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RUNDELS DEPARTMENT STORE
Rundels Division Of Urban Stores.
Smaller Store In The Ownership Group.
Leader In Trying New Concepts.
Located in a midwestern city.
Dominant Department Store In The Market.
Major Competotor Youngstons.
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RUNDELS DEPARTMENT STORE
URBAN STORES A major Department Store
Ownership Group.
Sixteen Operating Divisions.
Each Division Operated Autonomously.
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RUNDEL DEPARTMENT STORES PROFITS
$0
$100
$200
$300
$400
$500
$600
$700
19871988
1989
NET INCOME(IN $10,000)
Column1
Column2
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RETAIL MIX
RUNDELS DEPARTMENT
MENS JEANS.
Three Suppliers:
Levi, Farah, low priced supplier. Designed for over 30 males.
Full Line Of Mens Regular PANTS.
Suppliers :
Levi, farah, spotwood and 2 other.
Off Brands to promote sales.
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RETAIL MIX
RUNDELS DEPARTMENT
MENSJEANS
THREESUPPLIERS
DESIGNED FOROVER 30MALES
REGULARPANTS
2 SUPLIERS, LOCAL
BRANDS ALSO.
OFF BRANDSto promote
sales.
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METROPOLITIAN AREA
UNIQUE OR NOT?
No, it is not Unique.
Located In medium- sized midwestern city.
The other Department store- Youngstons.
Branch Outlets also in the same sub-urban area.
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METROPOLITIAN AREA : UNIQUE ORNOT?
LOCATED IN MID- SIZED MID WESTENCITY.
THE DOMINANT COMPETITOR-YOUNGTONS
BRANCH OUTLETS ALSO IN THE SAMEUBURBAN AREA.
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DAVIS MANUFACTURING COMPANY
Large Manufacturer of broad line of Mens Clothes.
Ranks Among top five manufacturers of mens apparel.
Recent Years Not So Successful. Failed to keep pace with the industry.
Only Fine for discount stores .
Effort to recapture quality image.
New designers had been hired.
Entire New Designer Line of Slacks , jeans andcoordinates developed.
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THE VENDOR PROGRAM
Business needs of Rundels from Davis:
Davis agrees to maintain continuity of supply ofregular stock by filling orders on a 2- week basis.
Ability to maintain markup of 48 % on basic stock.
Guaranteed Turnover rate of 3.5 in 1990, 4.0 thereafter.
Markdown Rates not to exceed 10% .
Davis advertising to include 60% of costs to amaximum of Rundel's purchases from Davis.
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DAVIS- AGREE OR NOT?
It Should Agree:
Recently Not So Successful.
Wants to Re- establish its position.
Rundell can be a key account.
Rundels will support Davis:
By developing Davis as a major department store.
Departmental features and display of regularrunning items.
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PREPRATIONS
SUE ANDERSON- DAVIS
Focus on quality image
Information about the new designers
Market growth rate
Negotiations on the offers
Vendor support to focus on smooth and strong
distribution
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GORDON FRANKLIN
Mentioned terms and condition
Quality issues
Support by rundel
Importance of rundel for davis
Win win situation for both
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THANK UU!
THANK
YOU