value retailers sec
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Value Retailers
Paul GernetzkeCassie MatteiTerrance MonroeJames ShinstineKat Trumpy
Value Retailers
Retailer that offers a broad variety of merchandise, limited service and low prices
Offer both private labels and national brands but the brands are typically less fashion-oriented than brands in department stores
Introduction
Wal-Mart
Brief History First Store Opened November 1962 Founded by Sam Walton Largest Retailer in the world Always Low Prices……Always. Roll Back Prices
Locations/Store Information
US Stores (year ending 2003) 1568 Discount Stores 1258 Supercenters
International Stores 942 Discount Stores 238 Supercenters
Over 1,500,000 Employees
Customer Attractions
Extremely Low Prices People who live paycheck to paycheck CEO’s, Presidents and Vice-Presidents
McDonald’s, Pharmacy, Photo Center, US Cellular
Friendly Atmosphere/ Greeter Customer Service
Store Interior
Lighting Crowed Aisles due to Merchandise Massive Displays Long Checkout Lines Self Checkout Wal-Mart TV
Financials
2003
Net Profit Margin: .032
Asset Turnover: 2.58
Leverage: 2.40
RONW: .204
2002
Net Profit Margin: .031
Asset Turnover: 2.61
Leverage: 2.38
RONW: .190
Special Events/Community Issues
Scholarships for Higher Education 11 Million
United Way 80 Million
Children’s Miracle Network Telethon Raised 131 Million Donated 27 Million
Overall Rating
Aisle Size Lighting Selection Prices Customer Service Atmosphere
Kohl’s
Brief History Founded in 1962 by the Kohl’s family Half apparel, half hard goods Sold in 1972 to BATUS Sold to Kellogg and two other exec’s in
1986 Acquired 26 Main Street dept. stores
Locations/Store Information
Stores in 37 states 563 stores and kohls.com Average store size 88,650 sq. ft.
Customer Attractions
Strong national brands, good value and commitment to convenience
Offer “best merchandise at best price” #1 priority is to offer excellent customer
service Many fashion exclusive being introduced
Apt. 9 Estee Lauder products Daisy Fuentes
Target Market
Middle income women
Families
Loyalty Program
Kohl’s Charge Card
MVC Exclusive Privileges
Saving Events
Community Service
Kohl’s Kids Who Care Recognition Program
Children’s Hospital Program Fundraising Card Program Associate Volunteer Recognition
Program
Financials
2003
Net Profit Margin: .057
Asset Turnover: 1.54
Leverage: 1.60
RONW: .14
2002
Net Profit Margin: .071
Asset Turnover: 1.44
Leverage: 1.80
RONW: .18
Store Layout
Overall Rating
Aisle Size Lighting Selection Prices Customer Service Atmosphere
Target
Brief History Established in 1962 Formerly known as Dayton Hudson Target chains became company’s money
maker in 1977 SuperTarget introduced in 1995 2004: Stopped issuing products through
catalogs
Store Locations
47 States No stores internationally and no stores
in Vermont, Alaska and Hawaii Highly concentration of stores in the
Midwest and now in California
Store Information
Owns apparel supplier-Associated Merchandising Corp.
Two level stores glimpse of future International expansion? Plans to add dollar selection
Customer Attractions
Trendy, high quality merchandise at reasonable prices
Exclusive brands like Mossimo, Liz Lange, Isaac Mizrahi
Target to a T Image of customization
Target Market
Median age is 45 Income of 57k Typically women High percentage of customers have
children 44% of customers have attended or
graduated from college
Special Services/Programs/Events
1% of all Target credit card sales go to the school of purchasers choice
Makes contributions to educational purposes within their communities and have expanded efforts internationally
Committed to increasing access to the arts Partnership with Tiger Woods Foundation in Start
Something Address critical safety issues in store communities
Financials
2003
Net Profit Margin: .084
Asset Turnover: 1.62
Leverage: 1.31
RONW: .178
2002
Net Profit Margin: .084
Asset Turnover: 1.62
Leverage: 1.30
RONW: .177
Overall Rating
Aisle Size Lighting Selection Atmosphere Prices Customer Service
Brief History
1886 Watch selling Mail order Homes First retail store in 1925 Unique items and specialty service
Store Locations
HQ Hoffman Estates IL Nearly 900 full line stores 1,100 specialty stores
Recent Merger
Kmart and Sears merge to form Sears Holdings, Inc. for $11.5 billion
3rd largest in U.S.
Full assortment of goods Brands: Kenmore, Craftsman, DieHard,
Lands’ End, Covington, Apostrophe Sears carries top six appliance brands Multiculturalism appeal
Customer Attraction
Store Tour
Service Counter “Foot Prints” Backroom
Loading Docks Deliveries
Three Foot Rule
Target Market
Life Time Customers
30 – 60 year olds
Special Services
Registries Installation Delivery Service Warranties Credit Card Habitat for Humanity Allocated Donation Fund “Extreme Makeover”
Special Services cont’d
“Satisfaction Guaranteed or Your Money Back” Service Counter 1 mill. Hrs community volunteer National Assoc. Female Executive’s 2004 list of top
30 companies for executive women Latina Style magazine as one of the corporate 100
best places to work for Latinos Annual Sales Event
Financials
2003
Net Profit Margin: .093
Asset Turnover: 1.31
Leverage: 4.33
RONW: .5306
2002
Net Profit Margin: .0385
Asset Turnover: .71
Leverage: 7.46
RONW: .204
Overall Rating
Aisle Size Lighting Selection Atmosphere Prices Customer Service
Market Basket: Wal-Mart
3 pack Hanes T-Shirts: $5.97 Guys Wedding Band: $14.97 Bath Towel: $3.88 Full Sheet Set: $24.84 Oven Mitt and Pot Holder: $2.88 Hamilton Beach Blender: $12.44 12” Cooking Pan: $9.98 Foreman Grill: $19.44 Dirt Devil Vacuum: $98.77
Market Basket: Kohl’s
3 Pack Hanes T-Shirts: $8.45 Guys Wedding Band: $169.99 Bath Towel: $4.69 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $5.00 Hamilton Beach Blender: $14.99 12” Cooking Pan: $49.99 Foreman Grill: $24.99 Dirt Devil Vacuum: $95.99
Market Basket: Target
3 Pack Hanes T-Shirts: $5.49 Guys Wedding Band: $45.00 Bath Towel: $4.99 Full Sheet Set: $19.99 Oven Mitt and Pot Holder: $5.99 Hamilton Beach Blender: $19.99 12” Cooking Pan: $17.99 Foreman Grill: $19.99 Dirt Devil Vacuum: $89.99
Market Basket: Sears
3 Pack Hanes T-Shirts: $8.24 Guys Wedding Band: $29.88 Bath Towel: $1.98 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $6.99 Hamilton Beach Blender: $24.99 12” Cooking Pan: $19.99 Foreman Grill: $29.99 Dirt Devil Vacuum: $99.99
3 Pack Hanes T-Shirts: Guys Wedding Band: Bath Towel: Sears Full Sheet Set: Oven Mitt and Pot Holder: Hamilton Beach Blender: 12” Cooking Pan: Foreman Grill: Dirt Devil Vacuum:
Market Basket: Lowest Price