mervyn’s scott and miguel. history founded in 1949 by mervyn morris headquartered in hayward, ca...
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MERVYN’SMERVYN’S
Scott and Miguel
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HistoryHistory
Founded in 1949 by Mervyn MorrisHeadquartered in Hayward, CA (Bay Area)Emphasis on family
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StrategyStrategy
Mid-tier neighborhood department store“Trend-right” fashionsHome DecorNational and private labelFirst to offer revolving creditAmbience of high-end department store
with discount prices for families
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Target MarketTarget Market
Working moms 25-49Half of stores located in regional malls, half
stand alone
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OwnershipOwnership
Private company Sold by Target Corp for $1.65 billion
– Target was funneling profits out of Mervyn’s and into new Target stores
Sun Capital Partners, Inc.– Private equity firm– Specializes in failing business recovery– Own Sam Goody, Wickes Furniture, Bruegger’s
Bagels, Anchor Blue
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DownsizingDownsizing
Generated $3.3 billion in revenues (2003) 2003: 255 stores in 13 states 2006: 190 stores in 10 states Exiting Oregon and Washington entirely in 2007
– 19 low volume stores with high operating costs
Focus on 171 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Texas, Utah
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Community RelationsCommunity Relations
ChildSpree– $100 shopping spree for needy children
Sprockets Dog Plush– Sales of stuffed animals funds ChildSpree
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CompetitionCompetition
Discounters:– Wal-mart– Target– T.J. Maxx– Ross
Mid-market veterans:– JC Penney– Sears
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SWOTSWOT
Strengths– Profitable– Well known– Good community relationship– Have a plan– Free of Target Corp leeches– Establishing unique brands
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SWOTSWOT
Weaknesses:– Unstable– Heavy competition from all corners– Must re-establish niche– Bad PR for job loss– Run down stores (pilfering by Target)
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SWOTSWOT
Opportunities– New financing– New leadership– Exploitation of new niche
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SWOTSWOT
Threats:– Competitors– New plan viability– Loss of brand loyalty
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Jobs??Jobs??
Entry level management-– 2004: 300– 2005: 200– 2006: 200
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ReferencesReferences
www.collegegrad.comwww.hoovers.comwww.mervyns.comwww.sfgate.com