Question

Topic: Strategy

Apparel In Hypermarket

Posted by Anonymous on 12/31/2008 at 6:25 AM ET 250 Points
Apparel in hypermarket do not sell as good as other products like fresh veg or canned food. There are traffic but people just touch and wont buy.

How to revamp the apparel division to create sales and be profitable?

Price is medium, quality is medium low, target market is family.
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RESPONSES

  • Posted by Mikee on 12/31/2008 at 9:19 AM Member
    If it is really not profitable, why keep selling apparel and use the space to sell more or what is profitable? Does the clothing craw people to the store? If it does than perhaps you keep it to bring people to the store and they buy what is profitable. My guess is that people do not come to the hyper market to buy clothing, but only buy some because it is convenient.

    If people are only buying clothes because they are convenient, perhaps you need to raise the price to make it more profitable? If people are just buying out of convenience a little higher price will probably not stop them. Do a study on what is selling and get rid of the apparel that doesn't move.

    Hope this helps,
    Mike
  • Posted by michael on 12/31/2008 at 9:35 AM Member
    Shouldn't the price be med-low if the product is med-low? I don't know apparel but if you're saying people touch (and can tell quality) and then don't buy...it's probably over priced.

    Michael
  • Posted by CarolBlaha on 12/31/2008 at 9:50 AM Member
    If the quality is really low, that is where you should start. In my opinion that is one of the reasons Steve & Barry's went under-- that and those high paid celebrity endorsements.

    You might want to take example of Walmart, who has given their clothing (and jewelry) dept a higher end look with diferent flooring, fixtures, soft lighting and graphics. The original Walmart VCT tile and bright lighting was done with purpose. They were selling price and wanted the look to match the concept-- sterile, cheap. Now they are changing their merchandising-- and sales in those departments have risen.
  • Posted on 1/1/2009 at 2:17 AM Author
    Thanks guys and Carol's response is closest to my expectation. Question is if customers have preset mindset of us being cheap low quality apparel retail, the existing customers who buy groceries will not buy apparel, even though they are there to shop, and to touch. Any ideas to attract them or change their perception, beside what Carol has suggested?

    Thanks again.
    Carmen
  • Posted on 1/1/2009 at 9:17 AM Accepted
    In the hypermarket/superstore arena you are definitely competing for the dollars spent there by families (expendable income).

    I would consider:

    My location within the hypermarket. Is it the best location for the product I am selling.

    Quality of clothing. Is it too low-end?

    Traffic. Is most of the traffic families, teenage shoppers, elderly shoppers, etc. You will want your apparel to appeal to the most traffic.

    Pricing on clothing. Is it too high for the quality or so low that it makes the buyer question the quality.

    Products offered. Are you offering what the public wants to purchase.

    I'd take a look at the sales that are being made and evaluate what my best sellers are and determine why and then test others by putting that apparel up front and see how it sells versus what you already know are your best sellers.

    Other apparel stores within the hypermarket. What are their quality and pricing strategies? How are their sales? Have you watched buyers shop in other apparel stores within the hypermarket? Do you know what they are buying

    With the information provided and without looking at the merchandise or the layout of the hypermarket, etc., this is the best advice I can offer.

    Marketing-Riot

  • Posted on 1/6/2009 at 7:00 AM Author
    Thank you for all your valuable ideas and contributions.
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