Emily Brayer Joe Candelmo

Craig Cymerman Alyssia Dolliver James Wright Jr.

Survival In Specialty Retail

Emergence of RetailBranch DivisionsObstacles in the IndustryRestructuring in the Company

CASE OVERVIEW

Overall Economic ClimateIncrease in CompetitionOverall Market

CASE ISSUES

SUCCESS

Increased Sales from year to yearMore revenue than competitors

Implementation of ANN’s Internet Market

Fiscal Years ended 2004 2008

Net Sales (in thousands) $1,587,700 $2,396,500

CHANGES IN GENERAL ENVIRONMENT

Technological AdvancesPrice comparability

ANN’S INDUSTRY

Three sectors of the retail industry

Discount Mass MerchandiseMulti-tier Department Stores

Specialty Retail

ANN’s Target Consumer

“We understand that a woman expresses herself through what she wears- at work, at home and at play… To meet her needs, we design pieces for her life and her changing roles to help her look and feel confident and beautiful.” Kay Krill

KEY ISSUES IN COMPETITIVE ENVIRONMENT

Threat of new entrantsBargaining power of suppliers

Threat of substitutesBargaining power of buyers

Rivalry among existing competitors

GENERIC COMPETITIVE STRATEGY

Three types of generic competitive strategy:Low Cost

DifferentiationFocus

Ann’s use of Focus and Differentiation

“For more than half a century, we have evolved with the needs of real women who live full, active lives.” ANN Inc.

INTERNAL RESOURCES AND CAPABILITIES

Brand Name

Focusing on the needs of consumers

BRANDING STRATEGY

Ann Taylor’s BrandLOFT’s brandEvolution of Both Brands Simultaneously

ANN’S STRATEGIC DECISIONS & CORPORATE STRATEGY

Profitability of LOFTAnalyzing the value chain

ANN’S GROWTH STRATEGY

Adding Lines to ANN’s CollectionsImage Building

Assess areas that need improvementKeel the focus on the client

ANN Dominates Female Professional Attire Market

Growth and Possible ExpansionANN Must Fill GapsOverall Alignment

CONCLUSION

Emily Brayer Joe Candelmo

Craig Cymerman Alyssia Dolliver James Wright Jr.

Survival In Specialty Retail