SHOP thursdays: post Covid-19 strategy Case Study Solution
Navigating the Uncertainty of the Retail Industry amidst the Global Pandemic
The disruptions caused by the COVID-19 pandemic led to a significant increase in online sales as consumers have shifted to shopping online. Shop Thursdays must navigate this uncertain environment, which requires adapting to changing consumer behavior and finding ways to maintain revenue streams.
Balancing the Potential Benefits with Costs and Risks
Shop Thursdays needs to decide whether to invest in influencer marketing to grow online sales, which would require closing one of its physical store locations. This decision requires careful consideration of the costs and benefits of the approach individually, along with the potential risks associated with closing a store location.
Deciding Whether to Invest In Influencer Marketing
Influencer marketing is an operative way to grasp new customers and drive online sales. However, it can also be expensive and may not always yield the desired return on investment. Shop Thursdays needs to carefully evaluate the potential benefits of influencer marketing and determine whether it is the right approach for the company.
Managing the Transition from Primarily Brick-And-Mortar Business to a More Online-Focused Model
Shop Thursdays has traditionally relied on physical stores to drive revenue. However, the shift to online sales requires new strategies for marketing, inventory management, and customer engagement. The company needs to ensure that it has the right systems and processes in place to manage this transition effectively.
Maintaining the Brand Identity and Customer Base While Adapting To Changing Consumer Preferences and Behaviors
The pandemic has changed consumer behavior, with many people shifting to online shopping and prioritizing comfort and practicality over fashion. Shop Thursdays needs to adapt to these changes while maintaining its brand identity and customer base. This requires careful consideration of marketing and inventory strategies, as well as an understanding of changing consumer preferences and behaviors.
Qualitative Analysis
SWOT Analysis
- Thursdays has a strong reputation for quality and stylish clothing.
- The online store is generating a significant amount of revenue.
- Thursdays has the opportunity to increase online sales through an Instagram partnership.
- Thursdays has a loyal customer base that may support the Exchange Tower store.
Weaknesses
- The Exchange Tower store may have reduced foot traffic due to the pandemic, resulting in lower sales.
- Shop Thursdays faces competition from other online clothing retailers.
- The cost of running the Exchange Tower store may outweigh the benefits.
- The pandemic and its effects on the economy make it difficult to predict future sales and profits.
Opportunities
- Thursdays can expand its online presence through marketing and partnerships.
- Thursdays can expand its international customer base through online sales.
- Thursdays can offer new products or expand into new markets to increase revenue.
Threats
- The pandemic and its economic effects may negatively impact sales and profits.
- Competitors in the online clothing retail market may take away market share.
- Changes in fashion trends may impact sales and profits.
- Shipping and production costs may increase.
External Factors
Shop Thursdays operates in the retail fashion industry, which is highly competitive and constantly evolving. The external environment that Shop Thursdays is operating in is influenced by various factors:
Economic Environment
In the case of Shop Thursdays, the COVID-19 pandemic has impacted the economy, leading to reduced commuter foot traffic and a decrease in sales revenue for the Exchange Tower store.
Social Environment
Shop Thursdays has identified two types of shoppers: busy professionals on lunch break and business professionals who visit the store after work hours. Thursdays' online customers tend to be first-time buyers who are looking for quality clothing at a discounted price. Return customers tend to be more loyal and prefer to buy items such as pants and non-cashmere lounge sets.
Technological Environment
The increase in e-commerce and online shopping has directed to enlarged competitiveness and the need for businesses to have a strong online presence. Shop Thursdays has an online store that generates revenue from both first-time and return customers.
Legal Environment
Shop Thursdays must comply with employment laws and regulations, such as minimum wage and overtime regulations.
Environmental Factors
Customers are being more ecologically cognizant, which increased the demand for sustainable and ethical fashion. Shop Thursdays does not explicitly mention sustainable and ethical practices, which may be a disadvantage in attracting environmentally conscious consumers..............
SHOP thursdays post Covid-19 strategy Case Study Solution (1)
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