y posted strong sales performance in the Spring-quarter of 1998, sales in the Summer-quarter of 1998 were below expectations. The company reported that same-store sales, or sales at stores open at least one year, declined 2.1 percent in June from the comparable period in 1997, and that total sales declined 2.6 percent from a the comparable quarter in 1997 ("Retailer Says June Sales Slide Will Cause Earnings to Fall Short of Expectations," 1998).
The problem for the J.C. Penney store in the Southland Mall in Houma, Louisiana is that sales levels are not growing at the rate that is required to assure that the store will remain open, as the parent J.C. Penney Company is actively closing under-performing stores. While the Southland Mall store is not under-performing, sales levels are not sufficiently strong to assure its continued operation over the long-term.
One factor believed to be involved in the somewhat lackluster sales performance of the J.C. Penney Store in the Southland Mall is the behavior of many residents in the Houma Metropolitan Area who routinely travel to retail sales centers located in either the New Orleans Metropolitan Area or the Baton Rouge Metropolitan Area to purchase clothing, as opposed to shopping at retail clothing stores located within the Houma Metropolitan Area. Another factor than may be involved in the market share problem for the J.C. Penney Southland Mall Store is competition from discount stores located within the Houma Metropolitan area.
The research problem related to market share for the management of the J.C. Penney Southland Mall Store is two-faceted. First, management must develop information that will permit the identification of the reasons for the market share problem faced by the store. Second, management must devise and implement strategies to effectively deal with the market share problem facing the store.
Few factors are as important to the financial success of a retail busin...