Wanted items at "everyday low prices"
How do we satisfy our customers' need for fashion?
- Specialist trend teams, frequent international travel and thorough research
- Active dialogues through social and digital media
- Responding to customers’ changing fashion needs
- Product testing before making significant merchandise commitments
- Slow moving merchandise cleared to make way for fresh, new merchandise
Lower mark-ups and selling higher volume to offer "excellent value"
Increasing sales + low overhead structure = acceptable operating margins?
- Quality and fashion offered at the best price
- Lower mark-ups in order to offer "everyday low prices"
- Large order quantities and higher sales volumes to keep input prices low
- Retail predominantly own-branded merchandise
- Maintain balance by including costs for future growth, often ahead of revenue generation
Remaining a cash driven retailer with cash sales > 80% of total sale
A high cash sales component means:
- Less impacted by the cyclical nature of retail
- Not dependent on credit to drive sales, particularly during poor economic times
- Less exposure to bad debt
- Able to fund future growth without incurring debt
- Strong cash flows will support future growth and maintain an appropriate dividend payout ratio