Question

In one to two pragraphs; Discuss the reasons that department stores are losing their market share to discount stores as well as what department stores are doing to try to gain back customers.

Answer 1

ANSWER:

THESE ARE THE FOLLOWING REASONS THAT DEPARTMENT STORES ARE LOOSING THEIR MARKET SHARE:

1. Location of the department stores as these are located in malls while people want to purchase from their neighbourhoods.

2. Customer service is not good in the department stores.

3. Since inventory storage is high in department stores , therefore the costs are also high compared to discount stores which work good with their inventories.

Things that department stores are doing to gain back customers:

1. Organising events during festive ocassions.

2. Locations that are nearby to people are being opened by them.

3. More online presence.

4. Giving consumers more choices.