Retail Analysis Retail Sales Management

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Table of Contents

Executive Summary 3

Locations 4

NAICS & Ownership 5

Retail Type / Communication Channels 6

Company Analysis 7

Sales / Revenue 8

Product History & Analysis 9

Industry / Competitor Analysis 11

Differentiation 13

Geographic Analysis 14

Internet Analysis 17

SWOT 18

Works Cited 19

Executive Summary

Duluth Trading Company first started in 1989 with the invention of the bucket boss tool organizer. Ever since, the two tradesmen have been on a mission to build innovative gear for can-do guys and highly capable women. In this retail analysis you will be able to understand the inside look of this business on how these tough, functional, and comfort products make the difference within the company.

Website:https://www.duluthtrading.com/ Social Media:https://www.facebook.com/DuluthTradingCompany https://twitter.com/DuluthTradingCo/ https://www.instagram.com/duluthtradingcompany/ https://www.youtube.com/user/DuluthTrading https://www.pinterest.com/duluthtradingco/

Extra Details:

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Locations

Duluth Trading Co. was originally founded by two brothers Bob and Dave Fierek on a barge in Duluth, MN. In 1989 they originally started their company as Pull’r Holding Company, LLC and primarily focused on those working in construction and a tool accessory known as the “Bucket Boss”. With success, the business grew to incorporate more products involving tool accessories and storage equipment. With the first headquarters being established on a barge in Duluth, Minnesota the companies name was later changed from Pull’r Holding Company in 1993 to Duluth Trading Co.

In 1996 the company was purchased by consumers good company, Fiskars. In 2000 its was sold again to Gempler’s Outdoor Supplies and moved its headquarters to Belleville, Wisconsin. The company then moved into a successful line of shirts in 2002 called “Longtail T-Shirts” which were designed to get rid of plumber’s crack.

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NAICS and Ownership

NAICS: 452210

The brand’s personality is built around the persona of working tradesman. The lifestyle brand of men’s and women’s casual wear, workwear and accessories associates with shoppers throughout suburban and rural America. Each location is set to make the store feel “homegrown” to welcome in any local shoppers.

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Retail Type and Communication Channels

Communication Channels• 40+ Brick and Mortar in U.S.• E-Commerce• Magazine Catalogs• Television AD’s

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Company Analysis

As a company Duluth Trading opened 15 new stores in 2017 and opened 15 more in 2018. With 40+ retail stores coast to coast throughout the United States, the business doesn’t seem to be slowing down. In 2018, the company was working towards growing the women’s business model within the products despite only accounting for 21 percent of net sales in 2016.

More info at: https://www.duluthtrading.com/duluth-lore.html

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As Duluth Trading closed out fiscal 2017, they marked their 32nd consecutive quarter of increased year-over-year net sales growth. For the full year, net sales grew 25 percent to $471.4 million, with net income of $23.4 million or$0.72 per diluted share.

Duluth Trading opened 15 retail stores, totaling approximately 228,000 of gross square footage, and at fiscal year-end, the total store count was 31. Retail stores accounted for 30 percent of total net sales and 25 percent of total new customer growth in 2017.

Sales/ Revenue

Current Stock:(As of 4/4/2019)

https://www.nasdaq.com/symbol/dlth

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Product History and AnalysisTough. Functional. Comfortable. Since 1989, we’ve been on the job – building innovative gear for can-do guys and highly capable women.

Products:

Men’s

SHIRTS

• T-Shirts• Button-Downs• Flannels• Shirt Jacs• Sweatshirts• Sweaters & TurtlenecksUNDERWEAR• Boxers & Briefs• Undershirts• Socks• Base LayersPANTS

• Work Pants• Jeans• Casual Pants• Cargo Pants• ShortsOUTERWEAR

• Jackets & Coats• Vests• Rainwear• Pants & OverallsACCESSORIES

• Bags & Luggage• Wallets• Belts• Hats & Headwear• GlovesFOOTWEAR

• Boots• Shoes• Socks

Women’s

TOPS• T-Shirts• Tanks• Button-Downs• Tunics• Flannels• Sweaters & TurtlenecksBOTTOMS

• Work Pants• Active Pants• Cargo Pants• Jeans• ShortsUNDERWEAR

• Undies• Socks• Bras• UndershirtsOUTERWEAR

• Jackets & Coats• Vests• RainwearFOOTWEAR

• Boots• Shoes• SocksACCESSORIES

• Bags & Totes• Wallets• Belts• Hats & Scarves• Gloves

Workshop and Gear

TOOLS & SUPPLIES• Lighting & Flashlights• Organization• Safety• Quick FixesTOOL STORAGE

• Tool Bags• Belts & Aprons• PouchesTRUCK & CAR

• Seat Covers• OrganizationOUTDOOR

• Camp & Survival• Lawn & Garden• RecreationDOG GEAR

• Beds & Crates• Jackets & Leashes• Toys & GroomingFOOD STORAGE

• Lunch Boxes• Coolers• Drinkware

Return Policy: If you are not 100% satisfied with any item you purchase from Duluth Trading, return it to us at any time for a refund of its purchase price. Simple, unconditional, no nonsense, NO BULL.

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Product History and Analysis

2017 Financial Reports: https://ir.duluthtrading.com/static-files/dbbf9c01-88e4-4183-9e57-bb4005009cfc

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Industry/Competitor Analysis

The North FaceThe North Face® fundamental mission remains unchanged since 1966:Provide the best gear for our athletes and the modern-day explorer, support the preservation of the outdoors, and inspire a global movement of exploration.

Patagonia Our criteria for the best product rests on function, repairability, and, foremost, durability. Among the most direct ways we can limit ecological impacts is with goods that last for generations or can be recycled so the materials in them remain in use. Making the best product matters for saving the planet.

Columbia Being an industry leader in outdoor apparel and products takes passion, and an understanding of people who love the outdoors as much as we do. That’s why, from cutting edge technology, to our innovative heritage in Bugaboo, our jackets, pants, fleece, boots, and shoes are all tested tough so you can enjoy the outdoors longer.

“Today, it’s competing with brands like REI, Columbia, and Patagonia to appeal to younger, more active customers, while still going up against brands like Cabela’s and Carhartt in the workwear space.” Sieben, Lauren.

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Industry/Competitor Analysis

“Today, it’s competing with brands like REI, Columbia, and Patagonia to appeal to younger, more active customers, while still going up against brands like Cabela’s and Carhartt in the workwear space.” Sieben, Lauren.

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Differentiation

Duluth Trading differentiates from its competitors through its offering of solution-based apparel. “If the problem is men’s jeans that pinch in the crotch, Duluth Ballroom Jeans (get it?), made with extra fabric in the groin, are the solution. If a too-tight flannel is inhibiting your ability to chop firewood, the Free Swingin’ Flannel comes with armpit gussets to improve your range of motion.” Sieben, Lauren.

The company separates itself through their “No Bull Guarantee” refund policy which in summary states that if any customers is unsatisfied with a product they are offered a refund at any time. Duluth Trading provides the “hometown” environment within their retail locations which welcomes any individuals into their stores. Walking into these locations throughout the U.S. and not knowing the name beforehand, you wouldn’t recognize it as a chain retail store.

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Geographic Analysis Duluth Trading store offers an experience for any shopper that enters the store. Each store is different than your typical retail store and each one of their own separates themselves from the rest. Finding all the solutions to your everyday-workday problems through the use of their innovative problem-solving work gear. Every store features an appealing theme, photos, display’s and objects that honor the hardworking men and women of the past and present.

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Geographic Analysis

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Geographic Analysis The company moves to create the location of a “homegrown” experience. Specifically, at their La Crosse location they achieve just that through their downtown location. La Crosse already has a high percent of small business areas in the downtown area. Duluth Trading Company achieves the “homegrown” atmosphere by positioning their location a part of the small business owner area.

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Internet Analysis

Duluth Trading uses the Demandware Commerce Cloud streamlines retail operations from customer attraction to conversion. The unified platform maximizes agility and innovation across all channels, enabling retailers to keep up with continually evolving consumer expectations and deliver seamless experiences to the consumer. Scalable, reliable and secure, the Demandware Commerce Cloud provides a full range of capabilities that leverage a shared view of key retail data such as customers, orders, products and prices, and is powered by a unified promotion and personalization engine

Staff, MCM. “Duluth Trading Company Selects Demandware Ecommerce Platform.” Multichannel Merchant, Multichannel Merchant, 28 Apr. 2016, multichannelmerchant.com/news/duluth-trading-company-selects-demandware-ecommerce-platform/.

“As retailers experience cycles of rapid growth, commerce systems need to scale to meet the demands of the business and the customer,” said Jeffrey Barnett, executive vice president and chief operating officer at Demandware. “The Demandware Commerce Cloud provides retailers with an agile and scalable platform to support rapid growth and expanding product lines. We are thrilled that Duluth Trading has picked Demandware as its ecommerce backbone for the next phase of its growth. Duluth joins an increasing number of large direct-to-consumer retailers who are realizing the advantages of partnering with Demandware to drive superior online customer experiences.”

Strengths • Established• Quality of Product• Experience• Growing business• Advertisements • Publicly Traded

Weaknesses• Product line• Competitors• High Price• Product Demographic Targeting• Not well known brands• Publicly Traded

Opportunities• Store Locations• Market Share• Product Breadth & Depth• New innovative tools/ gear being

created

Threats • Ecommerce (Amazon)• Direct Competitors • Corporate Tax Rates• Warm weather (decrease sales)

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SWOT Analysis

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Works Cited

• Sieben, Lauren. “Is Duluth Trading Company the Ron Swanson of Stores?” Racked, Racked, 15 Mar. 2018, www.racked.com/2018/3/15/17068656/duluth-trading-company.

• Staff, MCM. “Duluth Trading Company Selects Demandware Ecommerce Platform.” Multichannel Merchant, Multichannel Merchant, 28 Apr. 2016, multichannelmerchant.com/news/duluth-trading-company-selects-demandware-ecommerce-platform/.

• https://www.duluthtrading.com/