VALUE FOR MONEY STRATEGY Presented by: Rashmi Tak

What do we mean by value for money? – getting the balance right

Company profile about Littlewoods plc It is the largest privately owned family company in the United Kingdom, with shareholder’s investment valued at £998.3 million = 698 crore rupees. Started in 1923 as a football pool business by John Moores and two partners. retail in 1932 with a mail order. In 1937 they opened the first Littlewoods chain store.

By the year 2001,181 Littlewoods Index catalog shops. 24 Littlewoods discount stores featuring variety of quality goods at discount prices. The company was also involved in internet retailing through e-commerce sites. To appeal to women, Littlewoods Mail Order Stores were begun in logical diversification.

Chain store retailing in mid1930’s. By 1950 ‘s there were about 52 Little woods stores. In 1953 Moores realized the advent of credit- buying society. In 1990 it became a sophisticated and automated credit system depended on telephone orders.

In 1990’s although the existing recession Littlewoods produced a pretax profit of 46%. it had to face competition from National lottery that opened in 1994 and also the death of Sir John Moores. Family feuding and interference in the management led to the takeover bids. However in 1995 it agreed not to sell off and appointed a new chairman James Ross.

It shifted from retail to mail order (direct mail home catalog). It tried to buy Freeman’s,Sears PLC’s mail order operation in the year 1997 but it was trumped off. High street stores were being hard hit by competition from discount chains as New Look, Matalan, and Peacocks. Had trading loss of £15.6m= 11 crore In 2000 Barry Gibson appointed as group chief executive in 1997 Littlewoods would adopt a “value for money strategy”. With the prices of some clothing lines reduced by more than 40 percent.

prices were 15% lower in the Littlewoods Spring catalogue. As a whole, the group posted profits of £141m, having made £155m out of selling off the pools and betting business, and £23m from other disposals. Interest free credit for 52 weeks.

THE COVER PAGE OF THE WEBSITE OF LITTLEWOODS

Benefits provided by Littlewoods to its customers Shopping goods directly from home. All goods from fashion to electrical Shop for jewellery, nursery goods and sports equipment including all top brands. Provide discount vouchers for providing additional savings on products with money saving discount and promos. Facility of ordering free catalogue.

site also features a bargain section and a great gift finder. LW home shopping have £15 off on their first order. LX Direct stores show stock and delivery availability. LW home shopping all orders are delivered fast and free.

How Littlewoods Improved its SCM Problem : overstocking problems in supply chain management  Solution:  Introduced web-based performance reporting system.  Enabled merchandising personnel to make more accurate stock, sales and supplier decisions.  Introduced web based performance reporting system