COMPANY PROFILE PROJECT
PRAGYNA PARAMITA GANGOPADHYAY
SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION (SIMMC) YEAR OF SUBMISSION - 2009 PGDM in HUMAN RESOURCE & INTERNATIONAL BUSINESS DIVISION – B ROLL NO - 133
I owe a great many people who has helped and supported me during the making of this project. My deepest thanks to Dr. S.B. Chordiya, Founder President & Chairman of “Suryadatta Group of Institutes” for giving me the guidelines about various types of Industries, Products, Services departments in the large scaling industry and the costing of the product. I would also thank my Institution and my faculty members without whom this project would have been a distant reality.
I also extend my heartfelt thanks to my family and well wishers.
Pragyna Paramita Gangopadhyay
Table of Contents
CHAPTER 1 INTRODUCTION
A. Overview B. Objectives C. Research Methodology D. Data used – Primary & Secondary Sources
CHAPTER 2 COMPANY PROFILE
A. Introduction B. Chairman’s message C. Company History D. Company Vision E. Company Mission F. Company Philosophy G. Objective of the company
CHAPTER 3 ACTIVITIES
A. Location of the company, offices, plants/branches/units B. Type of company C. Board of Directors D. Organizational structure E. Products & Details
F. Major suppliers
CHAPTER 4 OPERATIONS
A. Research and development B. Quality Control C. Marketing Strategies D. Customers
CHAPTER 5 FINANCIAL DATA
A. Capital Assets B. Balance sheet C. Net Sales and Net Profits D. Future Plans
CHAPTER 6 LEARNING EXPERIENCE
COMPANY PROFILE PROJECT IN RETAIL SECTOR • WHY PROJECT IN RETAIL?
The retail industry provides an exciting way of life for the more than 24 million people who earn their livelihood in this sector of the U.S. economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labour. Retailing is one of the fastest-growing segments of the economy. As one of the nation's largest employers, the retail industry provides excellent business opportunities for you. At least one-third of the 500,000 or so new enterprises launched each year are retail operations. The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want.
environment. To develop guidelines to building a retailing business. To identify the competition in the market and develop strategies for retailing business accordingly. To identify significant characteristics of the end consumer, understand its significance for the retailing business and develop strategies accordingly. To identify paradigm shifts in retailing business with increasing scope of technology To know the growth of retail industry. To know the factors affecting for retail industry. To find the factors which are behind the change of retailing industry. To understand the benefits to customers, manufactures, wholesalers, and the economy from retail sector. At last but not the least to know about retail business.
✔ To identify and understand the significance of retailing in the current business ✔ ✔ ✔
✔ ✔ ✔ ✔ ✔
• RESEARCH METHODOLOGY
While making this project I have gone through the websites of 5 retail companies and studied their reviews and analysis. The views and suggestions of our professors proved very useful in the successful completion of my project.
• DATA USED
PRIMARY DATA: Are the data which I received from my professors.
Their suggestions are incorporated in this report. This data prepared the basis for the “COMPANY PROFILE PROJECT”.
SECONDARY DATA: Are the data collected from
✔ Newspapers ✔ Magazines ✔ Books on management ✔ Relevant websites
INTRODUCTION TO THE COMPANY: Trend-Mart is one of
the leading retail stores in the U.S. and is quickly growing around the world. Trend-Mart has been successful in the United States because of their buying of manufactured products for less than as a result passing their savings onto consumers. This has led to their expansion all over America and throughout the world. They have modelled their way around selling products cheaper, thus, changing the way we as consumers shop. They have also managed to outgrow all other retailers within their industry. Not to mention create a multi-billion dollar company in the process. This analysis report will
describe and analyze the major forces that shape the structure and competitive intensity of Trend-mart. This report will look at Trend-mart's history,
competitors, and marketing strategies.
CHAIRMAN’S MESSAGE : EDWARD SCOTT, the new CEO says;
“TREND MART IS A GREAT PLACE TO SHOP”
• COMPANY HISTORY
TREND -MART (sometimes styled as "T-Mart") is a chain of discount department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. The chain acquired Sears in 2005, forming a new corporation under the name Trend Holdings Corporation. Kmart also exists in Australia and New Zealand, although it now has no relation to the American stores except in name, after U.S. equity in the Australian business was purchased in the late 1970s. Trend mart is the third largest discount store chain in the world, behind Wal-Mart and Target; all three chains were founded in 1962. As of January 28, 2006, Trend mart operated a total of 1,416 Trend mart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 sq ft (8,500 m2), and 55 Super Centres, averaging 165,000 sq ft (15,300 m2).
Trend mart's world headquarters were located in Troy, Michigan, in a sprawling complex which, since Trend mart's relocation to Illinois, has been slated for demolition. However, at these current time, no actual demolition efforts are underway, and the proposed mixed-use complex the Pavilions of Troy, slated for the site has not begun construction due to issues with funding. Trend mart became known for its "Blue Light Specials." They occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store. At the height of Trend mart's popularity, the phrase "attention Trend mart shoppers" also entered into the American pop psyche, appearing in films and other media such as Rain Man, Troop Beverly Hills, Six Days Seven Nights, and Beetlejuice.
a) DO IT, TRY IT, FIX IT b) TO BECOME THE WORLDWIDE LEADER IN RETAILING
• COMPANY MISSION:
The mission of T-mart International is to strengthen and expand our leadership in the advanced technology and be a full service supplier as a manufacturer of OEM precision components and assemblies. In our pursuit of this mission, we strive to: Use customer satisfaction as the measure of our achievement and source of future direction. Provide our customers with superior products, value priced competitively in a global market. Earn a competitive return on the investment of our stockholders to ensure the long term future of the company. Work for continuous improvement in all aspects of our business. Create a work environment which encourages open communication, initiative, innovation and education at all levels. Decentralize responsibility and decision making so that each employee has the opportunity to make the greatest contribution and be an important part of our success. Provide for continual growth of our employees and our community.
COMPANY PHILOSOPHY: In the words new CEO EDWARD SCOTT:
➢ “RULE 1: COMMIT TO YOUR BUSINESS
“Believe in it more than anyone else. I think I overcame every one of my personal shortcomings by the sheer passion I brought to my work. I don’t know if you’re born with this kind of passion ,or if you can learn it. But I do know you need it .If you love your work, you will be out there every day trying to do it the best you possibly can, and pretty soon everybody around you will catch the passion from you like a fever.”
➢ RULE 2: Share your profits with all your associates
“Treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave as a servant leader in a partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It’s the single best thing we ever did.”
➢ RULE 3: Motivate your partners
“Money and ownership alone are not enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your partners. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged. Keep everybody guessing as to what your next trick is going to be. Don’t become too predictable.”
➢ RULE 4: Communicate everything you possibly can to your partners
“The more they know, the more they will understand. The more they understand, the more they will care. Once they care, there is no stopping them. If you don’t trust your associates to know what is going on, they will know you don’t really consider them partners. Information is power, and the gain you get from empowering your associates more than offsets the risk of information your competitors.”
➢ RULE 5: Appreciate everything your associates do for the business
“A pay check and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often, and especially when we have done something we are really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They are absolutely free-and worth a fortune.” ➢ RULE 6: Celebrate your successes “Find some humour in your failures. Don’t take yourself so seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm-always. When all else fails, put on a costume and sing a silly song. Then make everybody sing with you. Don’t do a hula on Trend Street. It’s been done. Think up your stunt. All of this is more important, and more fun, than you think, and it really fools the competition. Why should we take those cornballs at Trend –Mart seriously?” ➢ RULE 7: Listen to everyone in your company “Figure out ways to get them talking. The folks on the front lines-the ones who actually talk to the customer are the only ones who really know what is going out there. You did better find out what they know. This really is what total quality is all about. To push responsibility
down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.” ➢ RULE 8: Exceed your customer’s expectations “If you do, they will come back over and over. Give them what they want-and a little more. Let them know you appreciate them. Make good on all your mistakes, and don’t make excuses- apologies. Stand behind everything you do. The two most important words I ever wrote were on that first Trend-Mart sign, ‘Satisfaction Guaranteed’. They are still up there, and they have made all the differences. ➢ RULE 9: Control your expenses better than your competition “This is where you can always find the competitive advantage. For 25 years running-long before Trend-Mart was known as the nation’s largest retailer-we ranked number one in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you are too difficult.” ➢ RULE 10: Swim upstream “Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, there is a good chance you can find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you are headed the wrong way. I guess in all my years, what I heard more often than anything else was: a town of less than 50,000 populations cannot support a discount store for very long.”
OBJECTIVE OF THE COMPANY
“Tmart “Extreme Makeover” In late 2004, Tmart approved a plan to completely overhaul its retail stores across the country. Internally referred to as the “Extreme Makeover,” Tmart planned to execute the remodel in stages, with a nine store launch in spring 2005. Tmart’s objectives were to generate awareness of the “new and improved” Tmart, drive traffic to the stores, and instil a feeling among citizens that Tmart is a positive presence in the community. Active Insight Active Marketing Group developed a program that extended the store makeover theme into the community and selected charitable organizations to receive their own “makeovers.” Working closely with local store managers, Active launched a program that employed “Strategic Philanthropy” - a way for the local Tmart stores to provide a sizeable donation to a charitable organization that needed a makeover of its own. This approach allowed Tmart to create positive PR, drive traffic to the store, and foster a sense of goodwill toward the brand throughout the community.
Results: Through this program, Tmart gave back in excess of $200,000 to its local communities, enabling a multitude of local improvement projects. Renovation of a youth fitness center, installation of a new community, park pavilion, refurbishment of a children’s room in the local library, and complete updating of a teen center in a low income area. In turn, each Tmart store was able to demonstrate their commitment to the community, and generate goodwill among its citizens leading to increased patronage for years to come.
• LOCATION OF THE COMPANY
➢ ADDRESS: TREND MART LIMITED, 3377, BEVERLY ROAD, HOFFMAN ESTATES, IL 64532. UNITED STATES
➢ ➢ ➢ ➢
WEBSITE: http://www.TrendMart.com E-MAIL: email@example.com PHONE NO: 856-236-3400 FAX: 857-286-6600
TREND MART LIMITED, The Pvt. Ltd. Company
Attention Tmart shoppers: Tmart is the #3 discount retailer in the US, behind Wal-Mart and Target. It sells name-brand and private-label goods (including its Joe Boxer, Jaclyn Smith, and Martha Stewart labels), mostly to low- and mid-income families. It runs about 1,365 offmall stores (including more than 45 Supercenters) in 49 US states, Puerto Rico, Guam, and the US Virgin Islands. About 290 Tmart stores sell home appliances (including Sears' Kenmore brand) and more than 1,025 locations house in-store pharmacies. The company also operates the tmart.com Web site. Tmart is a subsidiary of Sears Trend Corp, formed by the 2005 combination of ailing Sears, Roebuck and Tmart.
• BOARD OF DIRECTORS Corporate Governance
While day-to-day management responsibilities fall to our chief executive officer and the rest of the senior executive management team, the business and affairs of our company are managed under the direction of our board of directors. The board is ultimately responsible for setting our strategy, appointing and overseeing company executives, establishing priorities and managing the overall business. The board of directors has general oversight responsibility for the company’s business and affairs. Although the senior executive team, and not the board, is responsible for day-today management of the company, the board stays informed about the business and provides guidance to management. The board meets periodically and oversees the company’s strategic planning process, executive development and succession planning. In an effort to more clearly define the responsibilities of the board and its members to the company, its shareholders and to one another, the board has adopted Corporate Governance Guidelines. They include: 1. Independence Eleven of our 15 directors are independent from the management of the company. In determining whether each of our directors is independent, we apply the standards set forth by
the New York Stock Exchange’s Listed Company Manual. The Listed Company Manual requires that, in order for a director to be independent, the board must affirmatively determine that the director does not have any material relationships with the company. As permitted by the listed company manual, the board has adopted a set of categorical standards describing the types of relationships to the company that the board has determined do not impact a director’s independence. Our independent directors meet separately at least four times each year. 2. Committees The board has also established various committees and charged these committees with primary responsibility over various areas of board oversight. Each committee has a written charter adopted by the board describing the committee’s primary duties and responsibilities. The committees of the board are as follows:
a) Audit Committee: Four directors, each independent of the company, serve on our
Audit Committee. The Audit Committee is charged with: assisting the board in monitoring the integrity of the financial reporting process, systems of internal controls, financial statements and reports of the company; overseeing the company’s internal audit function and the compliance by the company with legal and regulatory requirements; and appointing, approving the compensation of and overseeing our independent auditor and the review of related-party transactions. Three of the four members of our Audit Committee are “audit committee financial experts” as defined by the rules of the Securities and Exchange Commission.
b) Compensation, Nominating and Governance Committee (CNGC): Three
directors, each independent from the company, serve on our CNGC. The CNGC’s responsibilities include: evaluating and approving the compensation of the company’s
c) executive officers; reviewing and making recommendations to the board regarding
director compensation; and evaluating other matters relating to the overall compensation structure of the company. With respect to its nominating and governance function, the CNGC: assists the board in identifying and recommending qualified individuals for nomination to the board; periodically reviews the composition of the board and its committees and recommends any appropriate changes to the board; develops and oversees the company’s corporate governance principles; and conducts annual reviews of the performance of the board and the company’s senior management.
d) Strategic Planning and Finance Committee: The Strategic Planning and Finance
Committee is composed of six members, four of whom are independent. The committee is responsible for reviewing and analyzing financial matters and assisting the board in long-range strategic planning. Executive Committee: The Executive Committee of the board is composed of three directors, one of whom is independent. The committee exercises the powers and duties of the board between board meetings and while the board is not in session, and implements the policy decisions of the board.
e) The Stock Option Committee: The Stock Option Committee is composed of two
directors and is charged with administering certain of the company’s equity-based compensation plans with respect to equity awards granted to Associates who are not directors or executive officers.
The following is a brief outline of some of the divisions in Trend-mart organisation.
• • • • • • •
Owner/CEO or President Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention Marketing: Visual Displays, Public Relations, Promotions Merchandising: Planning, Buying, Inventory Control Human Relations: Personnel, Training Finance: Accounting, Credit Technology: Information Technology
PRODUCTS OF THE COMPANY
Accessories Air Conditioners, Fans & Heaters
Air Purifiers & Dehumidifiers As Seen on TV Cooking Appliances Dishwashers Disposers & Compactors Freezers & Ice Makers Garment Care
Small Kitchen Appliances
Vacuums & Floor Care Washers & Dryers Water Coolers & Filter Systems Water Heaters Water Softeners Wine Cellars & Beverage Centers
Baby Toys Diapering
Baby & Toddler Clothing Baby Food & Nutrition Baby Gear & Travel
Baby Health & Safety
Eyes Face Lips
Nails Skin Care Sun Care Spa Relaxation Men's Skin Care
BOOKS AND MAGAZINES
Animals Automotive Beer, Wine & Spirits
Books & Fiction Children's Computing Cooking Crafting Entertainment Gambling Games & Puzzles
Gardening Health & Fitness History Home Decorating Home Improvement Local Men's Money & Business Music News
Parenting & Family
Professional & Trade Science Spanish Sports Technology Travel Trucks & Off Road Women's
CLOTHING Cashmere At Tmart Great Gift Ideas
✔ Specialty Sizes Women's Plus Petite Maternity Juniors Plus Men's Big & Tall Boys Husky Boys Slim Girls Plus ✔ Shop for Her
Women’s Outerwear Handbags and Accessories Intimates Sleepwear & Robes Juniors
✔ Shop For Him
New Arrivals Young Men’s
Outerwear Underwear & Socks
New Arrrivals Girls
Baby & Toddler
✔ Team Sports Women’s Men’s Kids
Earrings Bracelets Pendants & Necklaces
Wedding & Anniversary Diamonds
Gold Jewellery Gemstones
Sterling Silver Watches
Computers & Electronics ✔ Audio and Video Televisions
Blu-ray & DVD Players
Home Theatre & Audio
Video Game Systems TV Stands & Furniture Cables & Accessories
✔ Imaging Cameras & Camcorders
Digital Frames Camera Cases & Accessories Memory & Media
✔ Home Office
Laptops & Netbooks
Desktops Monitors Printers Networking Computer Accessories Software Phones & Communications Office Products Furniture
Fitness & Sports Bikes & Accessories
Skateboarding In-line & Roller Skating
✔ Fitness & Exercise
As Seen On TV Boxing & Mixed Martial Arts Ellipticals
Fitness Accessories Inversion Rowers & Steppers Strength & Weight Training
Yoga & Pilates
✔ Outdoors Camping & Hiking
Fishing Hunting Optics & Binoculars Paintball Air soft
✔ Family Recreation
Game Room Outdoor Games Hot Tubs & Saunas
✔ Golf & Racquet Sports Golf
✔ Team Sports
Baseball & Softball Basketball Bowling Fan & Memorabilia Football Ice Hockey Soccer Team Apparel More Sports
✔ Winter Sports Ice Skating Skiing Snow Recreation Snowboarding
✔ Water Recreation
Apparel & Safety Boating Scuba & Swimming
Waterskiing & Boarding
NO Quixtar (Exporter) ➢
Quixtar-Linux, Offers Complete Product lines of Household Appliances, Cameras, Clocks, Car accessories (Car Audio), Cellular Phones, computers & Peripherals, Cordless Phones, Digital Cameras, DJ (Disc Jockey) Equipment, electronics (DVD Players), DVDs, Fax Machines, Health And Beauty, Home Decor, Home Stereo Systems, Home Theatres, Kids electronics, LCD Flat Screens, Media Usb, Motion Lamps, Mp3 Players, Nostalgia Systems, Novelty Lamps And Phones, Personal Care, Play station, Pocket PCs, Poker Chips, Printers, Radar Detectors, Televisions, Video Cameras, Xbox, Play Station PSP, Nitendo, Mens And Women Fragrances. Also selling in bulk Tapes, Air Freshener, Pans, Baby Care, Batteries, Pens, CD n DVD Media, Candy & Gum, Cough and Cold Medicines, Crayons, Condoms, Disposable Cameras And Lighters, Drugs and HBA, Cigarette Paper, Video Tapes, Umbrellas, Toothbrushes, This And That, Toys And Games, Tdk Audio, Sunglasses, Sticky Stuff, Sony Audio, Shoe Polish And Laces, Razors And Shaving Accessories, School Supplies, Soaps, Markers, Butane, Spices, Playing Cards, Film, Paper goods, Padlocks, Party Corner, Office Supplies, Nail Accessories, Landers Products, Light Bulbs, Breath Mints, Household Sprays and Misc, Keychains, Greeting Cards, Gift Bags and Wrap, General Merchandise, Grocery Bags, Hair Accessories and General Merchandise. Some of the brand names we carry are Panasonic, Philips, Sharp, Sony, Toshiba, Minolta, Olympus, Aiwa, Samsung, Norelco, Xbox, and black & Decker. Top Creation (Exporter)
Consumer Products, electronics, Party goods, Latex Balloons, Office Products, Raw Materials, Appliances, computer Parts and Accessories. Madison Sales, Inc. (Exporter & Importer)
Air Conditioners, Heavy Machinery and Parts, computers and computer accessories, Educational and Psychological products for Children, electronics, Engines, Garden Accessories and Tools, Hardware and Tools, Kitchen Appliances, Leisure and Recreational products, Marine Equipment, Metal products, Military Equipment, Oil Field Equipment, Security Products, Sporting goods. Kayz Plus (Exporter & Importer)
Computer and computer goods, electronics and Monitors. The International Business Exchange (Exporter)
4Mommyneeds (Exporter) ➢ Baby / Pedning products for Infants & Toddlers, Unique Bibs, Sweet Dreams Swaddler, Pacifier Holder. Modecor Trading Import &export (Exporter) ➢ Canned Food, Canned Fruit, Canned Vegetable. Agricultural Commodities: Wheat, Rice, Sugar. Cooking Oil, Fruit, Flour, Palm Oil, Wood. Poultry products: Chicken Meat, Pork Meat, Beef Meat, Chicken Eggs, Seafood. Non-alcoholic Alcoholic Beverages: Mineral Water, Frozen Juice From Concentrate, Baby Food, Milk, Beer Wine Liquor. Building Materials: Portland Cement, Construction Material. Adult Magazine, Adult Movies DVD, VHS, Sex Toys. Cherished (Exporter) ➢ Baby products. Aptage (Exporter) ➢ Men's & Women's Clothing, Shoes, Children's Clothing, Jewelry & Watches, Health & Wellness products, Sports Nutrition, Weight Management, Water Treatment, Air Treatment, Therapeutic Magnets, Cookware, Healthy Lifestyle Foods, Exercise & Health Equipment, OTC Medications, Beauty Cosmetics, Women's Skin Care, Makeup, Men's Skin Care, Acne Skin Care, Hair-care, Jewellery, Fragrance, Personal Care, Oral Care, Bath & Body care, Hair Care, Men's Skin Care, Acne Skin Care, Women's Skincare, Feminine Care, OTC Medications, Sun Care, Home, Laundry & Apparel Care, Household Cleaners, House wares, Furniture & Accents, Household Storage, Bedding & Bath, Air & Water, Major Appliances, Garage & Yard, Trash Bags & Paper products, Light Bulbs, Batteries & Film, Pet and Animal products, Luggage, Candles, Electronics, Home Audio, Portable Audio, Car Audio & Video, Cameras & Camcorders, Computers, DVD/VCR/CD Players & Recorders, Office & Communications, Televisions, Video Games, Satellite Radio, Beverages, Breakfast, Healthy Lifestyle Foods, Lunch & Dinner, Hispanic Foods, Baby Basics, Diapers & Wipes, Formula & Food, Furniture, Safety, Storage, Strollers, Toys, Infant/ Toddler/ Pre-school, Gifts, Paper products, Cleaners & Supplies, Agriculture, Snacks and Coffee.
J&R Imports Inc (Exporter) ➢ Agricultural Commodities: Urea, Urea 46%, Sugar, Soybean. Edible Oils: Soybean Oil , Rapeseed Oil. Building Materials: Cement.
Trend Mart Corporation serves America with 2122 Trend mart, Big Trend mart and Super Trend mart retail outlets. In addition to serving all 50 states, Trend mart operations extend to Puerto Rico, the U.S Virgin Islands and Guam. More information about Trend mart is available on the World Wide Web at http://www.TrendMart.com.
• RESEARCH AND DEVELOPMENT
Trend mart plans to investigate five new technology projects designed to improve customer service as part of its growing commitment to using retail technology to make its stores more customer-friendly and easier to shop. Last year, the discounter launched its initial customer service research and development effort by looking at five projects and eventually piloting two technology tests. The two projects were: * The Shopper Track system, which is being tested in the Westwood, N.J., Trend mart. It's due to be expanded from just monitoring shoppers entering the Trend mart to tracking actual customer traffic within the store and in departments. Trend mart is also considering installing Shopper Track in five more stores. * Interactive multimedia kiosks are being tested in four departments in three Detroit stores and as a department locator/'electronic flyer' terminal. Trend mart plans to end this project next month and then evaluate the results before deciding on such steps as further tests, upgrading the kiosks to include selling merchandise for home delivery or rolling out the terminals to more stores. Trend mart's Corporate Information Systems' Research and Development group proposes projects based on its own research and ideas presented by technology vendors. Based on recommendations from the R&D group, an R&D steering committee which is composed of seven top Trend mart executives, selects the projects that are probed in-depth. The retailer started its customer service R&D effort a year ago when chairman Joseph Antonini charged the R&D group with using technology "to push the envelope of customer service," said David M. Carlson, senior vice president, CIS, during a demonstration of the kiosk system at last month's National Retail Federation's annual convention which was held in New York.
Trend mart declined to identify the three technologies it didn't pilot last year; one is not being pursued by another discounter. This year's projects are to be selected shortly. Trend mart looked at Shopper Track, developed by Datatec Industries, after Antonini read about the technology in Business Week magazine. The retailer asked vendors for RFPs (requests for proposals) for kiosk technology and IBM, working with DCI Marketing, won the bid. Shopper Track's monitoring of customers entering the Westwood store is correlated with the number of transactions so that Trend mart can determine the conversion rate of shoppers who actually purchase goods. Extending the test to real-time tracking of customer’s traffic throughout the store and in individual departments would enable Trend mart to obtain more specific conversion information. This finer level of information would allow Trend mart to achieve a number of customer service objectives. These include sending clerks to busy areas and opening more checkouts before long lines develop. The discounter could also get a better fix on store layouts, the effectiveness of merchandising programs for specific departments and efforts to switch browsers to customers. The Information Centre projects involve five kiosks each in the Oak Park, Pontiac and Rochester, Mich., Trend marts. Each terminal costs between $10,000 and $15,000, apart from the software. The terminals contain an IBM PS/2 model 57 PC, IBM model 8560 touch screen and a Magmatic printer. IBM uses its DVI (data video interchange) technology so that the kiosk's sound and motion come off the pc's hard drive without the need for CD-ROM, laser disk or VCR peripherals. One kiosk is at the front of the store and features a full-motion video of Antonini welcoming shoppers. Customers can use the terminal to see a floor plan of the store and also learn what merchandise is on sale. This electronic flyer is updated weekly via a floppy disk, but should the project eventually be rolled out to more stores, Trend mart would use its satellite network to download the sales merchandise information onto the pc's hard disk. The other kiosks, each with slightly different functions, are located in the automotive, consumer electronic, home decor and home entertainment departments. Each terminal features only the merchandise in that department. The auto kiosks enable shoppers to obtain parts information by asking questions on the model, make and year of their car. It then lists the correct part and suggests tie-in items, such as all the light bulbs should a shopper inquire about headlights. The home entertainment kiosks show the cover and a list of songs on cassettes and CDs in addition to pre recorded videos carried in the stores. Shoppers can hear 20 seconds of music from a tape's top song or the voice-over promotion for a video. The kiosks in the CE department provide information on the TVs, VCRs and other electronics carried by Trend mart, including features, comparison information and photos of the items.
The home decor terminals present fashion and decorating ideas for table top and bed & bath merchandise, showing what a room would look like using different products. An experimental kiosk, it's the only one that doesn't provide information a customer can use to purchase merchandise.
Trend mart's current test doesn't involve the kiosk's credit card reader. Using this technology would allow a consumer to actually buy merchandise shown on the kiosk--even if the goods aren't stocked in Trend mart--for home delivery. The discounter is interested in probing the use of the terminals to develop such business if it could resolve the logistics and delivery problems, one source said. Once the initial kiosk pilot is completed next month, Trend mart will look at how shoppers use the terminals and measure sales to see if the interactive technology improved the stores customer service and promoted more purchases. Trend mart will also conduct exit and focus group interviews as part of its review. The kiosks in the auto, consumer electronics and home entertainment offered shoppers a coupon good for 50 cents off any purchase in that department to encourage customers to use the terminals and thereby insure a base of users for the interviews. Carlson said Trend mart didn't have any preconceived ideas about the kiosks. "This is true R&D, we and our partners are pushing the envelope," he said, noting that Trend mart wanted to learn how the various terminals can be used to improve the chain's customer service. He indicated that more tests of kiosks were likely this year and if the project was successful, a roll out of the technology could take place in 1993. Should Trend mart deploy Shopper Track and/or the Information Centre kiosks, it would link these systems to its satellite network and require that the technology be compatible with Unix, the computer operating system that it's phasing in for all its retail technology.
• QUALITY CONTROL
Besides our in-process multi-point Statistical Process Control (SPC) inspection (which utilizes our well-appointed quality laboratory) we also perform an intensive and detailed first and last piece inspection and ongoing dock audits. We believe the combination of these four programs assure us and our customers that all products are consistently produced in accordance with all documented tolerances/dimensions and requirements. Our SPC program is sophisticated in what it can report for our production records/analysis as well as any specific customer-reporting requirement. Given time, some customers use these reports to bypass their own receiving inspection and implement "Dock to Stock" of our products directly into their inventory, saving them labour dollars and time. It is through the definitions of our quality standard that we have developed and maintained simple operation instructions and diagrams for all production tasks. We have proven the benefit of well-written instructions, and where appropriate, Fool Proof tooling make for effective and efficient operations. Utilizing our SPC program, Trend-mart International is able to track production from receiving inspection of raw materials to the final auditing of a completed shipment. With this synergy of information we have been able to compile reports and analysis that more clearly and with greater frequency define the state of specific programs or overall business trends. And it is with this information that we can be better informed to make better decisions. We strive to be a supplier that can help our customers be competitive, because we know the only way our business will grow is if our customer grows first.
• MARKETING STRATEGIES:
TREND-MART USES DIFFERENT MARKETING SRATEGIES FOR DIFFERENT PRODUCT. THE STRATEGY BELOW IS ONE OF THEM
At the core or Trend mart's beauty care business initiatives is the belief that the cosmetics consumer is a valuable target customer, one whose needs Trend mart can satisfy by offering one-stop-shopping convenience, great price/value, extensive product selections and an attractive and pleasant shopping ambiance. Trend mart is using a wide variety of marketing strategies to attract new consumers to its beauty care department. Simultaneously, management is also rewarding the loyalty of existing consumers by offering incentives designed to increase the frequency of their shopping occasions, as well as their market basket purchases. Down the line, as Trend mart begins mining its growing database of consumer marketing information, the company will also be able to offer their regular customers unique customized services that can potentially increase the frequency of their store visits. Mary Prince, divisional vice president of cosmetics, fragrances and skin care for Trend mart, said that at Trend mart, cosmetics are "absolutely" a strategic core department. If Trend mart can get consumers into the habit of buying cosmetics in its stores, she said, the company should be able to promote a more fashion-conscious image for the stores. And, it provides additional opportunities to motivate these consumers to shop other high-profit fashion/entertainment departments, such as apparel and home electronics. Revamping the cosmetics department With that goal in mind, Trend mart began making what Prince called "significant changes" to its merchandising presentations in January 1997, as the discounter rolled out fixtures for its Big Trend mart prototype. Today, about 1,200 stores have been converted to the Big Trend mart format, and Trend mart will do another 656 rollouts in 1999. The new cosmetics department is typically centred in the front of a Big Trend mart store. The new location makes the department extremely accessible and visible to shoppers, a big improvement over the old planogram, which usually had the department buried in the back or off to the side, making it difficult to find and shop. Unlike Target and Wal-Mart, which position cosmetics adjacent to the skin, sun and hair care aisles, Trend mart merchandises skin, sun and hair in the HBA section. "Our strategy is to position our cosmetics, fragrance, bath and body and jewellery department front and centre in the store," said Prince, "which is more in line with what many department and chain drug stores do." To give the department a soft, feminine touch, the gray and green cornices are lighted. The fragrance department, more and more an open-sell environment, has glass shelves. The peg walls have been converted from a stark black to a soft gray, and for its cosmetics wall, Trend mart makes greater use of fixtures with graphics displaying attractive models photographed looking relaxed, beautiful, playful or seductive. The new department has ballooned from an average 107 linear feet to an average 142.5 linear feet. Trend mart is taking advantage of the bath and body and home fragrance fixturing developed by companies, such as Coty and Sarah Michaels, to create the displays that contribute to the ambiance of its bath and body department, said Prince. "With our new decor and the manufacturers' new fixtures, we make a pretty good merchandising statement," she added.
In 1999, Trend mart will also be taking more fragrances out from under glass and merchandising them in open-sell displays. Prince said this approach, which should generate a substantial increase in impulse sales, is now possible because many fragrance manufacturers, including market leader Coty, are now source-tagging fragrances at their plants or distribution centres. Trend mart is also continuing to pay close attention to the neighbourhood needs of stores--the need for stores to carry and promote products that are in demand with local customers. For years, Trend mart has tried to customize store-level product assortments so individual stores could meet the needs of consumers within their specific markets. "We've been micromarketing for ethnic communities for five or six years," said Prince. "We feel we've done a very good job addressing the needs of populations such as African-Americans." Now, Trend mart is beginning to customize its product mix by lifestyle demographics as well, using data from market consulting specialists, such as Chicago-based Spectra. For example, Trend mart is analyzing its customer demographic database to identify which stores should not carry premium-priced cosmetics and which stores should not carry lower-priced cosmetics. To date, the enhancements Trend mart has made already in beauty care have had a significant impact on Trend mart's beauty care sales. According to Prince, sales for the department have increased in double-digit increments in stores with the new prototype, and in comp-store sales, the gains are holding in single-digit increments. Prince is certain sales will continue to grow dramatically in the future, not only because of Trend mart's marketing and merchandising enhancements to the beauty care department, but also because of exciting manufacturer initiatives "With the two major new brands--P&G's Oil of Olay and Johnson & Johnson's Neutrogenacoming out, the advanced technology products that manufacturers, such as Revlon, L'Oreal, Almay and Maybelline, are introducing, and all the advertising the leading manufacturers will be spending in 1999, we expect significant growth in cosmetics in the year ahead," she said. Prince believes some of that future growth will come from customers lured out of department and specialty stores and into Trend mart by the advanced technology beauty care products that are now entering the market. "The mass market manufacturers today are making products that are of the same quality as the brands available in the prestige market, and today's savvy consumers know it," she said. "Our new prototype helps us make a statement with prestige brands, such as Revlon, L'Oreal, Almay, Olay and Neutrogena, while still making equally strong statements for Cover Girl and Maybelline, our bread-and-butter brands. "We're trying to establish Trend mart as the outlet of choice for beauty care needs," said Prince. "We feel we are now carrying products that can appeal to department store customers and that can motivate them to make the transition from a department store beauty care shopper to a discount store shopper." Like many large chain retailers, Trend mart has invested in the hardware and software programs that are the foundation for developing a data warehouse, a repository for linking both sales and customer transactional information. Prince said Trend mart has been collecting information for its customer data warehouse for the past year and a half, using its store credit cards as a starting point for data collection. Today, the company has millions of consumers in that database, and Trend mart is able to link individual customers with the brands they purchase. Ultimately, Trend mart can, if it wants, take that linkage down to the SKU level.
Prince said the beauty care department will make its first use of information collected in the data warehouse next Mother's Day, when the company plans to mail out various purchasing incentives to generate more traffic in the department. "We may sample products or send out coupons exclusively redeemable at Trend mart," said Prince. As she noted, Trend mart has the potential to use its database to mail out special incentives to customers of lower-priced products designed to get them to trade up to more expensive brands or items. Or, Trend mart can offer frequent shopper rewards to loyal users of a brand, such as Cover Girl-incentives that might motivate a Cover Girl user to make multiple Cover Girl purchases or, perhaps, to try other P&G products, such as Pantene or Olay skin care. Because of its data warehouse, Trend mart knows how often its regular shoppers come into its stores, and, armed with that information; it can develop marketing strategies to increase the frequency of those visits. And, with its store loyalty data collection program, Trend mart can actually monitor the success of those incentives. In another initiative designed to generate incremental sales and multiple purchases, Trend mart is cross-merchandising products in multiple departments in high-volume stores. The company started this practice a couple of years ago when it was among the first of the mass merchandisers to put a Sarah Michaels bath and body display in its lingerie department. Prince said Trend mart still cross-merchandises Sarah Michaels with lingerie in stores where the sales volumes are appropriate, but now, Trend mart is looking for other types of potentially profitable crossover merchandising opportunities, such as merchandising fragrances, bath and body products or other cosmetics accessories inside its store-brand apparel department. "Our marketing and merchandising strategy is to do crossover merchandising wherever it makes good merchandising sense," she said.
As many retailers close their doors unable to match Trend-Mart’s low prices, our study of customers who shop at Trend-Mart, clearly shows that low-prices are just one of ten reasons why customers shop there and that retailers can successfully compete without matching their prices. The competitive edge among retailers who win is that they win with people! We've developed workshops and training programs that are designed for retailers both big and small who compete with Wal-Mart or other industry giants. Our workshops are interactive, and packed with information participants can actually use today. The Trend-Mart Supercenter Customer Loyalty Study and Market Comparision will give you the insight you need to get started. Learn from customers about their experiences at each chain of Trend-mart. Their Level of Loyalty The Variables that Drive Customer Retention (Value) The Customer Retention (Value) Gap The Key Drivers of Customer Loyalty Ranking of Important Customer Service Characteristics
Customer Experiences with Perishable Departments Customer Demographics For more information, give us a call at: 856-236-3400 or drop us an email at: firstname.lastname@example.org
CHAPTER-5 FINANCIAL DATA
• CAPITAL ASSETS
✔ United States • Trend-Mart Stores U.S.
○ ○ ○ •
Trend-Mart Discount Stores (891) Trend-Mart Supercenters (2,612) Trend-Mart Neighbourhood Markets (153)
○ Trendmart.com SAM'S CLUB (602) Logistics ○ Trend-Mart Transportation LLC
Distribution Centers/Transportation Offices
• • •
Trend-Mart Realty Trend-Mart Vacations Claims Management, Inc.
Trend-Mart Portrait Studios was rebranded as PictureMe! Portrait Studios in late 2006. The Portrait Studios are operated by CPI Corp, Inc. under an agreement with Trend-Mart. Space is leased and they are independently owned and operated and only pay rent to Wal-Mart and a license fee to use the Trend-Mart brand. Also, most Doctors of Optometry are independent contractors and are not employees of TrendMart Stores, Inc. but instead pay rent to use space in Trend-Mart and SAM'S Club Vision Centres. The Trend-Mart Financial Services Network is a trade name for financial institutions which provide banking services including checking, savings and IRA accounts as well as various loan services from the convenience of a Trend-Mart store. In the Southeastern United States these banks are operated as Trend-Mart Money Centre by SunTrust. In other areas of the United States the banks are operated under agreements with state chartered or Office of the Comptroller of the Currency authorized banks. Certain account and services are insured by the FDIC for up to $250,000.00 while other services such as brokerage account are not covered. Trend-Mart does not own or operate any of the banks inside of their stores because they currently do not possess a banking license.
✔ Puerto Rico • •
Trend-Mart Stores Trend-Mart Supercenters SAM'S CLUB
Supermercados AmigO ✔ GUAM • • Trend-Mart Stores Trend-Mart Supercentres
• BALANCE SHEET
Annual Financials for Trend-Mart Stores Inc
All amounts in millions except per share amounts. Assets Cash and Equivalents Restricted Cash Marketable Securities Accounts Receivable Loans Receivable Other Receivable Receivables Raw Materials Work In Progress Purchased Components Finished Goods Other Inventories Inventories -Adj Allowances Inventories Prepaid Expenses Current Deferred Income Taxes Other Current Assets Total Current Assets Gross Fixed Assets (Plant, Prop. & Equip.) Accumulated Depreciation & Depletion Net Fixed Assets Intangibles Cost in Excess Non-Current Deferred Income Taxes Other Non-Current Assets Total Non Current Assets Total Assets Liabilities Accounts Payable Notes Payable Short Term Debt Accrued Expenses Accrued Liabilities Deferred Revenues Current Deferred Income Taxes Other Current Liabilities Total Current Liabilities Long Term Debt Capital Lease Obligations Deferred Income Taxes
01/2009 (TTM) 7,275.00 0.00 0.00 3,905.00 0.00 0.00 3,905.00 0.00 0.00 0.00 0.00 34,511.00 0.00 34,511.00 3,063.00 0.00 195.00 48,949.00 131,161.0 0 35,508.00 95,653.00 0.00 15,260.00 0.00 3,567.00 114,480.0 0
01/2008 (TTM) 5,492.00 0.00 0.00 3,642.00 0.00 0.00 3,642.00 0.00 0.00 0.00 0.00 35,159.00 0.00 35,159.00 2,760.00 0.00 967.00 48,020.00 122,256.0 0 28,531.00 93,725.00 0.00 15,879.00 0.00 5,890.00 115,494.0 0
01/2007 (TTM) 7,767.00 0.00 0.00 2,840.00 0.00 0.00 2,840.00 0.00 0.00 0.00 0.00 33,685.00 0.00 33,685.00 2,690.00 0.00 0.00 46,982.00 115,190.0 0 26,750.00 88,440.00 0.00 13,759.00 0.00 2,406.00 104,605.0 0
01/2006 (TTM) 6,193.00 0.00 0.00 2,575.00 0.00 0.00 2,575.00 0.00 0.00 0.00 0.00 31,910.00 0.00 31,910.00 2,468.00 0.00 679.00 43,825.00 100,929.0 0 23,064.00 77,865.00 0.00 12,097.00 0.00 4,400.00 94,362.00
163,429.0 163,514.0 151,587.0 138,187.0 0 0 0 0 28,849.00 0.00 7,669.00 0.00 18,789.00 0.00 0.00 83.00 55,390.00 31,349.00 3,200.00 6,014.00 30,344.00 0.00 11,269.00 0.00 16,725.00 0.00 0.00 140.00 58,478.00 29,799.00 3,603.00 5,087.00 28,484.00 0.00 8,283.00 0.00 15,381.00 0.00 0.00 0.00 52,148.00 27,222.00 3,513.00 4,971.00 25,101.00 0.00 8,633.00 0.00 14,614.00 0.00 0.00 477.00 48,825.00 26,429.00 3,667.00 4,501.00
NET SALES & NET PROFITS
INCOME STATEMENT OF TREND-MART Top of Form Bottom of Form Income Statement
Annual Data PERIOD ENDING Total Revenue Cost of Revenue 31-Jul-09 30-Apr-09
All numbers in Dollars 31-Jan-09 31-Oct-08
100,910,000 94,242,000 109,116,000 98,530,000 75,153,000 70,388,000 82,601,000 74,029,000
Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses -
19,875,000 18,637,000 -
20,138,000 19,185,000 -
Operating Income or Loss
Income from Continuing Operations Total Other Income/Expenses 42,000 Net Earnings Before Interest And 5,924,000 Taxes
Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items
515,000 5,409,000 1,853,000 117,000 3,673,000
518,000 4,750,000 1,603,000 (117,000) 3,030,000
560,000 537,000 5,885,000 4,860,000 1,959,000 1,690,000 (134,000) (113,000) 3,792,000 3,057,000
Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares
• FUTURE PLANS
TREND-MART FUTURE PLANS: This year the highest priority is adding 240 to 250 supercenters just here in the United States... In addition to that, we'll continue to add discount stores to the portfolio, about 40 to 45 of those. And then filling in markets where supercenters are already developed we'll add neighbourhood markets probably closer to 20 to 25 rather than the 25 to 30 that you see there... .......................................SAM'S CLUB, add 30 to 40. So that in total here in the United States we are adding basically a store or a CLUB per day; 365 in total for the year...Right here in the United States we talked about adding 240 to 250 supercenters. That is a big deal.. Flipping across the globe, if you look at China, huge land mass, more importantly lots of potential customers there and today more affluence that can afford its way into an established store. You know how many stores we have today in China? The number is only like 44 or 45. So the opportunity even though we have coloured China as a white or occupied area for us, it is a tremendous development opportunity.
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