PRESENTATION

ON
CASE ANALYSIS
RUNDEL’S DEPARTMENT STORE.

Submitted To - Submitted By-

Prof. Hersh Sharma Mamta Bhojwani (36)
Gagan Singh (33)
Rohan Shrivastava (35)
Prateek Thakur (34)
 RUNDEL’S DEPARTMENT STORE
Rundel’s – Division Of Urban Stores.

Smaller Store In The Ownership Group.

Leader In Trying New Concepts.

Located in a midwestern city.

Dominant Department Store In The Market.

Major Competotor – Youngston’s.

RUNDEL’S DEPARTMENT STORE

• URBAN STORES – A major Department Store

Ownership Group.

• Sixteen Operating Divisions.

• Each Division Operated Autonomously.

RUNDEL DEPARTMENT STORE’S PROFITS

$700

$600

$500

$400

$300 Column2

$200

$100

$0
1987
1988
1989
RETAIL MIX
RUNDEL’S DEPARTMENT
• MEN’S JEANS.

• Three Suppliers:
– Levi, Farah, low priced supplier.
– Designed for over 30 males.

• Full Line Of Men’s Regular PANTS.

• Suppliers :

• Levi, farah, spotwood and 2 other.

• “Off Brands” to promote sales.
 RETAIL MIX
RUNDEL’S DEPARTMENT
MENS REGULAR
JEANS PANTS
2 SUPLIERS ,
THREE
LOCAL
SUPPLIERS
BRANDS ALSO.

DESIGNED FOR “OFF BRANDS”

OVER 30 to promote
MALES sales.
MEN’S SLACKS DEPARTMENT
• GORDON FRANKLIN – Buyer Of Men’s Slack.

• Contributes 2.8% of Total Sales.

• Primary Department For Men’s Slack.

• Impressive Growth In Recent Years.

– Addition of new products to the department.
– Tremendous expansion in the demand.
METROPOLITIAN AREA
UNIQUE OR NOT?
• No, it is not Unique.

– Located In medium- sized midwestern city.

– The other Department store- Youngston’s.

– Branch Outlets also in the same sub-urban area.

METROPOLITIAN AREA : UNIQUE OR NOT?

LOCATED IN MID- SIZED MID WESTEN

CITY.

THE DOMINANT COMPETITOR-

YOUNGTON’S

BRANCH OUTLETS ALSO IN THE SAME

UBURBAN AREA.
DAVIS MANUFACTURING COMPANY
• Large Manufacturer of broad line of Men’s Clothes.

• Ranks Among top five manufacturer’s of men’s apparel.

• Recent Years Not So Successful.

– Failed to keep pace with the industry.
– Only Fine for discount stores .

• Effort to recapture quality image.

• New designers had been hired.

• Entire New Designer Line of Slacks , jeans and coordinates

developed.
THE VENDOR PROGRAM
• Business needs of Rundel’s from Davis:
– Davis agrees to maintain continuity of supply of regular stock
by filling orders on a 2- week basis.

– Ability to maintain markup of 48 % on basic stock.

– Guaranteed Turnover rate of 3.5 in 1990, 4.0 thereafter.

– Markdown Rates not to exceed 10% .

– Davis advertising to include 60% of costs to a maximum of

Rundel's purchases from Davis.
DAVIS- AGREE OR NOT?
• It Should Agree:
– Recently Not So Successful.

– Wants to Re- establish its position.

– Rundell can be a key account.

– Rundel’s will support Davis:

• By developing Davis as a major department store.

• Departmental features and display of regular running items.

PREPRATIONS

SUE ANDERSON- DAVIS

• Focus on quality image

• Information about the new designers

• Market growth rate

• Negotiations on the offers

• Vendor support to focus on smooth and strong

distribution
GORDON FRANKLIN

• Mentioned terms and condition

• Quality issues

• Support by rundel

• Importance of rundel for davis

• Win win situation for both

THANK UU!

THANK
YOU