Department vs Name-Brand stores
Gopal Sreedharan
Department vs Name-Brand stores
We’ve all gone shopping before. Where we shop though differs through person to person. We’ve shopped at department stores such as JCPenney, or the name-brand stores such as Express. There are many opportunity costs between the two types of stores and department stores have been struggling to keep up with name-brand stores.
It seems millennials these days aren’t interested in department stores anymore. The department stores showcase their products as a look and buy. Name-brand stores showcase their items in a way you can interact with them more give buyers more of a reason to buy their products. Examples include make up stores that let consumers try on make-up more than department stores.
In an effort to combat this, these huge department stores had to put heavy discounts on all their products. People got used to the discount culture, however and will only buy their products when there’s a discount.
JCPenney had a previous projection of 3 percent annual growth through 2019, but only reached 1 percent this year. Sales at a store that have been open for a year fell .7 percent in the fiscal fourth quarter, with the holiday shopping. With all these sales going down JCPenney among other stores closed down a huge number of stores. JCPenney had closed down 130 to 140 stores themselves. All the employees that lost jobs are to be hired to fill up jobs that were bought out. They expect to save 200 million dollars annually with a record initial 225 million to cover the initial closure stores. The stocks fell 4.8 percent after this.
All these big department stores are all closing down many stores. They’ll need to find a way to combat the name-brand stores if they want to keep up with the trends of today’s millennials.
Works Cited
"17 Retail Trends for 2017." Fung Global Retail & Technology. N.p., n.d. Web. 20 Mar. 2017.
Bomey, Nathan. "J.C. Penney to Close up to 140 Stores, Offer Buyouts." USA Today. Gannett Satellite Information Network, 24 Feb. 2017. Web. 20 Mar. 2017.
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