Unable to generate retail sales
Posted: Fri Mar 15, 2019 2:48 am
I play this game on and off again occasionally, and I am by no means an expert. A recent trip to an 80K + trade show got me back into the mood to explore the possibilities in Cap Lab.
So here is the situation. I am a year or two into the game. The retail markets are beginning to reach saturation from seaport products. A clear retail giant has emerged (and its not me). I've been watching their research and their retail offerings to see if I can ride their coattails with semi product manufacturing.
In the meantime, I'm the leader in footware. Surprisingly, it was a decently long time before I faced competition in my sector. I (probably foolishly as it would have probably been a better idea to pursue more sales) have a wholesaler set up to private label. I've built a small amount of branding to get a headstart on any upstarts, and am ready to pull the advertising trigger on anyone who tries to compete with me while using the same seaport suppliers. Since my supply lines are still strong, semi's aren't ready to get manufactured, and cash in hand isn't cash that's making you money, I decide to increase my retail presence in the largest market cities to capture more sales while my training programs catch up.
First additional store I build is in a 82 wage city. I have a store with a sales unit at full utilization. The market share for sandals is about 60% me, 15% competitor operating out of a discount store with traffic of about 30 and the rest local competitors sitting at around (8) overall value. My newest store is a footware which should get a bonus due to being both specialty and accompanied by another footware store, sitting on 72 traffic (land was not cheap) with a quality of about 28. Competitor and my other store are sitting at quality 26 with my newest store also beating both them and the local competitors on price. Despite all of this, my new store has very few sales (you'd think it'd either capture sales from all three of the sources currently selling), and after a decent amount of time to let things even out, is still not selling through. There are no supply issues and the 26 quality product is selling at my other store just fine. The level 1 sales unit in the newest store is sitting at around 30% utilization.
Is there a large threshold in overall value that needs to be surpassed before customers jump stores? If that's the case, why am I not eating into more local competitor market share? Without having ridiculous pricing discrepancies between my two stores, which are selling the same product (with the better performer in a worse area), how do I get these additional stores to capture sales when theoretically are winning on all fronts?
So here is the situation. I am a year or two into the game. The retail markets are beginning to reach saturation from seaport products. A clear retail giant has emerged (and its not me). I've been watching their research and their retail offerings to see if I can ride their coattails with semi product manufacturing.
In the meantime, I'm the leader in footware. Surprisingly, it was a decently long time before I faced competition in my sector. I (probably foolishly as it would have probably been a better idea to pursue more sales) have a wholesaler set up to private label. I've built a small amount of branding to get a headstart on any upstarts, and am ready to pull the advertising trigger on anyone who tries to compete with me while using the same seaport suppliers. Since my supply lines are still strong, semi's aren't ready to get manufactured, and cash in hand isn't cash that's making you money, I decide to increase my retail presence in the largest market cities to capture more sales while my training programs catch up.
First additional store I build is in a 82 wage city. I have a store with a sales unit at full utilization. The market share for sandals is about 60% me, 15% competitor operating out of a discount store with traffic of about 30 and the rest local competitors sitting at around (8) overall value. My newest store is a footware which should get a bonus due to being both specialty and accompanied by another footware store, sitting on 72 traffic (land was not cheap) with a quality of about 28. Competitor and my other store are sitting at quality 26 with my newest store also beating both them and the local competitors on price. Despite all of this, my new store has very few sales (you'd think it'd either capture sales from all three of the sources currently selling), and after a decent amount of time to let things even out, is still not selling through. There are no supply issues and the 26 quality product is selling at my other store just fine. The level 1 sales unit in the newest store is sitting at around 30% utilization.
Is there a large threshold in overall value that needs to be surpassed before customers jump stores? If that's the case, why am I not eating into more local competitor market share? Without having ridiculous pricing discrepancies between my two stores, which are selling the same product (with the better performer in a worse area), how do I get these additional stores to capture sales when theoretically are winning on all fronts?