Retail Man - Save A Lot

What is Save-A-Lots retail strategy—its target market, format, and brutals of competitive advantage? How do the elements in the strategic profit model for Save-A-Lot differ from those of a traditional supermarket? What are the pluses and minuses of offering a limited potpourri from the perspective of the consumer and the perspective of the retailer? licensees rather than by the friendly relationship directly? Save-A-Lot In 1977, Bill Moran was the Vice-President of Sales for a diet wholesaler in St. Louis. His customers, independent grocers, were facing a easy economy and stiff competition from the growth of regional supermarket chains. He developed an extreme value, limited assortment concept to tick up small grocery stores a way to compete. He because tested the concept in several stores. Even though the concept worked in the test stores, the wholesaler believed the concept would non work when the economy improve d. Today, Save-A-Lot has more than 1,300 stores across the United States and Save-A-Lot targets a value- and convenience-oriented psychographic segment. The consumers in this segment are looking for a near value, namely, quality merchandise at low prices.

Its stores average more or less 14,000-18,000 square feet, less than half the size of a portentous supermarket. These smaller stores appeal to shoppers who dont want to park half a mile from the storefront Stores stock approximately 1,250 SKUs of the most best-selling(predicate) stops, compared with 30,000 SKUs in a traditional superm arket. Save-A-Lots large customer base an! d change assortment format equate to high gross gross sales volume and lower costs. For example, a traditional supermarket may comeback over 35 SKUs of ketchup—different brands, sizes, and flavors. Save-A-Lot carries just one, do to the like specifications as the leading national brand. The chain has buy power with its vendors by purchasing one size and frame of an item for more than 1,150 stores...If you want to get a right essay, articulate it on our website: OrderCustomPaper.com

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