Designer Warehouse Sale Company’s Operations Management Research Paper

Identifying the Business

Table of Contents

The Designer Warehouse Sale outlet is located in the north of London, specifically in the area of Islington. Time-Out, the British publishing house, includes it in the top ten attractions of the capital of Great Britain. Designer Warehouse Sale includes more than 120 of the most expensive and most famous designers in the world such as Vivienne Westwood, Bottega Veneta, Martin Margiela, Gucci, Celine, and many others (Designer Warehouse Sale). The prices are not for the middle class, despite discounts of 60-80 per cent. Unlike in classic outlets, the clothes, accessories, and other products sold here are not from last year’s collections but instead are from current offers (Designer Warehouse Sale). Samples of showrooms, models from podiums and fashion shows, and orders cancelled by customers may be found there. Several times a year, for just a few days each time, there is a great sale – from 60 per cent to 80 per cent off of everything.

When speaking of the Designer Warehouse Sale outlet, one should note its elaborate infrastructure. For instance, there is a cafe playground and a mini-train for children, as well as other activities. Customers may find the many excellent restaurants and cafes, cinemas, and coffee shops attractive. It is expected that the influx of customers has increased due to the outlet’s close location to the Wembley Stadium. People visiting the stadium and guests from nearby hotels seem to be delighted with the discovery of the outlet. A review of the mall’s history shows that it had already proven its popularity. In addition, the Designer Warehouse Sale is also valued by retailers who want to sell unwanted reserves. Although the business seems to be effective, several recommendations could be suggested to make it even more successful.

Recommendations

Design of Goods and Services

It is critical to expand the number of branded stores and introduce a broader variety of goods into the Designer Warehouse Sale. Outlet service is a special sales channel, where goods of expensive brands are sold for less than cost. Hugo Boss will not organize such a trade in the city centre since this would interfere with the work of retailers. It should be emphasized that the outlet’s management should be attentive and informed when selecting designers to cooperate with, what should be offered to customers, and who will shop there. It is important to create a complete portrait of a potential customer, including his or her age and activity. This detailed analysis of customers will allow the preparation of the most relevant goods.

Collections in the Designer Warehouse Sale should be replenished much more often than in chain stores. Some updates should appear at least once a week. At typical shops, there are only two collections a year – summer and winter. By updating the assortment every week due to the replenishment of the remainders of the designers and cooperation with new designers, it is possible to achieve increased customer loyalty (Slack, Brandon-Jones, & Johnston 122). It is difficult for networkers to offer something new, but after going to the online store and not finding anything, a customer usually leaves. In contrast, the clients of outlets come regularly: every week or every two weeks. Some even leave their phone numbers and ask to be called when clothes from a certain designer arrive. In this case, unlike ordinary stores, it is beneficial to sell summer goods in winter and vice versa, while traditional malls offer only seasonal products.

Layout Strategy

The merchandising management of the Designer Warehouse Sale spends a lot of time making the shop attractive while taking into account the unpredictability of revenue and promiscuity. However, the selected multi-brand approach and the absence of the entire line of sizes can be confusing. In the network stores, merchandising management forms the collection long before it arrives on the shelves. However, in the outlet, there are two options used by outlet employees to place the goods – category and the level of discount. Jackets, skirts, and T-shirts may be placed together within some little-known brands. The range of prices, in this case, seems to be confusing to customers. There is a risk of distortion in the formation of the assortment.

To meet the customers’ expectations, it could be recommended that the outlet should develop its system of arranging goods. For example, one of the most effective ways is to organize based on the type of clothes or accessories. Dresses of different brands may be grouped to allow customers to choose from such a mini-collection. At the same time, the price of goods should not be a key ranging criterion since customers may feel uncomfortable while visiting stores with minimal prices or decide that it is too expensive to purchase something from the goods with a maximum price (Slack et al. 100). With the full renewal of the collection provided by one or another brand, top models should be put in the best shopping places – on the right and the central passages. The remaining goods should be moved to the far left corner of the store.

Human Resources and Job Design

Along with the layout of the outlet, the work environment created by leadership is also essential to ensure that employees consistently provide the best services. It is believed that luxury brands offer high-quality clothes and assistance to customers. To create this impeccable service, the sales consultants need not only to know the products and the company’s work standards but also to have an irreproachable professional position to be able to competently determine the needs of the customers. According to the ideas proposed by Brown and Bessant, the ability to make a pleasant impression and inspire trust is one of the strongest tools of a successful seller, allowing the management of the clients’ interest (242). Even though the outlet offers significant discounts, communication with customers should be respectful, attentive, and informative.

To achieve the identified goals, one could recommend employing Taylor’s principles. In particular, proper training should be provided to employees to adopt new selling methods and strong communication skills, as stated by Morden (87). The presentation of appropriate and specific incentives is likely to motivate employees to work better. More to the point, the establishment of a motivating working environment requires matching employees with the jobs that they fit best. In other words, both personal and professional qualities should be analyzed by employers to specify training areas. As for communication, people visiting outlets value pleasant surprises and always appreciate the attention from the store consultants. Thus, it is expected that the Designer Warehouse Sale should offer its employees the opportunity to develop their professional competency, which will benefit both the outlet and the personnel.