...Pam and Susan’s: Locating New Stores Situation Pam and Susan’s is a chain of discount department stores.* The original store was opened in the South in the mid-1950s by Pam and Susan’s father. About 10 years ago, Pam and Susan took over operational control of the stores, working together under a joint power sharing arrangement. The unusual management arrangement and consensus decision making by the two women, for which they have received a great deal of publicity, have contributed in part to sales growth and to the recent upsurge in new store openings. Fundamentally, however, their success is based on an uncanny ability to appropriately stock stores and underprice competitors. State-of-the-art business processes are at the core of their low price structure. There are currently 250 Pam and Susan’s stores, mostly located throughout the South. Expansion has been incremental, growing from its Southern base into the Border States and increasingly into the Southwest. Identification of the most appropriate sites for new stores is becoming an issue of increasing strategic importance. Store location decisions are based upon estimates of sales potential. The traditional process leading to estimates of sales potential starts with demographic analyses, site visits, and studies by the company’s real estate experts (augmented by input from local experts). The demographic data judged relevant for a given store location is that for people within a store’s estimated “trading zone...
Words: 2168 - Pages: 9
...Case Study: Locating New Pam and Susan‘s Stores Professor Demetra Paparounas Lisa Chan MGSC 6200- Information Analysis July 3, 2014 Introduction The purpose of this study to is to determine a new store location for Pam and Susan Stores. This discount department store chain has 250 stores that are primarily in the South. Expansion is important to their strategic success. A multiple regression model will be used to determine which location has the highest sales potential and projections. It will also be used to help see how strong of a relationship sales has to the other independent variables. Data For this model, the wealth of census data that was used to compute this model contained 250 observations, 33 variables and 7 additional dummy variables were created from the main comtype variable, taking values of zero or one depending on level of competitiveness for a particular store. This data set contained economic and demographical data, population type, sales numbers, store size and the competitive types. The amount of sales and selling square feet variables are given in thousands of dollars. Results and Discussions In analyzing the data on the 250 Pam and Susan’s stores, we first created a scatter plot of the competitive types in the horizontal axis against sales (in thousands) on the vertical axis. The competitive types were identified as follows: * Type 1- Densely populated area with relatively little direct competition. * Type 2 –High income areas with little competition...
Words: 1892 - Pages: 8
