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Unit 4: Buying for Off-price Retail Operations

Self Assessment Notes

State whether the following statements are true or false:
13. Fashion is not making any news on Internet Web sites.
14. In Ebay.com, bargains may be available as fixed prices, or from bidding opportunities
where consumers compete with each other for the best price.

4.8 Suppliers of Off-price Goods

As much as they don’t want to offend their regular traditional store buyers and jeopardize future
business with them, almost all manufacturers and designers at every conceivable price point
have some merchandise they must rid themselves of. These are not just the run-of-the-mill
brands, but marquee-type labels that are quick to attract consumers’ attention.
Off-price stores regularly display merchandise from Ralph Lauren, Calvin Klein, DKNY, Tommy
Hilfiger, Liz Claiborne, Evan Picone, Adrienne Vittadini, and others.

Did u know? No line is sacred if there are goods left at the end of the season and room is
needed for the next season’s offerings.

Self Assessment

Fill in the blanks:
15. .............................. labels that are quick to attract consumer attention.
16. No line is sacred if there are ............................ left at the end of the season and room is
needed for the next season’s offerings.



Case Study An Off-price Study

angtree’s is a small department store located in Pennsylvania. In operation for 18
years, it has made its success on offering quality merchandise and service. Langtree’s
Lupper-middle-class customers purchase merchandise that features labels such as
Liz Claiborne, Calvin Klein, DKNY, Ralph Lauren, and a host of other reputable names.
About 3 years ago, Langtree’s received its first taste of off-price competition. Clayton’s, an
off-price operation, opened a store 8 miles from Langtree’s downtown flagship location.
The new venture, unlike Langtree’s was “off-the-beaten-path” and freestanding. Although
the two companies were not direct competitors, they carried some identical lines. Because
the new store was just a short car ride away, some of Langtree’s customers visited Clayton’s
and purchased the same goods off-price for less. Some of the customers complained to
Langtree’s that although the service at Clayton’s was poor, the price differential was
significant.
Throughout the last few years, ever since Clayton’s arrival, business has slightly declined
at Langtree’s, and management assessed the problem as price competition from the new
Contd...

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