Marketing

2 Pages 546 Words

Randall’s Department Stores

Randall’s had been very successful in building volume and gross profit dollars by increasing the frequency and variety of its sales events, but with continued promotional sales, and everyday low pricing in some departments they may have lost their customer’s confidence in the value of their merchandise. The pre-season, promotional sales, coupon sales and everyday low pricing in certain departments are sending a mixed message. It seems to me that they have to choose to either be in the market of ‘everyday low pricing’. or a mid-size department store. They have to consider who their customer base is and who their competition is, and I would think they would eliminate everyday low pricing.
They carry many high quality brands with strong brand images, that don’t seem to fit into the EDLP system. For example, in the Men’s department, they were at risk of losing an important vendor who threatened to leave Randall’s because they did not want to be associated with EDLP. As it is now, as the retailer Randall’s is under pressure from the manufacturer to not mark down their products within a certain time frame, so they may jeopardize their position to even carry these brands. The merchandise they carry is not from the previous season, like a Marshall’s or T.J. Max may carry – that is not their competition. The stores like Prescott’s, D.H. Humphrey and J.C. Penneys are the competition and they are very aggressive in their advertising, price structure as well as the quality of the merchandise they carry.
They may have to consider down sizing or even eliminating some departments, like their furniture or appliances because it may become impossible for them to be successful in achieving any substantial market share, or be competitive. They do not have the resources to compete with a Warehouse Electronics, so it may be better to choose not to.
By having a more stable pri...