Your best friend owns a small children\'s clothing store located in the downtown

Question

Your best friend owns a small children's clothing store located in the downtown area of a community of 50,000 citizens. Business has been slow the past year due the construction of several new strip malls and a new Wal-Mart store (Increased competition). She discovered you were taking an online marketing class, asked you for your advice for ideas that would increase her sales (She owns her present building and will not relocate her business, even though the downtown area is losing stores to the new strip malls). Based on what you have learned in this course what would you tell her.

Explanation / Answer

It would probably be tough if not impossible to compete on price.

Unless, she would be willing to also carry consignment clothing - which is perfect for a children's shop. Kids grow out of things before the things wear-out.

If that works out, she might consider adding other consignment sections: sporting goods, toys, etc.

That is going to appeal to the price conscious consumer. But, it may canabalize her new clothing sales.

She could set up some sort of special consignment program for the new clothing purchased from her store... bring it back in for consignment and get an extra 10% on the sale or something like that.

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