The nearest H & A ; M shop is in Tacoma. Washington. That makes the commute from Olympia about 30 proceedingss. Many people make the trip to Tacoma strictly for the shopping experience. The population in Olympia grew 12. 2 % from 2000 to 2012 and was projected to go on turning. The environing nothing codifications of the Olympia shopping promenade have: $ 50k to $ 75k as the most common annual income
Ages 21 to 34 the largest age group
Which is good because the mark market ages are teens. work forces and adult females 20 to 35. and parents of kids. About 36 % of families in Olympia have kids under 18. whom are all possible shoppers of H & A ; M childs. H & A ; M plans to increase their shop Numberss by 10 % to 15 % annually. and with that they hope to increase gross revenues in “comparable units. ” Since the company is publically denoting that they want to increase the figure or shops. they have the financess and resources necessary to get locations they desire.
There are rivals in the promenade such as Charlotte Russe. Forever 21. and Macy’s that draw traffic for the right consumers shopping in the H & A ; M monetary value point scope. While there are rivals all within a comparatively little shopping promenade. there are non every bit many as in the Tacoma or Southcenter promenades in Washington within an hr of Olympia. where there are H & A ; M shops located. The mean household income is $ 77. 646. 4
The consumer disbursement per family is on mean $ 57. 437 yearly. 2 Olympia has a societal repute of being highly environmentally witting. partly due to Evergreen State College. which aligns with H & A ; M’s promise and dedication to being environmentally friendly in their merchandises and production. doing it a shop that typically the more environmentally witting would avoid due to the stigma of fast mass production. Failings:
The Washington province lower limit pay is higher than in their flagship location in Midtown. New York City. The sensible sum of competition within the promenade has the possible to dominate a new shop. In the nothing codification where the promenade is. where the shop should be located. the largest income per centum is low-income. or less than $ 25k yearly. intending less of a discretional income. 2 There are other shops of the same monetary value point in the Tacoma and Southcenter promenades. and Olympians may still shop at those H & A ; M shops if they already took the trip up to see another shop.
The Olympia promenade is has much less traffic than other locations. so the direction theoretical account would hold to be different. The monetary values are typically higher than at Forever 21. one of the major rivals in the promenade. yet the quality is better at Macy’s. H & A ; M is a middleground-type of shop that needs merely the right client who is willing to pay merely a little more than Everlastingly 21 monetary values for a small higher quality Opportunities:
The continued growing in population means more consumers to pass their discretional income. therefore raising the mean one-year consumer disbursement. The interior decorator coactions provide a agency to get interior decorator trade name goods for less than the designers’ merchandises that are sold elsewhere. The competition being in the same promenade can be an chance to take concern from them. The development of the adjacent metropolis Lacey could pull more clients in. because the Westfield Capital Mall is the chief shopping promenade in Olympia. Lacey. and Tumwater. Menaces:
Competition for gross revenues with the other retail merchants in the promenade has the possible to be bad as good. they either get the sale or they do non. H & A ; M’s dark yesteryear of non being environmentally friendly could discourage many clients from shopping at that place.