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MERVYN’S

MERVYN’S. Scott and Miguel. History. Founded in 1949 by Mervyn Morris Headquartered in Hayward, CA (Bay Area) Emphasis on family. Strategy. Mid-tier neighborhood department store “Trend-right” fashions Home Decor National and private label First to offer revolving credit

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MERVYN’S

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  1. MERVYN’S Scott and Miguel

  2. History • Founded in 1949 by Mervyn Morris • Headquartered in Hayward, CA (Bay Area) • Emphasis on family

  3. Strategy • Mid-tier neighborhood department store • “Trend-right” fashions • Home Decor • National and private label • First to offer revolving credit • Ambience of high-end department store with discount prices for families

  4. Target Market • Working moms 25-49 • Half of stores located in regional malls, half stand alone

  5. Ownership • Private company • Sold by Target Corp for $1.65 billion • Target was funneling profits out of Mervyn’s and into new Target stores • Sun Capital Partners, Inc. • Private equity firm • Specializes in failing business recovery • Own Sam Goody, Wickes Furniture, Bruegger’s Bagels, Anchor Blue

  6. Downsizing • Generated $3.3 billion in revenues (2003) • 2003: 255 stores in 13 states • 2006: 190 stores in 10 states • Exiting Oregon and Washington entirely in 2007 • 19 low volume stores with high operating costs • Focus on 171 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Texas, Utah

  7. Community Relations • ChildSpree • $100 shopping spree for needy children • Sprockets Dog Plush • Sales of stuffed animals funds ChildSpree

  8. Competition • Discounters: • Wal-mart • Target • T.J. Maxx • Ross • Mid-market veterans: • JC Penney • Sears

  9. SWOT • Strengths • Profitable • Well known • Good community relationship • Have a plan • Free of Target Corp leeches • Establishing unique brands

  10. SWOT • Weaknesses: • Unstable • Heavy competition from all corners • Must re-establish niche • Bad PR for job loss • Run down stores (pilfering by Target)

  11. SWOT • Opportunities • New financing • New leadership • Exploitation of new niche

  12. SWOT • Threats: • Competitors • New plan viability • Loss of brand loyalty

  13. Jobs?? • Entry level management- • 2004: 300 • 2005: 200 • 2006: 200

  14. References • www.collegegrad.com • www.hoovers.com • www.mervyns.com • www.sfgate.com

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