Retail Marketing Investigation
MKT236 Retail Marketing: Assessment 1
Word Count: 2789
The aim of this report is to examine the characteristics of merchandise assortment and store design within two retail companies to identify constituents that can have a negative and positive influence on the stores. Apparel department of two discount department stores were selected and observed in the constituents that create their merchandise assortment and store design. Apparel departments of Target and Big W at Fountain Gate in Victoria, Australia were selected as locale of study.
The report consists of two sections. The theoretical study section is based ...view middle of the document...
However, improved conditions have managed to revenue growth over the last couple of years as consumer sentiment and disposable incomes increase (IBISWorld, 2014).
The two retailers selected for this study under the retail category of apparel are Target and Big W. Target Australia Pty Ltd is a department store chain owned by Wesfarmers (formerly by Coles Group). It operates 179 Target stores, 122 Target Country stores and 3 Urban by Target stores and 1 Target Outlet. Target is an iconic Australian retailer dedicated to making fashion, style and quality affordable. Target stores are conveniently located in trendy shopping centres. This gives the consumers an advantage of convenience. Target offers its customers a diverse range of products including fashionable women’s, men’s and children’s clothing, underwear, footwear, cosmetics, and accessories; homewares, electrical and consumer electronics (Target website). Targets competitors are boutique stores like Katies, Suzanne Grae, and also department stores like Kmart, Big W and Myer.
Big W is a retail department store owned by Woolworths Limited. Big W was founded in 1970s. Big W delivers irresistibly low pries through more than 179 stores across Australia. Big W ensures their customers get the lowest prices possible on the items consumers need every day. Big W’s brand name is related to the lowest prices. Big W also offers diverse range of products including Apparel/Footwear, Home, Leisure, Toys & Sporting, Electronics and Optometry. Big W’s main competitors are Kmart and Target, both owned by Westfarmers (Big W website). Big W’s slogan “Everyone’s a winner” based on the Hot Chocolate song, and catchphrase “Cha-ching” (Big W Wikipedia).
Retail is a demanding business but the forces of today’s economic conditions are resultant in even more careful consumer shopping and spending. That’s why it is important to have adaptable tools that allow retailers to quickly adjust to erratic consumer demands (Intermec website).
Merchandise assortments and Store design and display are fundamental constituents of retail mix that retailers use to satisfy consumer needs and influence their purchase decisions and thus affect consumer commitment by creating satisfaction. Other important elements in the retail mix include location, price, customer service and the communication mix (Levy and Weitz, 2007).
Merchandise assortment also known as product mix or selection refers to the total number of product lines that a retailer offers to its customers. Merchandise assortment includes product breadth and depth (Miller, 2008). Clodfelter (1993) states that merchandise assortment is a collection of various quantities of styles, colors, sizes and prices of associated merchandise, generally categorized under one classification within a department. Product displays that are well arranged and follow these vital features may create or improve a store image, draw customer...