Us commerce department statistics 2005 given your day

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Applied Calculus
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Applied Calculus
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U.S. Commerce Department Statistics 2005 Given your day-to-day experience with retailing, you are well aware that retailing success depends on store location, convenience, the assortment or selection of products offered for sale, their quality, the quality of their presentation, the attractiveness of the store interior, the friendliness, helpfulness, enthusiasm, expertise and efficiency of store employees, and the efficiency of the store’s supply chain. Today, the major competitive dichotomy in retailing is between low prices and product quality, service quality and the quality of the shopping experience. Getting the right quality-price balance can be as tough for retailers as it is for manufacturers. 7 7 “A Long, Long Way from Bentonville, The Economist , September 30, 2006: 64-65. Initially, Walmart’s acquisition of Asda was a success as it gained market share from Sainsbury and Tesco, the major established supermarket chains. But maybe the guaranteed lowest-prices are not as big a draw as it used to be? In Britain, 40 years ago 25% of household income was spent on groceries; today it is under 10%. Because of this reduction in household budgetary share, the price sensitivity of grocery shoppers has decreased. Their sensitivity to the quality of produce, meats, fish, deli and its prepared food menus has increased. Walmart has continued to promote everyday low price, ignoring the fact that rivals are flourishing by marketing high quality, select and organic brands while offering an extensive prepared food selection in the deli. Sainsbury and Tesco have out-positioned Walmart by aggressively marketing quality and then defensively pricing using strong signaling price promotions and very low priced store brands. And their positioning is better, given the trends in price and quality sensitivity in the grocery market. What might Walmart have done? Right from the beginning, it could have designed its logistics and merchandising to create the finest fresh produce section of any produce seller in the market. It should have featured the produce at the front right of the store. It would have made Sainsbury’s job much more difficult because how can you attract the quality, price-insensitive grocery shopper if you do not have the best produce section in the market? As discussed earlier, retailing is about positioning and supply chain cost control. Clearly, even the greatest retailer in the world, Walmart, can screw up its positioning by misreading changing demand in the markets it serves.
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Applied Calculus
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Chapter 3 / Exercise 1
Applied Calculus
Berresford/Rockett
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