Wednesday, May 13, 2009
♥ Challenges faced by Specialty Outlet
Challenges faced by Specialty Outlet
Lack of space
The limited space has a big impact on the amount of variety it can carry and this affects the products offered to the customer. Therefore the retailer would have to choose its products carefully according to the customer’s preferences and the going trend.
Without a big warehouse like the departmental store, the availability of stocks is compromised and this will affect the supply. Due to the nature of a specialty store, the demand will be highly uncertain and the retailer will have to make sure that the supply is always there to meet the demand.
Bulk purchase
Specialty stores most of the time does not order in bulk as compared to departmental stores. Therefore they cannot save costs by purchasing in large quantities. Their prices will in turn be higher and they will have to do more on their customer service and the shop ambience to attract the customer to buy in their store.
Lack of space
The limited space has a big impact on the amount of variety it can carry and this affects the products offered to the customer. Therefore the retailer would have to choose its products carefully according to the customer’s preferences and the going trend.
Without a big warehouse like the departmental store, the availability of stocks is compromised and this will affect the supply. Due to the nature of a specialty store, the demand will be highly uncertain and the retailer will have to make sure that the supply is always there to meet the demand.
Bulk purchase
Specialty stores most of the time does not order in bulk as compared to departmental stores. Therefore they cannot save costs by purchasing in large quantities. Their prices will in turn be higher and they will have to do more on their customer service and the shop ambience to attract the customer to buy in their store.
7:55 AM
