Expanding Retail Product Assortments - The Case of Recreational Equipment Inc. Ice Skates

摘要

This Honors Thesis examines the importance of strategic merchandise planning for a particular case: the REI. The steps in strategic retail planning were performed, and during the situation audit (step 3), a gap was identified that hinders competitive advantage and market share: a lack of ice skates in the product assortment. Research derived that ice skates, specifically a hockey skate model, was not only demanded by the current REI customer base, but would also serve as a primary strategy for tapping into the increasingly significant millennial market. Keeping the values of these two targeted segments in mind, two models of Bauer hockey skates were chosen and priced. Visual merchandising s and a web-based promotional mix (adhering to REI's current practices of environmentally sustainable marketing) were further developed. A cost analysis produced a theoretical return on investment of seven percent, which cannot be classified as favorable nor unfavorable due to the fact that REI is a privately-owned consumer cooperative. Despite this, implementation of the skate was highly recommended because such an endeavor would increase market share, adapt to the sudden growing threat of big-box merchandisers and department stores, cater to a semi-neglected millennial market, and provide for a more well-rounded outdoor experience.