operates in the upscale sub segment of the discount segment of the retail department store industry. Stores operating in this segment market have, as a general rule, better than average quality merchandise, and product types which are not found in lower product quality sub segments of the discount segment. While the price levels in the upscale sub segment of the industry are subtantially lower than prices for similar products marketed by full price department stores, they are, as a consequence of product quality differences, higher than the prices found in a typical discount department store. An illustration of the segmentation of the retail department store industry is presented in Chart 1, which may be found on the following page.
An industry analysis summary is presented in Chart 2, which may be found on page 4. As the data presented in Chart 2 indicate, growth prospects for the industry are strong (Value Line Investors Service, 1990a), barriers to entry are high, and the level of competition is intense. Bargaining power between the stores and their customers is relatively even, while the stores hold a bargaining power edge over their suppliers. Chart 1
Retail Department Store IndustrySegmentation
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