Saturday, October 19, 2019

Chain of Stores in Different Demographic Set-ups Case Study

Chain of Stores in Different Demographic Set-ups - Case Study Example As the paper highlights the issue on product specialization revolved around the products with high direct production costs (DPC). Fragile goods such as charcoal had high handling costs amounting to a DPC value of $0.37. Disposable diapers also held high DPC values of $0.70. These presented a problem with bulkiness. The varieties of the diapers, For example, kept changing, and that caused inconveniences in constant resetting of the shelf fixtures. This discussion declares that the display of products formed another area of focus. In this element, the study focused on the product and category sales per foot of the shelf space. The approach provided evidence that alcoholic beverages and cosmetics took considerable shelf space but generated considerably low in the returns. Alcoholic beverages performed poorly at $7.45 per feet while cosmetics performed even worse at $0.69 per feet of shelf space. Though they presented low returns, these products occupied considerable shelf space. The alcoholic beverages took a total of 513.3 feet of shelf space with only weekly sales of $3,823.73. Carbonated beverages, on the other hand, recorded almost triple in weekly sales to that of the alcoholic beverages ($10,003.92) but occupied shelf space of 339.7 ft. Cereals and other breakfast foods also occupied considerably little linear space, 166.6ft, regardless of the higher sales compared to the alcoholic beverages. In the non-edible grocery sect ion, soaps and detergents took the largest share in the shelf space allocated. The weekly dollar sales were $9187.17 compared to paper products (shelf space of 338.3ft and weekly dollar sales of $8483), and cigarettes/tobacco products, which had weekly sales of $11024.62, with a linear shelf space of 156.6 ft.

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