Clothes R Us is a clothing company that has been in business for over 20 years. The company sells a variety of clothing items for men, women, and children. Clothes R Us has a strong management team that is experienced in the clothing industry. The company’s clothing is popular among consumers and is known for its quality and style.
The assignment is a case study on a clothing company called R’Us. They are in the business of retailing and own 5 shops in different cities within the UK. With good management, they have grown their company up to a certain level of success.
After going through many incarnations and experiencing different successes and failures, the company is now expanding to a new location. However, they are facing some obstacles in the new city that they must overcome.
The company is not very well known in the new city as it’s a new store and they are also facing some issues with the location of the store as the place is not very easily accessible and also the parking facility is not there.
They are also not getting good response from their advertisement campaign. So in this case study we will see how effective has been the management of Company R’Us in different aspects which will help us to understand how a company should be run. We will go through all the details related to this case study which will give us an insight about running a business successfully.
This case study will help us to understand how important it is for a company to have a good management team which can take the company to new heights. It will also help us to understand the different things which are important for a company’s success and how a company should plan its growth. This case study will be helpful for students who are interested in learning about business and want to know how a company is run successfully.
R’Us is a US-based company that has over 160 stores in the United States and Canada. The firm employs 45 people across different locations of their stores, as well as their headquarters staff, and has individual HR personnel in each location to better manage the branch’s activities regarding all issues such as recruitment & selection, pay, benefits, and compliance with labor laws.
The company has different stores in different locations, so the employees working in each store are also hired on the basis of their geographical locations. The company wants to improve its customer service and they want each and every employee should be customer oriented as well as they should work together as a team.
Company wants to motivate their employees so that they can work with more dedication & sincerity towards achievement of organizational goals & objectives. Company has decided some methods or ways by which they can motivate & encourage their employees so that their performance level could be increased & improved (Dessler, 2012).
Company “R’Us” is a clothing company; it designs, manufactures, markets & sells wide range of products for women, men & children under various brand names. Company has its own retail stores in different locations where it sells its products to the end users or customers. Company also uses other marketing channels for the sale of its products such as; departmental stores, E-commerce websites, company’s official website etc.
The company has following vision & mission statement:
Vision Statement: “To be the most successful & profitable retailer by providing excellent customer service through offering best quality products at competitive prices”.
Mission Statement: “Our mission is to provide our customers with latest fashion trends & designs of clothing so that they can look more stylish & elegant. We want to satisfy our customers by providing them best quality products at reasonable prices”. (Dessler, 2012)
The company wants to improve its customer service and they want each and every employee should be customer oriented as well as they should work together as a team. Company wants to motivate their employees so that they can work with more dedication & sincerity towards achievement of organizational goals & objectives.
Company has decided some methods or ways by which they can motivate & encourage their employees so that their performance level could be increased & improved (Dessler, 2012). The company has implemented different motivational theories or approaches in order to encourage their employees so that they can perform their duties & responsibilities more efficiently & effectively.
Clothes ‘R’ Us was a highly successful apparel store in the United States with more than four hundred stores. They offered trendy, but affordable clothing for all age groups and genders. Between 1990 and 1997 the company had significant financial growth, but this revenue growth began to decelerate in 1998. By 2000, Clothes ‘R’ Us had over-expanded and sported the worst gross margins in their industry.
In an attempt to increase sales and margins, they began a series of initiatives that led to even more problems. In 2003, the company filed for bankruptcy protection.
This case study will analyze how Clothes ‘R’ Us got into financial trouble and what they could have done differently to avoid bankruptcy. We will examine the company’s management decisions, their store expansion strategy, and the changes they made to their product mix. We will also take a look at the competitive forces in the retail industry and how they impacted Clothes ‘R’ Us. Finally, we will discuss the lessons learned from this case study and what other companies can do to avoid similar problems.
Clothes ‘R’ Us was founded in 1948 by Charles Lazarus. He started the company as a baby furniture store in Washington, D.C. In 1957, he expanded the business to include toys and then launched the first “superstore” in Elizabeth, New Jersey in 1968. The store was successful and Lazarus began expanding rapidly. By 1981, there were over two hundred stores across the United States.
In the early 1990s, Clothes ‘R’ Us was struggling financially. They had too much debt and not enough cash flow to cover their expenses. To solve this problem, they sold off their toy business and focus exclusively on clothing. This strategy worked and Clothes ‘R’ Us became one of the most profitable retailers in the country.
Between 1990 and 1997, Clothes ‘R’ Us had great financial growth. Their sales tripled and their net income grew from $50 million to $500 million. This success was due to a combination of factors. First, the company benefited from the recession of the early 1990s. As people tightened their belts, they spent less on clothing. But as the economy improved, people started buying clothes again and Clothes ‘R’ Us was there to meet this demand.
Second, the company expanded their store base during this time period. They added new stores in existing markets and entered into new markets such as California and Texas. This expansion allowed them to reach more customers and grow their sales.