McGregor’s Ltd. Department Store |
To: | Staff members |
From: | President James McGregor |
Date: | 10/22/2012 |
Re: | New discount program |
Comments: | McGregor’s Ltd. Department Store in this year has increased in sales, and sales are above the average for retail stores; However, it has acquired the image of being old fashioned and traditional. I would like to change the image of the Store and to achieve higher efficiency and profitability by creating more business sense in the policies of the store. The outdated employee discount program is the place to start. Under the current employee’s discount program which is complex and in egalitarian, the size of the discount depends on the position of an employee, and there are six possible discounts existed. Some ...view middle of the document...
The discount would vary according to the goods purchased, not the status of the purchaser. There are three tiers in this program: 1. 10 percent discount would be given on low margin goods, such as large electrical appliances, calculators, typewriters, cameras, film, and food. 2. 15 percent discount would be given on books, records, stationery, household goods, clocks, toys, china, linens, sporting goods, small electrical appliances, and furnishings. 3. 20 percent would be given for clothing, fabrics, cosmetic s, costume jewelry, purses, belts, and scarves.For items such as candy and tobacco are sold at retail price.As mentioned, this new program is designed based on simplicity, profitability, and equality. Under the current program, salespeople have to verify the percentage of any purchase to be discounted by checking the employee’s ID before deducting the appropriate discount from the full price. It’s much simpler for the new program because salespeople would no longer have to figure out one of six discount possibilities. It takes less time when they would deal with only one or two at most. The new system also makes financial sense. Low-profit-margin goods are sold at realistic prices, and high-profit-margin goods would sell faster. Most of all, it’s fair. All staff members would receive exactly the same treatment. Though the store’s performance is showing positive growth, it is looking forward for greater efficiency, a more rapid turnover of goods, and greater profitability in the long run to avoid effect of the economic recession as well as merger and acquisition policy. Every staff member would be affected by the proposed changes, some adversely, some beneficially, but it will put the store in a better and brighter position in future, and it should be everyone’s main goal as a member of the store.