20Something’s new plan was to reduce the size of the stores in order to access the European

market.
The following are some of the ways in which this strategy aids in lowering the company's
financial risk:

1. Because the shops were small, there was no need to pay a high rent.

2. Fewer employees are needed, making labor costs lower.

3. The total cost of operations is less than a large-scale store. It can grow by establishing
and expanding multiple branches.

4. A carrying cost is the cost incurred by a business for carrying or storing inventory. When
they reduced the size of the store, they were able to minimize the inventory storage cost,
thereby reducing the carrying cost.

5. They were able to reduce expenses and afford a storage unit for stocking inventory for
the new store by switching from the pound to the Euro, because the Euro was less
expensive.

6. If you have established a local presence, your customers are more concerned when you
set up your own shop. This is especially true if your products necessitate competent after-
sales administration and first-hand product experience, such as in a retail store.

7. If you are not able to share the risk with the joint venture, you will also benefit from
information and notoriety provided by your accomplice. If you work alone, you lose all
of the benefits of the venture.

8. Re-brand Strategy: Because the company decided to downsize and streamline their new
store compared to older stores, and the clothes were targeted at the age group of 25-30,
what could have been done was to keep the age group slightly lower, which would have
attracted more young people to the store, but the prices could not have been raised. They
would have to keep nominal chargers. The more customers there are, the more publicity
the store will receive.