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Case Study 1: Family Dollar

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Case Study #1: Family Dollar: Reinventing the Discount Store

1. Evaluate Family Dollar’s retail strategy. Will it work in both good and bad economic times?

Family Dollar’s retail strategy will work in both good and bad economic times. The company’s mission: is to provide our customers with a compelling place to shop, our team members with a compelling place to work, and our investors with a compelling place to invest. Our vision is to be the best, small format convenience and value retailer serving the needs of families in our neighborhoods. (Family Dollar 2012 Annual Report) During the economic downturn, Family Dollar reevaluated the company’s goals. One of the goals the company will be refocusing on will be to build customer loyalty and experience. In today’s uncertain economic environment, value and convenience continues to resonate with consumers. Our strategy of providing customers with value and convenience continues to attract not only low-income customers, but also middle-income families with greater frequency. To continue to capitalize on this opportunity, we have launched several initiatives to increase our relevancy to customers by enhancing their shopping experience and to improve their perception of our value and convenience proposition. (FD 2012AR) To overall increase customers shopping experience Family Dollar will redesign store layouts for more convenient shopping, they will continue to expand on food and health and beauty products, they will add more familiar name brands including Pepsi, Red Bull and Wise snacks, and Family Dollar will be adding tobacco products to their stores in hopes that it will bring in more customers frequently. The retail strategy will continue to help the company increase revenues as well as keep prices low on brand name products that people use everyday.

2. Discuss the pros and cons of Family Dollar’s

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