Retail Management on Nike and its Competitors (Essay Sample)

Retail Management
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Retail Management
The outstanding problem is the limitation in display space for the three athletic brands: Nike, Under Armour and Adidas. The Exchange store has minimal space for display of premium goods. Taking into consideration the fact that new clothes and goods often receive premium display, old stock from the three brands would definitely get space in an unnoticeable area. The situation becomes worse when representatives of the athlete brands visit the store and demand premium display for their stock. The store is not willing to let go of a brand because it seeks to augment its profit through consumer sales.
The desired performance is that each brand ought to receive a fair share of the premium display. In the current performance of the store, that eventuality of equal display space is not achievable. Therefore, a gap that needs bridging exists between the desired and current performance. Brock notes that shelf space is key and influential to the sales of a product because it can supplement the marketing strategy CITATION Jam16 \l 18441 (Brock, 2016).
The store has a routine of rotating the brands based on the stock arrival. The implication is that new stock receives the front premium display. This is a marketing strategy to capture consumers through sales of new stock. The organizational culture is not in tandem with the desires of the three brand managers because it is not feasible to have them displayed at once.
The premium spacing problem is organization-based due to the limitations in size of the store. The store size dictates the arrangement and subsequent spacing of the displayed goods. An equal display would translate to an increase in the store size, which is not feasible.
Depending on an individual’s perspective, the problem may have emanated from the management, or it can be appearing as an attribute of external factors. The problem emanates from the management because they sought to sell the three competing brands at once. This is despite being cognizant of the space limitations. Rather than focus on a single brand, which would receive fair display, the managers opted to sell all of them.
The management is absolved of blame as it may be trying to optimize consumer sales by appealing to the different tastes of people. For instance, there is a clientele that would prefer Nike to Adidas and vice versa. Capitalizing on one athletic brand would reduce the competitive edge of the store and diminish its overall sales. The resultant effect is having the management consider sharing of the premium space between the three brands. However, the brand representatives have opposed such a solution CITATION Gup08 \l 18441 (Gupta & Randhawa, 2008).
It suffices to assume that the organization’s initiative has created the problem. The organization decided to purchase stock from the three brands. However, the spacing issue does not relate to employee performance at the store. The employees have little control on items displayed at the premium spac