value retailers sec

Value Retailers

Paul GernetzkeCassie MatteiTerrance MonroeJames ShinstineKat Trumpy

Value Retailers

Retailer that offers a broad variety of merchandise, limited service and low prices

Offer both private labels and national brands but the brands are typically less fashion-oriented than brands in department stores

Introduction

Wal-Mart

Brief History First Store Opened November 1962 Founded by Sam Walton Largest Retailer in the world Always Low Prices……Always. Roll Back Prices

Locations/Store Information

US Stores (year ending 2003) 1568 Discount Stores 1258 Supercenters

International Stores 942 Discount Stores 238 Supercenters

Over 1,500,000 Employees

Customer Attractions

Extremely Low Prices People who live paycheck to paycheck CEO’s, Presidents and Vice-Presidents

McDonald’s, Pharmacy, Photo Center, US Cellular

Friendly Atmosphere/ Greeter Customer Service

Store Interior

Lighting Crowed Aisles due to Merchandise Massive Displays Long Checkout Lines Self Checkout Wal-Mart TV

Financials

2003

Net Profit Margin: .032

Asset Turnover: 2.58

Leverage: 2.40

RONW: .204

2002

Net Profit Margin: .031

Asset Turnover: 2.61

Leverage: 2.38

RONW: .190

Special Events/Community Issues

Scholarships for Higher Education 11 Million

United Way 80 Million

Children’s Miracle Network Telethon Raised 131 Million Donated 27 Million

Overall Rating

Aisle Size Lighting Selection Prices Customer Service Atmosphere

Kohl’s

Brief History Founded in 1962 by the Kohl’s family Half apparel, half hard goods Sold in 1972 to BATUS Sold to Kellogg and two other exec’s in

1986 Acquired 26 Main Street dept. stores

Locations/Store Information

Stores in 37 states 563 stores and kohls.com Average store size 88,650 sq. ft.

Customer Attractions

Strong national brands, good value and commitment to convenience

Offer “best merchandise at best price” #1 priority is to offer excellent customer

service Many fashion exclusive being introduced

Apt. 9 Estee Lauder products Daisy Fuentes

Target Market

Middle income women

Families

Loyalty Program

Kohl’s Charge Card

MVC Exclusive Privileges

Saving Events

Community Service

Kohl’s Kids Who Care Recognition Program

Children’s Hospital Program Fundraising Card Program Associate Volunteer Recognition

Program

Financials

2003

Net Profit Margin: .057

Asset Turnover: 1.54

Leverage: 1.60

RONW: .14

2002

Net Profit Margin: .071

Asset Turnover: 1.44

Leverage: 1.80

RONW: .18

Store Layout

Overall Rating

Aisle Size Lighting Selection Prices Customer Service Atmosphere

Target

Brief History Established in 1962 Formerly known as Dayton Hudson Target chains became company’s money

maker in 1977 SuperTarget introduced in 1995 2004: Stopped issuing products through

catalogs

Store Locations

47 States No stores internationally and no stores

in Vermont, Alaska and Hawaii Highly concentration of stores in the

Midwest and now in California

Store Information

Owns apparel supplier-Associated Merchandising Corp.

Two level stores glimpse of future International expansion? Plans to add dollar selection

Customer Attractions

Trendy, high quality merchandise at reasonable prices

Exclusive brands like Mossimo, Liz Lange, Isaac Mizrahi

Target to a T Image of customization

Target Market

Median age is 45 Income of 57k Typically women High percentage of customers have

children 44% of customers have attended or

graduated from college

Special Services/Programs/Events

1% of all Target credit card sales go to the school of purchasers choice

Makes contributions to educational purposes within their communities and have expanded efforts internationally

Committed to increasing access to the arts Partnership with Tiger Woods Foundation in Start

Something Address critical safety issues in store communities

Financials

2003

Net Profit Margin: .084

Asset Turnover: 1.62

Leverage: 1.31

RONW: .178

2002

Net Profit Margin: .084

Asset Turnover: 1.62

Leverage: 1.30

RONW: .177

Overall Rating

Aisle Size Lighting Selection Atmosphere Prices Customer Service

Brief History

1886 Watch selling Mail order Homes First retail store in 1925 Unique items and specialty service

Store Locations

  HQ Hoffman Estates IL Nearly 900 full line stores 1,100 specialty stores

Recent Merger

Kmart and Sears merge to form Sears Holdings, Inc. for $11.5 billion

3rd largest in U.S.

Full assortment of goods Brands: Kenmore, Craftsman, DieHard,

Lands’ End, Covington, Apostrophe Sears carries top six appliance brands Multiculturalism appeal

Customer Attraction

Store Tour

Service Counter “Foot Prints” Backroom

Loading Docks Deliveries

Three Foot Rule

Target Market

Life Time Customers

30 – 60 year olds

Special Services

Registries Installation Delivery Service Warranties Credit Card Habitat for Humanity Allocated Donation Fund “Extreme Makeover”

Special Services cont’d

“Satisfaction Guaranteed or Your Money Back” Service Counter 1 mill. Hrs community volunteer National Assoc. Female Executive’s 2004 list of top

30 companies for executive women Latina Style magazine as one of the corporate 100

best places to work for Latinos Annual Sales Event

Financials

2003

Net Profit Margin: .093

Asset Turnover: 1.31

Leverage: 4.33

RONW: .5306

2002

Net Profit Margin: .0385

Asset Turnover: .71

Leverage: 7.46

RONW: .204

Overall Rating

Aisle Size Lighting Selection Atmosphere Prices Customer Service

Market Basket: Wal-Mart

3 pack Hanes T-Shirts: $5.97 Guys Wedding Band: $14.97 Bath Towel: $3.88 Full Sheet Set: $24.84 Oven Mitt and Pot Holder: $2.88 Hamilton Beach Blender: $12.44 12” Cooking Pan: $9.98 Foreman Grill: $19.44 Dirt Devil Vacuum: $98.77

Market Basket: Kohl’s

3 Pack Hanes T-Shirts: $8.45 Guys Wedding Band: $169.99 Bath Towel: $4.69 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $5.00 Hamilton Beach Blender: $14.99 12” Cooking Pan: $49.99 Foreman Grill: $24.99 Dirt Devil Vacuum: $95.99

Market Basket: Target

3 Pack Hanes T-Shirts: $5.49 Guys Wedding Band: $45.00 Bath Towel: $4.99 Full Sheet Set: $19.99 Oven Mitt and Pot Holder: $5.99 Hamilton Beach Blender: $19.99 12” Cooking Pan: $17.99 Foreman Grill: $19.99 Dirt Devil Vacuum: $89.99

Market Basket: Sears

3 Pack Hanes T-Shirts: $8.24 Guys Wedding Band: $29.88 Bath Towel: $1.98 Full Sheet Set: $29.99 Oven Mitt and Pot Holder: $6.99 Hamilton Beach Blender: $24.99 12” Cooking Pan: $19.99 Foreman Grill: $29.99 Dirt Devil Vacuum: $99.99

3 Pack Hanes T-Shirts: Guys Wedding Band: Bath Towel: Sears Full Sheet Set: Oven Mitt and Pot Holder: Hamilton Beach Blender: 12” Cooking Pan: Foreman Grill: Dirt Devil Vacuum:

Market Basket: Lowest Price