Case: Esquire Department Store Service Management Case: Esquire Department Store 碩研工管二甲 M98U0207 黃逸帆
Introduction Esquire Department Store has established by Arthur Babbitt, Sr., in 1971 Esquire Department Store has shown a recent decline in sales.
Introduction The store manager, young Arthur Babbitt, Jr., has noticed a decrease in the movement of customers between departments . He believes that customers are not spending enough time in the store .
Introduction This result from the present layout, which is based on the concept of locating related departments close to each other. Babbitt, Sr., is not convinced. He argues that the loyal customers are not likely to quit shopping here simply because of the layout.
Introduction Babbitt, Jr., explains that the greater the distance the customer travels between departments, the more products the customer will see. Customers usually have something specific in mind when they go shopping, but exposure to more products may stimulate additional purchases.
Introduction It seems that the best answer to this problem is to change the present layout so that customers are exposed to more products. The company must display products better and encourage impulse buying.
Introduction Babbitt, Jr., has estimated that on average, 57 customers enter the store per hour. The store operates 10 hours a day, 200 days a year. He has a drawing of the present layout, which is shown in Figure 9.9, and a chart depicting the flow of customers between departments, which is shown in Table 9.4.
Figure 9.9 Current Layout of Esquire Department Store. Offices Warehouse 5.Housewares 9.Boys’ clothing 1.Exit Entrance 4.Jewelry 7.Ladies’ wear 13.Furniture 6.Cosmetics 10.Sporting goods 11.Ladies’ lingerie 12.Shoes 3.Audio-TV 8.Mens’ wear 2.Appliances Display
Table 9.4 Flow of Customers between Departments, in Thousands 1 2 3 4 5 6 7 8 9 10 11 12 13 32 41 19 21 22 17 24 31 16 25 14 28 18 26 20 15 30 23 37 45 29 27 33
Improvement & Suggestion According to Figure 9.9 and Table 9.4, I put forward a plan for improving layout of this case. Setting up high flow of customers’ departments together. For example: we can set up cosmetics department and Ladies’ wear department together.