1. Case: Esquire Department Store
Service Management
Case: Esquire Department Store
碩研工管二甲
M98U0207
黃逸帆

2. Introduction
Esquire Department Store has established by Arthur Babbitt, Sr., in 1971
Esquire Department Store has shown a recent decline in sales.

3. 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 .

4. 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.

5. 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.

6. 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.

7. 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.

8. 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

9. Table 9.4 Flow of Customers between Departments, in Thousands1 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

10. 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.