Spencer's Retail Limited: Repositioning in a Changing Retail Environment
(9 pages of text)
To target the expanding segment of upwardly mobile and upper-income Indians, a pre-eminent organized retailer in India decided to introduce Western-style hyperstores with high-end merchandising. The initial reactions of shoppers were positive, but soon the novelty wore off and store traffic declined. To counter the negative consumer responses, the retailer undertook a year-long test of a new repositioning strategy in its signature hyperstore in a large urban centre. The key challenge was to increase the store’s traffic and profitability without jeopardizing its distinctive and high-quality upscale image. The case provides the test results, which include consumer reactions as well as impacts on store traffic and profit margins.
- Create an overall store perception and shopping experience with the help of merchandising mix, in-store signage and other visuals.
- Analyze the effects of a rebalanced merchandise mix on sales volume and margin.
- Become sensitive to the issue of creating cross-category demand.
- Recognize the dynamic nature of store positioning in an emerging market where shopper composition and shopper expectations are evolving.
- See the linkages between store positioning and the expansion strategy to other socioeconomic segments or geographically to other states and metropolises.
India, Large, 2011
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