Same-store sales compare an individual store's sales to its sales ...

[Zoey63294]

Same-store sales compare an individual store's sales to its sales for the same day of the week (e.g., Friday) to that day in the previous two weeks.
 
 Indicate whether the statement is true or false

Question 2

Explain why a retailer may wish to engage in a private label branding strategy.

[bpool94]

Answer to Question 1

F

Answer to Question 2

As retailing continues to change, the increased use of private labels has emerged as a key business asset in developing a differential advantage for retailers. Private labels can set the retailer apart from the competition, get customers into their store or website and bring them back. Today retailers are shifting their emphasis on the development of private-label brands into high gear by using a variety of strategies to build the image of their brands, expand brand recognition, and raise their brand images in the marketplace. Private-label brands often have lower wholesale and marketing costs, resulting in higher levels of profit compared to manufacturers' brands. Retailers must remember that most department store shoppers value a product's style more than the product's brand name.
In the past, retailers believed that national brands drew customers into their stores, set the standard, and lent credibility to the retailers. At the same time, retailers felt private-label brands could help retailers differentiate their offerings, reach customers seeking lower prices, and boost margins due to the lower costs of private-label merchandise. However, over the past decade, many retailers have started focusing on developing strong, proprietary private-label brands as their leading brand and supporting them with major advertising and promotional programs. Private brands are now effectively serving as destination draws in their own right while still providing many of the same benefits of traditional private-label programs. Today, it is not uncommon for major retail chains to generate a third or more of their sales from private labels.