Retail Strategy Report: Analysis of Leons Furniture's Business Model

This report provides an analysis of Leons Furniture's retail strategy, based on a case study. The report addresses the company's business mission, future vision, and capabilities. It details the performance objectives, measures (including input, output, and productivity), and merchandise flow. The analysis covers category management, branding, pricing, and customer loyalty strategies. Key findings include the benefits of joint ventures, the impact of The Brick subsidiary, and the potential of a penetrating pricing method for business expansion. References include Leons.ca and relevant academic publications on retail management and supply chain issues.

RETAIL
MANAGEMENT: A
CASE STUDY OF
LEONS FURNITURE

MISSION
Business- retail
Business in future- online retail
Business capabilities- flexible workforce

PERFORMANCE OBJECTIVES
Annual revenue in 2017- $2,212,216
Net income-$96,593
Equity value-$10.60

PERFORMANCE MEASURES
Input- quoting prices under different levels
Output- recognition of the share values of the assets and liabilities
Productivity- acquisitions, digital commerce and third party distribution

MERCHANDISE FLOW
Extended warranties
Spare parts imported from United states
Exchange policy

CATEGORY MANAGEMENT
Small sized sofa- maturity stage in the product life cycle

BRANDING STRATEGIES
 National brand- Leon
 Private label brands- Crystoceans, Transglobal, The Brick Outlet, TGW
and TGI
 Joint ventures would widen the scope and arena of the distribution
channels

PRICING STRATEGIES
 Consideration of labour charges, salary, commission
 Assistance from the Commerce department
 Balance between supply and demand

CUSTOMER LOYALTY
Loyalty programs
Consideration of the purchasing power and affordability of the customers
Special schemes, offers and discounts
Security policies

SUMMARY
Joint ventures and alliances have proved beneficial for Leons Furniture in
terms of accumulating greater share in the Canadian market. Aids from
the subsidiary, The Brick has enhanced the sales revenue and profit
margin. Penetrating pricing method would prove fruitful in terms of
expanding the scope and arena of the business.

REFERENCES
 Leons.ca (2018). About us. Retrieved 30th Nov 2018 from
https://www.leons.ca/
 Fernie, J., & Sparks, L. (2014). Logistics and retail management:
emerging issues and new challenges in the retail supply chain. Kogan
page publishers.
 Selvaraju, M., Beleya, P., & Sundram, V. P. K. (2017). Supply chain cost
reduction using mitigation & resilient strategies in the hypermarket
retail business. International Journal of Supply Chain
Management, 6(2), 116-121.
 Sparks, L. (Ed.). (2014). Logistics and retail management: emerging
issues and new challenges in the retail supply chain. Kogan Page.