Boscov's Competition
Now Viewing Boscov's's competition in: Department Stores (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company's typical customer? - The typical department store customer is an educated woman between 25 and 54. Income can very greatly depending on a company's target market.
What are the company's most effective marketing vehicles? - Marketing and promotional vehicles include TV, print, newspaper, and radio advertising; direct mail (catalogs, flyers); in-store displays and events; and sponsorships.
What are the company's most successful special events? - Special events, such as promotional sales and trunk shows, drive store traffic.
What are the main benefits of the company's loyalty program? - Loyalty programs reward frequent customers with special discounts and free merchandise, encourage repeat purchases, and help companies develop targeted marketing programs.
How does the company keep in touch with its best customers? - High-end department stores may require sales associates to maintain frequent, personal contact with key customers.
How does the company benefit from offering personal shopping services? - Offering personal shopping services help companies establish long-term customer relationships and maximize selling opportunities.
What role does the Internet play in the company's marketing plan? - Most companies offer retail Internet sites to complement store offerings, build store awareness, and generate customer traffic.
How have Internet sales affected the company's catalog sales? - Web sales growth for department stores has resulted in some companies reducing catalog circulation.
How reliant is the company on promotional sales and discounting? - Consumers buy over 60 percent of department store merchandise on sale, according to NPD Group.
How has the company's competitive set changed over the last decade? - Department stores compete with discount department stores and mass merchandisers; specialty stores; off-price and outlet stores; Internet and mail order retailers; and home shopping networks.
Competitive Landscape
Consumer spending and fashion trends drive demand. The profitability of individual companies depends on effective merchandising and marketing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by offering unique merchandise, providing superior customer service, or delivering a distinctive store experience. The industry is labor-intensive: average annual revenue per worker is $130,000.
Business Challenges
CRITICAL ISSUES
Competition from Alternative Retailers - Companies face intense competition from a wide variety of retailers, including discount department stores, warehouse clubs, and specialty stores. Discount department stores, such as Target, have upgraded apparel selection and offer quality merchandise at low prices. Warehouse clubs sell basic items at rock-bottom prices. Specialty retailers provide better selections and service within a particular category. Private-label apparel from all types of retailers has also hurt department stores.
Dependence on Consumer Spending - Consumer spending drives department store sales. Many products sold in department stores, particularly apparel and cosmetics, are considered discretionary. During tough economic periods, consumers may cut back or shop at less expensive retailers, such as discount department stores and mass merchandisers.
Industries Where Boscov's Competes
- Retail
- Department Stores(primary)
- Nonstore Retail
- Consumer Services
- Optical Services
- Travel Agencies & Services
