Jennifer Smith Store 24 Case Summary Store24 is a privately held convenience store retailer in New England, the 4th largest in the region. Its stores are located across New England. The stores are individually managed but homogenous in many aspects of their operations including compensation, technology, management structure, and product pricing, but they vary in size, geographic location, market demographics, and product mix. Revenues totaled approximately $180 million in1998 (May 1, 1998 to April 30, 1999). Store24 adopted a "Ban Boredom" strategy in 1998 that focused on providing an entertaining shopping atmosphere. “Ban Boredom” centered on a large display case display that featured the promotional items for the current theme. This strategy aimed to create a stronger sense of loyalty between Store24 and its target customer base of young, urban adults between the ages of 14 and 29. Store24 abandoned the "Ban Boredom" strategy after two years based on customer research, via a balanced score card, that showed customers identified with Store24's traditional convenience-store strengths of fast and efficient service rather than an entertaining shopping experience. The company quickly adopted a new strategy, "'Cause You Just Can't Wait," which focused on speed and efficiency. The theme refers to the stores’ ability to serve people quickly, to stock the items or services needed and to present tasty high-quality foods in an appealing environment. The Balanced Scorecard was used to measure Store24’s performance at various levels of the organization throughout the year. Management collected store-level financial performance metrics, including operating profit on a quarterly basis, store manager and crew compensation, store-level profit and measures of strategy implementation. The customer side looked at the likelihood of shopping at Store24 rather than a competitor, name recognition of Store24 versus its competitors, and for customers that have shopped at Store24 recently, items such as quality of merchandise, price, and cleanliness of the store. The strategy for this was flawed in that it combined soft research with hard financial facts tying customers to the corporate level. Although It is evident that its not only the implementation but the overall strategy is weak, feedback showed that customers were not identifying with the fun, enjoyable shopping experience we were trying to create under Ban Boredom. Customers valued fast service and good product selection. The strategy showed virtually no effect on profitability across all stores. But the study also found that better execution of the "Ban Boredom" strategy led to improved profitability in stores with more highly skilled crews. Conversely, it found that better execution of the "Ban Boredom" strategy led to declines in profitability at stores with lower skilled crews. For the "'Cause You Just Can't Wait" strategy, better execution was associated with improved profitability across all stores. This cause-and-effect analysis could be useful in refining the strategy and considering whether employee skills should be upgraded.
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