure popular music is played that is not explicit and offensive. That type of environment will encourage clients to try different things and be experimental with their sense of fashion.
All of these actions should be implemented as soon as possible to turn the tide of the risk-averse environment the store currently exhibits. The riskier fashions obtained by the purchasing managers should be boldly displayed in the store windows by the store employees who are encouraged to make their own fashion statements. This will propel clients to be more experimental and bold with their sense of fashion. By making the changes as quickly as possible, the atmosphere of the store can become conducive to increased revenue.
