Failing Retailers

It is unfortunate that due to the recession many retailers have gone bankrupt. But the cause of bankruptcy is not all from the U.S.’s bad economical standing it is also caused by what the retailer did wrong. Specifically Goody’s Family Clothing Store declared bankruptcy in 2009 after 56 years of business. As quoted from the TheDeal.com “Southern apparel chain Goody's Family Clothing Inc. became the latest private equity-controlled retailer to tip into Chapter 11 bankruptcy.” Although an article from Reuters.com quotes that “ as the U.S. economic recession has undermined its (Goody’s) ability to continue operating.” The Goody’s store could have used more retailing strategies to help bring in customers to make a profit so that they would not have to liquidate their stores. For example they could have advertised more with more commercials, having their website put out their on the radio, or they could have sponsored a local news station. I think that is the reason, besides the economy, that Goody’s failed and could not make money.

Target Market

The official dictionary.com definition of a target audience is the intended group for which something is performed or marketed; the specific group to which advertising is directed. So when retailers are brainstorming about a new product to put out on the market they have to keep a specific group of consumers in mind so they can ensure the product will sell. Retailers have to keep many things in mind when marketing to consumers. As stated by the VALS segment "Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression." Retailers have to make products that will strike appeal into the three categories of consumers. I think that VALS is very accurate at stating the different categories of consumers and the motivations of each type. I would also have to agree with VALS and that on Tuesday when we had to portray different consumers for different stores that we had to think of their motivation, achievements, ideals, and self-expression.

Background On My Favorite Retailer

Last week I discussed how my favorite retailer was FOREVER 21. This week I am going to give the background information and inside scoop on the history of FOREVER 21. The very first store opened up in Los Angeles, California it was located at 5637 N. Figueroa St. in the Highland Park district of Los Angeles. By the end of the first year, sales had risen from $35,000 to $700,000. Fashion 21 eventually expanded at the rate of a new store every six months and changed the Fashion 21 brand name to Forever 21. In 1989, Forever 21 opened its 11th store and first store located in a Mall, at the Panorama Mall(www.Panoramamall.com) which is in Panorama City, CA. Forever 21 increased its presence by expanding the average size to 5,000 square feet (460 m2) per store. Since then, Forever 21 has been running speciality stores in major mall locations nationwide. In 1995, the company expanded their chain to Florida and opened a store in Miami's Mall of the Americas, this location was the first store outside of California. Drastically expanding the number of Forever 21 stores nationally, Forever 21 opened XXI flagship stores in Georgia, Texas, Miami, Los Angeles, Orem, Chicago, and Canada. The average size of XXI venues are average of 24,000 square feet (2,200 m2). Since 2002, Forever 21 has been ranked as one of the 50 largest privately held companies in Los Angeles. In 2005, Forever 21 was operating over 355 locations nationwide with the brands Forever 21, Forever XXI, For Love 21, and Gadzooks. In September 2008, Forever 21 opened its new flagship store in North Atlanta, Georgia (Dunwoody), the first XXI flagship in Georgia. Another flagship opened in Atlanta two months later. Its numerous shop-in-shop concepts demonstrates the continuing strength of boutique and specialty retailing over the department or megastore format.

Favorite Retailer

My favorite retailer although it may be a bit cliché it would have to be FOREVER 21. I enjoy being able to go to one store and purchasing an entire outfit complete with matching jewelry. They also offer the most current up to date styles and fashions for an affordable price. FOREVER 21 also offer other brands made by the same company such as HERITAGE 1981, and Twelve by Twelve. Each different brand has its own look and style too it. HERITAGE 1981 has more of a bohemian style to it for a free spirited person who likes flowy clothing. Twelve by Twelve offers a modern twist to 50’s inspired clothing. It also offers more clothing to be worn for dressy occasions, with much of the clothing made out of satin material. Another reason I love FOREVER 21 is because of the wonderful prices. They have the best clothing for the price compared to similar retailers like Charlotte Russe or Wet Seal. The last reason FOREVER 21 is my favorite retailer is because I like their return policy, it's that if you purchase something and want to bring it back you can get a store credit or an exchange.