ross paperFINAessayL - The Ross chain was purchased in 1982...

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The Ross chain was purchased in 1982 by a group of investors, including Mervin Morris (founder of Mervyn’s chain). At that time, there were only six units in the San Francisco Bay Area. Also part of this investment group, were Stuart Moldaw and Don Rowlett, who proved to be a very dynamic duo. These two entrepreneurs were largely responsible for Ross’s rapid expansion in the 1990’s. Referred to as “retail veterans,” both men had extensive experience in retail operation. One of the most important steps in accelerating Ross’s expansion was the dedication towards attracting a broader customer base and implementing a broader merchandise selection. The two men shifted the chain’s focus away from its original junior-oriented format and replaced it with an off-price format stocking branded apparel for men, women, and children. The chain expanded throughout the 1990’s, with many more stores opening. Moldaw and Ferber then decided to test-market a “Home Accents” department, featuring picture frames, china, ceramic wear and crystal. Today, adding to the sales of clothing, frames, china, ceramic wear and crystals, Ross offers a larger variety of products including shoes, purses, suitcases, socks, chests, chairs, baskets, and toys. The mission for Ross Stores’ is to offer competitive values by focusing on four key objectives. The first objective is to provide an appropriate level of brands and labels at substantial discounts throughout their stores. The next objective is to meet customer needs on a regional basis (regional demands may differ in certain areas). The next objective is to deliver an in-store shopping experience that meets the expectations of their target market—the off-price customer (customers seeking lower priced clothing). Lastly, Ross Stores’ focuses on managing real estate growth to maintain dominance, or to increase their competitiveness in key markets. One aspect of Operations Management
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that will enhance the four objectives of Ross and will yield higher revenue is a successful retail layout. The five retail layout guidelines and three servicescape elements will show the strengths and weaknesses of Ross’s current layout. Other applications of Operations Management will also show how Ross can improve their layout When determining the layout of a retail store, there are five guidelines to follow. “First, a retail store should locate high-draw items around the periphery of the store (Heizer, Render Pg. 272.).” In a department store such as Ross, high-draw items include suitcases, blankets, chests, chairs, and lamps. “The second guideline is to use prominent locations for high-impulse and high margin items (Heizer, Render Pg. 272.).” High- impulse items include CDs, DVDs, beauty supplies, socks, shampoos, hats, and ties. “Thirdly, a retail layout should properly distribute items that are powerful or items that
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This note was uploaded on 09/08/2010 for the course BUS 140 at San Jose State University .

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ross paperFINAessayL - The Ross chain was purchased in 1982...

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