Retail Management of Leons Furniture

Running head: RETAIL MANAGEMENT
Retail management of Leons Furniture
Name of the student:
Name of the university:
Author note:

1
RETAIL MANAGEMENT
Executive summary
Management is a crucial component in every aspect including business. Tracking the
performance of the employees is effective in terms of estimating the progress. This is in terms
of reaching to the benchmark level of performance. All these aspects prove true for Leons
Furniture, which is one of the biggest retailers in the threshold of Canada. Alliance with the
subsidiary, The Brick has enabled the company to expand the scope and arena of the
business. Adopting social media marketing would be beneficial in terms of widening the
scope and arena of the business operations as well as strengthening the customer base.

2
RETAIL MANAGEMENT
Table of contents
Business mission........................................................................................................................3
Performance objectives..............................................................................................................3
Current performance of Leon.................................................................................................3
Gross margin return on inventory..........................................................................................3
Performance measures for:.........................................................................................................4
Input.......................................................................................................................................4
Output.....................................................................................................................................4
Productivity............................................................................................................................5
Merchandise flow.......................................................................................................................5
Category management................................................................................................................5
Assortment plan.....................................................................................................................6
Branding strategies.....................................................................................................................6
Pricing strategies........................................................................................................................7
Cost........................................................................................................................................7
Legal requirements for regulating demand and competition.................................................7
Recommendations for altering current pricing method.........................................................7
Customer loyalty........................................................................................................................8
Summary....................................................................................................................................8
References..................................................................................................................................9
Bibliography.............................................................................................................................10

3
RETAIL MANAGEMENT
Business mission
Leons Furniture is one of the retailers in the threshold of Canada. The first store was
opened in Welland, Ontario. It is a public company, operating under the industry of home
furnishing stores. According to the annual report of 2015, the annual revenue of the company
was recorded as CAD 1.97 billion. The presence of 2864 employees helps the personnel in
achieving efficiency within the execution of the business activities (Leons.ca, 2018). Leons is
the subsidiary of The Brick. Leons deals in mid range furniture, appliances and electronics.
The items in the store rooms are high priced. In the era of 2007, Leons introduced Urban
Living Collection, which comprised of small sofas, bedrooms and dining sets.
The research and development team is efficient and possesses flexibility in the
creating innovative designs for the furniture. Conducting market research assists Leon to gain
an insight into the designs, which the contemporary brands have adopted. As a result of this,
it can be said that adopting social media would be beneficial for the Leons in terms of
expanding the scope and arena of the business operations (Leons.ca, 2018).
Performance objectives
Current performance of Leon
As per the performance of 2017, the annual revenue of Leon was recorded as
$2,212,216. The net income was $96593 and shareholder’s equity value was $10.60. This
represents 3.2%, 15.6% and 15.2% growths respectively. Mention can be made of the sales
growth, which was $2.64 billion (Leons.ca, 2018).
Gross margin return on inventory
Sales ($) Gross margin Average
inventory cost
GMROI
Department A 315,000 50% 104,000 3.02%
Department B 200,000 40% 50,000 4%