Recent Post

July 15, 2013

Custom Essay Sample on Linen’n Things

The company Linen’n Things came under enormous organizational pressure due to a lack of proper strategy and started liquidating its remaining stores following the closures of many stores.   The company's business strategy was "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."[5]
The case of Linen’n Things offered some lessons to realize the importance and presence of a well-grounded business strategy.  Rough sailing in the economy has unluckily resulted in the fall of many brand casualties in the retail world and cannot be averted with a proper marketing, organizational, and business strategy in place. The email communications with subscribers and customers is necessary and even in adverse times(as in the case of Linen’n Things) it serves a major role to forge positive image of the company among the minds of subscribers and customers.  
 In the first place, the email program of a company can play a pivotal role in alerting the subscribers about the changes that have taken the place such as halt to operations of liquidation of sales. Unusually, bankrupt retailers usually give nameless website visitors more information than they give to email subscribers. This is hugely flawed tendency that can easily set up the disaster for the company. Once the company has decided to close its operations or liquidating, it is implausible to keep the dedicated and committed subscribers in ignorance.
A company that is in the middle of shutting down its operations can further reel from a loss of talent or the discontinuation of technology services and support.  This is what happened to Linens ‘n Things and it should avoid such happening in the future to avert such dangers.  The company made a huge mistake by discarding the option of usual email templates. The emails no longer remained CAN-SPAM complaint.
Linens ‘n Things did not try to hide the fact that they were about to close down their operations in a bid to promote “Going Out of Business Sale” for nearly three months starting with an Oct. 23 email. Linens ‘n Things is a brand that fortunately got a second lifeline but it can only be maintained and fostered through a sound and subscriber-driven business strategy. 
They rightly notified their subscribers in a Feb.8 email that Linens ‘n Things brand “lives on!”
 Though their second coming did not turn out be very auspicious as was expected. The company's business strategy is to present a wide selection of high quality brand-name as well as private label home furnishings merchandise at everyday values, to provide well-informed sales help and attentive guest service and to maintain low operating costs. 
Linens 'n Things' merchandising strategy is to offer a range of selection in high quality, brand name fashion home textiles, housewares and home accessories to meet the values of everyday.
The company's store format enables it to offer broader product and brand selection than traditional retailers that sell home furnishings. The Company offers virtually all of the national home furnishings brand names carried by major department stores, as well as many other products and brands. Some national brands offered by the Company are not available at mass merchandisers or off-price retailers. The Company believes that these strategies enhance its reputation as a value leader and build guest loyalty, while providing a one-stop shopping destination for the guests' home furnishing needs.

The company presently is seeking to boost market share in existing geographic markets and to make inroads into the new geographic markets where the company can possibly become a leading operator of specialized home furnishing stores. This is right move in the right direction.

The Company must continue to try and favorably make an impact on the net sales by attracting as many as first-time guests to its stores as possible. The frequency of such visitors will naturally make a significant impact on the per dollar transaction made by the customers.

The company should devise best possible methods to achieve the set goals by improving and accentuating its reputation as a superior one-stop shopping for home furnishings. The introduction of new and expanded merchandise categories to create a varied product portfolio is necessary. It will serve to attract new guest making an increase in the frequency of visits. Moreover, the company must re-allocate space on the selling floors of its stores to manage and accommodate new and varied categories such as furniture, area rugs, home environment and comfort/sleep.

The efficient operation of the company is pre-requisite to its sustainability. The company should try to expand its customer base and increase its purchasing because it will increase the penetration of its proprietary merchandise. It can be done by utilizing the centralized distribution network and management information systems.
However, the company should keep in mind that the improvements in the gross margin will be offset by their strategy to enhance comparable net sales.

The company believes that these initiatives will impact net sales per square foor and inventory turnover ratios certainly. It must be noted here that the company has taken a lot initiatives to devise a strategy in order to give impetus to the growth of textiles offering new quality products. It has also sought to enhance its quality assortments increasing the strength of value offerings.

Moreover, the company seeks to further improve its merchandising techniques, space management, and assortment planning in order to enhance its productivity at its present and future locations.

The company should ensure that its distribution centers and management information system must allow for the smooth running of low-operating cost business aimed at yielding maximum growth and productivity. As a matter of fact, the centralized management team and its management information systems makes a direct impact on the management of its inventory. The company must ensure monitoring and balance in inventory levels.

It should be acknowledged that the company has remained committed to its aims and has been able to devise an efficient structure coupled with enhanced training to yield maximum results in terms of sales, credibility, and productivity. The implementation of a viable strategy always produces favorable business environment and results.

Pederson, Jay (2006) “International directory of company histories, Volume 75” Saint James Press


Post a Comment