Waiting Lines
Macy's Inc. is one of the nation's largest and well-known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. After, the global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date in 2011. In 2012 same store sales increased 4.6% in (Macy's Inc., 2012). Both 2013 and 2014 have also created large profits for the retailer. A primary component of this increases profitability is the overall shopping environment. Consumers now demand instant gratification and quick transactions. Therefore, lines, and there subsequent wait times are very important. Lines are very important as they can deter from the consumer experience, and the overall purchasing activity of the consumer. Retailers, must be cognizant of lines and congestion to help increase sales while also increasing the overall customer experience.
While observing a local Macys location, consumer traffic was particularly heavy due to the holiday season. Typically, as Christmas day approaches, consumers tend to shop heavily in anticipation to still further traffic. I observed heavy shopping in the Macys locations with particular emphasis on the men's apparel. Shoppers were focused heavily on sales items. These cheaper items have implications with line congestion, as sales associates were forces to ring large quantities of sale items. Many consumers purchased multiples of the same items, causing longer transactions at the register.
Through my observations, I observed many problems that added to consumer frustration within the line, while simultaneously increasing wait times. The first was the lack of appropriate price checkers within the area. The men's department during my observation was being shopped heavily due to the holiday season. Many clothes were in the incorrect sections, while others were in areas that were mispriced. I personally observed a consumer who was confused due to mispricing on the sales rack and on the individual article of clothing. This greatly increased line traffic, not for purchases, but simply for information. Lines were long at the cash register as consumers wanted to verify prices, ask further information about an article of clothing, or locate a particular item. Although this problem cannot be avoided entirely due to the...
When a company carries an inventory, that is a part of their business that is not yet earning money. While each individual component of the inventory is expected to earn eventually, the inventory as a whole is a relatively permanent fixture on the balance sheet and as such never turns into earnings. The objectives of inventory control are to balance the needs of the operation and the desire of management
Another solution is to reengineer back-room operations that consist of many repetitive operations and hamper front line operations, as Citicorp has done, by applying the concept of "mass production," streamlining, and standardization of tasks. Banks can also provide important service information like the busiest days in the branch so that customers may want to avoid these periods. With the segregation of lines, ASB Bank Limited has created two customer
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