Chapter 4 - Pearson

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94 SECTION I Introduction to Fashion Retailing
Questions
1. Should the fact that the type of housing in the neighborhood near the new venture was the
same as the housing near the first be sufficient for Sue and Muriel to go ahead with the additional
store? Why?
2. What demographics should they consider before they expand their operation to the new
location?
3. What other types of consumer information should they seek before they make an ultimate
decision?
CASE PROBLEM 2
Pauline Edwards owns a store she named for herself. It is an established shop that sells high quality,
tailored women’s clothing. It has been in business at the same location for twenty-five years,
serving the needs of the upper-upper class. Its reputation was founded on impeccable service
and a merchandise assortment that was low key.Although the store’s patrons could afford the
glamour and style of the world’s leading couturiers, they preferred a more conservative, elegant
product.
When Pauline’s son Alex joined the company last year, he was full of new ideas that included
expansion into other affluent trading areas.After examining many potential sites, he set
his mind on one. It had about the same square footage as the other store, was already equipped
with fine fixtures, and would rent for a price that was in line with what they could afford for the
operation.
One problem that seemed to disturb Pauline was the area that surrounded the location.
By the vastness and styles of the homes, it was obvious that this was an environment that was
filled with the upper-lower class, people who are often referred to as “nouveau riche.” Alex believed
that this would be a benefit, since these people often spent more on clothing than their
upper-upper class counterparts.
At this time, they have still not decided if they will expand into the new location.
Questions
1. With whom do you agree on the assessment of the new area’s class of people in terms of being
the store’s future customers? Why?
2. Aside from income, what other factors should Pauline and Alex consider before making their
decision?