“With It” or Without?

Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.003
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Abstract

A fashion brand of junior apparel is owned by two previous buyers of a major retailer. They have been very successful marketing and positioning their fashion brand; it has become a hot status line with high school and college-aged women. Additionally, part of their business philosophy and strategy is to only sell to regular price retailers, never discounting their merchandise or selling to off-price or discount stores. One of their largest clients, a regular-priced department store chain’s buyer, however, has found that the line is being sold at a discount store for a very low price, and may be competing with his business, as well as going against his company’s policy. He contacts his major vendor to discuss the matter. The manufacturer explains that they have to dispose of job lots and closeouts by discounters, but they cut or slash the labels so they can’t be returned to department stores. The buyer is worried about going against policy and the store’s image, and does not want to lose the line, one of his key resources. He tells the fashion brand that he will discuss the problem with his boss, once she returns from Europe, and will get back to them. He hopes that he can keep the line.


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