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Case Analysis of Zayre Corp.

CASE ANALYSIS: ZAYRE CORPORATION (A)

The time frame of this case is late1978. By this time, Zayre Corporation, once an industry leader in the general merchandise subsegment of the discountsegment of the retail industry, had fallen on hard times.

The Zayre Corporation had not only slipped in relation to its major competitors in its market subsegment and segment, but had also experienced substantial deterioration in an absolute context with respect to sales, profitability, and the condition of the company's physical plant.

Zayre Corporation was founded and largely operated as a familyowned and familyrun business through 1969. An outgrowth of a study by an outside consultant in that year was a substantial expansion of the company's managerial structure, a major revision of the company's organizational structure, and a revision of the company's decisionmaking structure. In mid1978, the first non family member president of the firm was appointed.

Under the Zayres name, the company operated over 250 selfservice, general merchandise, discount retail stores. Zayres stores were located in most states east of the Mississippi River. In the wake of the 1969 consultant's study, Zayres expanded from lowincome market areas into upscale suburbs, and increased the average size of the new stores to 80,000 square feet from the 65,000 average for the older stores. In both the new and the old stores, however, the primary marketing emphasis was on price.

With respect to the company's Zayres stores, store management was decentralized, while merchandising and administration remained under central control. A great deal of store layout, traffic flow, and merchandising experiments were conducted (some with good results); however, no chainwide implementation of changes occurred as a result of the outcomes of the experiments.

Zayre Corporation also participated in the offprice subsegment of the retail industry. The company o...

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Case Analysis of Zayre Corp.. (1969, December 31). In LotsofEssays.com. Retrieved 07:50, March 19, 2024, from https://www.lotsofessays.com/viewpaper/1683760.html